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| x      | **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 ___________**                               |   |

| **BRANDYWINE    OPERATING PARTNERSHIP, L.P.**                 |
|---------------------------------------------------------------|
|                                                               |
| **(Exact    name of registrant as specified in its charter)** |

| **Delaware**                                                           |   | **23-2862640**                              |
|------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                        |   |                                             |
| **State or    other jurisdiction of    incorporation or organization** |   | **(I.R.S.    Employer Identification No.)** |
|                                                                   |   |                                        |

| **401 Plymouth Road, Plymouth Meeting,    Pennsylvania** |   | **19462**      |
|----------------------------------------------------------|--------|----------------|
|                                                          |   |                |
| **(Address    of principal executive offices)**          |   | **(Zip Code)** |
|                                                     |   |           |
| **(610) 325-5600**                                       |
|                                                          |
| **Registrant’s    telephone number**                |

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|    |                                                                                                                  | **Page** |
|---------|-----------------------------------------------------------------------------------------------------------------------|----------|
|    |                                                                                                                  |          |
|    |                                                                                                                  |     |
|    | PART I -    FINANCIAL INFORMATION                                                                                     |     |
|    |                                                                                                                  |     |
| Item 1. | Financial Statements (unaudited)                                                                                      |     |
|    |                                                                                                                  |     |
|    | Consolidated Balance Sheets as of    March 31, 2005 and December 31, 2004                                             | 3        |
|    |                                                                                                                  |     |
|    | Consolidated Statements of Operations    for the three-month periods ended March 31, 2005 and 2004                    | 4        |
|    |                                                                                                                  |     |
|    | Consolidated Statements of Other    Comprehensive Income for the three-month periods ended March 31, 2005 and    2004 | 5        |
|    |                                                                                                                  |     |
|    | Consolidated Statements of Cash Flows    for the three-month periods ended March 31, 2005 and 2004                    | 6        |
|    |                                                                                                                  |     |
|    | Notes to Unaudited  Consolidated Financial Statements                                                            | 7        |
|    |                                                                                                                  |     |
| Item 2. | Management’s Discussion and Analysis    of Financial Condition and Results of Operations                         | 27       |
|    |                                                                                                                  |     |
| Item 3. | Quantitative and Qualitative    Disclosures about Market Risk                                                         | 36       |
|    |                                                                                                                  |     |
| Item 4. | Controls and Procedures                                                                                               | 36       |
|    |                                                                                                                  |     |
|    | PART II    - OTHER INFORMATION                                                                                        |     |
|    |                                                                                                                  |     |
| Item 1. | Legal Proceedings                                                                                                     | 36       |
|    |                                                                                                                  |     |
| Item 2. | Unregistered Sales of Equity    Securities and Use of Proceeds                                                        | 37       |
|    |                                                                                                                  |     |
| Item 3. | Defaults Upon Senior Securities                                                                                       | 37       |
|    |                                                                                                                  |     |
| Item 4. | Submission of Matters to a Vote of    Security Holders                                                                | 37       |
|    |                                                                                                                  |     |
| Item 5. | Other Information                                                                                                     | 37       |
|    |                                                                                                                  |     |
| Item 6. | Exhibits                                                                                                              | 38       |
|    |                                                                                                                  |     |
|    | Signatures                                                                                                            | 39       |

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|                                                                                                                         |   | **March 31,    2005** |      | **December    31,    2004** |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|-----------------------------|--------|
|                                                                                                                         |   |                       |      |                             |   |
| **ASSETS**                                                                                                                   |   |                  |      |                        |   |   |   |
| Real    estate investments:                                                                                                  |   |                  |      |                        |   |   |   |
| Operating    properties                                                                                                      |   | $                     | 2,484,932 |                        | $      | 2,483,134 |   |
| Accumulated    depreciation                                                                                                  |   |                  | (339,709  | )                           |   | (325,802 | ) |
|                                                                                                                         |   |                       |           |                        |        |  |   |
|                                                                                                                         |   |                  | 2,145,223 |                        |   | 2,157,332 |   |
| Construction-in-progress                                                                                                     |   |                  | 172,585   |                        |   | 145,016 |   |
| Land    held for development                                                                                                 |   |                  | 74,051    |                        |   | 61,517 |   |
|                                                                                                                         |   |                       |           |                        |        |  |   |
|                                                                                                                         |   |                  | 2,391,859 |                        |   | 2,363,865 |   |
| Cash and cash equivalents                                                                                                    |   |                  | 15,473    |                        |   | 15,346 |   |
| Escrowed cash                                                                                                                |   |                  | 18,791    |                        |   | 17,980 |   |
| Accounts receivable, net                                                                                                     |   |                  | 12,575    |                        |   | 11,999 |   |
| Accrued rent receivable,    net                                                                                              |   |                  | 35,668    |                        |   | 32,641 |   |
| Marketable securities                                                                                                        |   |                  | 615       |                        |   | 423 |   |
| Investment      in real estate ventures, at equity                                                                           |   |                  | 12,741    |                        |   | 12,754 |   |
| Deferred costs, net                                                                                                          |   |                  | 34,696    |                        |   | 34,449 |   |
| Intangible assets, net                                                                                                       |   |                  | 91,004    |                        |   | 101,056 |   |
| Other assets                                                                                                                 |   |                  | 47,661    |                        |   | 43,471 |   |
|                                                                                                                         |   |                       |           |                        |        |  |   |
| Total    assets                                                                                                              |   | $                     | 2,661,083 |                        | $      | 2,633,984 |   |
|                                                                                                                         |   |                       |           |                        |        |  |   |
| **LIABILITIES    AND PARTNERS’ EQUITY**                                                                                 |   |                  |      |                        |   |   |   |
| Mortgage notes payable                                                                                                       |   | $                     | 513,329   |                        | $      | 518,234 |   |
| Unsecured notes                                                                                                              |   |                  | 636,485   |                        |   | 636,435 |   |
| Unsecured      credit facility                                                                                               |   |                  | 200,000   |                        |   | 152,000 |   |
| Accounts payable and    accrued expenses                                                                                     |   |                  | 44,010    |                        |   | 49,243 |   |
| Distributions payable                                                                                                        |   |                  | 27,517    |                        |   | 27,363 |   |
| Tenant security deposits    and deferred rents                                                                               |   |                  | 19,630    |                        |   | 20,046 |   |
| Acquired below market    leases, net of accumulated amortization of $3,382 and $2,341                                        |   |                  | 37,806    |                        |   | 39,271 |   |
| Other liabilities                                                                                                            |   |                  | 1,365     |                        |   | 1,342 |   |
|                                                                                                                         |   |                       |           |                        |        |  |   |
| Total    liabilities                                                                                                         |   |                  | 1,480,142 |                        |   | 1,443,934 |   |
| Commitments      and contingencies (Note 14)                                                                                 |   |                  |      |                        |   |   |   |
| Redeemable    limited partnership units at redemption value; 2,052,959 and 2,061,459 issued    and outstanding               |   |                  | 58,304    |                        |   | 60,586 |   |
| Partners’ Equity                                                                                                        |   |                  |      |                        |   |   |   |
| 7.50%      Series D Preferred Mirror Units; 2,000,000 issued and outstanding in 2005      and 2004                           |   |                  | 47,912    |                        |   | 47,912 |   |
| 7.375%      Series E Preferred Mirror Units; 2,300,000 issued and outstanding in 2005      and 2004                          |   |                  | 55,538    |                        |   | 55,538 |   |
| General        Partnership Capital, 55,625,848 and 55,292,752 units issued and outstanding    in 2005 and 2004, respectively |   |                  | 1,022,012 |                        |   | 1,029,144 |   |
| Accumulated    other comprehensive income (loss)                                                                             |   |                  | (2,825    | )                           |   | (3,130 | ) |
|                                                                                                                         |   |                       |           |                        |        |  |   |
| Total    partners’ equity                                                                                               |   |                  | 1,122,637 |                        |   | 1,129,464 |   |
|                                                                                                                         |   |                       |           |                        |        |  |   |
| Total    liabilities and partners’ equity                                                                               |   | $                     | 2,661,083 |                        | $      | 2,633,984 |   |
|                                                                                                                         |   |                       |           |                        |        |  |   |

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|                                                       |   | **For the three-month periods    ended March 31,** |    |
|------------------------------------------------------------|--------|----------------------------------------------------|---------|
|                                                       |   |                                                    |    |
|                                                       |   | **2005**                                           |    | **2004** |   |
|                                                       |   |                                                    |    |  |   |
| **Revenue:**                                               |   |                                               |    |   |   |   |   |
| Rents                                                      |   | $                                                  | 81,228  |   | $ | 63,680 |   |
| Tenant reimbursements                                      |   |                                               | 12,082  |   |   | 7,993 |   |
| Other                                                      |   |                                               | 5,614   |   |   | 1,526 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| Total revenue                                              |   |                                               | 98,924  |   |   | 73,199 |   |
| **Operating Expenses:**                                    |   |                                               |    |   |   |   |   |
| Property operating    expenses                             |   |                                               | 29,879  |   |   | 22,150 |   |
| Real estate taxes                                          |   |                                               | 9,657   |   |   | 6,881 |   |
| Depreciation and    amortization                           |   |                                               | 28,435  |   |   | 15,804 |   |
| Administrative expenses                                    |   |                                               | 4,752   |   |   | 3,489 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| Total operating    expenses                                |   |                                               | 72,723  |   |   | 48,324 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| **Operating income**                                       |   |                                               | 26,201  |   |   | 24,875 |   |
| **Other Income (Expense):**                                |   |                                               |    |   |   |   |   |
| Interest income                                            |   |                                               | 780     |   |   | 511 |   |
| Interest expense                                           |   |                                               | (17,797 | ) |   | (12,104 | ) |
| Equity in income of    real estate ventures                |   |                                               | 558     |   |   | 234 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| Income before minority interest                            |   |                                               | 9,742   |   |   | 13,516 |   |
| Minority interest attributable to continuing    operations |   |                                               | (51     | ) |   | — |   |
|                                                       |   |                                                    |         |   |  |  |   |
| Income from continuing operations                          |   |                                               | 9,691   |   |   | 13,516 |   |
| **Discontinued operations:**                               |   |                                               |    |   |   |   |   |
| Income from    discontinued operations                     |   |                                               | —  |   |   | (1 | ) |
| Net gain on disposition    of discontinued operations      |   |                                               | —  |   |   | 204 |   |
| Minority interest                                          |   |                                               | —  |   |   | — |   |
|                                                       |   |                                                    |         |   |  |  |   |
| Income from discontinued operations                        |   |                                               | —  |   |   | 203 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| **Net income**                                             |   |                                               | 9,691   |   |   | 13,719 |   |
| Income allocated to Preferred Units                        |   |                                               | (1,998  | ) |   | (2,018 | ) |
| Income allocable to Redeemable Units                       |   |                                               | —  |   |   | (832 | ) |
| Preferred Share redemption/conversion benefit              |   |                                               | —  |   |   | 4,500 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| **Income allocated to Common    Partnership Units**        |   | $                                                  | 7,693   |   | $ | 15,369 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| **Basic earnings per Common    Partnership Unit:**         |   |                                               |    |   |   |   |   |
| Continuing operations                                      |   | $                                                  | 0.13    |   | $ | 0.34 |   |
| Discontinued operations                                    |   |                                               | —  |   |   | — |   |
|                                                       |   |                                                    |         |   |  |  |   |
|                                                       |   | $                                                  | 0.13    |   | $ | 0.34 |   |
|                                                       |   |                                                    |         |   |  |  |   |
| **Diluted earnings per Common    Partnership Unit:**       |   |                                               |    |   |   |   |   |
| Continuing operations                                      |   | $                                                  | 0.13    |   | $ | 0.33 |   |
| Discontinued operations                                    |   |                                               | —  |   |   | — |   |
|                                                       |   |                                                    |         |   |  |  |   |
|                                                       |   | $                                                  | 0.13    |   | $ | 0.33 |   |
|                                                       |   |                                                    |         |   |  |  |   |

