Operating results for the most recent quarter included leasetermination fees of $1.8 million, and $1.2 million in developmentprofit associated with the County of Kent's sale of residentialland at the company's Kings Hill business park development in theUK. Liberty's leasing productivity was "on target," according toBill Hankowsky, CEO.

"The overall real estate environment remains acutelycompetitive," Hankowsky adds. "We continue to believe this yearwill provide increased development opportunities, but our focuswill remain on leasing the core portfolio."

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