|   | R | QUARTERLY REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF      1934 |
|--------|---|--------------------------------------------------------------------------------------------------|

|   | £ | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF      1934 |
|--------|--------|---------------------------------------------------------------------------------------------------|

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

| Large      accelerated filer £ | Accelerated      filer £ | Non-accelerated      filer £(Do      not check if a smaller reporting company) | Smaller      Reporting Company R |
|-------------------------------------|-------------------------------|-------------------------------------------------------------------------------------|----------------------------------|

----

|                                                                                                          |   | Page   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Explanatory      Note                                                                                         |   |   |   |
| PART      I – FINANCIAL INFORMATION                                                                     |   |   |   |
| Item      1. Financial Statements (unaudited)                                                                 |   |   | 4      |   |
| Item      2. Management’s Discussion and Analysis of Financial Condition and Results      of Operations |   |   | 37     |   |
| Item      3. Quantitative and Qualitative Disclosures About Market    Risk                                    |   |   | 54     |   |
| Item      4T. Controls and Procedures                                                                         |   |   | 54     |   |
| PART      II – OTHER INFORMATION                                                                        |   |   |   |   |
| Item      1. Legal Proceedings                                                                                |   |   | 55     |   |
| Item      1A. Risk Factors                                                                                    |   |   | 55     |   |
| Item      2. Unregistered Sales of Equity Securities and Use of    Proceeds                                   |   |   | 56     |   |
| Item      3. Defaults Upon Senior Securities                                                                  |   |   | 56     |   |
| Item      4. Submission of Matters to a Vote of Security Holders                                              |   |   | 56     |   |
| Item      5. Other Information                                                                                |   |   | 56     |   |
| Item      6. Exhibits                                                                                         |   |   | 57     |   |
| Certification      of the Chief Executive Officer                                                             |   |   |   |   |
| Certification      of the Chief Financial Officer                                                             |   |   |   |   |
| Certification      of the Chief Executive Officer and Chief Financial Officer                                 |   |   |   |   |

----

----

|                                                                                          |   | September      30, 2009 |    |   | December      31, 2008 |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
| ASSETS                                                                                        |   |                    |    |   |                   |   |
| Investments      in real estate, net                                                          |   | $                       | 385,431 |   |                   | $      | 392,657 |   |
| Cash      and cash equivalents                                                                |   |                    | 3,405   |   |                   |   | 4,463 |   |
| Restricted      cash                                                                          |   |                    | 5,444   |   |                   |   | 7,267 |   |
| Rents      and other receivables, net                                                         |   |                    | 6,004   |   |                   |   | 6,342 |   |
| Intangible      assets, net                                                                   |   |                    | 35,079  |   |                   |   | 41,379 |   |
| Other      assets, net                                                                        |   |                    | 5,822   |   |                   |   | 4,680 |   |
| Goodwill                                                                                      |   |                    | 62,019  |   |                   |   | 61,519 |   |
| Investment      in unconsolidated joint ventures                                              |   |                    | 10,016  |   |                   |   | 11,590 |   |
| Total      assets                                                                             |   | $                       | 513,220 |   |                   | $      | 529,897 |   |
|                                                                                          |   |                    |    |   |                   |   |   |   |
| LIABILITIES      AND EQUITY                                                                   |   |                    |    |   |                   |   |   |   |
| Mortgage      and other loans, net                                                            |   | $                       | 403,347 |   |                   | $      | 400,108 |   |
| Unsecured      notes payable to related parties                                               |   |                    | 21,104  |   |                   |   | 23,776 |   |
| Accounts      payable and other liabilities                                                   |   |                    | 20,257  |   |                   |   | 17,088 |   |
| Acquired      below market leases, net                                                        |   |                    | 9,997   |   |                   |   | 11,817 |   |
| Total      liabilities                                                                        |   |                    | 454,705 |   |                   |   | 452,789 |   |
|                                                                                          |   |                    |    |   |                   |   |   |   |
| Commitments      and contingencies                                                            |   |                    |    |   |                   |   |   |   |
|                                                                                          |   |                    |    |   |                   |   |   |   |
| Non-controlling      interests                                                                |   |                    | 130,679 |   |                   |   | 133,250 |   |
|                                                                                          |   |                    |    |   |                   |   |   |   |
| Equity:                                                                                       |   |                    |    |   |                   |   |   |   |
| Proportionate      Voting Preferred Stock                                                     |   |                    | -       |   |                   |   | - |   |
| Preferred      stock, $0.0001 par value, 100,000,000 shares authorized,                       |   |                    |    |   |                   |   |   |   |
| no      shares issued and outstanding at September 30, 2009 and December 31,      2008        |   |                    | -       |   |                   |   | - |   |
| Common      Stock, $0.0001 par value, 200,000,000 shares authorized,                          |   |                    |    |   |                   |   |   |   |
| 3,850,420      shares issued and outstanding at September 30, 2009 and December 31,      2008 |   |                    | 185     |   |                   |   | 185 |   |
| Class      B Common Stock, $0.0001 par value, 200,000 shares    authorized,                   |   |                    |    |   |                   |   |   |   |
| 100      shares issued and outstanding at September 30, 2009 and December 31,      2008       |   |                    | -       |   |                   |   | - |   |
| Additional      paid-in capital                                                               |   |                    | -       |   |                   |   | - |   |
| Retained      deficit                                                                         |   |                    | (72,349 | )      |                   |   | (56,327 | ) |
| Total      equity                                                                             |   |                    | (72,164 | )      |                   |   | (56,142 | ) |
| Total      liabilities and equity                                                             |   | $                       | 513,220 |   |                   | $      | 529,897 |   |
|                                                                                          |   |                    |    |   |                   |   |   |   |

----

|                                                      |   | For      the three months ended September 30, |      |
|-----------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                      |   | 2009                                          |      |   | 2008 |   |
|                                                      |   |                                          |      |   |   |   |
| Revenue:                                                  |   |                                          |      |   |   |   |
| Rental                                                    |   | $                                             | 10,486    |   |   | $ | 10,899 |   |
| Tenant      reimbursements                                |   |                                          | 5,163     |   |   |   | 5,583 |   |
| Parking                                                   |   |                                          | 2,012     |   |   |   | 1,981 |   |
| Other                                                     |   |                                          | 83        |   |   |   | 136 |   |
| Total      revenue                                        |   |                                          | 17,744    |   |   |   | 18,599 |   |
|                                                      |   |                                          |      |   |   |   |   |   |
| Expenses:                                                 |   |                                          |      |   |   |   |   |   |
| Rental      property operating                            |   |                                          | 9,781     |   |   |   | 11,067 |   |
| General      and administrative                           |   |                                          | 351       |   |   |   | 429 |   |
| Depreciation      and amortization                        |   |                                          | 6,913     |   |   |   | 6,740 |   |
| Interest                                                  |   |                                          | 6,823     |   |   |   | 6,769 |   |
| Loss      on extinguishment of debt                       |   |                                          | 171       |   |   |   | - |   |
| Total      expenses                                       |   |                                          | 24,039    |   |   |   | 25,005 |   |
|                                                      |   |                                          |      |   |   |   |   |   |
| Loss      before equity in net earnings of unconsolidated |   |                                          |      |   |   |   |   |   |
| joint      ventures and non-operating income              |   |                                          | (6,295    | ) |   |   | (6,406 | ) |
| Equity      in net earnings of unconsolidated             |   |                                          |      |   |   |   |   |   |
| joint      ventures                                       |   |                                          | 189       |   |   |   | 185 |   |
| Non-operating      income                                 |   |                                          | 2         |   |   |   | - |   |
| Net      loss                                             |   |                                          | (6,104    | ) |   |   | (6,221 | ) |
| Less:      net loss attributable to non-controlling       |   |                                          |      |   |   |   |   |   |
| interests                                                 |   |                                          | 4,863     |   |   |   | 5,033 |   |
| Net      loss attributable to common stockholders         |   | $                                             | (1,241    | ) |   | $ | (1,188 | ) |
|                                                      |   |                                          |      |   |   |   |   |   |
| Net      loss per common share - basic and diluted        |   | $                                             | (0.40     | ) |   | $ | (0.39 | ) |
|                                                      |   |                                          |      |   |   |   |   |   |
| Weighted      average number of common shares             |   |                                          |      |   |   |   |   |   |
| outstanding      - basic and diluted                      |   |                                          | 3,112,888 |   |   |   | 3,031,125 |   |
|                                                      |   |                                          |      |   |   |   |   |   |