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|                                                                                          |   | **For the three-month periods     ended March 31,** |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                          |   |                                                     |   |
|                                                                                          |   | **2005**                                            |   | **2004** |   |
|                                                                                          |   |                                                     |   |  |   |
| Net Income                                                                                    |   | $                                                   | 9,691  |   | $ | 13,719 |   |
| Other comprehensive    income:                                                                |   |                                                |   |   |   |   |   |
| Unrealized gain (loss)    on derivative financial instruments                                 |   |                                                | — |   |   | (76 | ) |
| Reclassification of    realized losses on derivative financial instruments to operations      |   |                                                | 113    |   |   | 1,378 |   |
| Unrealized gain (loss)    on available-for-sale securities                                    |   |                                                | 192    |   |   | (792 | ) |
| Reclassification of    realized (gains) losses on available for sale securities to operations |   |                                                | — |   |   | (233 | ) |
|                                                                                          |   |                                                     |        |   |  |  |   |
| Total other    comprehensive income                                                           |   |                                                | 305    |   |   | 277 |   |
|                                                                                          |   |                                                     |        |   |  |  |   |
| Comprehensive Income                                                                          |   | $                                                   | 9,996  |   | $ | 13,996 |   |
|                                                                                          |   |                                                     |        |   |  |  |   |

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|                                                                                         |   | **Three-Month         Periods Ended         March 31,** |    |
|----------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                                         |   |                                                         |    |
|                                                                                         |   | **2005**                                                |    | **2004** |   |
|                                                                                         |   |                                                         |    |  |   |
| **Cash flows from operating    activities:**                                                 |   |                                                    |    |   |   |   |   |
| Net income                                                                                   |   | $                                                       | 9,691   |   | $ | 13,719 |   |
| Adjustments to    reconcile net income to net cash from operating activities:                |   |                                                    |    |   |   |   |   |
| Depreciation                                                                                 |   |                                                    | 21,203  |   |   | 13,606 |   |
| Amortization:                                                                                |   |                                                    |    |   |   |   |   |
| Deferred financing    costs                                                                  |   |                                                    | 644     |   |   | 483 |   |
| Deferred leasing costs                                                                       |   |                                                    | 1,950   |   |   | 1,811 |   |
| Deferred market rents                                                                        |   |                                                    | (505    | ) |   | 24 |   |
| Assumed lease    intangibles                                                                 |   |                                                    | 5,282   |   |   | 490 |   |
| Deferred compensation    costs                                                               |   |                                                    | 691     |   |   | 553 |   |
| Straight-line rent                                                                           |   |                                                    | (3,275  | ) |   | (1,925 | ) |
| Provision for doubtful    accounts                                                           |   |                                                    | 400     |   |   | 430 |   |
| Net gain on sale of    interests in real estate                                              |   |                                                    | —  |   |   | (204 | ) |
| Minority interest                                                                            |   |                                                    | 51      |   |   | — |   |
| Changes in assets and    liabilities:                                                        |   |                                                    |    |   |   |   |   |
| Accounts receivable                                                                          |   |                                                    | (213    | ) |   | (959 | ) |
| Other assets                                                                                 |   |                                                    | (4,437  | ) |   | 6,831 |   |
| Accounts payable and    accrued expenses                                                     |   |                                                    | (4,356  | ) |   | (5,302 | ) |
| Tenant security    deposits and deferred rents                                               |   |                                                    | (416    | ) |   | 1,808 |   |
| Other liabilities                                                                            |   |                                                    | (89     | ) |   | 1,703 |   |
|                                                                                         |   |                                                         |         |   |  |  |   |
| Net cash      from operating activities                                                      |   |                                                    | 26,621  |   |   | 33,068 |   |
| **Cash flows from investing activities:**                                                    |   |                                                    |    |   |   |   |   |
| Acquisition of    properties                                                                 |   |                                                    | (11,629 | ) |   | — |   |
| Sales of       properties, net                                                               |   |                                                    | —  |   |   | 2,012 |   |
| Capital expenditures                                                                         |   |                                                    | (33,247 | ) |   | (18,379 | ) |
| Investment in    unconsolidated Real Estate Ventures                                         |   |                                                    | (48     | ) |   | (77 | ) |
| Escrowed cash                                                                                |   |                                                    | (811    | ) |   | (859 | ) |
| Cash distributions from    unconsolidated Real Estate Ventures in excess of equity in income |   |                                                    | 44      |   |   | 261 |   |
| Increase in cash due to    consolidation of variable interest entities                       |   |                                                    | —  |   |   | 426 |   |
| Leasing costs                                                                                |   |                                                    | (3,182  | ) |   | (2,026 | ) |
|                                                                                         |   |                                                         |         |   |  |  |   |
| Net cash from investing    activities                                                        |   |                                                    | (48,873 | ) |   | (18,642 | ) |
| **Cash flows from financing    activities:**                                                 |   |                                                    |    |   |   |   |   |
| Proceeds from    (repayments of) Credit Facility borrowings                                  |   |                                                    | 48,000  |   |   | (40,000 | ) |
| Repayments of mortgage    notes payable                                                      |   |                                                    | (4,905  | ) |   | (37,204 | ) |
| Payments      of deferred financing costs                                                    |   |                                                    | (59     | ) |   | — |   |
| Repayments      on employee stock loans                                                      |   |                                                    | 50      |   |   | 1 |   |
| Exercise of share    options                                                                 |   |                                                    | 7,120   |   |   | 1,200 |   |
| Proceeds from common    partnership unit issuance, net                                       |   |                                                    | —  |   |   | 175,377 |   |
| Repurchases of    preferred and common partnership units                                     |   |                                                    | (239    | ) |   | (93,835 | ) |
| Distributions paid to    preferred and common partnership unitholders                        |   |                                                    | (27,588 | ) |   | (20,960 | ) |
|                                                                                         |   |                                                         |         |   |  |  |   |
| Net cash from financing    activities                                                        |   |                                                    | 22,379  |   |   | (15,421 | ) |
|                                                                                         |   |                                                         |         |   |  |  |   |
| Increase (decrease) in cash and cash equivalents                                             |   |                                                    | 127     |   |   | (995 | ) |
| Cash and cash equivalents at beginning of period                                             |   |                                                    | 15,346  |   |   | 8,552 |   |
|                                                                                         |   |                                                         |         |   |  |  |   |
| Cash and cash equivalents at end of period                                                   |   | $                                                       | 15,473  |   | $ | 7,557 |   |
|                                                                                         |   |                                                         |         |   |  |  |   |
| Supplemental Cash Flow Information:                                                          |   |                                                    |    |   |   |   |   |
| Cash paid for interest,    net of interest capitalized                                       |   | $                                                       | 8,828   |   | $ | 10,861 |   |

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|                                                                                                              | **Three-month    periods     ended March 31,** |   |
|-------------------------------------------------------------------------------------------------------------------|------------------------------------------------|--------|
|                                                                                                              |                                                |   |
|                                                                                                              | **2005**                                       |   | **2004** |   |
|                                                                                                              |                                                |   |  |   |
| Net income allocated to Common Partnership    Unitholders, as reported                                            | $                                              | 7,693  |   | $ | 15,369 |   |
| Add:  Stock based compensation expense included    in reported net income                                    |                                           | 691    |   |   | 553 |   |
| Deduct:  Total stock based compensation expense determined underfair value recognition method for all awards |                                           | (830   | ) |   | (665 | ) |
|                                                                                                              |                                                |        |   |  |  |   |
| Pro forma net income available to Common Partnership    Unitholders                                               | $                                              | 7,554  |   | $ | 15,257 |   |
|                                                                                                              |                                                |        |   |  |  |   |
| Earnings per Common Partnership Unit                                                                              |                                           |   |   |   |   |   |
| Basic - as reported                                                                                               | $                                              | 0.13   |   | $ | 0.34 |   |
|                                                                                                              |                                                |        |   |  |  |   |
| Basic - pro forma                                                                                                 | $                                              | 0.13   |   | $ | 0.33 |   |
|                                                                                                              |                                                |        |   |  |  |   |
| Diluted - as reported                                                                                             | $                                              | 0.13   |   | $ | 0.33 |   |
|                                                                                                              |                                                |        |   |  |  |   |
| Diluted - pro forma                                                                                               | $                                              | 0.13   |   | $ | 0.33 |   |
|                                                                                                              |                                                |        |   |  |  |   |

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|                      | **March 31,    2005**         |      | **December    31,     2004** |   |
|---------------------------|-------------------------------|-----------|------------------------------|--------|
|                      |                               |      |                              |   |
|                      | **(amounts    in thousands)** |      |
| Land                      | $                             | 452,906   |                         | $      | 452,602 |   |
| Building and improvements |                          | 1,897,071 |                         |   | 1,892,153 |   |
| Tenant improvements       |                          | 134,955   |                         |   | 138,379 |   |
|                      |                               |      |                              |   |
|                      | $                             | 2,484,932 |                         | $      | 2,483,134 |   |
|                      |                               |      |                              |   |

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|                                      |   | **At    September 21,    2004** |    |
|-------------------------------------------|--------|---------------------------------|---------|
|                                      |   |                                 |    |
| **Real    estate investments**            |   |                            |    |   |
| Land                                      |   | $                               | 105,302 |   |
| Building    and improvements              |   |                            | 434,795 |   |
| Tenant    improvements                    |   |                            | 20,322  |   |
|                                      |   |                                 |         |   |
| Total    real estate investments acquired |   |                            | 560,419 |   |
| **Rent    receivables**                   |   |                            | 5,537   |   |
| **Other    assets acquired:**             |   |                            |    |   |
| Intangible    assets:                     |   |                            |    |   |
| In-Place    leases                        |   |                            | 49,455  |   |
| Relationship    values                    |   |                            | 35,548  |   |
| Above-market    leases                    |   |                            | 13,240  |   |
|                                      |   |                                 |         |   |
| Total    intangible assets acquired       |   |                            | 98,243  |   |
| Other    assets                           |   |                            | 6,292   |   |
|                                      |   |                                 |         |   |
| Total    Other assets                     |   |                            | 104,535 |   |
|                                      |   |                                 |         |   |
| **Total    assets acquired**              |   |                            | 670,491 |   |
| **Liabilities    assumed:**               |   |                            |    |   |
| Mortgage    notes payable                 |   |                            | 79,330  |   |
| Security    deposits and deferred rent    |   |                            | 618     |   |
| Other    liabilities:                     |   |                            |    |   |
| Below-market    leases                    |   |                            | 39,204  |   |
| Other    liabilities                      |   |                            | 943     |   |
|                                      |   |                                 |         |   |
| Total    other liabilities assumed        |   |                            | 40,147  |   |
|                                      |   |                                 |         |   |
| Total    liabilities assumed              |   |                            | 120,095 |   |
|                                      |   |                                 |         |   |
| **Net assets    acquired**                |   | $                               | 550,396 |   |
|                                      |   |                                 |         |   |

