##### 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, 2005                                               
|           |  | 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


þ o












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TABLE OF CONTENTS



|                                                               |                                                                                                |                                                                 |  |  |  |  |  | 
|-------------------------------------------------------------- | ---------------------------------------------------------------------------------------------- | --------------------------------------------------------------- |  |  |  |  |  | 
|PART I -- FINANCIAL INFORMATION                               
|                                                               | Item 1. Financial Statements.                                                                 
|                                                               |                                                                                                | CONSOLIDATED BALANCE SHEETS                                    
|                                                               |                                                                                                | CONSOLIDATED STATEMENTS OF OPERATIONS                          
|                                                               |                                                                                                | CONSOLIDATED STATEMENTS OF NET COMPREHENSIVE INCOME (Unaudited)
|                                                               |                                                                                                | CONSOLIDATED STATEMENTS OF CASH FLOWS                          
|                                                               |                                                                                                | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                     
|                                                               | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
|                                                               | Item 3. Quantitative and Qualitative Disclosure About Market Risk.                            
|                                                               | Item 4. Controls and Procedures.                                                              
|PART II -- OTHER INFORMATION                                  
|                                                               | Item 1. Legal Proceedings.                                                                    
|                                                               | Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.                          
|                                                               | Item 6. Exhibits.                                                                             
|SIGNATURES                                                    
|EXHIBIT INDEX                                                 
|Schedule of Medium-Term InterNotes                            
|Statement of Computation of Ratio of Earnings to Fixed Charges
|Rule 13a-14(a)/15d-14(a) Certification                        
|Rule 13a-14(a)/15d-14(a) Certification                        
|Section 1350 Certification                                    



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##### Table of Contents






PART I  FINANCIAL INFORMATION







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

EOP OPERATING LIMITED PARTNERSHIP







CONSOLIDATED BALANCE SHEETS


|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |            |            |            |            |            |            | 
|-------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | ------------ | ---------- | ---------- | ---------- | ---------- | ---------- | ---------- | 
|                                                                                                   |                                                                                                                                   | March 31,                                                                                                                                                                       |                                                                                                                                        |                                                                                                         | December 31, |           
|(Dollars in thousands, except per unit amounts)                                                    |                                                                                                                                   | 2005                                                                                                                                                                            |                                                                                                                                        |                                                                                                         | 2004         |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   |                                                                                                                                   | (Unaudited)                                                                                                                                                                     |                                                                                                                                        |                                                                                                         |             
|Assets:                                                                                            |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |            |            |           
|                                                                                                   | Investments in real estate                                                                                                        |                                                                                                                                                                                 | $                                                                                                                                      | 24,685,027                                                                                              |              |            | $          | 24,832,242 |           
|                                                                                                   | Developments in process                                                                                                           |                                                                                                                                                                                 |                                                                                                                                        | 41,440                                                                                                  |              |            |            | 40,492     |           
|                                                                                                   | Land available for development                                                                                                    |                                                                                                                                                                                 |                                                                                                                                        | 248,961                                                                                                 |              |            |            | 252,524    |           
|                                                                                                   | Investments in real estate held for sale, net of accumulated
    depreciation                                                     |                                                                                                                                                                                 |                                                                                                                                        | 106,938                                                                                                 |              |            |            | 162,924    |           
|                                                                                                   | Accumulated depreciation                                                                                                          |                                                                                                                                                                                 |                                                                                                                                        | (3,287,279                                                                                              | )            |            |            | (3,148,006 | )         
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   |                                                                                                                                   | Investments in real estate, net of accumulated depreciation                                                                                                                     |                                                                                                                                        |                                                                                                         | 21,795,087   |            |            |            | 22,140,176 |           
|                                                                                                   | Cash and cash equivalents                                                                                                         |                                                                                                                                                                                 |                                                                                                                                        | 102,298                                                                                                 |              |            |            | 107,126    |           
|                                                                                                   | Tenant and other receivables (net of allowance for doubtful
    accounts of $7,412 and $6,908, respectively)                      |                                                                                                                                                                                 |                                                                                                                                        | 73,913                                                                                                  |              |            |            | 75,775     |           
|                                                                                                   | Deferred rent receivable                                                                                                          |                                                                                                                                                                                 |                                                                                                                                        | 491,771                                                                                                 |              |            |            | 478,184    |           
|                                                                                                   | Escrow deposits and restricted cash                                                                                               |                                                                                                                                                                                 |                                                                                                                                        | 62,704                                                                                                  |              |            |            | 48,784     |           
|                                                                                                   | Investments in unconsolidated joint ventures                                                                                      |                                                                                                                                                                                 |                                                                                                                                        | 1,120,317                                                                                               |              |            |            | 1,117,143  |           
|                                                                                                   | Deferred financing costs (net of accumulated amortization of
    $51,893 and $59,748, respectively)                               |                                                                                                                                                                                 |                                                                                                                                        | 58,339                                                                                                  |              |            |            | 61,734     |           
|                                                                                                   | Deferred leasing costs and other related intangibles (net of
    accumulated amortization of $204,170 and $193,348, respectively) |                                                                                                                                                                                 |                                                                                                                                        | 450,250                                                                                                 |              |            |            | 450,625    |           
|                                                                                                   | Prepaid expenses and other assets                                                                                                 |                                                                                                                                                                                 |                                                                                                                                        | 245,009                                                                                                 |              |            |            | 191,992    |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        | Total Assets                                                                                            |              | $          | 24,399,688 |            |            | $          | 24,671,539 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                  
|Liabilities, Minority Interests, Mandatorily Redeemable
    Preferred Units and Partners Capital: |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                        
|                                                                                                   | Liabilities:                                                                                                                      |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |            |            |            |           
|                                                                                                   |                                                                                                                                   | Mortgage debt (net of (discounts) of $(13,382) and
    $(13,683), respectively)                                                                                                 |                                                                                                                                        | $                                                                                                       | 2,492,225    |            |            | $          | 2,609,067  |           
|                                                                                                   |                                                                                                                                   | Unsecured notes (net of (discounts) of $(64,413) and
    $(38,362), respectively)                                                                                               |                                                                                                                                        |                                                                                                         | 9,115,779    |            |            |            | 9,652,392  |           
|                                                                                                   |                                                                                                                                   | Lines of credit                                                                                                                                                                 |                                                                                                                                        |                                                                                                         | 869,000      |            |            |            | 548,000    |           
|                                                                                                   |                                                                                                                                   | Accounts payable and accrued expenses                                                                                                                                           |                                                                                                                                        |                                                                                                         | 441,964      |            |            |            | 556,851    |           
|                                                                                                   |                                                                                                                                   | Distribution payable                                                                                                                                                            |                                                                                                                                        |                                                                                                         | 229,387      |            |            |            | 2,652      |           
|                                                                                                   |                                                                                                                                   | Other liabilities (net of (discounts) of $(27,802) and
    $(28,536), respectively)                                                                                             |                                                                                                                                        |                                                                                                         | 511,562      |            |            |            | 484,378    |           
|                                                                                                   |                                                                                                                                   | Commitments and contingencies                                                                                                                                                   |                                                                                                                                        |                                                                                                         |             |            |            |            |           |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        | Total Liabilities                                                                                       |              |            | 13,659,917 |            |            |            | 13,853,340 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   | Minority interests  partially owned properties                                                                                   |                                                                                                                                                                                 |                                                                                                                                        | 176,416                                                                                                 |              |            |            | 182,041    |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   | Mandatorily Redeemable Preferred Units:                                                                                           |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |            |            |            |           
|                                                                                                   |                                                                                                                                   | 5.25% Series B Convertible, Cumulative Redeemable Preferred
    Units, liquidation preference $50.00 per unit, 5,989,930
    and 5,990,000 issued and outstanding, respectively |                                                                                                                                        |                                                                                                         | 299,497      |            |            |            | 299,500    |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   | 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                                                                                                                |                                                                                                         |              | 76,192     |            |            |            | 76,973     |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 | Limited Partners Capital                                                                                                              |                                                                                                         |              | 10,037,833 |            |            |            | 10,112,024 |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 | Deferred compensation                                                                                                                  |                                                                                                         |              | (1,408     | )          |            |            | (1,916     | )         
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 | Accumulated other comprehensive loss (net of accumulated
    amortization of $6,837 and $5,133, respectively)                          |                                                                                                         |              | (61,259    | )          |            |            | (62,923    | )         
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        | Total Partners Capital                                                                                 |              |            | 10,263,858 |            |            |            | 10,336,658 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        | Total Liabilities, Minority Interests, Mandatorily Redeemable
    Preferred Units and Partners Capital |              | $          | 24,399,688 |            |            | $          | 24,671,539 | 
|                                                                                                   |                                                                                                                                   |                                                                                                                                                                                 |                                                                                                                                        |                                                                                                         |              |           



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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)                                                                                               |                                                                 | 2005                                                             |                              |             | 2004     |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Revenues:                                                                                                                                     |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                              | Rental                                                          |                                                                  | $                            | 632,988     |          |          | $       | 620,282     |         
|                                                                                                                                              | Tenant reimbursements                                           |                                                                  |                              | 99,496      |          |          |         | 100,580     |         
|                                                                                                                                              | Parking                                                         |                                                                  |                              | 29,560      |          |          |         | 28,642      |         
|                                                                                                                                              | Other                                                           |                                                                  |                              | 58,935      |          |          |         | 25,239      |         
|                                                                                                                                              | Fee income                                                      |                                                                  |                              | 4,777       |          |          |         | 3,060       |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              |                                                                 | Total revenues                                                   |                              |             | 825,756  |          |         |             | 777,803  |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Expenses:                                                                                                                                     |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                              | Depreciation                                                    |                                                                  |                              | 175,831     |          |          |         | 164,333     |         
|                                                                                                                                              | Amortization                                                    |                                                                  |                              | 23,243      |          |          |         | 17,217      |         
|                                                                                                                                              | Real estate taxes                                               |                                                                  |                              | 91,710      |          |          |         | 81,341      |         
|                                                                                                                                              | Insurance                                                       |                                                                  |                              | 7,693       |          |          |         | 9,611       |         
|                                                                                                                                              | Repairs and maintenance                                         |                                                                  |                              | 79,411      |          |          |         | 77,518      |         
|                                                                                                                                              | Property operating                                              |                                                                  |                              | 107,756     |          |          |         | 104,408     |         
|                                                                                                                                              | Ground rent                                                     |                                                                  |                              | 6,380       |          |          |         | 6,209       |         
|                                                                                                                                              | Corporate general and administrative                            |                                                                  |                              | 17,173      |          |          |         | 11,309      |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              |                                                                 | Total expenses                                                   |                              |             | 509,197  |          |         |             | 471,946  |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              |                                                                 | Operating income                                                 |                              |             | 316,559  |          |         |             | 305,857  |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Other income (expense):                                                                                                                       |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                              | Interest and dividend income                                    |                                                                  |                              | 3,233       |          |          |         | 1,321       |         
|                                                                                                                                              | Interest:                                                       |                                                                  |                              |             |          |          |         |             |         
|                                                                                                                                              |                                                                 | Expense incurred                                                 |                              |             | (212,772 | )        |         |             | (205,145 | )       
|                                                                                                                                              |                                                                 | Amortization of deferred financing costs and prepayment expenses |                              |             | (2,800   | )        |         |             | (2,171   | )       
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              |                                                                 |                                                                  | Total other income (expense) |             |          | (212,339 | )       |             |          | (205,995 | )
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Income before income taxes, allocation to minority interests and
    income from investments in unconsolidated joint ventures                 |                                                                 |                                                                  | 104,220                      |             |          |          | 99,862  |            
|Income taxes                                                                                                                                  |                                                                 |                                                                  | (474                         | )           |          |          | 263     |            
|Minority interests  partially owned properties                                                                                               |                                                                 |                                                                  | (3,470                       | )           |          |          | (3,113  | )          
|Income from investments in unconsolidated joint ventures                                                                                      |                                                                 |                                                                  | 9,518                        |             |          |          | 12,413  |            
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Income from continuing operations                                                                                                             |                                                                 |                                                                  | 109,794                      |             |          |          | 109,425 |            
|Discontinued operations (including net gain on sales of real
    estate and properties held for sale of $10,707 and $2,195,
    respectively) |                                                                 |                                                                  | 11,531                       |             |          |          | 10,260  |            
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Income before cumulative effect of a change in accounting
    principle                                                                       |                                                                 |                                                                  | 121,325                      |             |          |          | 119,685 |            
|Cumulative effect of a change in accounting principle                                                                                         |                                                                 |                                                                  |                             |             |          |          | (33,697 | )          
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Net income                                                                                                                                    |                                                                 |                                                                  | 121,325                      |             |          |          | 85,988  |            
|Preferred distributions                                                                                                                       |                                                                 |                                                                  | (8,701                       | )           |          |          | (12,748 | )          
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Net income available to unitholders                                                                                                           |                                                                 | $                                                                | 112,624                      |             |          | $        | 73,240  |            
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Earnings per unit  basic:                                                                                                                    |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                              | Income from continuing operations per unit                      |                                                                  | $                            | 0.22        |          |          | $       | 0.22        |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              | Net income available to unitholders per unit                    |                                                                  | $                            | 0.25        |          |          | $       | 0.16        |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              | Weighted average Units outstanding                              |                                                                  |                              | 449,991,140 |          |          |         | 448,652,065 |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Earnings per unit  diluted:                                                                                                                  |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                              | Income from continuing operations per unit                      |                                                                  | $                            | 0.22        |          |          | $       | 0.21        |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              | Net income available to unitholders per unit                    |                                                                  | $                            | 0.25        |          |          | $       | 0.16        |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              | Weighted average Units outstanding and dilutive potential units |                                                                  |                              | 452,400,294 |          |          |         | 451,142,921 |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Distributions declared per Unit outstanding                                                                                                   |                                                                 | $                                                                | 0.50                         |             |          | $        | 0.50    |            
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|Allocation of net income available to unitholders:                                                                                            |                                                                 |                                                                  |                              |             |          |          |         |            
|                                                                                                                                              | General Partner                                                 |                                                                  | $                            | 1,125       |          |          | $       | 732         |         
|                                                                                                                                              | Limited Partners                                                |                                                                  |                              | 111,499     |          |          |         | 72,508      |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         
|                                                                                                                                              | Net income available to unitholders                             |                                                                  | $                            | 112,624     |          |          | $       | 73,240      |         
|                                                                                                                                              |                                                                 |                                                                  |                              |             |          |         