----

|                                                      |   | For      the nine months ended September 30, |      |
|-----------------------------------------------------------|--------|----------------------------------------------|-----------|
|                                                      |   | 2009                                         |      |   | 2008      (1) |   |
|                                                      |   |                                         |      |   |   |   |
| Revenue:                                                  |   |                                         |      |   |   |   |
| Rental                                                    |   | $                                            | 31,999    |   |   | $ | 26,401 |   |
| Tenant      reimbursements                                |   |                                         | 16,184    |   |   |   | 12,740 |   |
| Parking                                                   |   |                                         | 6,080     |   |   |   | 4,855 |   |
| Other                                                     |   |                                         | 270       |   |   |   | 345 |   |
| Total      revenue                                        |   |                                         | 54,533    |   |   |   | 44,341 |   |
|                                                      |   |                                         |      |   |   |   |   |   |
| Expenses:                                                 |   |                                         |      |   |   |   |   |   |
| Rental      property operating                            |   |                                         | 29,356    |   |   |   | 26,412 |   |
| General      and administrative                           |   |                                         | 1,997     |   |   |   | 17,837 |   |
| Depreciation      and amortization                        |   |                                         | 20,470    |   |   |   | 15,503 |   |
| Interest                                                  |   |                                         | 20,348    |   |   |   | 15,822 |   |
| Loss      on extinguishment of debt                       |   |                                         | 171       |   |   |   | - |   |
| Other                                                     |   |                                         | -         |   |   |   | 143 |   |
| Total      expenses                                       |   |                                         | 72,342    |   |   |   | 75,717 |   |
|                                                      |   |                                         |      |   |   |   |   |   |
| Loss      before equity in net earnings of unconsolidated |   |                                         |      |   |   |
| joint      ventures and non-operating income              |   |                                         | (17,809   | ) |   |   | (31,376 | ) |
| Equity      in net earnings of unconsolidated             |   |                                         |      |   |   |   |   |   |
| joint      ventures                                       |   |                                         | 406       |   |   |   | 156 |   |
| Non-operating      income                                 |   |                                         | 6         |   |   |   | - |   |
| Net      loss                                             |   |                                         | (17,397   | ) |   |   | (31,220 | ) |
| Less:      net loss attributable to non-controlling       |   |                                         |      |   |   |   |   |   |
| interests                                                 |   |                                         | 13,984    |   |   |   | 24,563 |   |
| Net      loss attributable to common stockholders         |   | $                                            | (3,413    | ) |   | $ | (6,657 | ) |
|                                                      |   |                                         |      |   |   |   |   |   |
| Net      loss per common share - basic and diluted        |   | $                                            | (1.12     | ) |   |   | (2) |   |
|                                                      |   |                                         |      |   |   |   |   |   |
| Weighted      average number of common shares             |   |                                         |      |   |   |   |   |   |
| outstanding      - basic and diluted                      |   |                                         | 3,059,678 |   |   |   | (2) |   |
|                                                      |   |                                         |      |   |   |   |   |   |

| (1)   | Amounts      reflected in 2008 represent the sum of the amounts included herein as the      consolidated results of operations of Waterfront and the Company (the      “Combined Entity”) for the period from January 1, 2008 through September      30, 2008. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Refer      to Note 11 for our Earnings per Share calculation for the Combined      Entity. |
|-----------------|--------------------------------------------------------------------------------------------|

----

|                                                                        |   | For      the nine months ended September 30, 2009 |    | For      the nine months ended September 30, 2008 (1) |   |
|-----------------------------------------------------------------------------|--------|---------------------------------------------------|---------|-------------------------------------------------------|--------|
|                                                                        |   |                                              |    |                                                  |   |   |
| Operating      activities                                                   |   |                                              |    |                                                  |   |   |
| Net      loss                                                               |   | $                                                 | (17,397 | )                                                     |   | $ | (31,220 | ) |
| Adjustments      to reconcile net loss to net cash                          |   |                                              |    |                                                  |   |   |   |   |
| provided      by (used in) operating activities:                            |   |                                              |    |                                                  |   |   |   |   |
| Depreciation      and amortization                                          |   |                                              | 20,470  |                                                  |   |   | 15,503 |   |
| Interest      amortization                                                  |   |                                              | 1,135   |                                                  |   |   | 520 |   |
| Share      based compensation charge attributable to the Transaction        |   |                                              | -       |                                                  |   |   | 16,194 |   |
| Other      share based compensation                                         |   |                                              | 140     |                                                  |   |   | 53 |   |
| Loss      from extinguishment of debt                                       |   |                                              | 171     |                                                  |   |   | - |   |
| Below      market lease amortization, net                                   |   |                                              | (1,820  | )                                                     |   |   | (1,726 | ) |
| Equity      in net earnings of unconsolidated joint ventures                |   |                                              | (406    | )                                                     |   |   | (156 | ) |
| Net      operating distributions received from unconsolidated               |   |
|    joint      ventures                                       |   |                                              | 179     |                                                  |   |   | 119 |   |
| Bad      debt expense                                                       |   |                                              | 663     |                                                  |   |   | 419 |   |
| Other                                                                       |   |                                              | -       |                                                  |   |   | 365 |   |
| Changes      in operating assets and liabilities:                           |   |                                              |    |                                                  |   |
| Rents      and other receivables                                            |   |                                              | (325    | )                                                     |   |   | 576 |   |
| Other      assets                                                           |   |                                              | (775    | )                                                     |   |   | 500 |   |
| Accounts      payable and other liabilities                                 |   |                                              | 1,292   |                                                  |   |   | 596 |   |
| Net      cash provided by operating activities                              |   |                                              | 3,326   |                                                  |   |   | 1,743 |   |
| Investing      activities                                                   |   |                                              |    |                                                  |   |   |   |   |
| Acquisition      and improvement of real estate                             |   |                                              | (4,469  | )                                                     |   |   | (6,921 | ) |
| Capital      distributions from equity investees                            |   |                                              | 1,801   |                                                  |   |   | 313 |   |
| Payment      of leasing commissions                                         |   |                                              | (699    | )                                                     |   |   | (556 | ) |
| Cash      held by properties upon Effective Date                            |   |                                              | -       |                                                  |   |   | 6,470 |   |
| Deferred      acquisition costs and other                                   |   |                                              | -       |                                                  |   |   | (4,059 | ) |
| Decrease      (increase) in restricted cash                                 |   |                                              | 1,823   |                                                  |   |   | (1,525 | ) |
| Net      cash used in investing activities                                  |   |                                              | (1,544  | )                                                     |   |   | (6,278 | ) |
| Financing      activities                                                   |   |                                              |    |                                                  |   |   |   |   |
| Proceeds      from issuance of equity securities                            |   |                                              | -       |                                                  |   |   | 6,350 |   |
| Repayment      of mortgage notes payable                                    |   |                                              | (706    | )                                                     |   |   | (152 | ) |
| Proceeds      from mortgage notes payable                                   |   |                                              | 811     |                                                  |   |   | - |   |
| Repayments      of revolving credit facility                                |   |                                              | (3,000  | )                                                     |   |   | - |   |
| Borrowings      from revolving credit facility                              |   |                                              | 5,847   |                                                  |   |   | - |   |
| Deferred      financing costs                                               |   |                                              | (178    | )                                                     |   |   | (936 | ) |
| Offering      costs                                                         |   |                                              | (1,178  | )                                                     |   |   | - |   |
| Security      deposits                                                      |   |                                              | (86     | )                                                     |   |   | 70 |   |
| Dividends                                                                   |   |                                              | (501    | )                                                     |   |   | - |   |
| Distributions      to non-controlling interests                             |   |                                              | (3,849  | )                                                     |   |   | - |   |
| Equity      contributions                                                   |   |                                              | -       |                                                  |   |   | 4,167 |   |
| Equity      distributions                                                   |   |                                              | -       |                                                  |   |   | (1,425 | ) |
| Net      cash (used in) provided by financing activities                    |   |                                              | (2,840  | )                                                     |   |   | 8,074 |   |
| (Decrease)      increase in cash and cash equivalents                       |   |                                              | (1,058  | )                                                     |   |   | 3,539 |   |
| Balance      at beginning of period                                         |   |                                              | 4,463   |                                                  |   |   | 2,619 |   |
| Balance      at end of period                                               |   | $                                                 | 3,405   |                                                  |   | $ | 6,158 |   |
| Supplemental      cash flow information                                     |   |                                              |    |                                                  |   |   |   |   |
| Interest      paid                                                          |   | $                                                 | 17,660  |                                                  |   | $ | 13,966 |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Supplemental      Disclosure of Non-Cash Investing and Financing Activities |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Exchange      of unsecured notes payable to related parties                 |   | $                                                 | 3,014   |                                                  |   | $ | - |   |
| for      common units                                                       |   |                                              |    |                                                  |   |   |   |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Assets,      net, acquired on the Effective Date                            |   | $                                                 | -       |                                                  |   | $ | 484,325 |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Liabilities,      net, assumed on the Effective Date                        |   | $                                                 | -       |                                                  |   | $ | 325,985 |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Issuance      of unsecured notes payable to related parties                 |   | $                                                 | -       |                                                  |   | $ | 7,285 |   |
| to      acquire managing interests in joint ventures                        |   |                                              |    |                                                  |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Issuance      of common units to acquire managing joint ventureinterests    |   | $                                                 | -       |                                                  |   | $ | 4,824 |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |
| Accrued      capital expenditures                                           |   | $                                                 | 722     |                                                  |   | $ | 204 |   |
|                                                                        |   |                                              |    |                                                  |   |   |   |   |