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|                                         |   | **Three-month    period    ended March 31, 2004** |   |
|----------------------------------------------|--------|---------------------------------------------------|--------|
|                                         |   |                                                   |   |
|                                         |   | **(unaudited)**                                   |   |
| Pro forma revenue                            |   | $                                                 | 92,967 |   |
| Pro forma income from continuing operations  |   |                                              | 9,688  |   |
| Earnings per unit from continuing operations |   |                                              |   |   |
| Basic -- as reported                         |   | $                                                 | 0.34   |   |
|                                         |   |                                                   |        |   |
| Basic -- as pro forma                        |   | $                                                 | 0.21   |   |
|                                         |   |                                                   |        |   |
| Diluted - as reported                        |   | $                                                 | 0.33   |   |
|                                         |   |                                                   |        |   |
| Diluted - as pro forma                       |   | $                                                 | 0.21   |   |
|                                         |   |                                                   |        |   |

|                                                        |   | **March 31,    2005** |    | **December    31,    2004** |   |
|-------------------------------------------------------------|--------|-----------------------|---------|-----------------------------|--------|
|                                                        |   |                       |    |                             |   |
| Operating property, net of accumulated depreciation         |   | $                     | 294,368 |                        | $      | 294,378 |   |
| Other assets                                                |   |                  | 28,287  |                        |   | 29,944 |   |
| Liabilities                                                 |   |                  | 26,076  |                        |   | 26,989 |   |
| Debt                                                        |   |                  | 211,206 |                        |   | 209,624 |   |
| Equity                                                      |   |                  | 85,373  |                        |   | 87,709 |   |
| Partnership’s      share of equity (Partnership basis) |   |                  | 12,741  |                        |   | 12,754 |   |

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|                                                        |   | **Three-month    periods ended     March 31,** |   |
|-------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                        |   |                                                |   |
|                                                        |   | **2005**                                       |   | **2004** |   |
|                                                        |   |                                                |   |  |   |
| Revenue                                                     |   | $                                              | 11,120 |   | $ | 10,281 |   |
| Operating expenses                                          |   |                                           | 4,930  |   |   | 4,515 |   |
| Interest expense, net                                       |   |                                           | 2,785  |   |   | 2,898 |   |
| Depreciation and amortization                               |   |                                           | 2,218  |   |   | 2,190 |   |
| Net income                                                  |   |                                           | 1,187  |   |   | 678 |   |
| Partnership’s      share of income (Partnership basis) |   |                                           | 558    |   |   | 234 |   |

|                            |   | **March 31,    2005** |    |
|---------------------------------|--------|-----------------------|---------|
|                            |   |                       |    |
|                            |   | **Total Cost**        |    | **Accumulated    Amortization** |   | **Deferred    Costs,    net** |   |
|                            |   |                       |    |  |   |  |   |
| In-place lease value            |   | $                     | 53,295  |   | $ | (10,146 | ) | $ | 43,149 |   |
| Tenant relationship value       |   |                  | 37,794  |   |   | (2,469 | ) |   | 35,325 |   |
| Above market leases    acquired |   |                  | 15,127  |   |   | (2,597 | ) |   | 12,530 |   |
|                            |   |                       |         |   |  |  |   |  |  |   |
| Total                           |   | $                     | 106,216 |   | $ | (15,212 | ) | $ | 91,004 |   |
|                            |   |                       |         |   |  |  |   |  |  |   |

|                            |   | **December    31, 2004** |    |
|---------------------------------|--------|--------------------------|---------|
|                            |   |                          |    |
|                            |   | **Total Cost**           |    | **Accumulated    Amortization** |   | **Deferred    Costs,    net** |   |
|                            |   |                          |    |  |   |  |   |
| In-place lease value            |   | $                        | 55,165  |   | $ | (6,117 | ) | $ | 49,048 |   |
| Tenant relationship value       |   |                     | 40,570  |   |   | (2,377 | ) |   | 38,193 |   |
| Above market leases    acquired |   |                     | 15,685  |   |   | (1,870 | ) |   | 13,815 |   |
|                            |   |                          |         |   |  |  |   |  |  |   |
| Total                           |   | $                        | 111,420 |   | $ | (10,364 | ) | $ | 101,056 |   |
|                            |   |                          |         |   |  |  |   |  |  |   |

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| **Property /    Location**                 |   | **March 31,    2005** |    | **December 31,    2004** |   | **Effective    Interest  Rate (b)** |            | **Maturity    Date** |   |
|--------------------------------------------|--------|-----------------------|---------|--------------------------|--------|-------------------------------------|-----------------|----------------------|--------|
|                                            |   |                       |    |                          |   |                                     |            |                      |   |
| Grande B                                   |   | $                     | 80,070  |                     | $      | 80,429                              |            |                 | 7.48   | % |   | Jul-27 |   |
| Two Logan Square                           |   |                  | 73,258  |                     |   | 73,511                              |   (a) |                 | 5.78   | % |   | Jul-09 |   |
| Newtown Square/Berwyn Park/Libertyview     |   |                  | 65,195  |                     |   | 65,442                              |            |                 | 7.25   | % |   | May-13 |   |
| Midlantic Drive/Lenox Drive/DCC I          |   |                  | 64,666  |                     |   | 64,942                              |            |                 | 8.05   | % |   | Oct-11 |   |
| Grande A                                   |   |                  | 61,898  |                     |   | 62,177                              |            |                 | 7.48   | % |   | Jul-27 |   |
| Plymouth Meeting Exec.                     |   |                  | 45,095  |                     |   | 45,226                              |   (a) |                 | 7.00   | % |   | Dec-10 |   |
| Arboretum I, II, III & V               |   |                  | 23,580  |                     |   | 23,690                              |            |                 | 7.59   | % |   | Jul-11 |   |
| Grande A                                   |   |                  | 15,126  |                     |   | 17,157                              |   (b) |                 | 5.61   | % |   | Jul-27 |   |
| Six Tower Bridge                           |   |                  | 15,318  |                     |   | 15,394                              |            |                 | 7.79   | % |   | Aug-12 |   |
| 400 Commerce Drive                         |   |                  | 12,127  |                     |   | 12,175                              |            |                 | 7.12   | % |   | Jun-08 |   |
| Four Tower Bridge                          |   |                  | 10,859  |                     |   | 10,890                              |            |                 | 6.62   | % |   | Feb-11 |   |
| Croton Road                                |   |                  | 6,071   |                     |   | 6,100                               |            |                 | 7.81   | % |   | Jan-06 |   |
| 200 Commerce Drive                         |   |                  | 5,959   |                     |   | 5,976                               |   (a) |                 | 7.12   | % |   | Jan-10 |   |
| Southpoint III                             |   |                  | 5,769   |                     |   | 5,877                               |            |                 | 7.75   | % |   | Apr-14 |   |
| 440 & 442 Creamery Way                 |   |                  | 5,692   |                     |   | 5,728                               |            |                 | 8.55   | % |   | Jul-07 |   |
| Norriton Office Center                     |   |                  | 5,251   |                     |   | 5,270                               |            |                 | 8.50   | % |   | Oct-07 |   |
| 429 Creamery Way                           |   |                  | 3,048   |                     |   | 3,087                               |            |                 | 8.30   | % |   | Sep-06 |   |
| Grande A                                   |   |                  | 2,680   |                     |   | 3,040                               |   (b) |                 | 5.78   | % |   | Jul-27 |   |
| 481 John Young Way                         |   |                  | 2,405   |                     |   | 2,420                               |            |                 | 8.40   | % |   | Nov-07 |   |
| 111 Arrandale Blvd                         |   |                  | 1,086   |                     |   | 1,100                               |            |                 | 8.65   | % |   | Aug-06 |   |
| Interstate Center                          |   |                  | 913     |                     |   | 959                                 |   (b) |                 | 4.31   | % |   | Mar-07 |   |
|                                       |   |                       |         |                     |        |                                     |            |                 |   |   |   |   |   |
| Principal balance outstanding              |   |                  | 506,066 |                     |   | 510,590                             |            |                 |   |   |   |   |   |
| Plus: unamortized fixed-rate debt premiums |   |                  | 7,263   |                     |   | 7,644                               |            |                 |   |   |   |   |   |
|                                       |   |                       |         |                     |        |                                     |            |                 |   |   |   |   |   |
| Total mortgage indebtedness                |   | $                     | 513,329 |                     | $      | 518,234                             |            |                 |   |   |   |   |   |
|                                       |   |                       |         |                     |        |                                     |            |                 |   |   |   |   |   |

|   |   |     |
|--------|--------|-----|
|   |   | (a) | These loans were assumed upon acquisition      of the related property.  Interest rates presented    above reflect      the current market rate at the time of acquisition. |
|   |   | (b) | For loans that bear interest at a variable rate, the    rates in effect at March 31, 2005 have been presented. |
|   |        |

| **Year**                    |   | **March 31,     2005** |    | **December    31,     2004** |   | **Maturity** |   | **Stated     Interest Rate** |   | **Effective     Interest Rate (1)** |   |
|-----------------------------|--------|------------------------|---------|------------------------------|--------|--------------|--------|------------------------------|--------|-------------------------------------|--------|
|                             |   |                        |    |                              |   |              |   |                              |   |                                     |   |
| 2008                        |   | $                      | 113,000 |                         | $      | 113,000      |   |                         | Dec-08 |                                |   | 4.34 | % |   | 4.34 | % |
| 2009                        |   |                   | 275,000 |                         |   | 275,000      |   |                         | Nov-09 |                                |   | 4.50 | % |   | 4.62 | % |
| 2014                        |   |                   | 250,000 |                         |   | 250,000      |   |                         | Nov-14 |                                |   | 5.40 | % |   | 5.53 | % |
|                        |   |                        |         |                         |        |              |   |                         |   |                                |   |   |   |   |   |   |
| Total face amount           |   |                        | 638,000 |                         |        | 638,000      |   |                         |   |                                |   |   |   |   |   |   |
| Less: unamoritzed discounts |   |                   | (1,515  | )                            |   | (1,565       | )      |                         |   |                                |   |   |   |   |   |   |
|                        |   |                        |         |                         |        |              |   |                         |   |                                |   |   |   |   |   |   |
| Total unsecured notes       |   | $                      | 636,485 |                         | $      | 636,435      |   |                         |   |                                |   |   |   |   |   |   |
|                        |   |                        |         |                         |        |              |   |                         |   |                                |   |   |   |   |   |   |

|   |                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   | (1) Rates include the effect of amortization related    to discounts and costs related to settlement of  treasury lock agreements. |