3



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP







CONSOLIDATED STATEMENTS OF NET COMPREHENSIVE INCOME


(Unaudited)


|                                   |                                                                                                                                |                      |         |       |      |   |        |         |  
|---------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | -------------------- | ------- | ----- | ---- | - | ------ | ------- | -
|                                   |                                                                                                                                | For the three months |        
|                                   |                                                                                                                                | March 31,            |        
|                                   |                                                                                                                                |                      |        
|(Dollars in thousands)             |                                                                                                                                | 2005                 |         |       | 2004 |  
|                                   |                                                                                                                                |                      |         |       |      |  
|Net income                         |                                                                                                                                | $                    | 121,325 |       |      | $ | 85,988 |        
|Other comprehensive (loss) income: |                                                                                                                                |                      |         |       |      |   |        |        
|                                   | Unrealized holding (losses) on $1.3 billion notional amount
    forward starting interest rate swaps                           |                      |         |      |      |   |        | (70,197 | )
|                                   | Reversal of unrealized holding loss on settlement of
    $800 million notional amount forward starting interest rate
    swaps |                      |         |      |      |   |        | 69,130  |  
|                                   | (Payments) in settlement of $800 million notional amount
    forward starting interest rate swaps                              |                      |         |      |      |   |        | (69,130 | )
|                                   | Reclassification of ineffective portion of swap settlement
    payment to net income                                           |                      |         |      |      |   |        | 212     |  
|                                   | Amortization of net payments in settlement of forward starting
    interest rate swaps                                         |                      |         | 1,704 |      |   |        | 96      |  
|                                   | Unrealized holding (losses) gains from investments arising
    during the year                                                 |                      |         | (40   | )    |   |        | 136     |  
|                                   |                                                                                                                                |                      |         |       |      |  
|Net comprehensive income           |                                                                                                                                | $                    | 122,989 |       |      | $ | 16,235 |        
|                                   |                                                                                                                                |                      |         |       |      |  



4



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP







CONSOLIDATED STATEMENTS OF CASH FLOWS


(Unaudited)


|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |         |         |            |          |          |         | 
|---------------------- | ------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | -------------------------------------------------------- | ----------------------------------------- | -------- | ------- | ------- | ---------- | -------- | -------- | ------- | 
|                       |                                                                                       | For the three months ended                                                                       |                                                         
|                       |                                                                                       | March 31,                                                                                        |                                                         
|                       |                                                                                       |                                                                                                  |                                                         
|(Dollars in thousands) |                                                                                       | 2005                                                                                             |                                                          |                                           | 2004     |        
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|Operating Activities:  |                                                                                       |                                                                                                  |                                                          |                                           |          |         |         |           
|                       | Net income                                                                            |                                                                                                  | $                                                        | 121,325                                   |          |         | $       | 85,988     |         
|                       | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                                  |                                                          |                                           |          |         |         |            |         
|                       |                                                                                       | Depreciation and amortization (including discontinued operations)                                |                                                          |                                           | 206,436  |         |         |            | 187,959  |         
|                       |                                                                                       | Ineffective portion of swap settlement payment included in
    interest expense                  |                                                          |                                           |         |         |         |            | 212      |         
|                       |                                                                                       | Compensation expense related to restricted shares and stock
    options                          |                                                          |                                           | 7,405    |         |         |            | 5,433    |         
|                       |                                                                                       | Prepayment penalty on early extinguishment of debt in connection
    with a property disposition |                                                          |                                           | 448      |         |         |            |         |         
|                       |                                                                                       | Income from investments in unconsolidated joint ventures                                         |                                                          |                                           | (9,518   | )       |         |            | (12,413  | )       
|                       |                                                                                       | Net distributions from unconsolidated joint ventures                                             |                                                          |                                           | 6,104    |         |         |            | 8,049    |         
|                       |                                                                                       | Net (gain) on sales of real estate                                                               |                                                          |                                           | (24,245  | )       |         |            | (2,195   | )       
|                       |                                                                                       | Provision for loss on properties held for sale                                                   |                                                          |                                           | 13,538   |         |         |            |         |         
|                       |                                                                                       | Cumulative effect of a change in accounting principle                                            |                                                          |                                           |         |         |         |            | 33,697   |         
|                       |                                                                                       | Provision for doubtful accounts                                                                  |                                                          |                                           | 2,415    |         |         |            | (804     | )       
|                       |                                                                                       | Income allocated to minority interests (including discontinued
    operations)                   |                                                          |                                           | 3,481    |         |         |            | 3,216    |         
|                       |                                                                                       | Changes in assets and liabilities:                                                               |                                                          |                                           |          |         |         |            |          |         
|                       |                                                                                       |                                                                                                  | Decrease (increase) in rent receivable                   |                                           |          | 165     |         |            |          | (39      | )      
|                       |                                                                                       |                                                                                                  | (Increase) in deferred rent receivable                   |                                           |          | (17,482 | )       |            |          | (28,461  | )      
|                       |                                                                                       |                                                                                                  | (Increase) decrease in prepaid expenses and other assets |                                           |          | (40,704 | )       |            |          | 57,603   |        
|                       |                                                                                       |                                                                                                  | (Decrease) in accounts payable and accrued expenses      |                                           |          | (93,022 | )       |            |          | (116,119 | )      
|                       |                                                                                       |                                                                                                  | (Decrease) increase in other liabilities                 |                                           |          | (7,171  | )       |            |          | 1,597    |        
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|                       |                                                                                       |                                                                                                  |                                                          | Net cash provided by operating activities |          |         | 169,175 |            |          |          | 223,723 | 
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|Investing Activities:  |                                                                                       |                                                                                                  |                                                          |                                           |          |         |         |           
|                       | Property acquisitions                                                                 |                                                                                                  |                                                          | (67,199                                   | )        |         |         | (62,777    | )       
|                       | Property dispositions                                                                 |                                                                                                  |                                                          | 137,109                                   |          |         |         | 18,189     |         
|                       | Capital and tenant improvements                                                       |                                                                                                  |                                                          | (76,406                                   | )        |         |         | (121,389   | )       
|                       | Lease commissions and other costs                                                     |                                                                                                  |                                                          | (24,369                                   | )        |         |         | (31,824    | )       
|                       | Decrease in escrow deposits and restricted cash                                       |                                                                                                  |                                                          | 129,425                                   |          |         |         | 32,067     |         
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|                       |                                                                                       | Net cash provided by (used for) investing activities                                             |                                                          |                                           | 98,560   |         |         |            | (165,734 | )       
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|Financing Activities:  |                                                                                       |                                                                                                  |                                                          |                                           |          |         |         |           
|                       | Principal payments on mortgage debt                                                   |                                                                                                  |                                                          | (103,757                                  | )        |         |         | (172,289   | )       
|                       | Proceeds from unsecured notes                                                         |                                                                                                  |                                                          | 14,344                                    |          |         |         | 991,240    |         
|                       | Repayment of unsecured notes                                                          |                                                                                                  |                                                          | (525,000                                  | )        |         |         | (400,000   | )       
|                       | Proceeds from lines of credit                                                         |                                                                                                  |                                                          | 2,123,000                                 |          |         |         | 1,448,600  |         
|                       | Repayment of lines of credit                                                          |                                                                                                  |                                                          | (1,802,000                                | )        |         |         | (1,776,800 | )       
|                       | Payments of loan costs and offering costs                                             |                                                                                                  |                                                          | (65                                       | )        |         |         | (1,325     | )       
|                       | Settlement of interest rate swap agreements                                           |                                                                                                  |                                                          |                                          |          |         |         | (69,130    | )       
|                       | Distributions to minority interests in partially owned properties                     |                                                                                                  |                                                          | (5,702                                    | )        |         |         | (2,104     | )       
|                       | Proceeds from exercise of stock options                                               |                                                                                                  |                                                          | 43,260                                    |          |         |         | 39,056     |         
|                       | Distributions to unitholders                                                          |                                                                                                  |                                                          |                                          |          |         |         | (836       | )       
|                       | Repurchase of Units through Equity Offices common share
    repurchase program       |                                                                                                  |                                                          | (2,729                                    | )        |         |         | (3,775     | )       
|                       | Redemption of Units                                                                   |                                                                                                  |                                                          | (5,866                                    | )        |         |         | (795       | )       
|                       | Repurchase of preferred units                                                         |                                                                                                  |                                                          |                                          |          |         |         | (114,073   | )       
|                       | Payment of preferred distributions                                                    |                                                                                                  |                                                          | (8,048                                    | )        |         |         | (8,622     | )       
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|                       |                                                                                       | Net cash (used for) financing activities                                                         |                                                          |                                           | (272,563 | )       |         |            | (70,853  | )       
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|                       | Net (decrease) in cash and cash equivalents                                           |                                                                                                  |                                                          | (4,828                                    | )        |         |         | (12,864    | )       
|                       | Cash and cash equivalents at the beginning of the period                              |                                                                                                  |                                                          | 107,126                                   |          |         |         | 69,398     |         
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        
|                       | Cash and cash equivalents at the end of the period                                    |                                                                                                  | $                                                        | 102,298                                   |          |         | $       | 56,534     |         
|                       |                                                                                       |                                                                                                  |                                                          |                                           |          |        





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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)                       |                                                                                                                                            | 2005                                                                                                                                          |                                                         |         | 2004     |  
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|Supplemental Information:                    |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |   |   |        
|                                             | Interest paid during the period, including a reduction of
    interest expense for capitalized interest of $0 and $2,030,
    respectively |                                                                                                                                               | $                                                       | 270,420 |          |   | $ | 248,485 |       
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|Non-Cash Investing and Financing Activities: |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |   |   |        
|                                             | Investing Activities:                                                                                                                      |                                                                                                                                               |                                                         |         |          |   |   |         |       
|                                             |                                                                                                                                            | Escrow deposits related to property dispositions                                                                                              |                                                         | $       | (141,513 | ) |   | $       |       |         
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            | Mortgage loan repayment as a result of a property disposition                                                                                 |                                                         | $       | (13,386  | ) |   | $       |       |         
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            | Mortgage loan assumed upon acquisition of property                                                                                            |                                                         | $       |         |   |   | $       | 82,970 |         
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            | Changes in accounts due to consolidation of existing interest in
    a property as a result of acquiring the remaining economic
    interest: |                                                         |         |          |   |   |         |        |         
|                                             |                                                                                                                                            |                                                                                                                                               | Decrease in investment in unconsolidated joint ventures |         | $        |  |   |         | $      | (157,659 | )
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            |                                                                                                                                               | Increase in investment in real estate                   |         | $        |  |   |         | $      | 612,411  |  
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            |                                                                                                                                               | Increase in accumulated depreciation                    |         | $        |  |   |         | $      | (44,440  | )
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            |                                                                                                                                               | Increase in mortgage debt                               |         | $        |  |   |         | $      | (451,285 | )
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             |                                                                                                                                            |                                                                                                                                               | Increase in other assets and liabilities                |         | $        |  |   |         | $      | 40,973   |  
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  
|                                             | Financing Activities:                                                                                                                      |                                                                                                                                               |                                                         |         |          |   |   |         |       
|                                             |                                                                                                                                            | Mortgage loan repayment as a result of a property disposition                                                                                 |                                                         | $       | 13,386   |   |   | $       |       |         
|                                             |                                                                                                                                            |                                                                                                                                               |                                                         |         |          |  





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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP







NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)






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





|                              |       |           |     |                        |             |  |                            |             |  |  |             |             |  |             |            |             |  |  |            |            | 
|----------------------------- | ----- | --------- | --- | ---------------------- | ----------- |  | -------------------------- | ----------- |  |  | ----------- | ----------- |  | ----------- | ---------- | ----------- |  |  | ---------- | ---------- | 
|                              |       |           |     | Total Office Portfolio |             |  | Effective Office Portfolio |            
|                              |       |           |     |                        |             |  |                            |            
|                              |       | Number of |     |                        |             |  | Occupied                   |             |  |  |             | Occupied    | 
|                              |       | Buildings |     |                        | Square Feet |  |                            | Square Feet |  |  | Square Feet |             |  | Square Feet |           
|                              |       |           |     |                        |             |  |                            |             |  |  |             |             |  |             |           
|Wholly-owned Properties       |       |           | 619 |                        |             |  | 96,144,108                 |             |  |  | 83,338,292  |             |  |             | 96,144,108 |             |  |  | 83,338,292 |           
|Consolidated Joint Ventures   |       |           | 27  |                        |             |  | 12,924,271                 |             |  |  | 12,258,700  |             |  |             | 11,720,355 |             |  |  | 11,139,536 |           
|Unconsolidated Joint Ventures |       |           | 42  |                        |             |  | 15,423,890                 |             |  |  | 13,496,983  |             |  |             | 6,224,733  |             |  |  | 5,329,646  |           
|                              |       |           |     |                        |             |  |                            |             |  |  |             |             |  |             |           
|                              | Total |           |     | 688                    |             |  |                            | 124,492,269 |  |  |             | 109,093,975 |  |             |            | 114,089,196 |  |  |            | 99,807,474 | 
|                              |       |           |     |                        |             |  |                            |             |  |  |             |             |  |             |           
|Weighted Average Occupancy    |       |           |     |                        |             |  |                            |             |  |  | 87.6        | %           |  |             |            |             |  |  | 87.5       | %         
|                              |       |           |     |                        |             |  |                            |             |  |  |             |             |  |             |           
|Weighted Average Leased       |       |           |     |                        |             |  |                            |             |  |  | 89.4        | %           |  |             |            |             |  |  | 89.2       | %         
|                              |       |           |     |                        |             |  |                            |             |  |  |             |             |  |             |           



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



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



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)


Consolidation of Variable Interest
Entities,


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




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





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





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





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

Accounting for
Stock Based Compensation


8



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




|                                                                                                               |                                                         |                    |         |      |      |   |        |      | 
|-------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ------------------ | ------- | ---- | ---- | - | ------ | ---- | 
|                                                                                                               |                                                         | For the            |        
|                                                                                                               |                                                         | three months ended |        
|                                                                                                               |                                                         | March 31,          |        
|                                                                                                               |                                                         |                    |        
|(Dollars in thousands, except per unit amounts)                                                                |                                                         | 2005               |         |      | 2004 |  
|                                                                                                               |                                                         |                    |         |      |      |  
|Historical net income available to unitholders                                                                 |                                                         | $                  | 112,624 |      |      | $ | 73,240 |     
|Add back compensation expense for share options included in
    historical net income available to unitholders |                                                         |                    | 1,627   |      |      |   | 1,605  |     
|Deduct compensation expense for share options determined under
    fair value based method                     |                                                         |                    | (2,107  | )    |      |   | (2,894 | )   
|                                                                                                               |                                                         |                    |         |      |      |  
|Pro forma net income available to unitholders                                                                  |                                                         | $                  | 112,144 |      |      | $ | 71,951 |     
|                                                                                                               |                                                         |                    |         |      |      |  
|Earnings per unit  basic:                                                                                     |                                                         |                    |         |      |      |   |        |     
|                                                                                                               | Historical net income available to unitholders per unit |                    | $       | 0.25 |      |   | $      | 0.16 | 
|                                                                                                               |                                                         |                    |         |      |      |  
|                                                                                                               | Pro forma net income available to unitholders per unit  |                    | $       | 0.25 |      |   | $      | 0.16 | 
|                                                                                                               |                                                         |                    |         |      |      |  
|Earnings per unit  diluted:                                                                                   |                                                         |                    |         |      |      |   |        |     
|                                                                                                               | Historical net income available to unitholders per unit |                    | $       | 0.25 |      |   | $      | 0.16 | 
|                                                                                                               |                                                         |                    |         |      |      |  
|                                                                                                               | Pro forma net income available to unitholders per unit  |                    | $       | 0.25 |      |   | $      | 0.16 | 
|                                                                                                               |                                                         |                    |         |      |      |  