| (1) | Amounts      reflected in 2008 represent the sum of the amounts included herein as the      consolidated cash flows of the Combined Entity for the period from January      1, 2008 through September 30, 2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   |           |   |   | PROPERTY  |   |   | EFFECTIVE |   |
|----------------------------------------------|--------|----------------|--------|--------|-----------|--------|--------|-----------|--------|
|                                         |   | NUMBER      OF |   |   | PORTFOLIO |   |   | PORTFOLIO |   |
|                                         |   | PROPERTIES     |   |   | BUILDINGS |   |   | SQ. FT.   |   |   | SQ. FT. |   |
|                                         |   |           |   |   |      |   |   |      |   |   |   |   |
| Wholly-owned      properties                 |   |           | 8      |   |      |   | 11     |      |   |   | 2,265,339 |   |   |   | 2,265,339 |   |
| Unconsolidated      joint venture properties |   |           | 15     |   |      |   | 29     |      |   |   | 2,060,855 |   |   |   | 261,397 |   |
| Total                                        |   |           | 23     |   |      |   | 40     |      |   |   | 4,326,194 |   |   |   | 2,526,736 |   |

----

----

----

----

----

----

----

|   | • | the      initial valuation and underlying allocations of purchase price for      investments in real estate; |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | • | the      assessment of recoverability of long-lived  assets; |
|--------|---------|--------------------------------------------------------------|

----

|   | • | the      valuation of investments in unconsolidated joint  ventures; |
|--------|---------|----------------------------------------------------------------------|

|   | • | the      valuation and recognition of equity instruments issued,      including: |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | the      valuation and recognition of derivative financial instruments;      and |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | the      determination of useful lives of investments in real estate and related      assets and liabilities. |
|--------|---------|---------------------------------------------------------------------------------------------------------------|

----

----

|                                           |   | September      30, 2009 |    |   | December      31, 2008 |   |
|------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                           |   |                    |    |   |                   |   |
| Land      and land improvements                |   | $                       | 76,054  |   |                   | $      | 76,008 |   |
| Building      and building improvements        |   |                    | 310,240 |   |                   |   | 308,125 |   |
| Tenant      improvements                       |   |                    | 27,130  |   |                   |   | 24,489 |   |
| Furniture,      fixtures and equipment         |   |                    | 1,385   |   |                   |   | 1,210 |   |
| Construction      in progress                  |   |                    | 3,064   |   |                   |   | 4,082 |   |
| Investments      in real estate                |   |                    | 417,873 |   |                   |   | 413,914 |   |
| Less:  accumulated      depreciation |   |                    | (32,442 | )      |                   |   | (21,257 | ) |
| Investments      in real estate, net           |   | $                       | 385,431 |   |                   | $      | 392,657 |   |
|                                           |   |                    |    |   |                   |   |   |   |

----

|                                                                                      |   | September      30, 2009 |   |   | December      31, 2008 |   |
|-------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                                                      |   |                    |   |   |                   |   |
| Acquired      leasing commissions                                                         |   |                    |   |   |                   |   |
|           Gross      amount             |   | $                       | 8,689  |   |                   | $      | 8,316 |   |
|           Accumulated      amortization |   |                    | (3,903 | )      |                   |   | (2,950 | ) |
|           Net      balance              |   | $                       | 4,786  |   |                   | $      | 5,366 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |
| Acquired      leases in place                                                             |   |                    |   |   |                   |   |   |   |
|           Gross      amount             |   | $                       | 17,551 |   |                   | $      | 18,109 |   |
|           Accumulated      amortization |   |                    | (9,635 | )      |                   |   | (6,724 | ) |
|           Net      balance              |   | $                       | 7,916  |   |                   | $      | 11,385 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |
| Acquired      tenant relationship costs                                                   |   |                    |   |   |                   |   |   |   |
|           Gross      amount             |   | $                       | 19,581 |   |                   | $      | 19,588 |   |
|           Accumulated      amortization |   |                    | (3,799 | )      |                   |   | (1,941 | ) |
|           Net      balance              |   | $                       | 15,782 |   |                   | $      | 17,647 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |
| Acquired      other intangibles                                                           |   |                    |   |   |                   |   |   |   |
|           Gross      amount             |   | $                       | 7,802  |   |                   | $      | 7,879 |   |
|           Accumulated      amortization |   |                    | (1,207 | )      |                   |   | (898 | ) |
|           Net      balance              |   | $                       | 6,595  |   |                   | $      | 6,981 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |
| Intangible      assets, net                                                               |   | $                       | 35,079 |   |                   | $      | 41,379 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |
| Acquired      below market leases                                                         |   |                    |   |   |                   |   |   |   |
|           Gross      amount             |   | $                       | 15,655 |   |                   | $      | 16,608 |   |
|           Accumulated      amortization |   |                    | (4,926 | )      |                   |   | (3,755 | ) |
|  Net      balance                                                                    |   |                    | 10,729 |   |                   |   | 12,853 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |
| Acquired      above market leases                                                         |   |                    |   |   |                   |   |   |   |
|           Gross      amount             |   | $                       | 2,393  |   |                   | $      | 2,449 |   |
|           Accumulated      amortization |   |                    | (1,661 | )      |                   |   | (1,413 | ) |
|  Net      balance                                                                    |   |                    | 732    |   |                   |   | 1,036 |   |
| Acquired      below market leases, net                                                    |   | $                       | 9,997  |   |                   | $      | 11,817 |   |
|                                                                                      |   |                    |   |   |                   |   |   |   |

----

|                                                   |   | Three      months ended Sept 30, 2009 |   |   | Nine      months ended Sept 30, 2009 |   |   | Three      months ended Sept 30, 2008 |   |   | Nine      months ended Sept 30, 2008 |   |
|--------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
| Revenues:                                              |   |                                  |   |   |                                 |   |   |                                  |   |   |                                 |   |
| Rental                                                 |   | $                                     | 9,513  |   |                                 | $      | 28,255 |                                  |   | $      | 9,805                                |   |   | $ | 27,979 |   |
| Other                                                  |   |                                  | 2,160  |   |                                 |   | 6,352  |                                  |   |   | 2,132                                |   |   |   | 6,471 |   |
| Total      revenues                                    |   |                                  | 11,673 |   |                                 |   | 34,607 |                                  |   |   | 11,937                               |   |   |   | 34,450 |   |
|                                                   |   |                                  |   |   |                                 |   |   |                                  |   |   |                                 |   |   |   |   |   |
| Expenses:                                              |   |                                  |   |   |                                 |   |   |                                  |   |   |                                 |   |   |   |   |   |
| Rental      operating expenses                         |   |                                  | 4,768  |   |                                 |   | 14,467 |                                  |   |   | 5,153                                |   |   |   | 14,223 |   |
| Depreciation      and amortization                     |   |                                  | 4,486  |   |                                 |   | 13,442 |                                  |   |   | 4,431                                |   |   |   | 14,578 |   |
| Interest                                               |   |                                  | 3,972  |   |                                 |   | 11,877 |                                  |   |   | 4,484                                |   |   |   | 12,581 |   |
| Total      expenses                                    |   |                                  | 13,226 |   |                                 |   | 39,786 |                                  |   |   | 14,068                               |   |   |   | 41,382 |   |
| Net      loss                                          |   | $                                     | (1,553 | )      |                                 | $      | (5,179 | )                                     |   | $      | (2,131                               | )      |   | $ | (6,932 | ) |
|                                                   |   |                                  |   |   |                                 |   |   |                                  |   |   |                                 |   |   |   |   |   |
| Equity      in net income (loss)                       |   |                                  |   |   |                                 |   |   |                                  |   |   |                                 |   |   |   |   |   |
|    of      unconsolidated joint venture |   | $                                     | 189    |   |                                 | $      | 406    |                                  |   | $      | 185                                  |   |   | $ | 156 |   |
|                                                   |   |                                  |   |   |                                 |   |   |                                  |   |   |                                 |   |   |   |   |   |

|                                             |   | As      of         |    |   | As      of             |   |
|--------------------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
|                                             |   | Sept      30, 2009 |    |   | December      31, 2008 |   |
| Investment      in real estate, net              |   | $                  | 328,757 |   |                   | $      | 336,409 |   |
| Other      assets                                |   |               | 58,241  |   |                   |   | 61,591 |   |
| Total      assets                                |   | $                  | 386,998 |   |                   | $      | 398,000 |   |
|                                             |   |               |    |   |                   |   |   |   |
| Mortgage      and other collateralized loans     |   | $                  | 318,091 |   |                   | $      | 314,324 |   |
| Other      liabilities                           |   |               | 13,104  |   |                   |   | 18,139 |   |
| Total      liabilities                           |   | $                  | 331,195 |   |                   | $      | 332,463 |   |
|                                             |   |               |    |   |                   |   |   |   |
| Investment      in unconsolidated joint ventures |   | $                  | 10,016  |   |                   | $      | 11,590 |   |
|                                             |   |               |    |   |                   |   |   |   |