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|                                                                                                                |   | **Three-month    period     ended March 31, 2004** |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                                |   |                                                    |   |
| **Revenue:**                                                                                                        |   |                                               |   |   |
| Rents                                                                                                               |   | $                                                  | 193    |   |
| Tenant reimbursements                                                                                               |   |                                               | 233    |   |
| Other                                                                                                               |   |                                               | 17     |   |
|                                                                                                                |   |                                                    |        |   |
| Total revenue                                                                                                       |   |                                               | 443    |   |
| **Expenses:**                                                                                                       |   |                                               |   |   |
| Property operating expenses                                                                                         |   |                                               | 249    |   |
| Real estate taxes                                                                                                   |   |                                               | 92     |   |
| Depreciation and amortization                                                                                       |   |                                               | 103    |   |
|                                                                                                                |   |                                                    |        |   |
| Total operating expenses                                                                                            |   |                                               | 444    |   |
| Income (loss) from discontinued operations before net gain on sale ofinterests in real estate and minority interest |   |                                               | (1     | ) |
| Net gain on sales of interest in real estate                                                                        |   |                                               | 204    |   |
|                                                                                                                |   |                                                    |        |   |
| Income from discontinued operations                                                                                 |   | $                                                  | 203    |   |
|                                                                                                                |   |                                                    |        |   |

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 12.     EARNINGS PER COMMON PARTNERSHIP UNIT
|                                                      |   | **Three-month    periods ended March 31,** |       |
|-----------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                      |   |                                            |       |
|                                                      |   | **2005**                                   |       | **2004** |   |
|                                                      |   |                                            |       |  |   |
|                                                      |   | **Basic**                                  |       | **Diluted** |   | **Basic** |   | **Diluted** |   |
|                                                      |   |                                            |       |  |   |  |   |  |   |
| Income from continuing operations                         |   | $                                          | 9,691      |   | $ | 9,691 |   | $ | 13,516 |   | $ | 13,516 |   |
| Income from discontinued operations                       |   |                                       | —     |   |   | — |   |   | 203 |   |   | 203 |   |
| Income allocated to Preferred Units                       |   |                                       | (1,998     | ) |   | (1,998 | ) |   | (2,850 | ) |   | (2,850 | ) |
| Preferred      unit redemption gain                       |   |                                       | —     |   |   | — |   |   | 4,500 |   |   | 4,500 |   |
|                                                      |   |                                            |            |   |  |  |   |  |  |   |  |  |   |
| Net income available to common partnership    unitholders |   | $                                          | 7,693      |   | $ | 7,693 |   | $ | 15,369 |   | $ | 15,369 |   |
|                                                      |   |                                            |            |   |  |  |   |  |  |   |  |  |   |
| Weighted-average common partnership units    outstanding  |   |                                       | 57,743,873 |   |   | 57,743,873 |   |   | 45,774,045 |   |   | 45,774,045 |   |
| Options and warrants                                      |   |                                       | —     |   |   | 241,018 |   |   | — |   |   | 287,208 |   |
|                                                      |   |                                            |            |   |  |  |   |  |  |   |  |  |   |
| Total weighted-average partnership units outstanding      |   |                                       | 57,743,873 |   |   | 57,984,891 |   |   | 45,774,045 |   |   | 46,061,253 |   |
|                                                      |   |                                            |            |   |  |  |   |  |  |   |  |  |   |
| Earnings per Common Partnership Unit:                     |   |                                       |       |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                     |   | $                                          | 0.13       |   | $ | 0.13 |   | $ | 0.34 |   | $ | 0.33 |   |
| Discontinued operations                                   |   |                                       | —     |   |   | — |   |   | — |   |   | — |   |
|                                                      |   |                                            |            |   |  |  |   |  |  |   |  |  |   |
|                                                      |   | $                                          | 0.13       |   | $ | 0.13 |   | $ | 0.34 |   | $ | 0.33 |   |
|                                                      |   |                                            |            |   |  |  |   |  |  |   |  |  |   |

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 Segment information for the three-month periods ended March 31, 2005 and 2004 is as follows (in thousands):

|                                              |   | **Pennsylvania    —    West** |    | **Pennsylvania    —    North** |   | **New Jersey** |   | **Urban** |    | **Virginia** |   | **Corporate** |   | **Total** |    |
|---------------------------------------------------|--------|------------------------------------|---------|-------------------------------------|--------|----------------|--------|-----------|---------|--------------|--------|---------------|--------|-----------|---------|
|                                              |   |                                    |    |                                     |   |                |   |           |    |              |   |               |   |           |    |
| As of March 31, 2005:                             |   |                               |    |                                |   |           |   |      |    |         |   |          |   |      |    |   |   |   |   |   |   |   |
| Real estate investments, at cost:                 |   |                               |    |                                |   |           |   |      |    |         |   |          |   |      |    |   |   |   |   |   |   |   |
| Operating properties                              |   | $                                  | 832,952 |                                | $      | 531,903        |   | $         | 552,816 |         | $      | 349,747       |   | $         | 217,514 |   | $ | — |   | $ | 2,484,932 |   |
| Construction-in-progress                          |   |                               | 13,847  |                                |   | 31,101         |   |      | 11,967  |         |   | 5,862         |   |      | 1,883   |   |   | 107,925 |   |   | 172,585 |   |
| Land held for    development                      |   |                               | 16,304  |                                     |   | 28,127         |   |      | 14,965  |         |   | 5,647         |   |      | 7,960   |   |   | 1,048 |   |   | 74,051 |   |
| As of December 31, 2004:                          |   |                               |    |                                |   |           |   |      |    |         |   |          |   |      |    |   |   |   |   |   |   |   |
| Real estate investments, at cost:                 |   |                               |    |                                |   |           |   |      |    |         |   |          |   |      |    |   |   |   |   |   |   |   |
| Operating properties                              |   | $                                  | 830,622 |                                | $      | 533,142        |   | $         | 553,969 |         | $      | 349,911       |   | $         | 215,490 |   | $ | — |   | $ | 2,483,134 |   |
| Construction-in-progress                          |   |                               | 13,140  |                                |   | 24,591         |   |      | 10,994  |         |   | 3,581         |   |      | 3,789   |   |   | 88,921 |   |   | 145,016 |   |
| Land held for    development                      |   |                               | 9,820   |                                |   | 27,964         |   |      | 14,585  |         |   | 516           |   |      | 7,959   |   |   | 673 |   |   | 61,517 |   |
| For the three-months ended March 31, 2005:        |   |                               |    |                                |   |           |   |      |    |         |   |          |   |      |    |   |   |   |   |   |   |   |
| Total revenue                                     |   | $                                  | 29,708  |                                | $      | 19,470         |   | $         | 25,265  |         | $      | 15,956        |   | $         | 7,203   |   | $ | 1,322 |   | $ | 98,924 |   |
| Property operating expenses and real estate taxes |   |                               | 10,282  |                                |   | 9,187          |   |      | 10,673  |         |   | 6,530         |   |      | 2,864   |   |   | — |   |   | 39,536 |   |
|                                              |   |                                    |         |                                |        |                |   |           |         |         |        |               |   |           |         |   |  |  |   |  |  |   |
| Net operating income                              |   | $                                  | 19,426  |                                | $      | 10,283         |   | $         | 14,592  |         | $      | 9,426         |   | $         | 4,339   |   | $ | 1,322 |   | $ | 59,388 |   |
|                                              |   |                                    |         |                                |        |                |   |           |         |         |        |               |   |           |         |   |  |  |   |  |  |   |
| For the three-months ended March 31, 2004:        |   |                               |    |                                |   |           |   |      |    |         |   |          |   |      |    |   |   |   |   |   |   |   |
| Total revenue                                     |   | $                                  | 19,927  |                                | $      | 18,135         |   | $         | 24,468  |         | $      | 2,827         |   | $         | 6,632   |   | $ | 1,210 |   | $ | 73,199 |   |
| Property operating expenses and real estate taxes |   |                               | 6,178   |                                |   | 8,569          |   |      | 9,381   |         |   | 1,912         |   |      | 2,991   |   |   | — |   |   | 29,031 |   |
|                                              |   |                                    |         |                                |        |                |   |           |         |         |        |               |   |           |         |   |  |  |   |  |  |   |
| Net operating income                              |   | $                                  | 13,749  |                                | $      | 9,566          |   | $         | 15,087  |         | $      | 915           |   | $         | 3,641   |   | $ | 1,210 |   | $ | 44,168 |   |
|                                              |   |                                    |         |                                |        |                |   |           |         |         |        |               |   |           |         |   |  |  |   |  |  |   |

|                                                       |   | **Three-month    periods     ended March 31,** |    |
|------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                       |   |                                                |    |
|                                                       |   | **2005**                                       |    | **2004** |   |
|                                                       |   |                                                |    |  |   |
| Consolidated net operating income                          |   | $                                              | 59,388  |   | $ | 44,168 |   |
| Less:                                                      |   |                                           |    |   |   |   |   |
| Interest income                                            |   |                                           | 780     |   |   | 511 |   |
| Interest expense                                           |   |                                           | (17,797 | ) |   | (12,104 | ) |
| Depreciation and    amortization                           |   |                                           | (28,435 | ) |   | (15,804 | ) |
| Administrative expenses                                    |   |                                           | (4,752  | ) |   | (3,489 | ) |
|                                                       |   |                                           |    |   |   |   |   |
| Minority interest    attributable to continuing operations |   |                                           | (51     | ) |   | — |   |
| Plus:                                                      |   |                                           |    |   |   |   |   |
| Equity in income of    real estate ventures                |   |                                           | 558     |   |   | 234 |   |
|                                                       |   |                                                |         |   |  |  |   |
| Income from continuing operations                          |   |                                           | 9,691   |   |   | 13,516 |   |
| Income from discontinued operations                        |   |                                           | —  |   |   | 203 |   |
|                                                       |   |                                                |         |   |  |  |   |
| Net income                                                 |   | $                                              | 9,691   |   | $ | 13,719 |   |
|                                                       |   |                                                |         |   |  |  |   |