Share-Based
Payment




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



|                   |                                   |          |               |             |  |            |           |  |  |                        |   |  |                |         |         |  |   |        |        | 
|------------------ | --------------------------------- | -------- | ------------- | ----------- |  | ---------- | --------- |  |  | ---------------------- | - |  | -------------- | ------- | ------- |  | - | ------ | ------ | 
|                   |                                   |          |               | Acquisition |  |            | Number of |  |  |                        |   | 
|Property           |                                   | Location |               | Date        |  |            | Buildings |  |  | Square Feet            |   |  | Purchase Price |        
|                   |                                   |          |               |             |  |            |           |  |  |                        |   |  |                |        
|                   |                                   |          |               |             |  |            |           |  |  | (Dollars in thousands) |  
|Office properties: |                                   |          |               |             |  |            |           |  |  |                        |   |  |                |         |         |  |   |       
|                   | Summit at Douglas Ridge  Phase I |          | Roseville, CA |             |  | 01/21/2005 |           |  |  | 1                      |   |  |                | 92,941  |         |  | $ | 25,000 |       
|                   | Park 22                           |          | Austin, TX    |             |  | 03/22/2005 |           |  |  | 3                      |   |  |                | 203,716 |         |  |   | 35,650 |       
|Vacant land:       |                                   |          |               |             |  |            |           |  |  |                        |   |  |                |         |         |  |   |       
|                   | Two Main Place                    |          | Portland, OR  |             |  | 03/14/2005 |           |  |  |                       |   |  |                |        |         |  |   | 7,600  |       
|                   |                                   |          |               |             |  |            |           |  |  |                        |   |  |                |        
|                   |                                   | Total    |               |             |  |            |           |  |  |                        | 4 |  |                |         | 296,657 |  |   | $      | 68,250 | 
|                   |                                   |          |               |             |  |            |           |  |  |                        |   |  |                |        

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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




|         |                        
|-------- | -----------------------
|NOTE 4  | DISCONTINUED OPERATIONS



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



|                                                                                                                                                    |       |                           |  |             |            |  |           |  |   |                        |  |  |             |           |  |   |         |         | 
|--------------------------------------------------------------------------------------------------------------------------------------------------- | ----- | ------------------------- |  | ----------- | ---------- |  | --------- |  | - | ---------------------- |  |  | ----------- | --------- |  | - | ------- | ------- | 
|                                                                                                                                                    |       |                           |  | Disposition |            |  | Number of |  |   |                        |  | 
|Property                                                                                                                                            |       | Location                  |  | Date        |            |  | Buildings |  |   | Square Feet            |  |  | Sales Price |          
|                                                                                                                                                    |       |                           |  |             |            |  |           |  |   |                        |  |  |             |          
|                                                                                                                                                    |       |                           |  |             |            |  |           |  |   | (Dollars in thousands) | 
|Northland Plaza(a)                                                                                                                                  |       | Bloomington, MN           |  |             | 01/04/2005 |  |           |  | 1 |                        |  |  | 296,967     |           |  | $ | 43,000  |        
|Meier Central North  Buildings 13 and 14(b)                                                                                                        |       | Santa Clara, CA           |  |             | 01/20/2005 |  |           |  |  |                        |  |  |            |           |  |   | 1,986   |        
|Waters Edge(c)                                                                                                                                     |       | Playa Vista, CA           |  |             | 02/01/2005 |  |           |  | 2 |                        |  |  | 243,433     |           |  |   | 85,500  |        
|One Devon Square, Two Devon Square and Three Devon Square                                                                                           |       | Wayne, PA                 |  |             | 02/11/2005 |  |           |  | 3 |                        |  |  | 142,493     |           |  |   | 23,000  |        
|Meier Central South  Building 12(b)                                                                                                                |       | Santa Clara, CA           |  |             | 02/22/2005 |  |           |  |  |                        |  |  |            |           |  |   | 2,867   |        
|One Valley Square, Two Valley Square, Three Valley Square, Four
    and Five Valley Square, Oak Hill Plaza, Walnut Hill Plaza and
    Four Falls(d) |       | Suburban Philadelphia, PA |  |             | 03/02/2005 |  |           |  | 8 |                        |  |  | 863,124     |           |  |   | 136,000 |        
|Oak Creek I(b)                                                                                                                                      |       | Milpitas, CA              |  |             | 03/15/2005 |  |           |  |  |                        |  |  |            |           |  |   | 2,850   |        
|Meier Central North  Building 15(b)                                                                                                                |       | Santa Clara, CA           |  |             | 03/24/2005 |  |           |  |  |                        |  |  |            |           |  |   | 2,350   |        
|                                                                                                                                                    |       |                           |  |             |            |  |           |  |   |                        |  |  |             |          
|                                                                                                                                                    | Total |                           |  |             |            |  |           |  |   | 14                     |  |  |             | 1,546,017 |  |   | $       | 297,553 | 
|                                                                                                                                                    |       |                           |  |             |            |  |           |  |   |                        |  |  |             |          




|    |  |                                                                                                                                                                                                                                          
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | This property was classified as held for sale at
    December 31, 2004 and written down to its estimated fair
    value less costs to sell, which approximated the fair value at
    the time of sale.                                   
|   
|(b) |  | These properties, which consisted of five office buildings
    comprising 108,676 square feet, were taken out of service
    during the fourth quarter of 2004 and were no longer included in
    building and square footage statistics.
|   
|(c) |  | We disposed of our 87.5% interest in this property.                                                                                                                                                                                      
|   
|(d) |  | In connection with the sale of the Walnut Hill Plaza office
    property, we repaid approximately $13.4 million of mortgage
    debt that encumbered the property.                                                                       



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




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



|                                        |       |                 |  |           |   |    |             |  |         |           | 
|--------------------------------------- | ----- | --------------- |  | --------- | - | -- | ----------- |  | ------- | --------- | 
|                                        |       |                 |  | Number of |   |    |            
|Property                                |       | Location        |  | Buildings |   |    | Square Feet | 
|                                        |       |                 |  |           |   |    |             | 
|545 E. John Carpenter Freeway(e)        |       | Irving, TX      |  |           | 1 |    |             |  | 369,134 |          
|909 Lake Carolyn Parkway(e)             |       | Irving, TX      |  |           | 1 |    |             |  | 360,815 |          
|70-76 Perimeter(e)                      |       | Atlanta, GA     |  |           | 4 |    |             |  | 62,102  |          
|LL&E Tower(e)(f)                        |       | New Orleans, LA |  |           | 1 |    |             |  | 545,157 |          
|Meier Central South  Building 11(e)(f) |       | Santa Clara, CA |  |           | 1 |    |             |  | 33,672  |          
|Preston Commons(g)                      |       | Dallas, TX      |  |           | 3 |    |             |  | 418,604 |          
|Sterling Plaza(g)                       |       | Dallas, TX      |  |           | 1 |    |             |  | 302,747 |          
|                                        |       |                 |  |           |   |    |             | 
|                                        | Total |                 |  |           |   | 12 |             |  |         | 2,092,231 | 
|                                        |       |                 |  |           |   |    |             | 




|    |  |                                                                                                                                                                                                                                                                                                  
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(e) |  | These properties were subsequently sold.                                                                                                                                                                                                                                                         
|   
|(f) |  | We recognized a provision for loss of approximately
    $13.5 million during the three months ended March 31,
    2005 to write-down the carrying value of these properties to
    their fair value less costs to sell (determined based on the
    sales price and estimated transaction costs).
|   
|(g) |  | We own a 50% interest in these properties, which we account for
    under the equity method.                                                                                                                                                                                                     

11



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




|                                                                                                                                                             |                                                                                           |                              |                |                  |      |       |        |       |      |        |       | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------- | ---------------------------- | -------------- | ---------------- | ---- | ----- | ------ | ----- | ---- | ------ | ----- | 
|                                                                                                                                                             |                                                                                           | For the                      |               
|                                                                                                                                                             |                                                                                           | three months ended           |               
|                                                                                                                                                             |                                                                                           | March 31,                    |               
|                                                                                                                                                             |                                                                                           |                              |               
|(Dollars in thousands)                                                                                                                                       |                                                                                           | 2005                         |                |                  | 2004 |      
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|Property operating revenues                                                                                                                                  |                                                                                           | $                            | 8,522          |                  |      | $     | 24,396 |      
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|Expenses:                                                                                                                                                    |                                                                                           |                              |                |                  |      |       |        |      
|                                                                                                                                                             | Depreciation and amortization                                                             |                              |                | 2,830            |      |       |        | 6,662 |     
|                                                                                                                                                             | Property operating                                                                        |                              |                | 4,221            |      |       |        | 9,165 |     
|                                                                                                                                                             | Ground rent                                                                               |                              |                | 10               |      |       |        | 16    |     
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|                                                                                                                                                             |                                                                                           |                              | Total expenses |                  |      | 7,061 |        |       |      | 15,843 |      
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|                                                                                                                                                             |                                                                                           |                              |                | Operating income |      |       | 1,461  |       |      |        | 8,553 | 
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|Other income (expense):                                                                                                                                      |                                                                                           |                              |                |                  |      |       |        |      
|                                                                                                                                                             | Interest and dividend income                                                              |                              |                | 2                |      |       |        | 2     |     
|                                                                                                                                                             | Interest expense and amortization of deferred financing costs
    and prepayment expenses |                              |                | (608             | )    |       |        | (393  | )   
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|                                                                                                                                                             |                                                                                           | Total other income (expense) |                |                  | (606 | )     |        |       | (391 | )     
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|Income before income taxes, allocations to minority interests,
    net gain on sales of real estate and provision for (loss) on
    properties held for sale |                                                                                           |                              | 855            |                  |      |       | 8,162  |      
|Income taxes                                                                                                                                                 |                                                                                           |                              | (20            | )                |      |       | 6      |      
|Income allocated to minority interests  partially
    owned properties                                                                                      |                                                                                           |                              | (11            | )                |      |       | (103   | )    
|Net gain on sales of real estate                                                                                                                             |                                                                                           |                              | 24,245         |                  |      |       | 2,195  |      
|Provision for (loss) on properties held for sale                                                                                                             |                                                                                           |                              | (13,538        | )                |      |       |       |      
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|Net income                                                                                                                                                   |                                                                                           | $                            | 11,531         |                  |      | $     | 10,260 |      
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      
|Property net operating income from discontinued operations                                                                                                   |                                                                                           | $                            | 4,301          |                  |      | $     | 15,231 |      
|                                                                                                                                                             |                                                                                           |                              |                |                  |      |      

12



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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




|                                                                                                                                                                  |                                                         |                                                              |           |           |              |   |           |           |           | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ------------------------------------------------------------ | --------- | --------- | ------------ | - | --------- | --------- | --------- | 
|                                                                                                                                                                  |                                                         | March 31,                                                    |           |           | December 31, |  
|(Dollars in thousands)                                                                                                                                            |                                                         | 2005                                                         |           |           | 2004         |  
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|Balance Sheets:                                                                                                                                                   |                                                         |                                                              |           |           |              |   |           |          
|                                                                                                                                                                  | Assets:                                                 |                                                              |           |           |              |   |           |           |          
|                                                                                                                                                                  | Real estate, net of accumulated depreciation            |                                                              | $         | 3,056,106 |              |   | $         | 3,068,975 |          
|                                                                                                                                                                  | Other assets                                            |                                                              |           | 336,703   |              |   |           | 343,075   |          
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|                                                                                                                                                                  |                                                         | Total Assets                                                 |           | $         | 3,392,809    |   |           | $         | 3,412,050 | 
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|                                                                                                                                                                  | Liabilities and Partners and Shareholders
    Equity: |                                                              |           |           |              |   |           |           |          
|                                                                                                                                                                  | Mortgage debt                                           |                                                              | $         | 930,696   |              |   | $         | 931,976   |          
|                                                                                                                                                                  | Other liabilities                                       |                                                              |           | 127,154   |              |   |           | 138,010   |          
|                                                                                                                                                                  | Partners and shareholders equity                      |                                                              |           | 2,334,959 |              |   |           | 2,342,064 |          
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|                                                                                                                                                                  |                                                         | Total Liabilities and Partners and Shareholders
    Equity |           | $         | 3,392,809    |   |           | $         | 3,412,050 | 
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|Our share of historical partners and shareholders
    equity                                                                                                    |                                                         | $                                                            | 1,035,944 |           |              | $ | 1,032,664 |          
|Net excess of cost of investments over the net book value of
    underlying net assets (net of accumulated depreciation of
    $22,810 and $22,797, respectively) |                                                         |                                                              | 84,373    |           |              |   | 84,479    |          
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|Carrying value of investments in unconsolidated joint ventures                                                                                                    |                                                         | $                                                            | 1,120,317 |           |              | $ | 1,117,143 |          
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  
|Our share of unconsolidated non-recourse mortgage debt                                                                                                            |                                                         | $                                                            | 360,378   |           |              | $ | 361,032   |          
|                                                                                                                                                                  |                                                         |                                                              |           |           |              |  

|                          |                                                     |                                             |                |         |        |         |   |         |        |        | 
|------------------------- | --------------------------------------------------- | ------------------------------------------- | -------------- | ------- | ------ | ------- | - | ------- | ------ | ------ | 
|                          |                                                     | For the                                     |               
|                          |                                                     | three months ended                          |               
|                          |                                                     | March 31,                                   |               
|                          |                                                     |                                             |               
|(Dollars in thousands)    |                                                     | 2005                                        |                |         | 2004   |        
|                          |                                                     |                                             |                |         |        |        
|Statements of Operations: |                                                     |                                             |                |         |        |         |   |        
|                          | Revenues                                            |                                             | $              | 124,320 |        |         | $ | 117,041 |       
|                          |                                                     |                                             |                |         |        |        
|                          | Expenses:                                           |                                             |                |         |        |         |   |         |       
|                          |                                                     | Interest expense and loan cost amortization |                |         | 12,499 |         |   |         | 14,020 |       
|                          |                                                     | Depreciation and amortization               |                |         | 30,261 |         |   |         | 27,830 |       
|                          |                                                     | Operating expenses                          |                |         | 59,213 |         |   |         | 47,208 |       
|                          |                                                     |                                             |                |         |        |        
|                          |                                                     |                                             | Total expenses |         |        | 101,973 |   |         |        | 89,058 | 
|                          |                                                     |                                             |                |         |        |        
|                          | Net income                                          |                                             | $              | 22,347  |        |         | $ | 27,983  |       
|                          |                                                     |                                             |                |         |        |        
|Our share of:             |                                                     |                                             |                |         |        |         |   |        
|                          | Net income                                          |                                             | $              | 9,518   |        |         | $ | 12,413  |       
|                          |                                                     |                                             |                |         |        |        
|                          | Interest expense and loan cost amortization         |                                             | $              | 4,895   |        |         | $ | 8,102   |       
|                          |                                                     |                                             |                |         |        |        
|                          | Depreciation and amortization (real estate related) |                                             | $              | 12,262  |        |         | $ | 11,688  |       
|                          |                                                     |                                             |                |         |        |        

13



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)


NOTE 6  LEASE TERMINATION






|         |              
|-------- | -------------
|NOTE 7  | MORTGAGE DEBT



|                                |                                                                         |                        |           |          |  
|------------------------------- | ----------------------------------------------------------------------- | ---------------------- | --------- | -------- | -
|                                |                                                                         | (Dollars in thousands) |          
|                                |                                                                         |                        |          
|Balance at December 31, 2004(a) |                                                                         | $                      | 2,622,750 |         
|                                | Repayments and scheduled principal amortization(b)                      |                        |           | (103,757 | )
|                                | Repaid upon sale of property (see Note 4 
    Discontinued Operations) |                        |           | (13,386  | )
|                                |                                                                         |                        |          
|Balance at March 31, 2005(a)    |                                                                         | $                      | 2,505,607 |         
|                                |                                                                         |                        |          




|    |  |                                                                                                                                                           
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | Excludes net discounts on mortgage debt of approximately
    $13.4 million and $13.7 million as of March 31,
    2005 and December 31, 2004, respectively.
|   
|(b) |  | We repaid mortgage debt and unencumbered the following
    properties: Sixty State Street, Island Corporate Center and
    San Mateo BayCenter II.        

