Funds from operations available to common shareholders (diluted) ("FFO") for the first quarter of 2009 was $0.72 per share, compared to $0.80 per share for the first quarter of 2008. A reconciliation of GAAP net income to FFO is included in the financial tables accompanying this press release. Funds from operations for the first quarter include a debt extinguishment gain of $0.5 million; termination fees of $0.3 million, and an impairment charge of $0.7 million. Earnings also include $3.8 million ($.04 per share) of additional expense compared to the first quarter of 2008 primarily relating to the accelerated vesting of long term incentive compensation due to the years of service and age of certain employees who are now in excess of threshold levels.

"During the first quarter, Liberty further strengthened our solid financial position by accessing both the equity and debt markets," said Bill Hankowsky, chief executive officer. "However, these capital activities came at a cost, which will affect our earnings performance for the year. This dilution, combined in roughly equal parts with the continued erosion of fundamentals in the office/industrial real estate sector due to macro-economic forces, lead us to update previously issued guidance for 2009 funds from operations to a new range of $2.70 - $2.90."

Capital Activities and Balance Sheet Management

Common Share Sales: During the first quarter of 2009, Liberty sold 4.6 million shares pursuant to a continuous offering program, generating net proceeds of $91.8 million.

Senior Note Obligations: During the quarter, Liberty purchased $11.4 million of its April 2009 Senior Notes and $6.9 million of its August 2010 Senior Notes. These notes were purchased at a $0.5 million discount. This discount is included in FFO as a debt extinguishment gain. Liberty repaid $20 million of 8.125% medium term notes which matured on January 15, 2009.

Secured Financing: During the quarter, Liberty closed on $317 million in mortgage loans. The weighted average interest rate on this financing is 7.1%.

Property Sales: Liberty sold six operating properties, which contained 296,000 square feet of leaseable space, and 0.3 acres of land for $45.6 million.

Portfolio Performance

Leasing: At March 31, 2009 Liberty's in-service portfolio of 76.7 million square feet was 90.1% occupied, compared to 91.3% at the end of last year. During the quarter, Liberty completed lease transactions totaling 2.8 million square feet of space.

Same Store Performance: Property level operating income for same store properties increased by 1.8% on a cash basis and increased by 1.9 % on a straight line basis for the first quarter of 2009 compared to the same quarter in 2008.

Real Estate Investments

Development: During the first quarter, Liberty brought into service one development property totaling 90,000 square feet for a total investment of $15.7 million. This property is 85.9% occupied at a current yield of 8.3%, and a projected stabilized yield of 9.2%. No development projects were commenced during the quarter.

As of March 31, 2009, Liberty had 4.4 million square feet of wholly-owned and joint venture properties under development. This activity represents a total projected investment of $550.9 million, with an expected yield of 7.7%. The properties were 55.5% leased at March 31.

   Acquisitions: Liberty acquired no properties during the quarter.    2009 Guidance   

Liberty is updating previously-issued earnings guidance. Liberty now expects to report funds from operations for 2009 in the range of $2.70-$2.90 per share. A reconciliation of FFO to GAAP net income is below:

                                                     2009 Range                                                   Low        High   Projected net income per share                $0.84       $1.04   Depreciation and amortization of    unconsolidated joint ventures                 0.16        0.18   Depreciation and amortization                  1.82        1.85   Gain on property dispositions                 (0.05)      (0.10)   Minority interest share of addbacks           (0.07)      (0.07)    Projected funds from operations per share     $2.70       $2.90    About the Company   

Liberty Property Trust is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties. Liberty's 77 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,100 tenants.

Additional information about the Company, including Liberty's Quarterly Supplemental Package with detailed financial information is available in the Investors section of the Company's web site at http://www.libertyproperty.com/. If you are unable to access the web site, a copy of the supplemental package may be obtained by contacting Liberty by phone at 610-648-1704, or by e-mail to jleonard@libertyproperty.com.

Liberty will host a conference call during which management will discuss first quarter results, on Tuesday, April 28, 2009, at Noon eastern time. To access the conference call in the United States or Canada, please dial 1-888-870-2815. For international access, dial 706-643-7691. No password or code is needed. A replay of the call will be available by dialing 1-800-642-1687 for US/Canada participants or 706-645-9291 for international participants. A passcode is needed for the replay: 95635249. The call can also be accessed via the Internet on the Investors page of Liberty's web site at http://www.libertyproperty.com/ for two weeks following the call.