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|                                           |   |                   |      |                          |   |                              |   |             |      |             |   |       |   |   |      |   |
|------------------------------------------------|--------|------------------------|-----------|-------------------------------|--------|-----------------------------------|--------|------------------|-----------|------------------|--------|------------|--------|--------|-----------|--------|
|                                           |   | **The    Partnership** |      | **Guarantor    Subsidiaries** |   | **Non-Guarantor    Subsidiaries** |   | **Eliminations** |      | **Consolidated** |   |
|                                           |   |                        |      |                               |   |                                   |   |                  |      |                  |   |
| **ASSETS**                                     |   |                   |      |                          |   |                              |   |             |      |             |   |       |   |   |      |   |
| Total real estate investments, net             |   | $                      | 916,806   |                          | $      | 472,362                           |   | $                | 1,002,691 |             | $      | —     |   | $      | 2,391,859 |   |
| Cash and cash equivalents                      |   |                   | 15,473    |                          |   | —                            |   |             | —    |             |   | —     |   |   | 15,473    |   |
| Escrowed cash                                  |   |                   | 6,722     |                          |   | 1,078                             |   |             | 10,991    |             |   | —     |   |   | 18,791    |   |
| Accounts receivable, net                       |   |                   | 23,727    |                          |   | 10,082                            |   |             | 14,434    |             |   | —     |   |   | 48,243    |   |
| Marketable securities                          |   |                   | 615       |                          |   | —                            |   |             | —    |             |   | —     |   |   | 615       |   |
| Investment in real estate ventures, at equity  |   |                   | 12,741    |                          |   | —                            |   |             | —    |             |   | —     |   |   | 12,741    |   |
| Investments in Subsidiaries, at equity         |   |                   | 1,292,154 |                          |   | —                            |   |             | —    |             |   | (1,292,154 | )      |   | —    |   |
| Deferred costs, net                            |   |                   | 26,348    |                          |   | 2,409                             |   |             | 5,939     |             |   | —     |   |   | 34,696    |   |
| Intangible assets, net                         |   |                   | 4,145     |                          |   | 1,174                             |   |             | 85,685    |             |   | —     |   |   | 91,004    |   |
| Other assets                                   |   |                   | 24,130    |                          |   | 17,731                            |   |             | 5,800     |             |   | —     |   |   | 47,661    |   |
|                                           |   |                        |           |                          |        |                                   |   |                  |           |             |        |            |   |        |           |   |
| Total assets                                   |   | $                      | 2,322,861 |                          | $      | 504,836                           |   | $                | 1,125,540 |             | $      | (1,292,154 | )      | $      | 2,661,083 |   |
|                                           |   |                        |           |                          |        |                                   |   |                  |           |             |        |            |   |        |           |   |
| **LIABILITIES AND PARNTERS’ EQUITY**      |   |                   |      |                          |   |                              |   |             |      |             |   |       |   |   |      |   |
| Mortgage notes payable                         |   | $                      | 232,618   |                          | $      | 13,221                            |   | $                | 267,490   |             | $      | —     |   | $      | 513,329   |   |
| Unsecured notes                                |   |                   | 636,485   |                          |   | —                            |   |             | —    |             |   | —     |   |   | 636,485   |   |
| Unsecured credit facility                      |   |                   | 200,000   |                          |   | —                            |   |             | —    |             |   | —     |   |   | 200,000   |   |
| Accounts payable and accrued expenses          |   |                   | 31,640    |                          |   | 6,708                             |   |             | 5,662     |             |   | —     |   |   | 44,010    |   |
| Distributions payable                          |   |                   | 27,517    |                          |   | —                            |   |             | —    |             |   | —     |   |   | 27,517    |   |
| Tenant security deposits and deferred rents    |   |                   | 12,375    |                          |   | 1,926                             |   |             | 5,329     |             |   | —     |   |   | 19,630    |   |
| Acquired below market leases, net              |   |                   | 631       |                          |   | 751                               |   |             | 36,424    |             |   | —     |   |   | 37,806    |   |
| Other liabilities                              |   |                   | 654       |                          |   | —                            |   |             | 711       |             |   | —     |   |   | 1,365     |   |
|                                           |   |                        |           |                          |        |                                   |   |                  |           |             |        |            |   |        |           |   |
| Total liabilities                              |   |                   | 1,141,920 |                          |   | 22,606                            |   |             | 315,616   |             |   | —     |   |   | 1,480,142 |   |
| Redeemable limited partnership units           |   |                   | 58,304    |                          |   | —                            |   |             | —    |             |   | —     |   |   | 58,304    |   |
| Total partners’ equity                    |   |                   | 1,122,637 |                          |   | 482,230                           |   |             | 809,924   |             |   | (1,292,154 | )      |   | 1,122,637 |   |
|                                           |   |                        |           |                          |        |                                   |   |                  |           |             |        |            |   |        |           |   |
| Total liabilities and    partners’ equity |   | $                      | 2,322,861 |                          | $      | 504,836                           |   | $                | 1,125,540 |             | $      | (1,292,154 | )      | $      | 2,661,083 |   |
|                                           |   |                        |           |                          |        |                                   |   |                  |           |             |        |            |   |        |           |   |

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Back to Contents

|                                           |   | **The     Partnership** |      | **Guarantor    Subsidiaries** |   | **Non-Guarantor    Subsidiaries** |   | **Eliminations** |      | **Consolidated** |   |
|------------------------------------------------|--------|-------------------------|-----------|-------------------------------|--------|-----------------------------------|--------|------------------|-----------|------------------|--------|
|                                           |   |                         |      |                               |   |                                   |   |                  |      |                  |   |
| **ASSETS**                                     |   |                    |      |                          |   |                              |   |             |      |             |   |   |   |   |   |   |
| Total Real estate investments, net             |   | $                       | 912,228   |                          | $      | 453,652                           |   | $                | 997,985   |             | $      | — |   | $ | 2,363,865 |   |
| Cash and cash equivalents                      |   |                    | 15,346    |                          |   | —                            |   |             | —    |             |   | — |   |   | 15,346 |   |
| Escrowed cash                                  |   |                    | 6,501     |                          |   | 1,113                             |   |             | 10,366    |             |   | — |   |   | 17,980 |   |
| Accounts receivable, net                       |   |                    | 21,908    |                          |   | 9,321                             |   |             | 13,411    |             |   | — |   |   | 44,640 |   |
| Marketable securities                          |   |                    | 423       |                          |   | —                            |   |             | —    |             |   | — |   |   | 423 |   |
| Investment in real estate ventures, at equity  |   |                    | 12,754    |                          |   | —                            |   |             | —    |             |   | — |   |   | 12,754 |   |
| Investments in Subsidiaries, at equity         |   |                    | 1,260,560 |                          |   | —                            |   |             | —    |             |   | (1,260,560 | ) |   | — |   |
| Deferred costs, net                            |   |                    | 27,170    |                          |   | 2,460                             |   |             | 4,819     |             |   | — |   |   | 34,449 |   |
| Intangible assets, net                         |   |                    | 4,720     |                          |   | 1,254                             |   |             | 95,082    |             |   | — |   |   | 101,056 |   |
| Other assets                                   |   |                    | 21,259    |                          |   | 18,211                            |   |             | 4,001     |             |   | — |   |   | 43,471 |   |
|                                           |   |                         |           |                          |        |                                   |   |                  |           |             |        |  |   |  |  |   |
| Total assets                                   |   | $                       | 2,282,869 |                          | $      | 486,011                           |   | $                | 1,125,664 |             | $      | (1,260,560 | ) | $ | 2,633,984 |   |
|                                           |   |                         |           |                          |        |                                   |   |                  |           |             |        |  |   |  |  |   |
| **LIABILITIES AND PARNTERS’ EQUITY**      |   |                    |      |                          |   |                              |   |             |      |             |   |   |   |   |   |   |
| Mortgage notes payable                         |   | $                       | 233,599   |                          | $      | 13,443                            |   | $                | 271,192   |             | $      | — |   | $ | 518,234 |   |
| Unsecured notes                                |   |                    | 636,435   |                          |   | —                            |   |             | —    |             |   | — |   |   | 636,435 |   |
| Unsecured credit facility                      |   |                    | 152,000   |                          |   | —                            |   |             | —    |             |   | — |   |   | 152,000 |   |
| Accounts payable and accrued expenses          |   |                    | 31,290    |                          |   | 11,415                            |   |             | 6,538     |             |   | — |   |   | 49,243 |   |
| Distributions payable                          |   |                    | 27,363    |                          |   | —                            |   |             | —    |             |   | — |   |   | 27,363 |   |
| Tenant security deposits and deferred rents    |   |                    | 10,793    |                          |   | 3,293                             |   |             | 5,960     |             |   | — |   |   | 20,046 |   |
| Acquired below market leases, net              |   |                    | 706       |                          |   | 766                               |   |             | 37,799    |             |   | — |   |   | 39,271 |   |
| Other liabilities                              |   |                    | 633       |                          |   | —                            |   |             | 709       |             |   | — |   |   | 1,342 |   |
|                                           |   |                         |           |                          |        |                                   |   |                  |           |             |        |  |   |  |  |   |
| Total liabilities                              |   |                    | 1,092,819 |                          |   | 28,917                            |   |             | 322,198   |             |   | — |   |   | 1,443,934 |   |
| Redeemable limited partnership units           |   |                    | 60,586    |                          |   | —                            |   |             | —    |             |   | — |   |   | 60,586 |   |
| Total partners’ equity                    |   |                    | 1,129,464 |                          |   | 457,094                           |   |             | 803,466   |             |   | (1,260,560 | ) |   | 1,129,464 |   |
|                                           |   |                         |           |                          |        |                                   |   |                  |           |             |        |  |   |  |  |   |
| Total liabilities and    partners’ equity |   | $                       | 2,282,869 |                          | $      | 486,011                           |   | $                | 1,125,664 |             | $      | (1,260,560 | ) | $ | 2,633,984 |   |
|                                           |   |                         |           |                          |        |                                   |   |                  |           |             |        |  |   |  |  |   |
|                                                |        |                         |           |                               |        |                                   |        |                  |           |                  |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

----

Back to Contents

|                                              |   | **The    Partnership** |    | **Guarantor    Subsidiaries** |   | **Non-Guarantor    Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
|---------------------------------------------------|--------|------------------------|---------|-------------------------------|--------|-----------------------------------|--------|------------------|--------|------------------|--------|
|                                              |   |                        |    |                               |   |                                   |   |                  |   |                  |   |
| **Revenue:**                                      |   |                   |    |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Rents                                             |   | $                      | 36,959  |                          | $      | 12,760                            |   | $                | 31,509 |             | $      | — |   | $ | 81,228 |   |
| Tenant reimbursements                             |   |                   | 5,156   |                          |   | 2,753                             |   |             | 4,173  |             |   | — |   |   | 12,082 |   |
| Other                                             |   |                   | 7,793   |                          |   | 44                                |   |             | 349    |             |   | (2,572 | ) |   | 5,614 |   |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Total revenue                                     |   |                   | 49,908  |                          |   | 15,557                            |   |             | 36,031 |             |   | (2,572 | ) |   | 98,924 |   |
| **Operating Expenses:**                           |   |                   |    |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Property operating    expenses                    |   |                   | 14,113  |                          |   | 5,715                             |   |             | 12,623 |             |   | (2,572 | ) |   | 29,879 |   |
| Real estate taxes                                 |   |                   | 4,013   |                          |   | 1,852                             |   |             | 3,792  |             |   | — |   |   | 9,657 |   |
| Depreciation and    amortization                  |   |                   | 11,814  |                          |   | 3,272                             |   |             | 13,349 |             |   | — |   |   | 28,435 |   |
| Administrative expenses                           |   |                   | 4,752   |                          |   | —                            |   |             | — |             |   | — |   |   | 4,752 |   |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Total operating    expenses                       |   |                   | 34,692  |                          |   | 10,839                            |   |             | 29,764 |             |   | (2,572 | ) |   | 72,723 |   |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| **Operating income**                              |   |                   | 15,216  |                          |   | 4,718                             |   |             | 6,267  |             |   | — |   |   | 26,201 |   |
| **Other Income (Expense):**                       |   |                   |    |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Interest income                                   |   |                   | 196     |                          |   | 403                               |   |             | 181    |             |   | — |   |   | 780 |   |
| Interest expense                                  |   |                   | (12,985 | )                             |   | (250                              | )      |             | (4,562 | )                |   | — |   |   | (17,797 | ) |
| Equity in income of    real estate ventures       |   |                   | 558     |                          |   | —                            |   |             | — |             |   | — |   |   | 558 |   |
| Equity in income of    subsidiaries               |   |                   | 6,757   |                          |   | —                            |   |             | — |             |   | (6,757 | ) |   | — |   |
| Net gains on sales of    interests in real estate |   |                   | —  |                          |   | —                            |   |             | — |             |   | — |   |   | — |   |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Income before minority interest                   |   |                   | 9,742   |                          |   | 4,871                             |   |             | 1,886  |             |   | (6,757 | ) |   | 9,742 |   |
| Minority interest                                 |   |                   | (51     | )                             |   | —                            |   |             | — |             |   | — |   |   | (51 | ) |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Income from continuing operations                 |   |                   | 9,691   |                          |   | 4,871                             |   |             | 1,886  |             |   | (6,757 | ) |   | 9,691 |   |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Net income                                        |   | $                      | 9,691   |                          | $      | 4,871                             |   | $                | 1,886  |             | $      | (6,757 | ) | $ | 9,691 |   |
|                                              |   |                        |         |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |

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Back to Contents

|                                                               | **The     Partnership** |    | **Guarantor     Subsidiaries** |   | **Non-Guarantor        Subsidiaries** |   | **Eliminations** |    | **Consolidated** |   |
|--------------------------------------------------------------------|-------------------------|---------|--------------------------------|--------|---------------------------------------|--------|------------------|---------|------------------|--------|
|                                                               |                         |    |                                |   |                                       |   |                  |    |                  |   |
| **Cash flows from operating    activities**                        | $                       | 21,061  |                           | $      | 21,981                                |   | $                | 15,163  |             | $      | (31,584 | ) | $ | 26,621 |   |
| **Cash flows from investing    activities**                        |                    |    |                           |   |                                  |   |             |    |             |   |   |   |   |   |   |
| Acquisition of    properties                                       |                    | (5,131  | )                              |   | —                                |   |             | (6,498  | )                |   | — |   |   | (11,629 | ) |
| Capital      expenditures                                          |                    | (8,755  | )                              |   | (21,622                               | )      |             | (2,870  | )                |   | — |   |   | (33,247 | ) |
| Escrowed cash                                                      |                    | (221    | )                              |   | 35                                    |   |             | (625    | )                |   | — |   |   | (811 | ) |
| Leasing costs                                                      |                    | (1,541  | )                              |   | (172                                  | )      |             | (1,469  | )                |   | — |   |   | (3,182 | ) |
| Other, net                                                         |                    | (4      | )                              |   | —                                |   |             | —  |             |   | — |   |   | (4 | ) |
|                                                               |                         |         |                           |        |                                       |   |                  |         |             |        |  |   |  |  |   |
| Net cash flow from    investing activities                         |                    | (15,652 | )                              |   | (21,759                               | )      |             | (11,462 | )                |   | — |   |   | (48,873 | ) |
| **Cash flows from financing    activities**                        |                    |    |                           |   |                                  |   |             |    |             |   |   |   |   |   |   |
| Proceeds      (repayments) of Credit Facilities, net               |                    | 48,000  |                           |   | —                                |   |             | —  |             |   | — |   |   | 48,000 |   |
| Repayments of mortgage    notes payable                            |                    | (982    | )                              |   | (222                                  | )      |             | (3,701  | )                |   | — |   |   | (4,905 | ) |
| Exercise of stock    options                                       |                    | 7,120   |                           |   | —                                |   |             | —  |             |   | — |   |   | 7,120 |   |
| Redemptions/repurchases    of units                                |                    | (239    | )                              |   | —                                |   |             | —  |             |   | — |   |   | (239 | ) |
| Distributions      to preferred and common       partnership units |                    | (27,588 | )                              |   | —                                |   |             | —  |             |   | — |   |   | (27,588 | ) |
| Intercompany fundings    and other, net                            |                    | (31,584 | )                              |   | —                                |   |             | —  |             |   | 31,584 |   |   | — |   |
| Other, net                                                         |                    | (9      | )                              |   | —                                |   |             | —  |             |   | — |   |   | (9 | ) |
|                                                               |                         |         |                           |        |                                       |   |                  |         |             |        |  |   |  |  |   |
| Net cash flow from    financing activities                         |                    | (5,282  | )                              |   | (222                                  | )      |             | (3,701  | )                |   | 31,584 |   |   | 22,379 |   |
|                                                               |                         |         |                           |        |                                       |   |                  |         |             |        |  |   |  |  |   |
| **Increase (decrease) in cash and    cash equivalents**            |                    | 127     |                           |   | —                                |   |             | —  |             |   | — |   |   | 127 |   |
| **Cash        and cash equivalents at beginning of period**        |                    | 15,346  |                           |   | —                                |   |             | —  |             |   | — |   |   | 15,346 |   |
|                                                               |                         |         |                           |        |                                       |   |                  |         |             |        |  |   |  |  |   |
| **Cash        and cash equivalents at end of period**              | $                       | 15,473  |                           | $      | —                                |   | $                | —  |             | $      | — |   | $ | 15,473 |   |
|                                                               |                         |         |                           |        |                                       |   |                  |         |             |        |  |   |  |  |   |

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Back to Contents

|                                              |   | **The    Partnership** |   | **Guarantor    Subsidiaries** |   | **Non-Guarantor    Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
|---------------------------------------------------|--------|------------------------|--------|-------------------------------|--------|-----------------------------------|--------|------------------|--------|------------------|--------|
|                                              |   |                        |   |                               |   |                                   |   |                  |   |                  |   |
| **Revenue:**                                      |   |                   |   |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Rents                                             |   | $                      | 36,197 |                          | $      | 12,561                            |   | $                | 14,922 |             | $      | — |   | $ | 63,680 |   |
| Tenant reimbursements                             |   |                   | 3,713  |                          |   | 2,616                             |   |             | 1,664  |             |   | — |   |   | 7,993 |   |
| Other                                             |   |                   | 2,982  |                          |   | 82                                |   |             | 48     |             |   | (1,586 | ) |   | 1,526 |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Total revenue                                     |   |                   | 42,892 |                          |   | 15,259                            |   |             | 16,634 |             |   | (1,586 | ) |   | 73,199 |   |
| **Operating Expenses:**                           |   |                   |   |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Property operating    expenses                    |   |                   | 12,875 |                          |   | 5,471                             |   |             | 5,390  |             |   | (1,586 | ) |   | 22,150 |   |
| Real estate taxes                                 |   |                   | 3,780  |                          |   | 1,549                             |   |             | 1,552  |             |   | — |   |   | 6,881 |   |
| Depreciation and    amortization                  |   |                   | 8,964  |                          |   | 2,864                             |   |             | 3,976  |             |   | — |   |   | 15,804 |   |
| Administrative expenses                           |   |                   | 3,489  |                          |   | —                            |   |             | — |             |   | — |   |   | 3,489 |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Total operating    expenses                       |   |                   | 29,108 |                          |   | 9,884                             |   |             | 10,918 |             |   | (1,586 | ) |   | 48,324 |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| **Operating income**                              |   |                   | 13,784 |                          |   | 5,375                             |   |             | 5,716  |             |   | — |   |   | 24,875 |   |
| **Other Income (Expense):**                       |   |                   |   |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Interest income                                   |   |                   | 120    |                          |   | 384                               |   |             | 7      |             |   | — |   |   | 511 |   |
| Interest expense                                  |   |                   | (8,437 | )                             |   | (240                              | )      |             | (3,427 | )                |   | — |   |   | (12,104 | ) |
| Equity in income of    real estate ventures       |   |                   | 234    |                          |   | —                            |   |             | — |             |   | — |   |   | 234 |   |
| Equity in income of    subsidiaries               |   |                   | 8,208  |                          |   | —                            |   |             | — |             |   | (8,208 | ) |   | — |   |
| Net gains on sales of    interests in real estate |   |                   | — |                          |   | —                            |   |             | — |             |   | — |   |   | — |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Income before minority interest                   |   |                   | 13,909 |                          |   | 5,519                             |   |             | 2,296  |             |   | (8,208 | ) |   | 13,516 |   |
| Minority interest                                 |   |                   | — |                          |   | —                            |   |             | — |             |   | — |   |   | — |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Income from continuing operations                 |   |                   | 13,909 |                          |   | 5,519                             |   |             | 2,296  |             |   | (8,208 | ) |   | 13,516 |   |
| Discontinued operations:                          |   |                   |   |                          |   |                              |   |             |   |             |   |   |   |   |   |   |
| Income from discontinued operations               |   |                   | (190   | )                             |   | 23                                |   |             | 166    |             |   | — |   |   | (1 | ) |
| Net Gain on Disposition                           |   |                   | — |                          |   | 382                               |   |             | (178   | )                |   | — |   |   | 204 |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Income from discontinued operations               |   |                   | (190   | )                             |   | 405                               |   |             | (12    | )                |   | — |   |   | 203 |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |
| Net income                                        |   | $                      | 13,719 |                          | $      | 5,924                             |   | $                | 2,284  |             | $      | (8,208 | ) | $ | 13,719 |   |
|                                              |   |                        |        |                          |        |                                   |   |                  |        |             |        |  |   |  |  |   |