NOTE 8  UNSECURED NOTES AND TERM LOAN
FACILITY






| |                          
| | -------------------------
| | Unsecured Notes  Issued:

|                   |                     |                   |  |                        |       |     |             |  |               |                   |  |  |                  |  |  |  |             |  |  | 
|------------------ | ------------------- | ----------------- |  | ---------------------- | ----- | --- | ----------- |  | ------------- | ----------------- |  |  | ---------------- |  |  |  | ----------- |  |  | 
|Original Term      |                     | Month of Issuance |  | Amount                 |       |     | Coupon Rate |  |               | Effective Rate(a) |  |  | Year of Maturity | 
|                   |                     |                   |  |                        |       |     |             |  |               |                   |  |  |                  | 
|                   |                     |                   |  | (Dollars in thousands) |       |     |             |  |               |                   | 
|2 Years to 4 Years |                     | January           |  | $                      | 6,221 |     |             |  | 3.45% - 4.15% |                   |  |  | 3.76% - 4.39%    |  |  |  | 2007 - 2009 | 
|2 Years to 4 Years |                     | February          |  |                        | 3,220 |     |             |  | 3.70% - 4.15% |                   |  |  | 4.01% - 4.39%    |  |  |  | 2007 - 2009 | 
|3 Years to 5 Years |                     | March             |  |                        | 4,997 |     |             |  | 4.05% - 4.75% |                   |  |  | 4.33% - 5.00%    |  |  |  | 2008 - 2010 | 
|                   | Less issuance costs |                   |  |                        |       | (94 | )           |  |               |                   |  |  |                  |  |  |  |             |  | 
|                   |                     |                   |  |                        |       |     |             |  |               |                   |  |  |                  | 
|                   |                     | Net Proceeds      |  |                        |       | $   | 14,344      |  |               |                   |  |  |                  |  |  |  |             |  |  | 
|                   |                     |                   |  |                        |       |     |             |  |               |                   |  |  |                  | 

14



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




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

|             |       |                        |         |         |             |  |       |                   |  |  |       |  | 
|------------ | ----- | ---------------------- | ------- | ------- | ----------- |  | ----- | ----------------- |  |  | ----- |  | 
|Month Repaid |       | Amount                 |         |         | Coupon Rate |  |       | Effective Rate(a) | 
|             |       |                        |         |         |             |  |       |                   | 
|             |       | (Dollars in thousands) |         |         |             |  |      
|February     |       | $                      | 125,000 |         |             |  | 6.88% |                   |  |  | 6.40% | 
|February     |       |                        | 400,000 |         |             |  | 6.63% |                   |  |  | 4.99% | 
|             |       |                        |         |         |             |  |       |                   | 
|             | Total |                        | $       | 525,000 |             |  |       |                   |  |  |       |  | 
|             |       |                        |         |         |             |  |       |                   | 




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



| |                   
| | ------------------
| | Term Loan Facility





|         |                                                                 
|-------- | ----------------------------------------------------------------
|NOTE 9  | PARTNERS CAPITAL AND MANDATORILY REDEEMABLE PREFERRED
    UNITS



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



|                                 |                                                                                       |  |             |           |  
|-------------------------------- | ------------------------------------------------------------------------------------- |  | ----------- | --------- | -
|Outstanding at December 31, 2004 |                                                                                       |  | 451,337,142 |          
|                                 | Repurchased and retired(a)                                                            |  |             | (86,505   | )
|                                 | Repurchased in the prior period, but retired in the current
    period                |  |             | (25,728   | )
|                                 | Issued to Equity Office upon exercise of share options                                |  |             | 1,618,882 |  
|                                 | Issued to Equity Office related to restricted shares issued, net
    of cancellations |  |             | 819,515   |  
|                                 | Units redeemed for cash                                                               |  |             | (203,396  | )
|                                 | Issued to Equity Office upon conversion of 70 Series B
    Preferred Units            |  |             | 98        |  
|                                 |                                                                                       |  |            
|Outstanding at March 31, 2005    |                                                                                       |  | 453,460,008 |          
|                                 |                                                                                       |  |            




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | During the three months ended March 31, 2005, 90,505 Equity
    Office common shares of beneficial interest (Common
    Shares) were repurchased at an average purchase price of
    $30.15 for approximately $2.7 million. Of these 90,505
    Common Shares, 4,000 were not yet retired as of March 31,
    2005. In connection with the repurchases, we retired a
    corresponding number of Units for an aggregate purchase price
    equal to the aggregate purchase price for all Common Share
    repurchases.



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



|                         |  |              |          |  |           |                   |             |                 
|------------------------ |  | ------------ | -------- |  | --------- | ----------------- | ----------- | ----------------
|                         |  | Distribution |          |  |           |                   | Unitholder 
|                         |  | Per Unit     |          |  | Date Paid |                   | Record Date
|                         |  |              |          |  |           |                   |            
|Units                    |  | $            | 0.50     |  |           | April 15, 2005    |             | March 31, 2005  
|Series B Preferred Units |  | $            | 0.65625  |  |           | February 15, 2005 |             | February 1, 2005
|Series G Preferred Units |  | $            | 0.484375 |  |           | March 15, 2005    |             | March 1, 2005   

15



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




|          |                  
|--------- | -----------------
|NOTE 10  | EARNINGS PER UNIT



|                                                |                                                                                                                                               |                                                                                       |   |             |           |  |   |             |           | 
|----------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | - | ----------- | --------- |  | - | ----------- | --------- | 
|                                                |                                                                                                                                               | For the three months ended                                                            |  
|                                                |                                                                                                                                               | March 31,                                                                             |  
|                                                |                                                                                                                                               |                                                                                       |  
|(Dollars in thousands, except per unit amounts) |                                                                                                                                               | 2005                                                                                  |   |             | 2004      | 
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|Numerator:                                      |                                                                                                                                               |                                                                                       |   |             |           |  |   |            
|                                                | Income from continuing operations                                                                                                             |                                                                                       | $ | 109,794     |           |  | $ | 109,425     |          
|                                                | Preferred distributions                                                                                                                       |                                                                                       |   | (8,701      | )         |  |   | (12,748     | )        
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|                                                | Income from continuing operations available to unitholders                                                                                    |                                                                                       |   | 101,093     |           |  |   | 96,677      |          
|                                                | Discontinued operations (including net gain on sales of real
    estate and properties held for sale of $10,707 and $2,195,
    respectively) |                                                                                       |   | 11,531      |           |  |   | 10,260      |          
|                                                | Cumulative effect of a change in accounting principle                                                                                         |                                                                                       |   |            |           |  |   | (33,697     | )        
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|                                                | Numerator for basic and diluted earnings per unit 
    net income available to unitholders                                                   |                                                                                       | $ | 112,624     |           |  | $ | 73,240      |          
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|Denominator:                                    |                                                                                                                                               |                                                                                       |   |             |           |  |   |            
|                                                | Denominator for basic earnings per unit  weighted
    average Units outstanding                                                              |                                                                                       |   | 449,991,140 |           |  |   | 448,652,065 |          
|                                                | Effect of dilutive potential units:                                                                                                           |                                                                                       |   |             |           |  |   |             |          
|                                                |                                                                                                                                               | Units issuable upon exercise of Equity Office share options and
    restricted shares |   |             | 2,409,154 |  |   |             | 2,490,856 | 
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|                                                | Denominator for diluted earnings per unit  weighted
    average Units outstanding and dilutive potential units                               |                                                                                       |   | 452,400,294 |           |  |   | 451,142,921 |          
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|Earnings per unit  basic:                      |                                                                                                                                               |                                                                                       |   |             |           |  |   |            
|                                                | Income from continuing operations available to unitholders                                                                                    |                                                                                       | $ | 0.22        |           |  | $ | 0.22        |          
|                                                | Discontinued operations                                                                                                                       |                                                                                       |   | 0.03        |           |  |   | 0.02        |          
|                                                | Cumulative effect of a change in accounting principle                                                                                         |                                                                                       |   |            |           |  |   | (0.08       | )        
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|                                                | Net income available to unitholders(a)                                                                                                        |                                                                                       | $ | 0.25        |           |  | $ | 0.16        |          
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|Earnings per unit  diluted:                    |                                                                                                                                               |                                                                                       |   |             |           |  |   |            
|                                                | Income from continuing operations available to unitholders                                                                                    |                                                                                       | $ | 0.22        |           |  | $ | 0.21        |          
|                                                | Discontinued operations                                                                                                                       |                                                                                       |   | 0.03        |           |  |   | 0.02        |          
|                                                | Cumulative effect of a change in accounting principle                                                                                         |                                                                                       |   |            |           |  |   | (0.07       | )        
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 
|                                                | Net income available to unitholders(a)                                                                                                        |                                                                                       | $ | 0.25        |           |  | $ | 0.16        |          
|                                                |                                                                                                                                               |                                                                                       |   |             |           | 






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

16



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




|                            |       |                  |       |                            |      |  |           |            |  |  |           |            | 
|--------------------------- | ----- | ---------------- | ----- | -------------------------- | ---- |  | --------- | ---------- |  |  | --------- | ---------- | 
|                            |       |                  |       | For the three months ended |     
|                            |       |                  |       | March 31,                  |     
|                            |       | Weighted Average |       |                            |      | 
|Antidilutive Securities     |       | Exercise Price   |       |                            | 2005 |  |           | 2004       | 
|                            |       |                  |       |                            |      |  |           |            | 
|Share options               |       | $                | 29.97 |                            |      |  | 7,658,799 |            |  |  |          |           
|Share options               |       | $                | 30.08 |                            |      |  |          |            |  |  | 6,740,216 |           
|Series B Preferred Units(b) |       | $                | 35.70 |                            |      |  | 8,389,290 |            |  |  | 8,389,354 |           
|                            |       |                  |       |                            |      |  |           |            | 
|                            | Total |                  |       |                            |      |  |           | 16,048,089 |  |  |           | 15,129,570 | 
|                            |       |                  |       |                            |      |  |           |            | 






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

NOTE 11  SEGMENT INFORMATION




|                                                        |                         |                                                          |      |         |         |  |      |         |         | 
|------------------------------------------------------- | ----------------------- | -------------------------------------------------------- | ---- | ------- | ------- |  | ---- | ------- | ------- | 
|                                                        |                         | For the three months ended                               |     
|                                                        |                         | March 31,                                                |     
|                                                        |                         |                                                          |     
|(Dollars in thousands)                                  |                         | 2005                                                     |      |         | 2004    | 
|                                                        |                         |                                                          |      |         |         | 
|Property Operating Revenues:                            |                         |                                                          |      |         |         |  |      |        
|                                                        | Rental                  |                                                          | $    | 632,988 |         |  | $    | 620,282 |        
|                                                        | Tenant reimbursements   |                                                          |      | 99,496  |         |  |      | 100,580 |        
|                                                        | Parking                 |                                                          |      | 29,560  |         |  |      | 28,642  |        
|                                                        | Other(a)                |                                                          |      | 58,935  |         |  |      | 25,239  |        
|                                                        |                         |                                                          |      |         |         | 
|                                                        |                         | Total Property Operating Revenues                        |      |         | 820,979 |  |      |         | 774,743 | 
|                                                        |                         |                                                          |      |         |         | 
|Property Operating Expenses:                            |                         |                                                          |      |         |         |  |      |        
|                                                        | Real estate taxes       |                                                          |      | 91,710  |         |  |      | 81,341  |        
|                                                        | Insurance               |                                                          |      | 7,693   |         |  |      | 9,611   |        
|                                                        | Repairs and maintenance |                                                          |      | 79,411  |         |  |      | 77,518  |        
|                                                        | Property operating      |                                                          |      | 107,756 |         |  |      | 104,408 |        
|                                                        |                         |                                                          |      |         |         | 
|                                                        |                         | Total Property Operating Expenses                        |      |         | 286,570 |  |      |         | 272,878 | 
|                                                        |                         |                                                          |      |         |         | 
|                                                        |                         | Property Net Operating Income from Continuing Operations |      | $       | 534,409 |  |      | $       | 501,865 | 
|                                                        |                         |                                                          |      |         |         | 
|Property Operating Margin from Continuing Operations(b) |                         |                                                          | 65.1 | %       |         |  | 64.8 | %      
|                                                        |                         |                                                          |      |         |         | 

17



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)


|                                                                                                                     |                                      |                                                 |         |           |         |   |         |           |         | 
|-------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | ----------------------------------------------- | ------- | --------- | ------- | - | ------- | --------- | ------- | 
|                                                                                                                     |                                      | For the three months ended                      |        
|                                                                                                                     |                                      | March 31,                                       |        
|                                                                                                                     |                                      |                                                 |        
|(Dollars in thousands)                                                                                               |                                      | 2005                                            |         |           | 2004    |  
|                                                                                                                     |                                      |                                                 |         |           |         |  
|Reconciliation of Property Net Operating Income from
    Continuing Operations to Income from Continuing Operations: |                                      |                                                 |         |           |         |   |         |          
|Property Net Operating Income from Continuing Operations                                                             |                                      | $                                               | 534,409 |           |         | $ | 501,865 |          
|Add: Fee income                                                                                                      |                                      |                                                 | 4,777   |           |         |   | 3,060   |          
|Less:                                                                                                                |                                      |                                                 |         |           |         |   |         |          
|                                                                                                                     | Depreciation                         |                                                 |         | (175,831) |         |   |         | (164,333) |        
|                                                                                                                     | Amortization                         |                                                 |         | (23,243)  |         |   |         | (17,217)  |        
|                                                                                                                     | Ground rent                          |                                                 |         | (6,380)   |         |   |         | (6,209)   |        
|                                                                                                                     | Corporate general and administrative |                                                 |         | (17,173)  |         |   |         | (11,309)  |        
|                                                                                                                     |                                      |                                                 |         |           |         |  
|Operating Income                                                                                                     |                                      |                                                 | 316,559 |           |         |   | 305,857 |          
|Less:                                                                                                                |                                      |                                                 |         |           |         |   |         |          
|                                                                                                                     | Other expenses                       |                                                 |         | (212,339) |         |   |         | (205,995) |        
|                                                                                                                     | Income taxes                         |                                                 |         | (474)     |         |   |         | 263       |        
|                                                                                                                     |                                      | Minority interests  partially owned properties |         |           | (3,470) |   |         |           | (3,113) | 
|Add: Income from investments in unconsolidated joint ventures                                                        |                                      |                                                 | 9,518   |           |         |   | 12,413  |          
|                                                                                                                     |                                      |                                                 |         |           |         |  
|Income from Continuing Operations                                                                                    |                                      | $                                               | 109,794 |           |         | $ | 109,425 |          
|                                                                                                                     |                                      |                                                 |         |           |         |  






|    |  |                                                                                                                      
|--- |  | ---------------------------------------------------------------------------------------------------------------------
|(a) |  | Other income consists primarily of lease termination income and
    ancillary income from tenants.                   
|   
|(b) |  | Defined as Property Net Operating Income from Continuing
    Operations divided by Total Property Operating Revenues.