----

----

| 6. | Other Assets,      net |
|----|------------------------|

|                                                                       |   | September      30, 2009 |   |   | December 31,      2008 |   |
|----------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------------|--------|
| Deferred      loan fees, net of accumulated amortization of $1.4 million   |   |                    |   |   |                        |   |
| and      $0.8 million at September 30, 2009 and December 31,    2008, |   |                    |   |   |                        |   |
| respectively                                                               |   | $                       | 2,186  |   |                        | $      | 3,447 |   |
| Prepaid      expenses                                                      |   |                    | 2,458  |   |                        |   | 1,232 |   |
| Equity      offering costs                                                 |   |                    | 1,178  |   |                        |   | - |   |
| Other                                                                      |   |                    | -      |   |                        |   | 1 |   |
| Total      other assets, net                                               |   | $                       | 5,822  |   |                        | $      | 4,680 |   |

----

|                                              |   | September      30, 2009 |   |   | December      31, 2008 |   |
|---------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
| Accounts      payable                             |   | $                       | 707    |   |                   | $      | 1,276 |   |
| Interest      payable                             |   |                    | 2,240  |   |                   |   | 1,353 |   |
| Deferred      revenue                             |   |                    | 1,493  |   |                   |   | 1,278 |   |
| Security      deposits                            |   |                    | 2,485  |   |                   |   | 2,558 |   |
| Deferred      straight-line ground rent           |   |                    | 5,554  |   |                   |   | 2,811 |   |
| Related      party payable (Note 12 )             |   |                    | 1,078  |   |                   |   | 1,060 |   |
| Accrued      expenses                             |   |                    | 6,101  |   |                   |   | 6,281 |   |
| Asset      retirement obligations                 |   |                    | 599    |   |                   |   | 471 |   |
| Total      accounts payable and other liabilities |   | $                       | 20,257 |   |                   | $      | 17,088 |   |

|                        |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |
|-----------------------------|--------|------------------------------------|---------|--------|-------------------------------------|--------|--------|--------|--------|--------|------------------------------------------|--------|--------------------|--------------------|
| PROPERTY                    |   | OUTSTANDING      PRINCIPAL BALANCE |    |   | UNAMORTIZED      PREMIUM (DISCOUNT) |   |   | NET    |   |   | INTEREST      RATE AT SEPTEMBER 30, 2009 |   | MATURITY      DATE | AMORTIZATION       |
| Clifford      Center        |   | $                                  | 3,567   |   |                                | $      | -      |   |   | $      | 3,567                                    |   |               |               | 6.00 | % | 8/15/2011(a) | 132      months |
| Davies      Pacific         |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Center                      |   |                               | 95,000  |   |                                |   | (958   | )      |   |   | 94,042                                   |   |               |               | 5.86 | % | 11/11/2016 | Interest      Only |
| First      Insurance        |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Center                      |   |                               | 38,000  |   |                                |   | (584   | )      |   |   | 37,416                                   |   |               |               | 5.74 | % | 1/1/2016 | Interest      Only |
| First      Insurance        |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Center                      |   |                               | 14,000  |   |                                |   | (218   | )      |   |   | 13,782                                   |   |               |               | 5.40 | % | 1/6/2016 | Interest      Only |
| Pacific                     |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Business                    |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| News      Building          |   |                               | 11,691  |   |                                |   | 25     |   |   |   | 11,716                                   |   |               |               | 6.98 | % | 4/6/2010 | 360      months |
| Pan      Am                 |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Building                    |   |                               | 60,000  |   |                                |   | (38    | )      |   |   | 59,962                                   |   |               |               | 6.17 | % | 8/11/2016 | Interest      Only |
| Waterfront                  |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Plaza                       |   |                               | 100,000 |   |                                |   | -      |   |   |   | 100,000                                  |   |               |               | 6.37 | % | 9/11/2016 | Interest      Only |
| Waterfront                  |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Plaza                       |   |                               | 11,000  |   |                                |   | -      |   |   |   | 11,000                                   |   |               |               | 6.37 | % | 9/11/2016 | Interest      Only |
| City      Square            |   |                               | 27,500  |   |                                |   | (119   | )      |   |   | 27,381                                   |   |               |               | 5.58 | % | 9/1/2010 | Interest      Only |
| City      Square (b)        |   |                               | 27,017  |   |                                |   | -      |   |   |   | 27,017                                   |   |               | LIBOR      + 2.35% |   | 9/1/2010 | Interest      Only |
| Sorrento                    |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Techonology                 |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
| Center                      |   |                               | 11,800  |   |                                |   | (183   | )      |   |   | 11,617                                   |   |               |               | 5.75 | % | 1/11/2016 | Interest      Only |
| Subtotal                    |   | $                                  | 399,575 |   |                                | $      | (2,075 | )      |   | $      | 397,500                                  |   |               |               |   |   |   |   |
| Revolving      line of      |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |
|   credit      (c) |   |                               | 5,847   |   |                                |   | -      |   |   |   | 5,847                                    |   |               |               | 1.85 | % | 9/2/2011 | Interest      Only |
| Total                       |   | $                                  | 405,422 |   |                                | $      | (2,075 | )      |   | $      | 403,347                                  |   |               |               |   |   |   |   |
|                        |   |                               |    |   |                                |   |   |   |   |   |                                     |   |               |               |   |   |   |   |

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

----

| (b) | The      City Square note payable with an outstanding balance of $27.0 million at      September 30, 2009 has an additional $1.5 million available to be drawn.      In addition, the Company has an interest rate cap on this loan for the      notional amount of $28.5 million, which effectively limits the LIBOR rate      on this loan to 7.45%. The interest rate cap expires on September 1, 2010,      commensurate with the maturity date of this note  payable. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                      |   |   |    |
|-------------------------------------------|--------|--------|---------|
| October      1, 2009 to December 31, 2009 |   | $      | 104     |   |
| 2010                                      |   |   | 66,446  |   |
| 2011                                      |   |   | 9,072   |   |
| 2012                                      |   |   | -       |   |
| 2013                                      |   |   | -       |   |
| Thereafter                                |   |   | 329,800 |   |
| Total                                     |   | $      | 405,422 |   |
|                                      |   |   |    |   |

----

----

----

----

----

|                                                      |   |            |    |   |                    |   |   |     |   |
|-----------------------------------------------------------|--------|-----------------|---------|--------|-------------------------|--------|--------|----------|--------|
|                                                      |   | Non-Controlling |    |   | Additional      Paid-in |   |   | Retained |   |
|                                                      |   | Interests       |    |   | Capital                 |   |   | Deficit  |   |
| Balance      at December 31, 2008, as previously reported |   | $               | 75,823  |   |                    | $      | 8,144  |     |   | $ | (7,044 | ) |
| Fair value      measurement of Common Units          |   |            | 57,427  |   |                    |   | (8,144 | )        |   |   | (49,283 | ) |
| Balances      at December 31, 2008, as restated           |   | $               | 133,250 |   |                    | $      | -      |     |   | $ | (56,327 | ) |

|                                        |   | Pacific      Office Properties Trust, Inc. |    |   | Non-controlling      interests |   |    | Total  |   |
|---------------------------------------------|--------|--------------------------------------------|---------|--------|--------------------------------|--------|---------|--------|--------|
|                                        |   |                                       |    |   |                           |   |    |   |   |
| Balance      at December 31, 2008           |   | $                                          | (56,142 | )      |                           | $      | 133,250 |   |   | $ | 77,108 |   |
| Net      loss                               |   |                                       | (3,413  | )      |                           |   | (13,984 | )      |   |   | (17,397 | ) |
| Stock      compensation                     |   |                                       | 140     |   |                           |   | -       |   |   |   | 140 |   |
| Note      exchange                          |   |                                       | 3,014   |   |                           |   | -       |   |   |   | 3,014 |   |
| Basis      adjustment                       |   |                                       | 309     |   |                           |   | (309    | )      |   |   | - |   |
| Fair      value measurement of Common Units |   |                                       | (15,573 | )      |                           |   | 15,573  |   |   |   | - |   |
| Dividends      and distributions            |   |                                       | (499    | )      |                           |   | (3,851  | )      |   |   | (4,350 | ) |
| Balance      at September 30, 2009          |   | $                                          | (72,164 | )      |                           | $      | 130,679 |   |   | $ | 58,515 |   |
|                                        |   |                                       |    |   |                           |   |    |   |   |   |   |   |

|                                                         |   | For      the three months ended September 30, |      |
|--------------------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                         |   | 2009                                          |      |   | 2008 |   |
|                                                         |   |                                          |      |   |   |   |
| Net      loss attributable to common                         |   |                                          |      |   |   |   |
| share/unit      holders - basic and diluted (1)              |   | $                                             | (1,241    | ) |   | $ | (1,188 | ) |
|                                                         |   |                                          |      |   |   |   |   |   |
| Weighted      average number of common shares                |   |                                          | 3,112,888 |   |   |   | 3,031,125 |   |
| Potentially      dilutive common shares (2)                  |   |                                          |      |   |   |   |   |   |
| Restricted      Stock Units (RSU)                            |   |                                          | —   |   |   |   | — |   |
| Weighted      average number of common                       |   |                                          |      |   |   |   |   |   |
| shares/units      outstanding — basic and diluted |   |                                          | 3,112,888 |   |   |   | 3,031,125 |   |
| Net      loss per share — basic and diluted       |   | $                                             | (0.40     | ) |   | $ | (0.39 | ) |
|                                                         |   |                                          |      |   |   |   |   |   |