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Back to Contents

|                                                                     |   | **The     Partnership** |    | **Guarantor     Subsidiaries** |   | **Non-Guarantor        Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
|--------------------------------------------------------------------------|--------|-------------------------|---------|--------------------------------|--------|---------------------------------------|--------|------------------|--------|------------------|--------|
|                                                                     |   |                         |    |                                |   |                                       |   |                  |   |                  |   |
| **Cash flows from operating    activities**                              |   | $                       | 25,652  |                           | $      | 13,388                                |   | $                | 3,975  |             | $      | (9,947 | ) | $ | 33,068 |   |
| **Cash flows from investing    activities**                              |   |                    |    |                           |   |                                  |   |             |   |             |   |   |   |   |   |   |
| Sale of properties, net                                                  |   |                    | —  |                           |   | 2,012                                 |   |             | — |             |   | — |   |   | 2,012 |   |
| Capital expenditures    and real estate development costs                |   |                    | (689    | )                              |   | (15,116                               | )      |             | (2,574 | )                |   | — |   |   | (18,379 | ) |
| Escrowed cash                                                            |   |                    | (508    | )                              |   | 5                                     |   |             | (356   | )                |   | — |   |   | (859 | ) |
| Leasing costs                                                            |   |                    | (1,676  | )                              |   | (118                                  | )      |             | (232   | )                |   | — |   |   | (2,026 | ) |
| Increase      in cash due to consolidation of variable interest entities |   |                    | 426     |                           |   | —                                |   |             | — |             |   | — |   |   | 426 |   |
| Other, net                                                               |   |                    | 184     |                           |   | —                                |   |             | — |             |   | — |   |   | 184 |   |
|                                                                     |   |                         |         |                           |        |                                       |   |                  |        |             |        |  |   |  |  |   |
| Net cash flow from    investing activities                               |   |                    | (2,263  | )                              |   | (13,217                               | )      |             | (3,162 | )                |   | — |   |   | (18,642 | ) |
| **Cash flows from financing    activities**                              |   |                    |    |                           |   |                                  |   |             |   |             |   |   |   |   |   |   |
| Proceeds      (repayments) of Credit Facilities, net                     |   |                    | (40,000 | )                              |   | —                                |   |             | — |             |   | — |   |   | (40,000 | ) |
| Repayments of mortgage    notes payable                                  |   |                    | (36,220 | )                              |   | (171                                  | )      |             | (813   | )                |   | — |   |   | (37,204 | ) |
| Exercise of stock    options                                             |   |                    | 1,200   |                           |   | —                                |   |             | — |             |   | — |   |   | 1,200 |   |
| Redemptions/repurchases    of units                                      |   |                    | —  |                           |   | —                                |   |             | — |             |   | — |   |   | — |   |
| Distributions      to preferred and common partnership units             |   |                    | (20,960 | )                              |   | —                                |   |             | — |             |   | — |   |   | (20,960 | ) |
| Proceeds from issuance    of units, net                                  |   |                    | 175,377 |                           |   | —                                |   |             | — |             |   | — |   |   | 175,377 |   |
| Repurchase of pref. and    common units                                  |   |                    | (93,835 | )                              |   | —                                |   |             | — |             |   | — |   |   | (93,835 | ) |
| Intercompany fundings    and other, net                                  |   |                    | (9,947  | )                              |   | —                                |   |             | — |             |   | 9,947 |   |   | — |   |
| Other, net                                                               |   |                    | 1       |                           |   | —                                |   |             | — |             |   | — |   |   | 1 |   |
|                                                                     |   |                         |         |                           |        |                                       |   |                  |        |             |        |  |   |  |  |   |
| Net cash flow from    financing activities                               |   |                    | (24,384 | )                              |   | (171                                  | )      |             | (813   | )                |   | 9,947 |   |   | (15,421 | ) |
|                                                                     |   |                         |         |                           |        |                                       |   |                  |        |             |        |  |   |  |  |   |
| **Increase (decrease) in cash and    cash equivalents**                  |   |                    | (995    | )                              |   | —                                |   |             | — |             |   | — |   |   | (995 | ) |
| **Cash        and cash equivalents at beginning of period**              |   |                    | 8,552   |                           |   | —                                |   |             | — |             |   | — |   |   | 8,552 |   |
|                                                                     |   |                         |         |                           |        |                                       |   |                  |        |             |        |  |   |  |  |   |
| **Cash        and cash equivalents at end of period**                    |   | $                       | 7,557   |                           | $      | —                                |   | $                | — |             | $      | — |   | $ | 7,557 |   |
|                                                                     |   |                         |         |                           |        |                                       |   |                  |        |             |        |  |   |  |  |   |

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|                                                       |   | **Same Store    Property Portfolio** |   | **Properties    Acquired (a)** |   | **Development    Properties** |   |
|------------------------------------------------------------|--------|--------------------------------------|--------|--------------------------------|--------|-------------------------------|--------|
|                                                       |   |                                      |   |                                |   |                               |   |
| ***(dollars in thousands)***                               |   | **2005**                             |   | **2004**                       |   | **Increase/    (Decrease)**   |   | **%Change** |   | **2005** |   | **2004** |   | **2005** |   | **2004** |   |
|                                                            |   |                                      |   |                                |   |                               |   |  |   |  |   |  |   |  |   |  |   |
| Revenue:                                                   |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rents                                                      |   | $                                    | 62,208 |                           | $      | 62,930                        |   | $ | (722 | ) |   | -1 | % | $ | 18,177 |   | $ | — |   | $ | 843 |   | $ | 750 |   |
| Tenant    reimbursements                                   |   |                                 | 9,316  |                           |   | 7,971                         |   |   | 1,345 |   |   | 17 | % |   | 2,673 |   |   | — |   |   | 93 |   |   | 22 |   |
| Other                                                      |   |                                 | 3,913  |                           |   | 278                           |   |   | 3,635 |   |   | 100 | % |   | 301 |   |   | — |   |   | 74 |   |   | 37 |   |
|                                                       |   |                                      |        |                           |        |                               |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total revenue                                              |   |                                 | 75,437 |                           |   | 71,179                        |   |   | 4,258 |   |   | 6 | % |   | 21,151 |   |   | — |   |   | 1,010 |   |   | 809 |   |
| Operating Expenses:                                        |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property    operating expenses                             |   |                                 | 24,275 |                           |   | 23,800                        |   |   | 475 |   |   | 2 | % |   | 7,683 |   |   | — |   |   | 515 |   |   | 501 |   |
| Real    estate taxes                                       |   |                                 | 7,099  |                           |   | 6,663                         |   |   | 436 |   |   | 7 | % |   | 2,338 |   |   | — |   |   | 220 |   |   | 218 |   |
| Depreciation    and amortization                           |   |                                 | 17,979 |                           |   | 15,185                        |   |   | 2,794 |   |   | 18 | % |   | 9,810 |   |   | — |   |   | 336 |   |   | 278 |   |
| Administrative    expenses                                 |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                      |        |                           |        |                               |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total property operating    expenses                       |   |                                 | 49,353 |                           |   | 45,648                        |   |   | 3,705 |   |   | 8 | % |   | 19,831 |   |   | — |   |   | 1,071 |   |   | 997 |   |
|                                                       |   |                                      |        |                           |        |                               |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Operating Income                                           |   |                                 | 26,084 |                           |   | 25,531                        |   |   | 553 |   |   | 2 | % |   | 1,320 |   |   | — |   |   | (61 | ) |   | (188 | ) |
| Other Income (Expense):                                    |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest    income                                         |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest    expense                                        |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in income of real    estate ventures                |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before minority    interest                         |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Minority interest    attributable to continuing operations |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from continuing    operations                       |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued    operations (c)                 |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                 |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                 |   |                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                       |   | **Administrative/    Eliminations (b)** |   | **Total    Portfolio** |   |
|------------------------------------------------------------|--------|-----------------------------------------|--------|------------------------|--------|
|                                                       |   |                                         |   |                        |   |
| ***(dollars in thousands)***                               |   | **2005**                                |   | **2004**               |   | **2005** |   | **2004** |   | **Increase/****(Decrease)** |   | **%****Change** |   |
|                                                            |   |                                         |   |                        |   |  |   |  |   |  |   |  |   |
| Revenue:                                                   |   |                                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rents                                                      |   | $                                       | — |                   | $      | — |   | $ | 81,228 |   | $ | 63,680 |   | $ | 17,548 |   |   | 28 | % |
| Tenant    reimbursements                                   |   |                                    | — |                   |   | — |   |   | 12,082 |   |   | 7,993 |   |   | 4,089 |   |   | 51 | % |
| Other                                                      |   |                                    | 1,326  |                   |   | 1,211 |   |   | 5,614 |   |   | 1,526 |   |   | 4,088 |   |   | 100 | % |
|                                                       |   |                                         |        |                   |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total revenue                                              |   |                                    | 1,326  |                   |   | 1,211 |   |   | 98,924 |   |   | 73,199 |   |   | 25,725 |   |   | 35 | % |
| Operating Expenses:                                        |   |                                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property    operating expenses                             |   |                                    | (2,594 | )                      |   | (2,151 | ) |   | 29,879 |   |   | 22,150 |   |   | 7,729 |   |   | 35 | % |
| Real    estate taxes                                       |   |                                    | — |                   |   | — |   |   | 9,657 |   |   | 6,881 |   |   | 2,776 |   |   | 40 | % |
| Depreciation    and amortization                           |   |                                    | 310    |                   |   | 341 |   |   | 28,435 |   |   | 15,804 |   |   | 12,631 |   |   | 80 | % |
| Administrative    expenses                                 |   |                                    | 4,752  |                   |   | 3,489 |   |   | 4,752 |   |   | 3,489 |   |   | 1,263 |   |   | 36 | % |
|                                                       |   |                                         |        |                   |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Total property operating    expenses                       |   |                                    | 2,468  |                   |   | 1,679 |   |   | 72,723 |   |   | 48,324 |   |   | 24,399 |   |   | 50 | % |
|                                                       |   |                                         |        |                   |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Operating Income                                           |   |                                    | (1,142 | )                      |   | (468 | ) |   | 26,201 |   |   | 24,875 |   |   | 1,326 |   |   | 5 | % |
| Other Income (Expense):                                    |   |                                    |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest    income                                         |   |                                    |   |                   |   |   |   |   | 780 |   |   | 511 |   |   | 269 |   |   | 53 | % |
| Interest    expense                                        |   |                                    |   |                   |   |   |   |   | (17,797 | ) |   | (12,104 | ) |   | (5,693 | ) |   | -47 | % |
| Equity in income of real    estate ventures                |   |                                    |   |                   |   |   |   |   | 558 |   |   | 234 |   |   | 324 |   |   | 100 | % |
|                                                       |   |                                    |   |                   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income before minority    interest                         |   |                                    |   |                   |   |   |   |   | 9,742 |   |   | 13,516 |   |   | (3,774 | ) |   | -28 | % |
| Minority interest    attributable to continuing operations |   |                                    |   |                   |   |   |   |   | (51 | ) |   | — |   |   | (51 | ) |   | -100 | % |
|                                                       |   |                                    |   |                   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income from continuing    operations                       |   |                                    |   |                   |   |   |   |   | 9,691 |   |   | 13,516 |   |   | (3,825 | ) |   | -28 | % |
| Income from discontinued    operations (c)                 |   |                                    |   |                   |   |   |   |   | — |   |   | 203 |   |   | (203 | ) |   | -100 | % |
|                                                       |   |                                    |   |                   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Net Income                                                 |   |                                    |   |                   |   |   |   | $ | 9,691 |   | $ | 13,719 |   | $ | (4,028 | ) |  | -29 | % |
|                                                       |   |                                    |   |                   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |

|       |
|-------|
| (a) - | Represents the operations    of properties acquired that are not included in the definition of the Same    Store Property Portfolio. |
| (b) - | Represents certain revenue    and expenses at the corporate level as well as various intercompany costs    that are eliminated in consolidation. |
| (c) - | All properties sold during    the respective periods meet the criteria for treatment as a discontinued    operation and have been presented as such under SFAS No. 144 (“SFAS 144”), *Accounting for the Impairment or Disposal of    Long-Lived Assets*. |