NOTE 12  COMMITMENTS AND CONTINGENCIES




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





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





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



18



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




| |                                      
| | -------------------------------------
| | Fixed-to-Floating Interest Rate Swaps







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





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

Accounting for
Contingencies,




19



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)






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

Property Damage, Business Interruption, Earthquake and
Terrorism:


|                                             |  |                                                                                                                                                                                                  |  |                                          
|-------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------
|                                             |  | EOP Partnership                                                                                                                                                                                  |  | Third-Party                              
|Type of Insurance Coverage                   |  | 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)                         |  | $4.3 million per occurrence deductible (plus 10% of each
    and every loss with a maximum per occurrence exposure of
    $36.8 million which includes the $4.3 million
    deductible)          |  | $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 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 Insurance Act of 2002 (TRIA).
    TRIA will expire December 31, 2005 and there is a risk it
    will not be extended past this date. Should the act not be
    extended, the structure, terms or conditions (including premiums
    and                                                                                                                                                                   

20



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##### Table of Contents



EOP OPERATING LIMITED PARTNERSHIP


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


(Unaudited)




|    |  |                                                                                                                                                                                                                                                                                                                                                                                                   
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  | coverage) of our terrorism insurance program would likely be
    affected for future periods. We may be unable to secure
    replacement coverage on comparable terms and conditions.                                                                                                                                                                                                             
|   
|    |  | 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.
|   
|(e) |  | This amount is in excess of our deductible amounts.                                                                                                                                                                                                                                                                                                                                               

Pollution:


Workers Compensation, Automobile Liability and General
Liability:




|          |                  
|--------- | -----------------
|NOTE 13  | SUBSEQUENT EVENTS





|                                                                  |       |          |                 |  |      |           |            |           |        |                        |      |    |  |             |         |           |  |   |         |         | 
|----------------------------------------------------------------- | ----- | -------- | --------------- |  | ---- | --------- | ---------- | --------- | ------ | ---------------------- | ---- | -- |  | ----------- | ------- | --------- |  | - | ------- | ------- | 
|                                                                  |       |          |                 |  |      | Number of |            |           | Square |                        |      |   
|Property                                                          |       | Location |                 |  | Date |           |            | Buildings |        |                        | Feet |    |  | Sales Price |        
|                                                                  |       |          |                 |  |      |           |            |           |        |                        |      |    |  |             |        
|                                                                  |       |          |                 |  |      |           |            |           |        | (Dollars in thousands) |     
|545 E. John Carpenter Freeway and 909 Lake
    Carolyn Parkway(a) |       |          | Irving, TX      |  |      |           | 04/01/2005 |           |        |                        | 2    |    |  |             | 729,949 |           |  | $ | 68,500  |        
|70-76 Perimeter(a)                                                |       |          | Atlanta, GA     |  |      |           | 04/05/2005 |           |        |                        | 4    |    |  |             | 62,102  |           |  |   | 11,055  |        
|Meier Central South  Building 11(a)                              |       |          | Santa Clara, CA |  |      |           | 04/18/2005 |           |        |                        | 1    |    |  |             | 33,672  |           |  |   | 4,400   |        
|Colonnade I, II and III                                           |       |          | Dallas, TX      |  |      |           | 04/26/2005 |           |        |                        | 3    |    |  |             | 984,254 |           |  |   | 153,500 |        
|LL&E Tower(a)                                                     |       |          | New Orleans, LA |  |      |           | 05/04/2005 |           |        |                        | 1    |    |  |             | 545,157 |           |  |   | 45,000  |        
|                                                                  |       |          |                 |  |      |           |            |           |        |                        |      |    |  |             |        
|                                                                  | Total |          |                 |  |      |           |            |           |        |                        |      | 11 |  |             |         | 2,355,134 |  |   | $       | 282,455 | 
|                                                                  |       |          |                 |  |      |           |            |           |        |                        |      |    |  |             |        






|    |  |                                                                     
|--- |  | --------------------------------------------------------------------
|(a) |  | This property was classified as held for sale at March 31,
    2005.







21



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##### Table of Contents






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


Forward-Looking Statements






Overview






|  |                      
|- | ---------------------
| | Results of Operations



| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | Period-to-period comparison of our results of operations for
    the three months ended March 31, 2005 and 2004.



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



| |                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A discussion of our liquidity and capital resources,
    including distributions to our unitholders, contractual
    obligations, equity securities, debt financing, market risk,
    capital improvements, tenant improvements, leasing costs,
    developments, inflation, cash flows and additional items for
    2005.



|  |                      
|- | ---------------------
| | Funds From Operations



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

Executive Summary




22



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##### Table of Contents











| |   |                                               
| | - | ----------------------------------------------
| |  | Economic Environment and Office Job Growth    
|
| |  | Acquisition and Disposition Activity          
|
| |  | Leasing Results for the Total Office Portfolio
|
| |  | Cash Requirements                             



| |                                           
| | ------------------------------------------
| | Economic Environment and Office Job Growth











| |                                     
| | ------------------------------------
| | Acquisition and Disposition Activity



23



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##### Table of Contents







| |                                               
| | ----------------------------------------------
| | Leasing Results for the Total Office Portfolio











| |                  
| | -----------------
| | Cash Requirements





| |                                                         
| | --------------------------------------------------------
| | Key Transactions Completed During the First Quarter 2005



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



| |   |                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We acquired $68.3 million in assets, consisting of four
    office properties comprising approximately .3 million
    square feet and a vacant land parcel and                                                                          
|
| |  | disposed of 19 office properties (including five properties
    comprising approximately 108,676 square feet previously taken
    out of service) comprising approximately 1.7 million square
    feet for approximately $297.6 million.

24



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##### Table of Contents





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



| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We obtained a $250 million unsecured term loan facility,
    which bears interest at LIBOR plus 35 basis points and matures
    in February 2006 and
|
| |  | repaid $525 million of unsecured notes and approximately
    $107.2 million of mortgage debt.                                                       



| |      
| | -----
| | Other



| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | We recorded a non-cash provision for loss on two assets held for
    sale of approximately $13.5 million and
|
| |  | recorded approximately $44.4 million of income from a
    single lease termination.                         

25



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##### Table of Contents



Results of Operations




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



|                            |                                                                                                            |                            |  |           |       |  |  |           |       | 
|--------------------------- | ---------------------------------------------------------------------------------------------------------- | -------------------------- |  | --------- | ----- |  |  | --------- | ----- | 
|                            |                                                                                                            | For the three months ended | 
|                            |                                                                                                            | March 31,                  | 
|                            |                                                                                                            |                            | 
|Total Office Portfolio Data |                                                                                                            | 2005                       |  |           | 2004  | 
|                            |                                                                                                            |                            |  |           |       | 
|10 Largest Markets:         |                                                                                                            |                            |  |           |       |  |  |          
|                            | Portion of Total Office Portfolio based on square feet at end of
    period                                |                            |  | 70.2      | %     |  |  | 69.6      | %    
|                            | Occupancy at end of period                                                                                 |                            |  | 87.8      | %     |  |  | 86.0      | %    
|                            | Gross square footage for tenants whose lease term commenced
    during the period                          |                            |  | 4,028,185 |       |  |  | 3,660,820 |      
|                            | Weighted average annual rent per square foot for tenants whose
    lease term commenced during the period: |                            |  |           |       |  |  |           |      
|                            |                                                                                                            | GAAP basis(a)(b)           |  | $         | 28.78 |  |  | $         | 26.70 | 
|                            |                                                                                                            | Cash basis(b)(c)           |  | $         | 26.83 |  |  | $         | 26.03 | 
|                            | Gross square footage for expiring and terminated leases during
    the period                              |                            |  | 3,991,034 |       |  |  | 3,736,902 |      
|                            | Weighted average annual rent per square foot for expiring and
    terminated leases during the period:     |                            |  |           |       |  |  |           |      
|                            |                                                                                                            | GAAP basis(a)              |  | $         | 31.41 |  |  | $         | 29.65 | 
|                            |                                                                                                            | Cash basis(c)              |  | $         | 32.25 |  |  | $         | 30.55 | 
|Total Office Portfolio:     |                                                                                                            |                            |  |           |       |  |  |          
|                            | Occupancy at end of period                                                                                 |                            |  | 87.6      | %     |  |  | 86.1      | %    
|                            | Gross square footage for tenants whose lease term commenced
    during the period                          |                            |  | 6,007,657 |       |  |  | 5,414,412 |      
|                            | Weighted average annual rent per square foot for tenants whose
    lease term commenced during the period: |                            |  |           |       |  |  |           |      
|                            |                                                                                                            | GAAP basis(a)(b)           |  | $         | 26.08 |  |  | $         | 24.50 | 
|                            |                                                                                                            | Cash basis(b)(c)           |  | $         | 24.76 |  |  | $         | 23.84 | 
|                            | Gross square footage for expiring and terminated leases during
    the period                              |                            |  | 6,176,776 |       |  |  | 5,605,011 |      
|                            | Weighted average annual rent per square foot for expiring and
    terminated leases during the period:     |                            |  |           |       |  |  |           |      
|                            |                                                                                                            | GAAP basis(a)              |  | $         | 28.36 |  |  | $         | 26.74 | 
|                            |                                                                                                            | Cash basis(c)              |  | $         | 29.09 |  |  | $         | 27.58 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 office
    leases for tenants whose lease term commenced during the period
    may lag behind market because leasing decisions typically are
    made anywhere from 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 then the rental rate represents the first
    monthly rent payment due multiplied by 12 months
    (Annualized Cash Rent). This amount reflects total
    base rent and estimated current period expense reimbursements
    without regard to any rent concessions or contractual increases
    or decreases in rent after the lease commences. 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.

26



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##### Table of Contents





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



|                  |                                    |                        |     |     |             |  |             |            |  
|----------------- | ---------------------------------- | ---------------------- | --- | --- | ----------- |  | ----------- | ---------- | -
|                  |                                    | Total Office Portfolio |    
|                  |                                    |                        |    
|                  |                                    | Buildings              |     |     | Square Feet | 
|                  |                                    |                        |     |     |             | 
|December 31, 2003 |                                    |                        | 684 |     |             |  | 122,254,925 |           
|                  | Consolidation of SunAmerica Center |                        |     | 1   |             |  |             | 780,063    |  
|                  | Acquisitions                       |                        |     | 27  |             |  |             | 3,315,232  |  
|                  | Developments placed in service     |                        |     | 2   |             |  |             | 298,689    |  
|                  | Dispositions(a)                    |                        |     | (5  | )           |  |             | (567,765   | )
|                  | Properties taken out of service(b) |                        |     | (11 | )           |  |             | (469,771   | )
|                  | Building remeasurements            |                        |     |    |             |  |             | 101,872    |  
|                  |                                    |                        |     |     |             | 
|December 31, 2004 |                                    |                        | 698 |     |             |  | 125,713,245 |           
|                  | Acquisitions                       |                        |     | 4   |             |  |             | 296,657    |  
|                  | Dispositions                       |                        |     | (14 | )           |  |             | (1,546,017 | )
|                  | Building remeasurements            |                        |     |    |             |  |             | 28,384     |  
|                  |                                    |                        |     |     |             | 
|March 31, 2005    |                                    |                        | 688 |     |             |  | 124,492,269 |           
|                  |                                    |                        |     |     |             | 






|    |                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------
|(a) | Excludes any partial sales of real estate because the properties
    are still included in our portfolio statistics.
|   
|(b) | Properties taken out of service represent office properties we
    are no longer attempting to lease.               



| |                      
| | ---------------------
| | Results of Operations





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the consolidation of 1301 Avenue of the Americas, which was
    previously accounted for under the equity method of accounting
    through February 2004;                                                                                                                                                                                                                                                                                                                     
|
| |  | the acquisition of 27 office buildings comprising approximately
    3.3 million square feet in 2004 and four office buildings
    comprising approximately .3 million square feet in 2005;                                                                                                                                                                                                                                                                                    
|
| |  | two developments placed in service in 2004; and                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | the sale of majority interests in two properties and the
    disposition of 71 industrial properties comprising approximately
    5.1 million square feet and five office properties
    comprising approximately .6 million square feet in 2004 and
    the disposition of 19 office properties (including five
    properties comprising approximately 108,676 square feet
    previously take out of service) comprising approximately
    1.7 million square feet in 2005.



27



---



##### Table of Contents





| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | Comparison of the three months ended March 31, 2005
    to the three months ended March 31, 2004