----

|                                                         |   | Pacific      Office Properties Trust, Inc.        |      |   | Total                                                               |   |   | Pacific      Office Properties Trust, Inc.                         |   |   | Waterfront                                                      |   |
|--------------------------------------------------------------|--------|---------------------------------------------------|-----------|--------|---------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                                         |   | For      the nine months ended September 30, 2009 |      |   | For      the period from January 1, 2008 through September 30, 2008 |   |   | For      the period from March 20, 2008 through September 30, 2008 |   |   | For      the period from January 1, 2008 through March 19, 2008 |   |
|                                                         |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |
| Net      loss attributable to common                         |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |
| share/unit      holders - basic and diluted (1)              |   | $                                                 | (3,413    | )      |                                                                | $      | (6,657 | )                                                                  |   | $      | (5,578                                                          | )      |   | $ | (1,079 | ) |
|                                                         |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   |   |   |   |
| Weighted      average number of common shares                |   |                                              | 3,059,678 |   |                                                                |   |   |                                                               |   |   | 3,031,125                                                       |   |   |   |   |   |
| Potentially      dilutive common shares (2)                  |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   |   |   |   |
| Restricted      Stock Units (RSU)                            |   |                                              | —   |   |                                                                |   |   |                                                               |   |   | —                                                         |   |   |   |   |   |
| Weighted      average number of common                       |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   |   |   |   |
| shares/units      outstanding — basic and diluted |   |                                              | 3,059,678 |   |                                                                |   |   |                                                               |   |   | 3,031,125                                                       |   |   |   |   |   |
| Net      loss per share — basic and diluted       |   | $                                                 | (1.12     | )      |                                                                |   |   |                                                               |   | $      | (1.84                                                           | )      |   |   |   |   |
| Weighted      average number of units                        |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   |   |   |   |
| outstanding —      basic and diluted              |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   |   | 3,494,624 |   |
| Net      loss per unit — basic and diluted(3)     |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   | $ | (0.31 | ) |
|                                                         |   |                                              |      |   |                                                                |   |   |                                                               |   |   |                                                            |   |   |   |   |   |

| (1)   | For      the three and nine months ended September 30, 2009, net loss attributable      to common stockholders includes $0.6 million and $1.7 million of priority      allocation to preferred unit holders, respectively, which is included in      non-controlling interests in the condensed combined consolidated      statements of operations.  For the three months ended September      30, 2008 and the period from March 20, 2008 through September 30, 2008,      net loss attributable to common stockholders includes $0.6 million and      $1.1 million of priority allocation to preferred unit holders,      respectively, which is included in non-controlling interests in the      condensed combined consolidated statements of operations. For the period      from January 1, 2008 through March 19, 2008, net loss attributable to      common stockholders included $0.1 million of priority allocation to      preferred unit holders. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | For      the three and nine months ended September 30, 2009, the potentially      dilutive effect of 52,630 restricted stock units were not included in the      net loss per share calculation as their effect is anti-dilutive. For the      three and nine months ended September 30, 2008, the potentially dilutive      effect of 24,240 restricted stock units were not included in the net loss      per share calculation as their effect is  anti-dilutive. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

----

|                                      |   | For      the three months ended September 30, 2009 |   |   | For      the three months ended September 30, 2008 |   |   | For      the nine months ended September 30, 2009 |   |   | For      the nine months ended September 30, 2008 |   |
|-------------------------------------------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------|--------|
| Property      management fees             |   |                                               |   |   |                                               |   |   |                                              |   |   |                                              |   |
|   to      affiliates of Advisor |   | $                                                  | 764    |   |                                               | $      | 661    |                                              |   | $      | 2,544                                             |   |   | $ | 1,774 |   |
| Leasing      commissions                  |   |                                               | 86     |   |                                               |   | 111    |                                              |   |   | 245                                               |   |   |   | 298 |   |
| Corporate      management fees to Advisor |   |                                               | 188    |   |                                               |   | 188    |                                              |   |   | 563                                               |   |   |   | 375 |   |
| Interest                                  |   |                                               | 500    |   |                                               |   | 383    |                                              |   |   | 1,379                                             |   |   |   | 700 |   |
| Construction      management fees         |   |                                               |   |   |                                               |   |   |                                              |   |   |                                              |   |   |   |   |   |
|   and      other                |   |                                               | 14     |   |                                               |   | 48     |                                              |   |   | 49                                                |   |   |   | 72 |   |
| Total                                     |   | $                                                  | 1,552  |   |                                               | $      | 1,391  |                                              |   | $      | 4,780                                             |   |   | $ | 3,219 |   |
|                                      |   |                                               |   |   |                                               |   |   |                                              |   |   |                                              |   |   |   |   |   |

----

----

|                                                         |   | For      the three months ended September 30, 2009 |    |   |              |   |
|--------------------------------------------------------------|--------|----------------------------------------------------|---------|--------|-------------------|--------|
|                                                         |   | Honolulu                                           |    |   | Western      U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                     |   |                                               |    |   |              |   |   |   |   |   |   |   |
| Rental                                                       |   | $                                                  | 7,303   |   |              | $      | 3,179 |   |   | $ | 4 |   |   | $ | 10,486 |   |
| Tenant      reimbursements                                   |   |                                               | 4,945   |   |              |   | 218 |   |   |   | — |   |   |   | 5,163 |   |
| Parking                                                      |   |                                               | 1,761   |   |              |   | 251 |   |   |   | — |   |   |   | 2,012 |   |
| Other                                                        |   |                                               | 34      |   |              |   | - |   |   |   | 49 |   |   |   | 83 |   |
| Total      revenue                                           |   |                                               | 14,043  |   |              |   | 3,648 |   |   |   | 53 |   |   |   | 17,744 |   |
| Expenses:                                                    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental      property operating                               |   |                                               | 7,794   |   |              |   | 1,987 |   |   |   | — |   |   |   | 9,781 |   |
| General      and administrative                              |   |                                               | — |   |              |   | — |   |   |   | 351 |   |   |   | 351 |   |
| Depreciation      and amortization                           |   |                                               | 5,044   |   |              |   | 1,869 |   |   |   | — |   |   |   | 6,913 |   |
| Interest                                                     |   |                                               | 5,341   |   |              |   | 844 |   |   |   | 638 |   |   |   | 6,823 |   |
| Loss      on extinguishment of debt                          |   |                                               | — |   |              |   | — |   |   |   | 171 |   |   |   | 171 |   |
| Total      expenses                                          |   |                                               | 18,179  |   |              |   | 4,700 |   |   |   | 1,160 |   |   |   | 24,039 |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| joint      ventures and non-operating income                 |   | $                                                  | (4,136  | )      |              | $      | (1,052 | ) |   | $ | (1,107 | ) |   | $ | (6,295 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 189 |   |
| Non-operating      income                                    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 2 |   |
| Net      loss attributable to non-controlling interests      |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 4,863 |   |
| Net      loss attributable to common stockholders            |   |                                               |    |   |              |   |   |   |   |   |   |   |   | $ | (1,241 | ) |
|                                                         |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | For      the nine months ended September 30, 2009  |    |   |              |   |
|                                                         |   | Honolulu                                           |    |   | Western      U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                     |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental                                                       |   | $                                                  | 22,292  |   |              | $      | 9,696 |   |   | $ | 11 |   |   | $ | 31,999 |   |
| Tenant      reimbursements                                   |   |                                               | 15,363  |   |              |   | 821 |   |   |   | — |   |   |   | 16,184 |   |
| Parking                                                      |   |                                               | 5,338   |   |              |   | 742 |   |   |   | — |   |   |   | 6,080 |   |
| Other                                                        |   |                                               | 97      |   |              |   | 24 |   |   |   | 149 |   |   |   | 270 |   |
| Total      revenue                                           |   |                                               | 43,090  |   |              |   | 11,283 |   |   |   | 160 |   |   |   | 54,533 |   |
| Expenses:                                                    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental      property operating                               |   |                                               | 23,423  |   |              |   | 5,933 |   |   |   | — |   |   |   | 29,356 |   |
| General      and administrative                              |   |                                               | — |   |              |   | — |   |   |   | 1,997 |   |   |   | 1,997 |   |
| Depreciation      and amortization                           |   |                                               | 14,780  |   |              |   | 5,690 |   |   |   | — |   |   |   | 20,470 |   |
| Interest                                                     |   |                                               | 15,857  |   |              |   | 2,523 |   |   |   | 1,968 |   |   |   | 20,348 |   |
| Loss      on extinguishment of debt                          |   |                                               | — |   |              |   | — |   |   |   | 171 |   |   |   | 171 |   |
| Total      expenses                                          |   |                                               | 54,060  |   |              |   | 14,146 |   |   |   | 4,136 |   |   |   | 72,342 |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| joint      ventures and non-operating income                 |   | $                                                  | (10,970 | )      |              | $      | (2,863 | ) |   | $ | (3,976 | ) |   | $ | (17,809 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 406 |   |
| Non-operating      income                                    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 6 |   |
| Net      loss attributable to non-controlling interests      |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 13,984 |   |
| Net      loss attributable to common stockholders            |   |                                               |    |   |              |   |   |   |   |   |   |   |   | $ | (3,413 | ) |

