Richard Kincaid, Equity Office's president and chief executive officer, says that with year-to-date sales totaling $1.6 billion, the company is on target to sell $2 billion to $3 billion of assets by year-end. "It is the right business decision to take advantage of today's strong asset-sale environment to sell non-strategic properties," Kincaid says.

The company expects to identify approximately $80 million of gains and $170 million of non-cash impairment charges related to sales closing in the second quarter. The company notes a $200 million to $215 million impairment charge due to accelerated disposition plans and a reduction in the intended holding period on 53 additional assets (totaling 6.7 million sf) anticipated to sell after June 30, 2005. This is expected to reduce net income and FFO in the company's second quarter results.

In the first quarter, disposed properties include: Northland Plaza, Bloomington, MN; Meier Central North-Buildings 13 and 14, Santa Clara, CA; Water's Edge, Marina Del Rey, CA; One, Two & Three Devon Square, Wayne, PA; Meier Central South-Building 12, Santa Clara, CA; One, Two, Three, Four & Five Valley Square, Oak Hill Plaza, Walnut Hill Plaza and Four Falls, Suburban, PA; Oak Creek I, Milpitas, CA; and Meier Central North-Building 15, Santa Clara, CA.