|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |         |         |         |         |         |        |         |        |       |       |      |  
|--------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ---------------------------- | ---------------- | -------- | -------------------- | ------- | ------- | -------- | -------- | ------- | ------ | ------ | ------ | ------ | ------ | ----- | ---- | --- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------ | ------- | ------ | ----- | ----- | ---- | -
|                                                                                                                                              |                                                             | Total Company                |                  |          | Same Store Portfolio |        
|                                                                                                                                              |                                                             |                              |                  |          |                      |        
|                                                                                                                                              |                                                             |                              |                  | Change   |                      |         |         |          | Change   |        
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |        
|(Dollars in thousands)                                                                                                                        |                                                             | 2005                         |                  |          | 2004                 |         |         | $        |          |         | %      |        |        | 2005   |        |       | 2004 |     |         | $       |         |         | %       |        
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Revenues:                                                                                                                                     |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |         |         |         |         |         |        |         |        |      
|                                                                                                                                              | Property operating revenues                                 |                              | $                | 820,979  |                      |         | $       | 774,743  |          |         | $      | 46,236 |        |        |        | 6.0   | %    |     | $       | 732,267 |         |         | $       | 740,426 |         |         | $       | (8,159  | )      |         |        | (1.1  | )%   
|                                                                                                                                              | Fee income                                                  |                              |                  | 4,777    |                      |         |         | 3,060    |          |         |        | 1,717  |        |        |        | 56.1  |      |     |         |        |         |         |         |        |         |         |         |        |        |         |        |      |      
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|                                                                                                                                              |                                                             | Total revenues               |                  |          | 825,756              |         |         |          | 777,803  |         |        |        | 47,953 |        |        |       | 6.2  |     |         |         | 732,267 |         |         |         | 740,426 |         |         |         | (8,159 | )       |        |       | (1.1  | )   
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Expenses:                                                                                                                                     |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |         |         |         |         |         |        |         |        |      
|                                                                                                                                              | Depreciation and amortization                               |                              |                  | 199,074  |                      |         |         | 181,550  |          |         |        | 17,524 |        |        |        | 9.7   |      |     |         | 182,725 |         |         |         | 172,440 |         |         |         | 10,285  |        |         |        | 6.0   |      
|                                                                                                                                              | Real estate taxes                                           |                              |                  | 91,710   |                      |         |         | 81,341   |          |         |        | 10,369 |        |        |        | 12.7  |      |     |         | 82,213  |         |         |         | 77,485  |         |         |         | 4,728   |        |         |        | 6.1   |      
|                                                                                                                                              | Property operating expenses                                 |                              |                  | 194,860  |                      |         |         | 191,537  |          |         |        | 3,323  |        |        |        | 1.7   |      |     |         | 185,417 |         |         |         | 185,061 |         |         |         | 356     |        |         |        | .2    |      
|                                                                                                                                              | Ground rent                                                 |                              |                  | 6,380    |                      |         |         | 6,209    |          |         |        | 171    |        |        |        | 2.8   |      |     |         | 6,237   |         |         |         | 6,140   |         |         |         | 97      |        |         |        | 1.6   |      
|                                                                                                                                              | General and administrative(a)                               |                              |                  | 17,173   |                      |         |         | 11,309   |          |         |        | 5,864  |        |        |        | 51.9  |      |     |         |        |         |         |         |        |         |         |         |        |        |         |        |      |      
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|                                                                                                                                              |                                                             | Total expenses               |                  |          | 509,197              |         |         |          | 471,946  |         |        |        | 37,251 |        |        |       | 7.9  |     |         |         | 456,592 |         |         |         | 441,126 |         |         |         | 15,466 |         |        |       | 3.5   |     
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|                                                                                                                                              |                                                             |                              | Operating income |          |                      | 316,559 |         |          |          | 305,857 |        |        |        | 10,702 |        |       |      | 3.5 |         |         |         | 275,675 |         |         |         | 299,300 |         |         |        | (23,625 | )      |       |       | (7.9 | )
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Other income (expense):                                                                                                                       |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |         |         |         |         |         |        |         |        |      
|                                                                                                                                              | Interest and dividend income                                |                              |                  | 3,233    |                      |         |         | 1,321    |          |         |        | 1,912  |        |        |        | 144.7 |      |     |         | 1,657   |         |         |         | 1,013   |         |         |         | 644     |        |         |        | 63.6  |      
|                                                                                                                                              | Interest expense(b)                                         |                              |                  | (215,572 | )                    |         |         | (207,316 | )        |         |        | (8,256 | )      |        |        | 4.0   |      |     |         | (43,691 | )       |         |         | (48,729 | )       |         |         | 5,038   |        |         |        | (10.3 | )    
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|                                                                                                                                              |                                                             | Total other income (expense) |                  |          | (212,339             | )       |         |          | (205,995 | )       |        |        | (6,344 | )      |        |       | 3.1  |     |         |         | (42,034 | )       |         |         | (47,716 | )       |         |         | 5,682  |         |        |       | (11.9 | )   
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Income before income taxes, allocation to minority interests and
    income from investments in unconsolidated joint ventures                 |                                                             |                              | 104,220          |          |                      |         | 99,862  |          |          |         | 4,358  |        |        |        | 4.4    |       |      |     | 233,641 |         |         |         | 251,584 |         |         |         | (17,943 | )       |        |         | (7.1   | )    
|Income taxes                                                                                                                                  |                                                             |                              | (474             | )        |                      |         | 263     |          |          |         | (737   | )      |        |        | (280.2 | )     |      |     | (315    | )       |         |         | 5       |         |         |         | (320    | )       |        |         | (6,400 | )    
|Minority Interests:                                                                                                                           |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |         |         |         |         |         |        |         |        |      
|                                                                                                                                              | Partially owned properties                                  |                              |                  | (3,470   | )                    |         |         | (3,113   | )        |         |        | (357   | )      |        |        | 11.5  |      |     |         | (3,474  | )       |         |         | (3,097  | )       |         |         | (377    | )      |         |        | 12.2  |      
|Income from investments in unconsolidated joint ventures                                                                                      |                                                             |                              | 9,518            |          |                      |         | 12,413  |          |          |         | (2,895 | )      |        |        | (23.3  | )     |      |     | 6,517   |         |         |         | 10,273  |         |         |         | (3,756  | )       |        |         | (36.6  | )    
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Income from continuing operations                                                                                                             |                                                             |                              | 109,794          |          |                      |         | 109,425 |          |          |         | 369    |        |        |        | .3     |       |      |     | 236,369 |         |         |         | 258,765 |         |         |         | (22,396 | )       |        |         | (8.7   | )    
|Discontinued operations (including net gain on sales of real
    estate and properties held for sale of $10,707 and $2,195,
    respectively) |                                                             |                              | 11,531           |          |                      |         | 10,260  |          |          |         | 1,271  |        |        |        | 12.4   |       |      |     |        |         |         |         |        |         |         |         |        |         |        |         |       |      
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Income before cumulative effect of a change in accounting
    principle                                                                       |                                                             |                              | 121,325          |          |                      |         | 119,685 |          |          |         | 1,640  |        |        |        | 1.4    |       |      |     | 236,369 |         |         |         | 258,765 |         |         |         | (22,396 | )       |        |         | (8.7   | )    
|Cumulative effect of a change in accounting principle                                                                                         |                                                             |                              |                 |          |                      |         | (33,697 | )        |          |         | 33,697 |        |        |        | (100.0 | )     |      |     |        |         |         |         | (33,697 | )       |         |         | 33,697  |         |        |         | (100.0 | )    
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Net income                                                                                                                                    |                                                             | $                            | 121,325          |          |                      | $       | 85,988  |          |          | $       | 35,337 |        |        |        | 41.1   | %     |      | $   | 236,369 |         |         | $       | 225,068 |         |         | $       | 11,301  |         |        |         | 5.0    | %    
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|Selected Items:                                                                                                                               |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |         |         |         |         |         |        |         |        |      
|                                                                                                                                              | Property net operating income from continuing operations(c) |                              | $                | 534,409  |                      |         | $       | 501,865  |          |         | $      | 32,544 |        |        |        | 6.5   | %    |     | $       | 464,637 |         |         | $       | 477,880 |         |         | $       | (13,243 | )      |         |        | (2.8  | )%   
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|                                                                                                                                              | Deferred rental revenue                                     |                              | $                | 18,428   |                      |         | $       | 21,914   |          |         | $      | (3,486 | )      |        |        | (15.9 | )%   |     | $       | 13,952  |         |         | $       | 20,424  |         |         | $       | (6,472  | )      |         |        | (31.7 | )%   
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        
|                                                                                                                                              | Lease termination fees                                      |                              | $                | 52,288   |                      |         | $       | 19,206   |          |         | $      | 33,082 |        |        |        | 172.2 | %    |     | $       | 7,884   |         |         | $       | 14,170  |         |         | $       | (6,286  | )      |         |        | (44.4 | )%   
|                                                                                                                                              |                                                             |                              |                  |          |                      |         |         |          |          |         |        |        |        |        |        |       |      |     |         |         |         |         |         |        

28



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|    |  |                                                                                                                                                                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 property secured mortgage debt
    and does not include interest expense on the unsecured notes or
    the line of credit.
|   
|(c) |  | Represents segment data. See the notes to the financial
    statements.                                                                                                                                                                                                                     



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







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







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







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





29



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##### Table of Contents





| |                                    
| | -----------------------------------
| | General and Administrative Expenses





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





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





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





| |                                                      
| | -----------------------------------------------------
| | Cumulative Effect of a Change in Accounting Principle



Liquidity and Capital Resources




| |          
| | ---------
| | Liquidity





30



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##### Table of Contents















31



---



##### Table of Contents





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



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





| |                        
| | -----------------------
| | Contractual Obligations



|                                                        |  |                        |            |              |      |   |           |      |  |   |           |  |  |      |           |  |      |   |         |            |  |   |           |  |  |   |           | 
|------------------------------------------------------- |  | ---------------------- | ---------- | ------------ | ---- | - | --------- | ---- |  | - | --------- |  |  | ---- | --------- |  | ---- | - | ------- | ---------- |  | - | --------- |  |  | - | --------- | 
|                                                        |  | Payments Due by Period |           
|                                                        |  |                        |           
|                                                        |  |                        |            | Remainder of |      |   |          
|(Dollars in thousands)                                  |  | Total                  |            |              | 2005 |   |           | 2006 |  |   | 2007      |  |  | 2008 |           |  | 2009 |   |         | Thereafter | 
|                                                        |  |                        |            |              |      |   |           |      |  |   |           |  |  |      |           |  |      |   |         |            | 
|Mortgage debt(1)                                        |  | $                      | 2,505,607  |              |      | $ | 982,513   |      |  | $ | 286,130   |  |  | $    | 239,745   |  |      | $ | 134,964 |            |  | $ | 563,299   |  |  | $ | 298,956   | 
|Unsecured notes(2)                                      |  |                        | 9,180,192  |              |      |   | 150,000   |      |  |   | 652,924   |  |  |      | 979,782   |  |      |   | 479,258 |            |  |   | 857,965   |  |  |   | 6,060,263 | 
|Lines of Credit                                         |  |                        | 869,000    |              |      |   |          |      |  |   | 869,000   |  |  |      |          |  |      |   |        |            |  |   |          |  |  |   |          | 
|Series B Preferred Units                                |  |                        | 299,497    |              |      |   |          |      |  |   |          |  |  |      |          |  |      |   | 299,497 |            |  |   |          |  |  |   |          | 
|Share of mortgage debt of unconsolidated joint ventures |  |                        | 360,378    |              |      |   | 31,062    |      |  |   | 52,227    |  |  |      | 4,010     |  |      |   | 18,622  |            |  |   | 11,658    |  |  |   | 242,799   | 
|Operating lease obligations                             |  |                        | 1,439,834  |              |      |   | 17,087    |      |  |   | 22,641    |  |  |      | 22,481    |  |      |   | 22,643  |            |  |   | 22,712    |  |  |   | 1,332,270 | 
|Share of ground leases of unconsolidated joint ventures |  |                        | 34,277     |              |      |   | 423       |      |  |   | 564       |  |  |      | 564       |  |      |   | 564     |            |  |   | 564       |  |  |   | 31,598    | 
|                                                        |  |                        |            |              |      |   |           |      |  |   |           |  |  |      |           |  |      |   |         |            | 
|Total Contractual Obligations                           |  | $                      | 14,688,785 |              |      | $ | 1,181,085 |      |  | $ | 1,883,486 |  |  | $    | 1,246,582 |  |      | $ | 955,548 |            |  | $ | 1,456,198 |  |  | $ | 7,965,886 | 
|                                                        |  |                        |            |              |      |   |           |      |  |   |           |  |  |      |           |  |      |   |         |            | 






|    |                                                                                
|--- | -------------------------------------------------------------------------------
|(1) | Balance excludes a net unamortized discount of approximately
    $13.4 million.
|   
|(2) | Balance excludes a net unamortized discount of approximately
    $64.4 million.



| |                                      
| | -------------------------------------
| | Fixed-to-Floating Interest Rate Swaps





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





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



32



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##### Table of Contents





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





| |               
| | --------------
| | Debt Financing



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



|                                                       |                  |                                     |                          |       |              |            |            |      |           |            |            |  
|------------------------------------------------------ | ---------------- | ----------------------------------- | ------------------------ | ----- | ------------ | ---------- | ---------- | ---- | --------- | ---------- | ---------- | -
|                                                       |                  | March 31,                           |                          |       | December 31, |           
|(Dollars in thousands)                                 |                  | 2005                                |                          |       | 2004         |           
|                                                       |                  |                                     |                          |       |              |           
|Balance (includes unamortized discounts and premiums): |                  |                                     |                          |       |              |            |            |     
|                                                       | Fixed rate:      |                                     |                          |       |              |            |            |      |          
|                                                       |                  | Mortgage debt                       |                          | $     | 2,386,297    |            |            | $    | 2,502,871 |           
|                                                       |                  | Unsecured notes                     |                          |       | 7,925,708    |            |            |      | 8,439,016 |           
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  |                                     | Total fixed rate debt    |       |              | 10,312,005 |            |      |           | 10,941,887 |           
|                                                       |                  |                                     |                          |       |              |           
|                                                       | Variable rate(a) |                                     |                          |       |              |            |            |      |          
|                                                       |                  | Mortgage debt                       |                          |       | 105,928      |            |            |      | 106,196   |           
|                                                       |                  | Unsecured notes and lines of credit |                          |       | 2,059,071    |            |            |      | 1,761,376 |           
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  |                                     | Total variable rate debt |       |              | 2,164,999  |            |      |           | 1,867,572  |           
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  |                                     |                          | Total |              | $          | 12,477,004 |      |           | $          | 12,809,459 |  
|                                                       |                  |                                     |                          |       |              |           
|Percent of total debt:                                 |                  |                                     |                          |       |              |            |            |     
|                                                       | Fixed rate       |                                     |                          | 82.6  | %            |            |            | 85.4 | %        
|                                                       | Variable rate    |                                     |                          | 17.4  | %            |            |            | 14.6 | %        
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  | Total                               |                          |       | 100.0        | %          |            |      | 100.0     | %         
|                                                       |                  |                                     |                          |       |              |           
|Effective interest rate at end of period:              |                  |                                     |                          |       |              |            |            |     
|                                                       | Fixed rate:      |                                     |                          |       |              |            |            |      |          
|                                                       |                  | Mortgage debt                       |                          |       | 7.80         | %          |            |      | 7.80      | %         
|                                                       |                  | Unsecured notes                     |                          |       | 6.97         | %          |            |      | 6.87      | %         
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  |                                     | Effective interest rate  |       |              | 7.16       | %          |      |           | 7.09       | %         
|                                                       |                  |                                     |                          |       |              |           
|                                                       | Variable rate:   |                                     |                          |       |              |            |            |      |          
|                                                       |                  | Mortgage debt                       |                          |       | 5.94         | %          |            |      | 5.53      | %         
|                                                       |                  | Unsecured notes and lines of credit |                          |       | 4.31         | %          |            |      | 3.75      | %         
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  |                                     | Effective interest rate  |       |              | 4.39       | %          |      |           | 3.85       | %         
|                                                       |                  |                                     |                          |       |              |           
|                                                       |                  |                                     |                          | Total |              |            | 6.67       | %    |           |            | 6.61       | %
|                                                       |                  |                                     |                          |       |              |           






|    |                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The variable rate debt includes $1.0 billion of fixed rate
    unsecured notes that were converted to a variable rate based on
    LIBOR plus 122 basis points through several interest rate swap
    agreements entered into in March 2004. The interest rates for
    the remaining variable rate debt are based on various spreads
    over LIBOR.