----

|                                                         |   | For      the three months ended September 30, 2008 |    |   |              |
|--------------------------------------------------------------|--------|----------------------------------------------------|---------|--------|-------------------|
|                                                         |   | Honolulu                                           |    |   | Western      U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                     |   |                                               |    |   |              |   |   |   |   |   |   |   |
| Rental                                                       |   | $                                                  | 7,440   |   |              | $ | 3,455 |   |   | $ | 4 |   |   | $ | 10,899 |   |
| Tenant      reimbursements                                   |   |                                               | 5,239   |   |              |   | 344 |   |   |   | — |   |   |   | 5,583 |   |
| Parking                                                      |   |                                               | 1,716   |   |              |   | 265 |   |   |   | — |   |   |   | 1,981 |   |
| Other                                                        |   |                                               | 64      |   |              |   | 15 |   |   |   | 57 |   |   |   | 136 |   |
| Total      revenue                                           |   |                                               | 14,459  |   |              |   | 4,079 |   |   |   | 61 |   |   |   | 18,599 |   |
| Expenses:                                                    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental      property operating                               |   |                                               | 8,818   |   |              |   | 2,249 |   |   |   | — |   |   |   | 11,067 |   |
| General      and administrative                              |   |                                               | — |   |              |   | — |   |   |   | 429 |   |   |   | 429 |   |
| Depreciation      and amortization                           |   |                                               | 4,581   |   |              |   | 2,159 |   |   |   | — |   |   |   | 6,740 |   |
| Interest                                                     |   |                                               | 5,345   |   |              |   | 993 |   |   |   | 431 |   |   |   | 6,769 |   |
| Total      expenses                                          |   |                                               | 18,744  |   |              |   | 5,401 |   |   |   | 860 |   |   |   | 25,005 |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| joint      ventures and non-operating income                 |   | $                                                  | (4,285  | )      |              | $ | (1,322 | ) |   | $ | (799 | ) |   | $ | (6,406 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 185 |   |
| Net      loss attributable to non-controlling interests      |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 5,033 |   |
| Net      loss attributable to common stockholders            |   |                                               |    |   |              |   |   |   |   |   |   |   |   | $ | (1,188 | ) |
|                                                         |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | For      the nine months ended September 30, 2008  |    |   |              |   |
|                                                         |   | Honolulu                                           |    |   | Western      U.S. |   |   | Corporate |   |   | Total |   |
| Revenue:                                                     |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental                                                       |   | $                                                  | 19,018  |   |              | $ | 7,375 |   |   | $ | 8 |   |   | $ | 26,401 |   |
| Tenant      reimbursements                                   |   |                                               | 12,031  |   |              |   | 709 |   |   |   | — |   |   |   | 12,740 |   |
| Parking                                                      |   |                                               | 4,291   |   |              |   | 564 |   |   |   | — |   |   |   | 4,855 |   |
| Other                                                        |   |                                               | 124     |   |              |   | 103 |   |   |   | 118 |   |   |   | 345 |   |
| Total      revenue                                           |   |                                               | 35,464  |   |              |   | 8,751 |   |   |   | 126 |   |   |   | 44,341 |   |
| Expenses:                                                    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental      property operating                               |   |                                               | 21,899  |   |              |   | 4,513 |   |   |   | — |   |   |   | 26,412 |   |
| General      and administrative                              |   |                                               | — |   |              |   | 4 |   |   |   | 1,639 |   |   |   | 1,643 |   |
| Share-based      compensation                                |   |                                               | — |   |              |   | — |   |   |   | 16,194 |   |   |   | 16,194 |   |
| Depreciation      and amortization                           |   |                                               | 10,775  |   |              |   | 4,728 |   |   |   | — |   |   |   | 15,503 |   |
| Interest                                                     |   |                                               | 12,891  |   |              |   | 2,144 |   |   |   | 787 |   |   |   | 15,822 |   |
| Other                                                        |   |                                               | 108     |   |              |   | 35 |   |   |   | — |   |   |   | 143 |   |
| Total      expenses                                          |   |                                               | 45,673  |   |              |   | 11,424 |   |   |   | 18,620 |   |   |   | 75,717 |   |
| Loss      before equity in net earnings of unconsolidated    |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| joint      ventures and non-operating income                 |   | $                                                  | (10,209 | )      |              | $ | (2,673 | ) |   | $ | (18,494 | ) |   | $ | (31,376 | ) |
| Equity      in net earnings of unconsolidated joint ventures |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 156 |   |
| Net      loss attributable to non-controlling interests      |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   | 24,563 |   |
| Net      loss attributable to common stockholders            |   |                                               |    |   |              |   |   |   |   |   |   |   |   | $ | (6,657 | ) |
|                                                         |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                           |   | Honolulu |    |   | Western U.S. |   |    | Corporate |   |   | Total   |   |
|--------------------------------|--------|----------|---------|--------|--------------|--------|---------|-----------|--------|--------|---------|--------|
| As      of September 30, 2009: |   |     |    |   |         |   |    |      |   |   |    |   |
| Total      assets              |   | $        | 374,572 |   |         | $      | 126,499 |      |   | $      | 12,149  |   |   | $ | 513,220 |   |
| Goodwill                       |   | $        | 40,416  |   |         | $      | 21,603  |      |   | $      | — |   |   | $ | 62,019 |   |
| Capital      expenditures      |   | $        | 3,608   |   |         | $      | 861     |      |   | $      | — |   |   | $ | 4,469 |   |
| As      of December 31, 2008:  |   |     |    |   |         |   |    |      |   |   |    |   |   |   |   |   |
| Total      assets              |   | $        | 383,966 |   |         | $      | 130,062 |      |   | $      | 15,869  |   |   | $ | 529,897 |   |
| Goodwill                       |   | $        | 40,144  |   |         | $      | 21,375  |      |   | $      | — |   |   | $ | 61,519 |   |
| Capital      expenditures      |   | $        | 7,000   |   |         | $      | 1,514   |      |   | $      | — |   |   | $ | 8,514 |   |

----

----

|                                       |           |   |      |   |   | RENTABLE     |   |
|--------------------------------------------|----------------|--------|-----------|--------|--------|--------------|--------|
| PROPERTY                                   | MARKET         |   | BUILDINGS |   |   | SQ.      FT. |   |
| Waterfront      Plaza                      | Honolulu       |   |      | 1      |   |         |   | 534,475 |   |
| 500      Ala Moana Boulevard               |           |   |      |   |   |         |   |   |   |
| Davies      Pacific Center                 | Honolulu       |   |      | 1      |   |         |   | 353,224 |   |
| 841      Bishop Street                     |           |   |      |   |   |         |   |   |   |
| Pan      Am Building                       | Honolulu       |   |      | 1      |   |         |   | 209,889 |   |
| 1600      Kapiolani Boulevard              |           |   |      |   |   |         |   |   |   |
| First      Insurance Center                | Honolulu       |   |      | 1      |   |         |   | 202,992 |   |
| 1100      Ward Avenue                      |           |   |      |   |   |         |   |   |   |
| Pacific      Business News Building        | Honolulu       |   |      | 1      |   |         |   | 90,559 |   |
| 1833      Kalakaua Avenue                  |           |   |      |   |   |         |   |   |   |
| Clifford      Center                       | Honolulu       |   |      | 1      |   |         |   | 72,415 |   |
| 810      Richards Street                   |           |   |      |   |   |         |   |   |   |
| City      Square                           | Phoenix        |   |      | 3      |   |         |   | 738,422 |   |
| 3800      North Central Avenue             |           |   |      |   |   |         |   |   |   |
| 3838      North Central Avenue             |           |   |      |   |   |         |   |   |   |
| 4000      North Central Avenue             |           |   |      |   |   |         |   |   |   |
| Sorrento      Technology Center            | San      Diego |   |      | 2      |   |         |   | 63,363 |   |
| 10140      Barnes Canyon Road              |           |   |      |   |   |         |   |   |   |
| 10180      Barnes Canyon Road              |           |   |      |   |   |         |   |   |   |
| Total      — Consolidated Properties |           |   |      | 11     |   |         |   | 2,265,339 |   |