The statements contained in this press release may include forward-looking statements within the meaning of the federal securities law. Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These factors include, without limitation, the uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants' business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, the financial condition of tenants, the uncertainties of real estate development and construction activity, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes, potential liability relative to environmental matters and other risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

                             Liberty Property Trust                            Statement of Operations                                 March 31, 2009                   (In thousands, except per share amounts)                                                       Quarter Ended                                             March 31, 2009  March 31, 2008                                             --------------  --------------                                                      (Unaudited)   Operating Revenue   Rental                                          $130,780        $132,899   Operating expense reimbursement                   58,440          56,571                                                     ------          ------       Total operating revenue                      189,220         189,470                                                    -------         -------    Operating Expenses   Rental property                                   39,372          38,905   Real estate taxes                                 22,446          20,454   General and administrative                        15,576          14,037   Depreciation and amortization                     43,553          43,063                                                     ------          ------       Total operating expenses                     120,947         116,459                                                    -------         -------        Operating Income                              68,273          73,011    Other Income/Expense   Interest and other                                 3,106           3,091   Debt extinguishment gain                             529               -   Interest                                         (38,429)        (41,690)                                                    -------         -------       Total other income/expense                   (34,794)        (38,599)                                                    -------         -------    Income before property dispositions,    income taxes, minority interest and equity    in earnings of unconsolidated joint ventures     33,479          34,412   (Loss) gain on property dispositions                (294)            641   Income taxes                                        (217)           (484)   Equity in earnings of unconsolidated    joint ventures                                      417             377                                                        ---             ---    Income from continuing operations                 33,385          34,946    Discontinued operations (including net gain    on property dispositions of $199 and $610 for    the quarters ended March 31, 2009 and 2008)         457           1,450                                                        ---           -----   Net Income                                        33,842          36,396     Less: Net income attributable to      minority interest                              (5,953)         (6,435)                                                     ------          ------   Net Income available to common    shareholders                                    $27,889         $29,961                                                    =======         =======    Basic income per common share     Continuing operations                            $0.28           $0.31                                                      =====           =====     Discontinued operations                             $-           $0.02                                                         ==           =====   Total basic income per common share                $0.28           $0.33                                                      =====           =====    Diluted income per common share     Continuing operations                            $0.28           $0.31                                                      =====           =====     Discontinued operations                             $-           $0.02                                                         ==           =====   Total diluted income per common share              $0.28           $0.33                                                      =====           =====    Weighted average shares     Basic                                          100,681          91,779                                                    =======          ======     Diluted                                        100,960          91,943                                                    =======          ======    Amounts attributable to common shareholders     Income from continuing operations              $27,449         $28,574     Discontinued operations                            440           1,387                                                        ---           -----     Net income                                     $27,889         $29,961                                                    =======         =======                              Liberty Property Trust                     Statement of Funds From Operations                               March 31, 2009           (Unaudited and in thousands, except per share amounts)                                                 Quarter Ended                                    March 31, 2009      March 31, 2008                                    --------------      --------------                                              Per                 Per                                           Weighted            Weighted                                            Average             Average                                  Dollars    Share     Dollars   Share                                  -------    -----     -------   -----    Reconciliation of net income    to FFO - basic:   Basic - income available to    common shareholders           $27,889     $0.28   $29,961     $0.33                                              =====               =====    Adjustments:   Depreciation and amortization    of unconsolidated joint    ventures                        3,990               3,548   Depreciation and    amortization                   43,022              43,378   Gain on property    dispositions                     (308)               (968)   Minority interest share in    addback for depreciation    and amortization and gain on    property dispositions          (1,737)             (1,995)                                   ------     -----    ------     -----       Funds from operations        available to common        shareholders - basic      $72,856     $0.72   $73,924     $0.81                                  =======     =====   =======     =====    Reconciliation of net income    to FFO - diluted:   Diluted - income available to    common shareholders           $27,889     $0.28   $29,961     $0.33                                              =====               =====    Adjustments:   Depreciation and amortization    of unconsolidated joint    ventures                        