33



---



##### Table of Contents





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



| |                                       
| | --------------------------------------
| | $1.0 Billion Revolving Credit Facility







| |                   
| | ------------------
| | Term Loan Facility



34



---



##### Table of Contents





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



|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |           |           |   |                   |  |  | 
|----------------------- | ---------------------------------------------------- | ------------ | ---- | ---- | --------- | ---------------------- | ---- | --------- | - | - | ------------- | --------- | --------- | - | ----------------- |  |  | 
|                        |                                                      | Coupon       |      |      | Effective |                        |      | Principal |   |   |              
|Original Term           |                                                      | Rate         |      |      | Rate(a)   |                        |      | Balance   |   |   | Maturity Date |          
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|                        |                                                      |              |      |      |           | (Dollars in thousands) |      |           |  
|Fixed interest rate:    |                                                      |              |      |      |           |                        |      |           |   |   |               |           |           |   |                   | 
|7 Years                 |                                                      |              | 8.00 | %    |           |                        | 6.49 | %         |   | $ | 100,000       |           |           |   | 07/19/05          | 
|8 Years                 |                                                      |              | 7.36 | %    |           |                        | 7.69 | %         |   |   | 50,000        |           |           |   | 09/01/05          | 
|6 Years                 |                                                      |              | 8.38 | %    |           |                        | 7.65 | %         |   |   | 500,000       |           |           |   | 03/15/06          | 
|9 Years                 |                                                      |              | 7.44 | %    |           |                        | 7.74 | %         |   |   | 50,000        |           |           |   | 09/01/06          | 
|10 Years                |                                                      |              | 7.13 | %    |           |                        | 6.74 | %         |   |   | 100,000       |           |           |   | 12/01/06          | 
|9 Years                 |                                                      |              | 7.00 | %    |           |                        | 6.80 | %         |   |   | 1,500         |           |           |   | 02/02/07          | 
|9 Years                 |                                                      |              | 6.88 | %    |           |                        | 6.83 | %         |   |   | 25,000        |           |           |   | 04/30/07          | 
|9 Years                 |                                                      |              | 6.76 | %    |           |                        | 6.76 | %         |   |   | 300,000       |           |           |   | 06/15/07          | 
|10 Years                |                                                      |              | 7.41 | %    |           |                        | 7.70 | %         |   |   | 50,000        |           |           |   | 09/01/07          | 
|7 Years                 |                                                      |              | 7.75 | %    |           |                        | 7.91 | %         |   |   | 600,000       |           |           |   | 11/15/07          | 
|10 Years                |                                                      |              | 6.75 | %    |           |                        | 6.97 | %         |   |   | 150,000       |           |           |   | 01/15/08          | 
|10 Years                |                                                      |              | 6.75 | %    |           |                        | 7.01 | %         |   |   | 300,000       |           |           |   | 02/15/08          | 
|10 Years                |                                                      |              | 6.80 | %    |           |                        | 6.94 | %         |   |   | 500,000       |           |           |   | 01/15/09          | 
|10 Years                |                                                      |              | 7.25 | %    |           |                        | 7.14 | %         |   |   | 200,000       |           |           |   | 05/01/09          | 
|11 Years                |                                                      |              | 7.13 | %    |           |                        | 6.97 | %         |   |   | 150,000       |           |           |   | 07/01/09          | 
|10 Years                |                                                      |              | 8.10 | %    |           |                        | 8.22 | %         |   |   | 360,000       |           |           |   | 08/01/10          | 
|6 Years                 |                                                      |              | 4.65 | %    |           |                        | 4.81 | %         |   |   | 800,000       |           |           |   | 10/01/10          | 
|10 Years                |                                                      |              | 7.65 | %    |           |                        | 7.20 | %         |   |   | 200,000       |           |           |   | 12/15/10          | 
|10 Years                |                                                      |              | 7.00 | %    |           |                        | 6.83 | %         |   |   | 1,100,000     |           |           |   | 07/15/11          | 
|10 Years                |                                                      |              | 6.75 | %    |           |                        | 7.02 | %         |   |   | 500,000       |           |           |   | 02/15/12          | 
|10 Years                |                                                      |              | 5.88 | %    |           |                        | 5.98 | %         |   |   | 500,000       |           |           |   | 01/15/13          | 
|20 Years                |                                                      |              | 7.88 | %    |           |                        | 8.08 | %         |   |   | 25,000        |           |           |   | 12/01/16          | 
|20 Years                |                                                      |              | 7.35 | %    |           |                        | 8.08 | %         |   |   | 200,000       |           |           |   | 12/01/17          | 
|20 Years                |                                                      |              | 7.25 | %    |           |                        | 7.54 | %         |   |   | 250,000       |           |           |   | 02/15/18          | 
|30 Years                |                                                      |              | 7.50 | %    |           |                        | 8.24 | %         |   |   | 150,000       |           |           |   | 10/01/27          | 
|30 Years                |                                                      |              | 7.25 | %    |           |                        | 7.31 | %         |   |   | 225,000       |           |           |   | 06/15/28          | 
|30 Years                |                                                      |              | 7.50 | %    |           |                        | 7.55 | %         |   |   | 200,000       |           |           |   | 04/19/29          | 
|30 Years                |                                                      |              | 7.88 | %    |           |                        | 7.94 | %         |   |   | 300,000       |           |           |   | 07/15/31          | 
|EOP InterNotes(b)       |                                                      |              | 4.23 | %    |           |                        | 4.47 | %         |   |   | 48,692        |           |           |   | 11/15/06-01/15/11 | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|                        | Total/Weighted Average Unsecured Fixed Rate Notes    |              |      | 6.95 | %         |                        |      | 6.97      | % |   |               | 7,935,192 |           |   |                   |  | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|Variable-interest rate: |                                                      |              |      |      |           |                        |      |           |   |   |               |           |           |   |                   | 
|6 Years                 |                                                      |              | 3.16 | %    |           |                        | 3.29 | %         |   |   | 200,000       |           |           |   | 10/01/10          | 
|10 Years(c)             |                                                      |              | 4.75 | %    |           |                        | 5.30 | %         |   |   | 1,000,000     |           |           |   | 03/15/14          | 
|10 Years                |                                                      |              | 3.67 | %    |           |                        | 3.77 | %         |   |   | 45,000        |           |           |   | 05/27/14          | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|                        | Total/Weighted Average Unsecured Variable Rate Notes |              |      | 4.46 | %         |                        |      | 4.92      | % |   |               | 1,245,000 |           |   |                   |  | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|                        | Total/Weighted Average                               |              |      | 6.61 | %         |                        |      | 6.69      | % |   |               | 9,180,192 |           |   |                   |  | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|                        |                                                      | Net discount |      |      |           |                        |      |           |   |   |               |           | (64,413   | ) |                   |  |  | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          
|                        |                                                      | Total        |      |      |           |                        |      |           |   |   |               | $         | 9,115,779 |   |                   |  |  | 
|                        |                                                      |              |      |      |           |                        |      |           |   |   |               |          






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Includes the effect of settled and outstanding interest rate
    protection and interest rate swap agreements, offering and
    transaction costs and premiums and discounts on certain
    unsecured notes.                   
|   
|(b) | The rates shown are weighted average rates. The coupon rates on
    the EOP InterNotes range from 3.30% to 5.25%. Including all
    offering expenses, the effective rates of the EOP InterNotes
    range from 3.61% to 5.46%.

35



---



##### Table of Contents





|    |                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | In March 2004, we entered into several interest rate swap
    agreements that effectively converted these notes to a variable
    interest rate based on the 6-month LIBOR rate.





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





|                                                                                                             |  |                    |      | 
|------------------------------------------------------------------------------------------------------------ |  | ------------------ | ---- | 
|Covenants(a) (in each case as defined in the respective indenture)                                           |  | Actual Performance |     
|                                                                                                             |  |                    |     
|Debt to Adjusted Total Assets may not be greater than 60%                                                    |  |                    | 48%  | 
|Secured Debt to Adjusted Total Assets may not be greater than 40%                                            |  |                    | 11%  | 
|Consolidated Income Available for Debt Service to Annual Debt
    Service Charge may not be less than 1.50:1 |  |                    | 2.4  | 
|Total Unencumbered Assets to Unsecured Debt may not be less than
    150%(a)                                 |  |                    | 209% | 






|    |                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | The unsecured notes we assumed in the merger with Spieker
    Partnership of which approximately $1.3 billion are still
    outstanding at March 31, 2005, are subject to a minimum
    ratio of 165%.



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



|                                 |                                                                        |               |             |           |       |  |            |          |   |  |             |           |  
|-------------------------------- | ---------------------------------------------------------------------- | ------------- | ----------- | --------- | ----- |  | ---------- | -------- | - |  | ----------- | --------- | -
|                                 |                                                                        | Common Shares |             |           | Units |  |            | Total    |  
|                                 |                                                                        |               |             |           |       |  |            |          |  
|Outstanding at December 31, 2004 |                                                                        |               | 403,842,441 |           |       |  | 47,494,701 |          |   |  | 451,337,142 |          
|                                 | Issued upon exercise of share options                                  |               |             | 1,618,882 |       |  |            |         |   |  |             | 1,618,882 |  
|                                 | Repurchased and retired(a)                                             |               |             | (86,505   | )     |  |            |         |   |  |             | (86,505   | )
|                                 | Repurchased in the prior period, but retired in the current
    period |               |             | (25,728   | )     |  |            |         |   |  |             | (25,728   | )
|                                 | Units redeemed for Common Shares                                       |               |             | 446,459   |       |  |            | (446,459 | ) |  |             |          |  
|                                 | Units converted to cash                                                |               |             |          |       |  |            | (203,396 | ) |  |             | (203,396  | )
|                                 | Restricted shares issued, net of cancellations                         |               |             | 819,515   |       |  |            |         |   |  |             | 819,515   |  
|                                 | Issued upon conversion of 70 Series B Preferred Shares                 |               |             | 98        |       |  |            |         |   |  |             | 98        |  
|                                 |                                                                        |               |             |           |       |  |            |          |  
|Outstanding at March 31, 2005    |                                                                        |               | 406,615,162 |           |       |  | 46,844,846 |          |   |  | 453,460,008 |          
|                                 |                                                                        |               |             |           |       |  |            |          |  






|    |                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------
|(a) | In connection with these repurchases, we purchased from Equity
    Office and retired a corresponding number of Units.

Market Risk




36



---



##### Table of Contents



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 tenant improvements, leasing costs, capitalized
    interest and operating costs incurred during completion of the
    property and incurred while the property is made ready for its
    intended use.



|                       |                      |                                      |   |                |             |  |   |              |                |  |             |        |        |  |   |     |     | 
|---------------------- | -------------------- | ------------------------------------ | - | -------------- | ----------- |  | - | ------------ | -------------- |  | ----------- | ------ | ------ |  | - | --- | --- | 
|                       |                      | For the three months ended March 31, |  
|                       |                      |                                      |  
|                       |                      | 2005                                 |   |                | 2004        | 
|                       |                      |                                      |   |                |             | 
|                       |                      |                                      |   | Unconsolidated |             |  |   |              | Unconsolidated | 
|                       |                      | Consolidated                         |   |                | Properties  |  |   | Consolidated |                |  | Properties  |       
|(Dollars in thousands) |                      | Properties                           |   |                | (our share) |  |   | Properties   |                |  | (our share) |       
|                       |                      |                                      |   |                |             |  |   |              |                |  |             |       
|Capital Improvements:  |                      |                                      |   |                |             |  |   |              |                |  |             |        |        |  |   |    
|                       | Capital improvements |                                      | $ | 4,563          |             |  | $ | 802          |                |  | $           | 5,272  |        |  | $ | 589 |    
|                       | Development costs    |                                      |   | 1,085          |             |  |   |             |                |  |             | 20,127 |        |  |   |    |    
|                       | Redevelopment costs  |                                      |   |               |             |  |   |             |                |  |             | 356    |        |  |   |    |    
|                       |                      |                                      |   |                |             |  |   |              |                |  |             |       
|                       |                      | Total capital improvements           |   | $              | 5,648       |  |   | $            | 802            |  |             | $      | 25,755 |  |   | $   | 589 | 
|                       |                      |                                      |   |                |             |  |   |              |                |  |             |       



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



37



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##### Table of Contents





|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |        |        |     |   |       |       | 
|------------------------------ | ---------- | ------------------------------------ | - | -------------- | ------------------ | --- | -------------- | ----------- | -------------- |  | ------------------ | ------ | ------ | --- | - | ----- | ----- | 
|                               |            | For the three months ended March 31, |  
|                               |            |                                      |  
|                               |            | 2005                                 |   |                | 2004               |    
|                               |            |                                      |   |                |                    |    
|                               |            |                                      |   | Total Cost Per |                    |     |                |             | Total Cost per | 
|                               |            | Total Costs                          |   |                | Square Foot Leased |     |                | Total Costs |                |  | Square Foot Leased |       
|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |       
|                               |            | (in thousands)                       |   |                |                    |     | (in thousands) |             |                | 
|Consolidated Properties:       |            |                                      |   |                |                    |     |                |             |                |  |                    |        |        |     |   |      
|Office Properties:             |            |                                      |   |                |                    |     |                |             |                |  |                    |        |        |     |   |      
|                               | Renewals   |                                      | $ | 31,318         |                    |     | $              | 10.90       |                |  | $                  | 16,951 |        |     | $ | 8.95  |      
|                               | Retenanted |                                      |   | 54,315         |                    |     |                | 21.80       |                |  |                    | 55,778 |        |     |   | 21.85 |      
|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |       
|                               |            | Total/Weighted Average               |   |                | 85,633             |     |                |             | 15.96          |  |                    |        | 72,729 |     |   |       | 16.36 | 
|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |       
|Unconsolidated Joint Ventures: |            |                                      |   |                |                    |     |                |             |                |  |                    |        |        |     |   |      
|                               | Renewals   |                                      |   | 609            | (a)                |     |                | 8.82        |                |  |                    | 7,219  | (a)    |     |   | 24.17 |      
|                               | Retenanted |                                      |   | 10,200         | (a)                |     |                | 42.27       |                |  |                    | 3,596  | (a)    |     |   | 27.79 |      
|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |       
|                               |            | Total/Weighted Average               |   |                | 10,809             | (a) |                |             | 34.83          |  |                    |        | 10,815 | (a) |   |       | 25.26 | 
|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |       
|                               |            | Total/Weighted Average               |   | $              | 96,442             |     |                | $           | 16.99          |  |                    | $      | 83,544 |     |   | $     | 17.14 | 
|                               |            |                                      |   |                |                    |     |                |             |                |  |                    |       






|    |                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------
|(a) | Represents our share of unconsolidated joint ventures tenant
    improvements and leasing costs for office properties.



|                                                                                                             |                                                                   |                            |       |         |         |   |        |         |         | 
|------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------- | -------------------------- | ----- | ------- | ------- | - | ------ | ------- | ------- | 
|                                                                                                             |                                                                   | For the three months ended |      
|                                                                                                             |                                                                   | March 31,                  |      
|                                                                                                             |                                                                   |                            |      
|(Dollars in thousands)                                                                                       |                                                                   | 2005                       |       |         | 2004    |  
|                                                                                                             |                                                                   |                            |       |         |         |  
|Capital improvements                                                                                         |                                                                   | $                          | 4,563 |         |         | $ | 5,272  |        
|Tenant improvements and leasing costs:                                                                       |                                                                   |                            |       |         |         |   |        |        
|                                                                                                             | Office properties                                                 |                            |       | 85,633  |         |   |        | 72,729  |        
|                                                                                                             | Industrial properties                                             |                            |       |        |         |   |        | 2,189   |        
|Expenditures for corporate furniture, fixtures and equipment,
    software, leasehold improvements and other |                                                                   |                            | 2,936 |         |         |   | 5,279  |        
|                                                                                                             |                                                                   |                            |       |         |         |  
|                                                                                                             | Subtotal                                                          |                            |       | 93,132  |         |   |        | 85,469  |        
|Development costs                                                                                            |                                                                   |                            | 1,085 |         |         |   | 20,127 |        
|Redevelopment costs                                                                                          |                                                                   |                            |      |         |         |   | 356    |        
|Timing differences                                                                                           |                                                                   |                            | 6,558 |         |         |   | 47,261 |        
|                                                                                                             |                                                                   |                            |       |         |         |  
|                                                                                                             | Total capital improvements, tenant improvements and leasing costs |                            | $     | 100,775 |         |   | $      | 153,213 |        
|                                                                                                             |                                                                   |                            |       |         |         |  
|Selected items from the consolidated statements of cash
    flows:                                           |                                                                   |                            |       |         |         |   |        |        
|                                                                                                             | Capital and tenant improvements                                   |                            | $     | 76,406  |         |   | $      | 121,389 |        
|                                                                                                             | Lease commissions and other costs                                 |                            |       | 24,369  |         |   |        | 31,824  |        
|                                                                                                             |                                                                   |                            |       |         |         |  
|                                                                                                             |                                                                   | Total                      |       | $       | 100,775 |   |        | $       | 153,213 | 
|                                                                                                             |                                                                   |                            |       |         |         |  