----

|        PROPERTY                         |  MARKET       |   | BUILDINGS |   |   | RENTABLESQ. FT. |   |      | PERCENTAGEOWNERSHIP |   |
|----------------------------------------------------------------------------|--------------------|--------|-----------|--------|--------|-----------------|--------|-----------|---------------------|--------|
|                                                                       |               |   |      |   |   |            |   |      |                |   |
| Seville      Plaza                                                         | San      Diego     |   |      | 3      |   |            |   | 138,576   |                |   |   | 7.50 | % |
| 5469      Kearny  Villa Road                                     |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 5471      Kearny  Villa Road                                     |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 5473      Kearny  Villa Road                                     |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Torrey      Hills  Corporate Center                              | San      Diego     |   |      | 1      |   |            |   | 24,066    |                |   |   | 32.17 | % |
| 11250      El Camino  Real                                       |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Palomar      Heights  Plaza                                      | San      Diego     |   |      | 3      |   |            |   | 45,538    |                |   |   | 32.17 | % |
| 5860      Owens  Avenue  (Building A)                  |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 5876      Owens  Avenue  (Building B)                  |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 5868      Owens  Avenue  (Building C)                  |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Palomar      Heights  Corporate Center                           | San      Diego     |   |      | 1      |   |            |   | 64,812    |                |   |   | 32.17 | % |
| 5857      Owens  Avenue  (Corporate  Center) |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Scripps      Ranch  Business Park                                | San      Diego     |   |      | 2      |   |            |   | 47,248    |                |   |   | 32.17 | % |
| 9775      Business  Park Avenue                                  |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 10021      Willow  Creek Road                                    |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Black      Canyon  Corporate Center                              | Phoenix            |   |      | 1      |   |            |   | 218,694   |                |   |   | 17.50 | % |
| 16404      N. Black  Canyon Highway                              |               |   |      |   |   |            |   |      |                |   |   |   |   |
| U.S.      Bank Center                                                      | Phoenix            |   |      | 2      |   |            |   | 372,676   |                |   |   | 7.50 | % |
| 101      N. First  Avenue                                        |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 21      West Van  Buren Street                                   |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Bank      of Hawaii  Waikiki Center                              | Honolulu           |   |      | 1      |   |            |   | 152,288   |                |   |   | 17.50 | % |
| 2155      Kalakaua  Avenue                                       |               |   |      |   |   |            |   |      |                |   |   |   |   |
| South      Coast  Executive Center                               | Orange      County |   |      | 1      |   |            |   | 61,025    |                |   |   | 10.00 | % |
| 1503      South  Coast Drive                                     |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Via      Frontera  Business Park                                 | San      Diego     |   |      | 2      |   |            |   | 78,819    |                |   |   | 10.00 | % |
| 10965      Via  Frontera Drive                                   |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 10993      Via  Frontera Drive                                   |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Poway      Flex                                                            | San      Diego     |   |      | 1      |   |            |   | 112,000   |                |   |   | 10.00 | % |
| 13550      Stowe  Drive (Poway)                                  |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Carlsbad      Corporate  Center                                  | San      Diego     |   |      | 1      |   |            |   | 121,528   |                |   |   | 10.00 | % |
| 1950      Camino  Vida Roble                                     |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Savi      Tech Center                                                      | Orange      County |   |      | 4      |   |            |   | 372,327   |                |   |   | 10.00 | % |
| Savi      Tech  -22705 Savi  Ranch Parkway             |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Savi      Tech  -22715 Savi  Ranch Parkway             |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Savi      Tech  -22725 Savi  Ranch Parkway             |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Savi      Tech  -22745 Savi  Ranch Parkway             |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Yorba      Linda  Business Park                                  | Orange      County |   |      | 5      |   |            |   | 166,042   |                |   |   | 10.00 | % |
| 22343      La Palma  Avenue                                      |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 22345      La Palma  Avenue                                      |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 22347      La Palma  Avenue                                      |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 22349      La Palma  Avenue                                      |               |   |      |   |   |            |   |      |                |   |   |   |   |
| 22833      La Palma  Avenue                                      |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Gateway      Corporate  Center                                   | San      Gabriel   |   |      | 1      |   |            |   | 85,216    |                |   |   | 10.00 | % |
| 1370      Valley  Vista Drive                                    |               |   |      |   |   |            |   |      |                |   |   |   |   |
| Total      — Joint  Venture Properties                     |               |   |      | 29     |   |            |   | 2,060,855 |                |   |   |   |   |
| PORTFOLIO  TOTALS:                                               |               |   |      | 40     |   |            |   | 4,326,194 |                |   |   |   |   |

----

----

----

----

----

|                                                      |   | 2009   |   |   | 2008   |   |   | $      Change |   |   | %      Change |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|--------|---------------|--------|
|                                                      |   |   |   |   |   |   |   |          |   |   |          |   |
| Revenue:                                                  |   |   |   |   |   |   |   |          |   |   |          |   |
| Rental                                                    |   | $      | 10,486 |   |   | $      | 10,899 |          |   | $      | (413          | )      |   |   | (3.8 | %) |
| Tenant      reimbursements                                |   |   | 5,163  |   |   |   | 5,583  |          |   |   | (420          | )      |   |   | (7.5 | %) |
| Parking                                                   |   |   | 2,012  |   |   |   | 1,981  |          |   |   | 31            |   |   |   | 1.6 | % |
| Other                                                     |   |   | 83     |   |   |   | 136    |          |   |   | (53           | )      |   |   | (39.0 | %) |
| Total      revenue                                        |   |   | 17,744 |   |   |   | 18,599 |          |   |   | (855          | )      |   |   | (4.6 | %) |
|                                                      |   |   |   |   |   |   |   |          |   |   |          |   |   |   |   |   |
| Expenses:                                                 |   |   |   |   |   |   |   |          |   |   |          |   |   |   |   |   |
| Rental      property operating                            |   |   | 9,781  |   |   |   | 11,067 |          |   |   | (1,286        | )      |   |   | (11.6 | %) |
| General      and administrative                           |   |   | 351    |   |   |   | 429    |          |   |   | (78           | )      |   |   | (18.2 | %) |
| Depreciation      and amortization                        |   |   | 6,913  |   |   |   | 6,740  |          |   |   | 173           |   |   |   | 2.6 | % |
| Interest                                                  |   |   | 6,823  |   |   |   | 6,769  |          |   |   | 54            |   |   |   | 0.8 | % |
| Loss      from extinguishment of debt                     |   |   | 171    |   |   |   | -      |          |   |   | 171           |   |   |   | - | % |
| Total      expenses                                       |   |   | 24,039 |   |   |   | 25,005 |          |   |   | (966          | )      |   |   | (3.9 | %) |
|                                                      |   |   |   |   |   |   |   |          |   |   |          |   |   |   |   |   |
| Loss      before equity in net earnings of unconsolidated |   |   |   |   |   |   |   |          |   |   |          |   |   |   |   |   |
| joint      ventures and non-operating income              |   |   | (6,295 | )      |   |   | (6,406 | )             |   |   | 111           |   |   |   | 1.7 | % |
| Equity      in net earnings of unconsolidated             |   |   |   |   |   |   |   |          |   |   |          |   |   |   |   |   |
| joint      ventures                                       |   |   | 189    |   |   |   | 185    |          |   |   | 4             |   |   |   | 2.2 | % |
| Non-operating      income                                 |   |   | 2      |   |   |   | -      |          |   |   | 2             |   |   |   | 100.0 | % |
| Net      loss                                             |   | $      | (6,104 | )      |   | $      | (6,221 | )             |   | $      | 117           |   |   |   | 1.9 | % |
|                                                      |   |   |   |   |   |   |   |          |   |   |          |   |   |   |   |   |