3,990               3,548   Depreciation and    amortization                   43,022              43,378   Gain on property    dispositions                     (308)               (968)   Minority interest excluding    preferred unit    distributions                   1,064               1,352                                    -----     -----     -----     -----       Funds from operations        available to common        shareholders - diluted    $75,657     $0.72   $77,271     $0.80                                  =======     =====   =======     =====    Reconciliation of weighted    average shares:   Weighted average common    shares - all basic    calculations                  100,681              91,779   Dilutive shares for long term    compensation plans                279                 164                                      ---                 ---   Diluted shares for net income    calculations                  100,960              91,943   Weighted average common    units                           4,021               4,190                                    -----               -----   Diluted shares for funds from    operations calculations       104,981              96,133                                  =======              ======     The Company believes that the calculation of Funds from operations is   helpful to investors and management as it is a measure of the Company's   operating performance that excludes depreciation and amortization and   gains and losses from property dispositions.  As a result, year over   year comparison of Funds from operations reflects the impact on   operations from trends in occupancy rates, rental rates, operating   costs, development activities, general and administrative expenses, and   interest costs, providing perspective not immediately apparent from net   income.  In addition, management believes that Funds from operations   provides useful information to the investment community about the   Company's financial performance when compared to other REITs since   Funds from operations is generally recognized as the standard for   reporting the operating performance of a REIT.  Funds from operations   available to common shareholders is defined by NAREIT as net income   (computed in accordance with generally accepted accounting principles   ("GAAP")), excluding gains (or losses) from sales of property, plus   depreciation and amortization, and after adjustments for unconsolidated   partnerships and joint ventures. Funds from operations available to   common shareholders does not represent net income or cash flows from   operations as defined by GAAP and does not necessarily indicate that   cash flows will be sufficient to fund cash needs. It should not be   considered as an alternative to net income as an indicator of the   Company's operating performance or to cash flows as a measure of   liquidity. Funds from operations available to common shareholders also   does not represent cash flows generated from operating, investing or   financing activities as defined by GAAP.                                Liberty Property Trust                                 Balance Sheet                                 March 31, 2009                      (In thousands, except share amounts)                                            March 31, 2009  December 31, 2008                                           --------------  -----------------   Assets                                    (unaudited)   Real estate:     Land and land improvements                  $815,353           $810,486     Building and improvements                  4,268,952          4,245,427     Less: accumulated depreciation            (1,015,130)          (979,171)                                               ----------           --------    Operating real estate                        4,069,175          4,076,742    Development in progress                        260,520            245,463   Land held for development                      201,419            209,551                                                  -------            -------    Net real estate                              4,531,114          4,531,756    Cash and cash equivalents                      135,847             15,794   Restricted cash                                 28,234             39,726   Accounts receivable                              6,406             12,985   Deferred rent receivable                        87,785             84,916   Deferred financing and leasing costs,    net of accumulated amortization    (2009, $146,617; 2008, $140,206)              135,720            133,664   Investment in unconsolidated joint    ventures                                      253,073            266,602   Assets held for sale                            15,487             49,125   Prepaid expenses and other assets               79,028             82,467                                                   ------             ------    Total assets                                $5,272,694         $5,217,035                                               ==========         ==========    Liabilities   Mortgage loans                                $474,869           $198,560   Unsecured notes                              2,093,301          2,131,607   Credit facility                                      -            260,000   Accounts payable                                40,054             32,481   Accrued interest                                36,485             36,474   Dividend and distributions payable              51,350             48,858   Other liabilities                              172,589            182,549                                                  -------            -------    Total liabilities                            2,868,648          2,890,529                                                ---------          ---------    Equity   Shareholders' equity:   Common shares of beneficial interest,    $.001 par value, 183,987,000 shares    authorized, 105,307,649 (includes    1,249,909 in treasury) and 100,034,404    (includes 1,249,909 in treasury) shares    issued and outstanding as of    March 31, 2009 and December 31,    2008, respectively                                106                101   Additional paid-in capital                   2,264,569          2,162,820   Accumulated other comprehensive income          (6,682)            (5,378)   Distributions in excess of net income         (207,276)          (185,721)   Common shares in treasury, at cost,    1,249,909 shares as of March 31, 2009    and December 31, 2008                         (51,951)           (51,951)                                                  -------            -------   Total shareholders' equity                   1,998,766          1,919,871    Minority interest - operating    partnership                                   404,514            405,505   Minority interest - consolidated joint    ventures                                          766              1,130                                                      ---              -----    Total equity                                 2,404,046          2,326,506                                                ---------          ---------    Total liabilities & equity                  $5,272,694         $5,217,035                                               ==========         ==========  

Liberty Property Trust

CONTACT: Jeanne A. Leonard of Liberty Property Trust, +1-610-648-1704

Web Site: http://www.libertyproperty.com/

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