38



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##### Table of Contents



Developments




|                         |  |           |         |  |          |  |               |           |  |        |      |       |          |         |         |           |          |         |            |        |  |   |        |  |  |  |    |  
|------------------------ |  | --------- | ------- |  | -------- |  | ------------- | --------- |  | ------ | ---- | ----- | -------- | ------- | ------- | --------- | -------- | ------- | ---------- | ------ |  | - | ------ |  |  |  | -- | -
|                         |  | Placed in |         |  |          |  | Number        |           |  |        |      | Costs |          |         | Total   |           |          | Current |           
|                         |  | Service   |         |  |          |  | of            |           |  | Square |      |       | Incurred |         |         | Estimated |          |         | Percentage |       
|(Dollars in thousands)   |  | Date(a)   |         |  | Location |  |               | Buildings |  |        | Feet |       |          | To Date |         |           | Costs(b) |         |            | Leased | 
|                         |  |           |         |  |          |  |               |           |  |        |      |       |          |         |         |           |          |         |            |        | 
|Cambridge Science Center |  |           | 2Q/2004 |  |          |  | Cambridge, MA |           |  |        | 1    |       |          |         | 131,000 |           |          | $       | 41,440     |        |  | $ | 54,900 |  |  |  | 43 | %






|    |  |                                                                                                                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The Placed in Service Date represents the date the certificate
    of occupancy was obtained. Subsequent to obtaining the
    certificate of occupancy, the property is expected to undergo a
    lease-up period.                                                                                                      
|   
|(b) |  | The Total Estimated Costs represent 100% of the
    developments estimated costs, including the acquisition
    cost of the land and building, if any. The Total Estimated Costs
    are subject to change upon, or prior to, the completion of the
    development and include amounts required to lease the property.







| |          
| | ---------
| | Inflation



Cash Flows




|                                                         |                                                      |                            |         |          |      |   |        |          |  
|-------------------------------------------------------- | ---------------------------------------------------- | -------------------------- | ------- | -------- | ---- | - | ------ | -------- | -
|                                                         |                                                      | For the three months ended |        
|                                                         |                                                      | March 31,                  |        
|                                                         |                                                      |                            |        
|(Dollars in thousands)                                   |                                                      | 2005                       |         |          | 2004 |  
|                                                         |                                                      |                            |         |          |      |  
|Cash and cash equivalents at the beginning of the period |                                                      | $                          | 107,126 |          |      | $ | 69,398 |         
|                                                         | Net cash provided by operating activities            |                            |         | 169,175  |      |   |        | 223,723  |  
|                                                         | Net cash provided by (used for) investing activities |                            |         | 98,560   |      |   |        | (165,734 | )
|                                                         | Net cash (used for) financing activities             |                            |         | (272,563 | )    |   |        | (70,853  | )
|                                                         |                                                      |                            |         |          |      |  
|Cash and cash equivalents at the end of the period       |                                                      | $                          | 102,298 |          |      | $ | 56,534 |         
|                                                         |                                                      |                            |         |          |      |  



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



39



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##### Table of Contents





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





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



Additional Items for 2005




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





| |                      
| | ---------------------
| | Distributions Payable



Critical Accounting Policies and Estimates




Subsequent Events




40



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##### Table of Contents



Funds From Operations (FFO)




Reconciliation of Net Income to Funds From Operations
(FFO)


|                                                                                                                                                                                                                                                         |  |                                      |         |              |         |   |       |         |              |   |         |   |  |   |       |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------ | ------- | ------------ | ------- | - | ----- | ------- | ------------ | - | ------- | - |  | - | ----- | -
|                                                                                                                                                                                                                                                         |  | For the three months ended March 31, |        
|                                                                                                                                                                                                                                                         |  |                                      |        
|                                                                                                                                                                                                                                                         |  | 2005                                 |         |              | 2004    |  
|                                                                                                                                                                                                                                                         |  |                                      |         |              |         |  
|                                                                                                                                                                                                                                                         |  |                                      |         | Per Weighted |         |   |       |         | Per Weighted |  
|                                                                                                                                                                                                                                                         |  |                                      |         | Average      |         |   |       |         | Average      |  
|(Dollars in thousands, except per unit amounts)                                                                                                                                                                                                          |  | Dollars                              |         |              | Unit(b) |   |       | Dollars |              |   | Unit(b) |  
|                                                                                                                                                                                                                                                         |  |                                      |         |              |         |   |       |         |              |   |         |  
|Reconciliation of net income to FFO(a):                                                                                                                                                                                                                  |  |                                      |         |              |         |   |       |         |              |   |         |   |  |   |       |  
|Net income                                                                                                                                                                                                                                               |  | $                                    | 121,325 |              |         | $ | 0.27  |         |              | $ | 85,988  |   |  | $ | 0.19  |  
|Plus real estate related depreciation and amortization less net
    gain on sales of real estate, including our share of those items
    from unconsolidated joint ventures and adjusted for minority
    interests share in partially owned properties |  |                                      | 184,928 |              |         |   | 0.41  |         |              |   | 191,566 |   |  |   | 0.43  |  
|Plus cumulative effect of a change in accounting principle                                                                                                                                                                                               |  |                                      |        |              |         |   |      |         |              |   | 33,697  |   |  |   | 0.08  |  
|                                                                                                                                                                                                                                                         |  |                                      |         |              |         |   |       |         |              |   |         |  
|FFO                                                                                                                                                                                                                                                      |  |                                      | 306,253 |              |         |   | 0.68  |         |              |   | 311,251 |   |  |   | 0.69  |  
|Preferred distributions                                                                                                                                                                                                                                  |  |                                      | (8,701  | )            |         |   | (0.02 | )       |              |   | (12,748 | ) |  |   | (0.03 | )
|                                                                                                                                                                                                                                                         |  |                                      |         |              |         |   |       |         |              |   |         |  
|FFO available to unitholders  basic                                                                                                                                                                                                                     |  | $                                    | 297,552 |              |         | $ | 0.66  | (d)     |              | $ | 298,503 |   |  | $ | 0.67  |  
|                                                                                                                                                                                                                                                         |  |                                      |         |              |         |   |       |         |              |   |         |  

|                                                                                                            |  |            |             |   |     |   |             |            |  |   |             |   |  |   |             |  
|----------------------------------------------------------------------------------------------------------- |  | ---------- | ----------- | - | --- | - | ----------- | ---------- |  | - | ----------- | - |  | - | ----------- | -
|Adjustments to arrive at FFO available to                                                                   |  | Net Income |             |   | FFO |   |             | Net Income |  |   | FFO         |  
|unitholders plus assumed conversions:                                                                       |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO                                                                                          |  | $          | 121,325     |   |     | $ | 306,253     |            |  | $ | 85,988      |   |  | $ | 311,251     |  
|Preferred distributions                                                                                     |  |            | (8,701      | ) |     |   | (8,701      | )          |  |   | (12,748     | ) |  |   | (12,748     | )
|                                                                                                            |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO available to unitholders                                                                 |  |            | 112,624     |   |     |   | 297,552     |            |  |   | 73,240      |   |  |   | 298,503     |  
|Preferred distributions on Series B preferred units, of
    which are assumed to be converted into Units(c) |  |            |            |   |     |   | 4,584       |            |  |   |            |   |  |   | 3,931       |  
|                                                                                                            |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO available to unitholders plus assumed
    conversions                                    |  | $          | 112,624     |   |     | $ | 302,136     |            |  | $ | 73,240      |   |  | $ | 302,434     |  
|                                                                                                            |  |            |             |   |     |   |             |            |  |   |             |  
|Weighted average Units, dilutive potential units plus assumed
    conversions outstanding                   |  |            | 452,400,294 |   |     |   | 460,789,584 |            |  |   | 451,142,921 |   |  |   | 459,532,275 |  
|                                                                                                            |  |            |             |   |     |   |             |            |  |   |             |  
|Net income and FFO available to unitholders plus assumed
    conversions per unit                           |  | $          | 0.25        |   |     | $ | 0.66        | (d)        |  | $ | 0.16        |   |  | $ | 0.66        |  
|                                                                                                            |  |            |             |   |     |   |             |            |  |   |             |  

|                                                                                                                                                                    |  |  |  |                            |  |  |             |  |  |  |  |  |  |  |             | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | -------------------------- |  |  | ----------- |  |  |  |  |  |  |  | ----------- | 
|                                                                                                                                                                    |  |  |  | Units and unit equivalents | 
|                                                                                                                                                                    |  |  |  |                            | 
|Weighted average Units outstanding (used for both net income and
    FFO basic per unit calculation)                                                                |  |  |  |                            |  |  | 449,991,140 |  |  |  |  |  |  |  | 448,652,065 | 
|Impact of share options and restricted shares which are dilutive
    to both net income and FFO                                                                     |  |  |  |                            |  |  | 2,409,154   |  |  |  |  |  |  |  | 2,490,856   | 
|                                                                                                                                                                    |  |  |  |                            |  |  |             |  |  |  |  | 
|Weighted average Units and dilutive potential units used for net
    income available to unitholders                                                                |  |  |  |                            |  |  | 452,400,294 |  |  |  |  |  |  |  | 451,142,921 | 
|Impact of conversion of Series B preferred units(c)                                                                                                                 |  |  |  |                            |  |  | 8,389,290   |  |  |  |  |  |  |  | 8,389,354   | 
|                                                                                                                                                                    |  |  |  |                            |  |  |             |  |  |  |  | 
|Weighted average Units, dilutive potential units plus assumed
    conversions used for the calculation of FFO available to
    unitholders plus assumed conversions |  |  |  |                            |  |  | 460,789,584 |  |  |  |  |  |  |  | 459,532,275 | 
|                                                                                                                                                                    |  |  |  |                            |  |  |             |  |  |  |  | 

41



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##### Table of Contents








|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) | FFO per unit may not total the sum of the per unit components in
    the reconciliation due to rounding.



|    |                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------
|(c) | The Series B preferred units are not dilutive to earnings
    per unit but are dilutive to FFO per unit for each period
    presented.



|    |                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(d) | FFO for the three months ended March 31, 2005 includes a
    $13.5 million non-cash provision for loss on assets held
    for sale, or $0.03 per unit on a diluted basis, which is not
    added back to net income when calculating FFO.

FFO Definition:









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



42



---



##### Table of Contents








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



| |                                                 
| | ------------------------------------------------
| | Evaluation of Disclosure Controls and Procedures





| |                                                         
| | --------------------------------------------------------
| | Changes in Internal Control over Financial
    Reporting



43



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##### Table of Contents






PART II  OTHER INFORMATION







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








|        |                                                                 
|------- | ----------------------------------------------------------------
|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 Paid |                    |       | Announced Plans |                       |  | the Plans or | 
|Period             |  | Units Purchased (a) |         |  | per Unit           |                    |       | or Programs     |                       |  | Programs     | 
|                   |  |                     |         |  |                    |                    |       |                 |                       |  |              | 
|January 1-31       |  |                     | 161,924 |  |                    | $                  | 28.92 |                 |                       |  |             |  |  |  |  | 
|February 1-28      |  |                     | 35,103  |  |                    |                    | 29.73 |                 |                       |  |             |  |  |  |  | 
|March 1-31         |  |                     | 223,804 |  |                    |                    | 30.17 |                 |                       |  |             |  |  |  |  | 
|                   |  |                     |         |  |                    |                    |       |                 |                       |  |              | 
|First quarter 2005 |  |                     | 420,831 |  |                    | $                  | 29.65 |                 |                       |  |             |  |  |  |  | 
|                   |  |                     |         |  |                    |                    |       |                 |                       |  |              | 






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 nonemployee 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.



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##### Table of Contents






SIGNATURES






| |                                  
| | ---------------------------------
| | EOP OPERATING LIMITED PARTNERSHIP



| |     |                               
| | --- | ------------------------------
| | By: | EQUITY OFFICE PROPERTIES TRUST

| |                    
| | -------------------
| | its general partner



| |     |                       
| | --- | ----------------------
| | By: | /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  



| |     |                       
| | --- | ----------------------
| | By: | /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        

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##### Table of Contents






EXHIBIT INDEX


|        |      |  |             |                                                                                                                                                                                                                   |          |                                                                                                                                                                
|------- | ---- |  | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |  |             |                                                                                                                                                                                                                   |         
|No.     |      |  | Description |                                                                                                                                                                                                                   | Location
|        |      |  |             |                                                                                                                                                                                                                   |         
|        | 4.1  |  |             | Indenture, dated August 29, 2000, by and between EOP
    Operating Limited Partnership and U.S. Bank National
    Association (formerly known as U.S. Bank
    Trust National Association)                        |          | Incorporated by reference to Exhibit 4.1 to EOP Operating
    Limited Partnerships Registration Statement on
    Form S-3, as amended (SEC File No. 333-43530)
|        | 4.2  |  |             | First Supplemental Indenture, dated June 18, 2001, among
    EOP Operating Limited Partnership, Equity Office and
    U.S. Bank National Association (formerly known as
    U.S. Bank Trust National Association) |          | Incorporated by reference to Exhibit 4.2 to Equity
    Offices Registration Statement on Form S-3, as
    amended (SEC File No. 333-58976)                    
|        | 4.3  |  |             | New Trustee Appointment Agreement, dated June 10, 2004,
    among EOP Operating Limited Partnership, Equity Office and BNY
    Midwest Trust Company                                                              |          | Incorporated by reference to Exhibit 4.5 to the Current
    Report on Form 8-K of EOP Operating Limited Partnership
    filed with the SEC on June 15, 2004    
|        | 4.4  |  |             | Form of Medium-Term InterNote (Fixed Rate) and related Guarantee                                                                                                                                                  |          | Incorporated by reference to Exhibit 4.3 to the Current
    Report on Form 8-K of EOP Operating Limited Partnership filed
    with the SEC on June 15, 2004    
|        | 4.5  |  |             | Schedule of Medium-Term InterNotes (Fixed Rate) issued from
    January 1, 2005 to March 31, 2005                                                                                                                 |          | Filed herewith                                                                                                                                                 
|        | 10.1 |  |             | Credit Agreement for $250,000,000 Credit Facility dated as of
    February 10, 2005, and related Guaranty of Payment                                                                                              |          | Incorporated by reference to Exhibit 10.46 to Equity
    Offices 2004 Annual Report on Form 10-K                                                              
|        | 12.1 |  |             | Statement of Computation of Ratio of Earnings to Fixed Charges                                                                                                                                                    |          | Filed herewith                                                                                                                                                 
|        | 31.1 |  |             | Certification 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 |  |             | Certification 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 |  |             | Certification 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                                                                                                                                                 

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