----

----

|                                                      |   | 2009   |    |   | 2008      (1) |   |    | $      Change |   |   | %      Change |   |
|-----------------------------------------------------------|--------|--------|---------|--------|---------------|--------|---------|---------------|--------|--------|---------------|--------|
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |
| Revenue:                                                  |   |   |    |   |          |   |    |          |   |   |          |   |
| Rental                                                    |   | $      | 31,999  |   |          | $      | 26,401  |          |   | $      | 5,598         |   |   |   | 21.2 | % |
| Tenant      reimbursements                                |   |   | 16,184  |   |          |   | 12,740  |          |   |   | 3,444         |   |   |   | 27.0 | % |
| Parking                                                   |   |   | 6,080   |   |          |   | 4,855   |          |   |   | 1,225         |   |   |   | 25.2 | % |
| Other                                                     |   |   | 270     |   |          |   | 345     |          |   |   | (75           | )      |   |   | (21.7 | %) |
| Total      revenue                                        |   |   | 54,533  |   |          |   | 44,341  |          |   |   | 10,192        |   |   |   | 23.0 | % |
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Expenses:                                                 |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Rental      property operating                            |   |   | 29,356  |   |          |   | 26,412  |          |   |   | 2,944         |   |   |   | 11.1 | % |
| General      and administrative                           |   |   | 1,997   |   |          |   | 17,837  |          |   |   | (15,840       | )      |   |   | (88.8 | %) |
| Depreciation      and amortization                        |   |   | 20,470  |   |          |   | 15,503  |          |   |   | 4,967         |   |   |   | 32.0 | % |
| Interest                                                  |   |   | 20,348  |   |          |   | 15,822  |          |   |   | 4,526         |   |   |   | 28.6 | % |
| Loss      from extinguishment of debt                     |   |   | 171     |   |          |   | -       |          |   |   | 171           |   |   |   | 100.0 | % |
| Other                                                     |   |   | -       |   |          |   | 143     |          |   |   | (143          | )      |   |   | (100.0 | %) |
| Total      expenses                                       |   |   | 72,342  |   |          |   | 75,717  |          |   |   | (3,375        | )      |   |   | (4.5 | %) |
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Loss      before equity in net earnings of unconsolidated |   |   |    |   |          |   |    |          |   |   |          |   |   |
| joint      ventures and non-operating income              |   |   | (17,809 | )      |          |   | (31,376 | )             |   |   | 13,567        |   |   |   | 43.2 | % |
| Equity      in net earnings of unconsolidated             |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| joint      ventures                                       |   |   | 406     |   |          |   | 156     |          |   |   | 250           |   |   |   | 160.3 | % |
| Non-operating      income                                 |   |   | 6       |   |          |   | -       |          |   |   | 6             |   |   |   | 100.0 | % |
| Net      loss                                             |   | $      | (17,397 | )      |          | $      | (31,220 | )             |   | $      | 13,823        |   |   |   | 44.3 | % |
|                                                      |   |   |    |   |          |   |    |          |   |   |          |   |   |   |   |   |

| (1) | Amounts reflected in 2008      represent the sum of the results of the Company for the period from March      21, 2008 to June 30, 2008 and the results of Waterfront for the period      from January 1, 2008 to March 20,2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| PROPERTY                                       |   | AMOUNT |    |   | INTEREST      RATE |               | MATURITY      DATE |        | BALANCE      DUE AT MATURITY DATE |   |   | PREPAYMENT/ DEFEASANCE |   |
|------------------------------------------------|--------|--------|---------|--------|--------------------|--------------------|--------------------|-------------|-----------------------------------|--------|--------|-----------------------------|--------|
| Clifford      Center (1)                       |   |   | 3,567   |   |               |               | 6.00               | %           | 8/15/2011                         |   |   | 3,032                       |   |   |   |   | (2) |
| Davies      Pacific Center                     |   |   | 95,000  |   |               |               | 5.86               | %           | 11/11/2016                        |   |   | 95,000                      |   |   |   |   | (3) |
| First      Insurance Center                    |   |   | 38,000  |   |               |               | 5.74               | %           | 1/1/2016                          |   |   | 38,000                      |   |   |   |   | (4) |
| First      Insurance Center                    |   |   | 14,000  |   |               |               | 5.40               | %           | 1/6/2016                          |   |   | 14,000                      |   |   |   |   | (5) |
| Pacific      Business News                     |   |   |    |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
| Building      (6)                              |   |   | 11,691  |   |               |               | 6.98               | %           | 4/6/2010                          |   |   | 11,613                      |   |   |   |   | (7) |
| Pan      Am Building                           |   |   | 60,000  |   |               |               | 6.17               | %           | 8/11/2016                         |   |   | 60,000                      |   |   |   |   | (8) |
| Waterfront      Plaza                          |   |   | 100,000 |   |               |               | 6.37               | %           | 9/11/2016                         |   |   | 100,000                     |   |   |   |   | (9) |
| Waterfront      Plaza                          |   |   | 11,000  |   |               |               | 6.37               | %           | 9/11/2016                         |   |   | 11,000                      |   |   |   |   | (10) |
| City      Square                               |   |   | 27,500  |   |               |               | 5.58               | %           | 9/1/2010                          |   |   | 27,500                      |   |   |   |   | (11) |
| City      Square (12)                          |   |   | 27,017  |   |               | LIBOR      + 2.35% |               | 9/1/2010    |                              |   | 26,612 |                        |   |   |   | (13) |
| Sorrento      Technology                       |   |   |    |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
| Center      (14)                               |   |   | 11,800  |   |               |               | 5.75               | %      (15) | 1/11/2016      (15)               |   |   | 10,825                      |   |   |   |   | (16) |
| Subtotal                                       |   | $      | 399,575 |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
| Revolving      line of                         |   |   |    |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
| credit      (17)                               |   |   | 5,847   |   |               |               | 1.85               | %           | 9/2/2011                          |   |   | 5,847                       |   |   |   |   |   |
|   Outstanding      principal balance |   | $      | 405,422 |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
| Less:      Unamortized discount, net           |   |   | (2,075  | )      |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
| Net                                            |   | $      | 403,347 |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |
|                                           |   |   |    |   |               |               |               |        |                              |   |   |                        |   |   |   |   |   |

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

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

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

| (4) | Loan      is prepayable subject to a prepayment premium in an amount equal to the      greater of 3% of outstanding principal amount or yield      maintenance.  No premium due after October 1,      2015.  Loan may also be defeased after earlier of December 2008      or two years after the “start-up date” of the loan, if      securitized. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Loan      is not prepayable until October 6, 2015; however, loan may be defeased      after earlier of August 2009 and two years after the “start-up date” of      the loan, if securitized.  No premium is due upon      prepayment. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (7) | Loan      may not be prepaid until February 6, 2010.  No premium is due      upon prepayment.  Loan may be defeased after the earlier of      September 2008 or two years after the “start-up date” of the loan, if      securitized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| (11) | Loan      may not be prepaid until June 1, 2010.  Loan may be defeased at      any time. |
|------|----------------------------------------------------------------------------------------------------|

| (12) | Maximum      loan amount to be advanced is $28.5 million.  In addition, the      Company has an interest rate cap on this loan for the notional amount of      $28.5 million, which effectively limits the LIBOR rate on this loan to      7.45%.  The interest rate cap expires on September 1, 2010,      commensurate with the maturity date of this note  payable. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| (16) | No      prepayment is permitted prior to October 11, 2016.  Loan may be      defeased after the earlier of December 15, 2009 or second anniversary of      the “start-up date” of the loan, ifsecuritized. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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| Exhibit No.  |  Description                                                                                                                                            |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.1               | Articles      of Amendment and Restatement (Filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.2               | Articles      Supplementary of the Company (Filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.3               | Articles      of Amendment of the Company (Filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.4               | Amended      and Restated Bylaws (previously filed as Exhibit 3.2 to the Company’s      Current Report on Form 8-K filed on March 25, 2008 and incorporated herein      by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1              | Credit      Agreement dated as of September 2, 2009 between Pacific Office Properties,      L.P. and First Hawaiian Bank (previously filed as Exhibit 10.1 to the      Company’s Current Report on Form 8-K filed September 4, 2009 and      incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.2              | Promissory      Note dated September 2, 2009 issued by Pacific Office Properties, L.P. to      First Hawaiian Bank (previously filed as Exhibit 10.2 to the Company’s      Current Report on Form 8-K filed September 4, 2009 and incorporated herein      by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.3              | Indemnification      Agreement dated as of September 2, 2009 between Pacific Office Properties,      L.P. and Shidler Equities L.P. (previously filed as Exhibit 10.3 to the      Company’s Current Report on Form 8-K filed September 4, 2009 and      incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.4              | Exchange      Agreement, dated as of September 23, 2009, by and among Pacific Office      Properties, L.P., Shidler Equities, L.P., Reynolds Partners, L.P., MJR      Equities, LLC, JRI Equities, LLC and Lawrence J. Taff (previously filed as      Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September      28, 2009 and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.5              | Third      Amendment to Amended and Restated Agreement of Limited Partnership of      Pacific Office Properties, L.P. dated as of September 25, 2009 (previously      filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed      September 28, 2009 and incorporated herein by  reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.6              | First      Amendment to Amended and Restated Advisory Agreement dated as of September      25, 2009, by and among Pacific Office Properties Trust, Inc., Pacific      Office Properties, L.P. and Pacific Office Management, Inc. (previously      filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed      September 28, 2009 and incorporated herein by  reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.1              | Certification      of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002. (Filed herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.2              | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002. (Filed herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 32.1              | Certification      of Chief Executive Officer pursuant to 18 U.S.C. § 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed      herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 32.2              | Certification      of Chief Financial Officer pursuant to 18 U.S.C. § 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed      herewith.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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