Operating results for the most recent quarter included lease termination fees of $1.8 million, and $1.2 million in development profit associated with the County of Kent's sale of residential land at the company's Kings Hill business park development in the UK. Liberty's leasing productivity was "on target," according to Bill Hankowsky, CEO.

"The overall real estate environment remains acutely competitive," Hankowsky adds. "We continue to believe this year will provide increased development opportunities, but our focus will remain on leasing the core portfolio."

At March 31, 2004, Liberty's in-service portfolio, which consists of 57 million sf, was 91.5% occupied. Transactions totaling 2.5 million sf took place during the first quarter. Compared with first quarter 2003, operating income for same-store properties increased 0.2% on a cash basis and decreased by 0.3% on a straight-line basis.