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| • | fund normal recurring expenses,                                                                                                                         |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | meet debt service requirements,                                                                                                                         |
| • | fund capital expenditures, including capital and    tenant improvements and leasing costs,                                                              |
| • | fund current development costs, including $74    million expected to fund continued development of Cira Centre in University    City, Philadelphia, and |
| • | fund distributions declared by our Board of    Trustees.                                                                                                |

| **Activity**   |   | **2005** |    | **2004** |   |
|----------------|--------|----------|---------|----------|--------|
|                |   |          |    |          |   |
| Operating      |   | $        | 26,621  |     | $      | 33,068 |   |
| Investing      |   |     | (48,873 | )        |   | (18,642 | ) |
| Financing      |   |     | 22,379  |     |   | (15,421 | ) |
|           |   |          |         |     |        |  |   |
| Net cash flows |   | $        | 127     |     | $      | (995 | ) |
|           |   |          |         |     |        |  |   |

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|                                                   |   | **March 31,    2005**         |      | **December 31,    2004** |   |
|--------------------------------------------------------|--------|-------------------------------|-----------|--------------------------|--------|
|                                                   |   |                               |      |                          |   |
|                                                   |   | **(dollars    in thousands)** |      |
| ***Balance:***                                         |   |                          |      |                     |   |   |   |
| Fixed rate                                             |   | $                             | 1,131,095 |                     | $      | 1,133,513 |   |
| Variable rate                                          |   |                          | 218,719   |                     |   | 173,156 |   |
|                                                   |   |                               |           |                     |        |  |   |
| Total                                                  |   | $                             | 1,349,814 |                     | $      | 1,306,669 |   |
|                                                   |   |                               |           |                     |        |  |   |
| ***Percent of Total    Debt:***                        |   |                          |      |                     |   |   |   |
| Fixed rate                                             |   |                          | 84        | %                        |   | 87 | % |
| Variable rate                                          |   |                          | 16        | %                        |   | 13 | % |
|                                                   |   |                               |           |                     |        |  |   |
| Total                                                  |   |                          | 100       | %                        |   | 100 | % |
|                                                   |   |                               |           |                     |        |  |   |
| ***Weighted-average    interest rate at period end:*** |   |                          |      |                     |   |   |   |
| Fixed rate                                             |   |                          | 5.9       | %                        |   | 5.9 | % |
| Variable rate                                          |   |                          | 3.7       | %                        |   | 3.5 | % |
|                                                   |   |                               |           |                     |        |  |   |
| Total                                                  |   |                          | 5.6       | %                        |   | 5.6 | % |
|                                                   |   |                               |           |                     |        |  |   |

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|                       |   | **Payments by Period (in thousands)** |      |
|----------------------------|--------|---------------------------------------|-----------|
|                       |   |                                       |      |
|                       |   | **Total**                             |      | **Less than****1 Year** |   | **1-3 Years** |   | **3-5 Years** |   | **More than****5 Years** |   |
|                       |   |                                       |      |  |   |  |   |  |   |  |   |
| Mortgage notes payable (a) |   | $                                     | 506,066   |   | $ | 6,482 |   | $ | 62,665 |   | $ | 133,906 |   | $ | 303,013 |   |
| Unsecured credit facility  |   |                                  | 200,000   |   |   | — |   |   | 200,000 |   |   | — |   |   | — |   |
| Unsecured debt  (a)   |   |                                  | 638,000   |   |   | — |   |   | 113,000 |   |   | 275,000 |   |   | 250,000 |   |
| Purchase commitments       |   |                                  | 11,000    |   |   | 11,000 |   |   | — |   |   | — |   |   | — |   |
| Ground leases              |   |                                  | 107,146   |   |   | 1,435 |   |   | 2,870 |   |   | 2,870 |   |   | 99,971 |   |
| Other liabilities          |   |                                  | 1,525     |   |   | 837 |   |   | — |   |   | — |   |   | 688 |   |
|                       |   |                                       |           |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                       |   | $                                     | 1,463,737 |   | $ | 19,754 |   | $ | 378,535 |   | $ | 411,776 |   | $ | 653,672 |   |
|                       |   |                                       |           |   |  |  |   |  |  |   |  |  |   |  |  |   |

|     |
|-----|
| (a) | Amounts do not include    unamortized discounts and/or premiums. |

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|   | (a)    | *Evaluation of disclosure controls    and procedures. *The    Company’s Chief Executive Officer and its Chief Financial Officer, after    evaluating the effectiveness of the Partnership’s disclosure controls and    procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities    Exchange Act of 1934) as of the end of the period covered by this quarterly    report, have concluded that the Partnership’s disclosure controls and    procedures are effective to ensure that information required to be disclosed    by the Partnership in the reports that it files under the Securities Exchange    Act of 1934 is recorded, processed, summarized and reported within the time    periods specified in the rules and forms of the Securities and Exchange    Commission. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | (b)    | *Changes in internal controls over    financial reporting. *There    was no change in the Partnership’s internal control over financial reporting    that occurred during the period covered by this quarterly report that has    materially affected, or is reasonably likely to materially affect, the    Partnership’s internal control over financial reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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|      |   | **Total    Number of    Units    Purchased (A)** |   | **Average    Price Paid Per    Unit** |   | **Total    Number of    Units    Purchased as    Part of Publicly    Announced Plans****or    Programs** |   | **Maximum    Number of    Units that May    Yet Be Purchased    Under the Plans    or Programs** |   |
|-----------|--------|--------------------------------------------------|--------|---------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|
|      |   |                                                  |        |                                  |        |                                                                                                          |   |                                                                                                  |        |   |  |  |   |
| **2005:** |   |                                             |   |                                  |   |                                                                                                     |   |                                                                                             |   |   |   |   |   |
| January   |   |                                             | 20,137 |                                  | $      | 29.39                                                                                                    |   |                                                                                             | — |   |   | 762,000 |   |
| February  |   |                                             | — |                                  | $      | —                                                                                                   |   |                                                                                             | — |   |   | 762,000 |   |
| March     |   |                                             | — |                                  | $      | —                                                                                                   |   |                                                                                             | — |   |   | 762,000 |   |
|      |   |                                                  |        |                                  |        |                                                                                                          |   |                                                                                                  |        |   |  |  |   |
| Total     |   |                                             | 20,137 |                                  | $      | 29.39                                                                                                    |   |                                                                                             | — |   |   | 762,000 |   |
|      |   |                                                  |        |                                  |        |                                                                                                          |   |                                                                                                  |        |   |  |  |   |

|     |
|-----|
| (A) | Represent Common Units that    relate to Shares cancelled by the Company upon vesting of restricted Common    Shares previously awarded to Company employees, in satisfaction of tax    withholding obligations. |

| • | Brandywine Realty Trust, the Partnership’s      sole general partner, held its annual meeting of shareholders on May 2,      2005. At the meeting, each of the eight individuals nominated for election      to      the Company’s Board of Trustees was elected to the Board. These individuals      will serve on the Board until the next annual meeting of shareholders and      until their successors are elected and qualified or until their earlier      resignation. The number of shares cast for or withheld for each nominee      is set forth below: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Trustee**            |   | **For** |       | **Withheld** |   |
|------------------------|--------|---------|------------|--------------|--------|
|                        |   |         |       |              |   |
| Walter D’Alessio  |   |    | 51,167,302 |         |   | 1,800,620 |   |
| D. Pike Aloian         |   |    | 51,289,117 |         |   | 1,678,805 |   |
| Donald E. Axinn        |   |    | 50,104,539 |         |   | 2,863,383 |   |
| Wyche Fowler           |   |    | 52,182,925 |         |   | 784,997 |   |
| Michael J. Joyce       |   |    | 50,898,665 |         |   | 2,069,257 |   |
| Anthony A. Nichols Sr. |   |    | 51,301,759 |         |   | 1,666,163 |   |
| Charles P. Pizzi       |   |    | 51,189,843 |         |   | 1,778,079 |   |
| Gerard H. Sweeney      |   |    | 51,181,922 |         |   | 1,786,000 |   |

| • | At the Company’s annual meeting      of shareholders, the shareholders voted as follows to ratify the appointment      of PricewaterhouseCoopers LLP as the Company and Partnership’s independent      registered public accounting firm for the calendar year 2005 as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -     Votes For        |   |   | 52,925,451   |   |
|-------------------------------------------------|--------|--------|--------------|--------|
| -     Votes Against    |   |   | 25,105       |   |
| -     Abstentions      |   |   | 17,366  |   |
| -     Broker Non-Votes |   |   | zero         |   |

| • | At the Company’s annual meeting of shareholders, the    shareholders voted as follows to amend and restate the Company’s 1997    Long-Term Incentive Plan as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -     Votes For        |   |   | 44,461,578 |   |
|-------------------------------------------------|--------|--------|------------|--------|
| -     Votes Against    |   |   | 2,446,871  |   |
| -     Abstentions      |   |   | 63,209     |   |
| -     Broker Non-Votes |   |   | 5,996,264  |   |

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| 10.1 | 2005 Restricted Share Award to Gerard H. Sweeney    (previously filed as Exhibit 10.1 to the Company’s Form 8-K dated    February 11, 2005 and incorporated herein by reference)                                                                    |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2 | Form of 2005 Restricted Share Award to executive    officers (other than the President and Chief Executive Officer) (previously    filed as Exhibit 10.2 to the Company’s Form 8-K dated February 11, 2005    and incorporated herein by reference) |
| 10.3 | Amended and Restated Employment Agreement of President    and Chief Executive Officer (previously filed as Exhibit 10.3 to the    Company’s Form 8-K dated February 11, 2005 and incorporated herein by    reference)                                    |
| 10.4 | Form of Severance Agreement for executive officers    (previously filed as Exhibit 10.4 to the Company’s Form 8-K dated    February 11, 2005 and incorporated herein by reference)                                                                  |
| 10.5 | Amended and Restated 1997 Long-term      Incentive Plan of Brandywine Realty Trust*                                                                                                                                                                           |
| 12.1 | Statement re Computation of Ratios                                                                                                                                                                                                                            |
| 31.1 | Certification Pursuant to 13a-14 under the    Securities Exchange Act of 1934                                                                                                                                                                                 |
| 31.2 | Certification Pursuant to 13a-14 under the    Securities Exchange Act of 1934                                                                                                                                                                                 |
| 32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as    Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                     |
| 32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as    Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                     |

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|               | BRANDYWINE OPERATING    PARTNERSHIP, L.P. |
|--------------------|-------------------------------------------|
|               |                                      |   |
|               | By:                                       | BRANDYWINE REALTY    TRUST, its General Partner |
|               |                                      |   |
| Date: May 11, 2005 | By**:**                                   | /s/ GERARD H. SWEENEY |
|               |                                      |  |
|               |                                      | Gerard H. Sweeney,    President and Chief Executive Officer    (Principal Executive Officer) |

| Date: May 11, 2005 | By**:** | /s/ CHRISTOPHER P. MARR                                                                                        |
|--------------------|---------|----------------------------------------------------------------------------------------------------------------|
|               |    |                                                                                                                |
|               |    | Christopher P. Marr,    Senior Vice President and Chief Financial Officer    (Principal Financial Officer)     |
|               |    |                                                                                                           |
| Date: May 11, 2005 | By**:** | /s/ TIMOTHY M. MARTIN                                                                                          |
|               |    |                                                                                                                |
|               |    | Timothy M. Martin,    Vice President-Finance and    Chief Accounting Officer    (Principal Accounting Officer) |