EOP Equity Office Properties Tru

Equity Office (NYSE:EOP) announced $791.7 million of acquisition activity in the second quarter 2005 with the acquisition of 15 buildings totaling 1.3 million square feet for $286.7 million, in addition to the $505 million agreement to purchase 1.03 million square feet, or nearly 80% of 1095 Avenue of the Americas in New York. This brings the company's year-to-date acquisition activity to approximately $860 million including 2.7 million square feet in 20 buildings. "We continue to redeploy capital from our $2 billion to $3 billion dispositions goal for 2005 into buildings that more fully complement our existing portfolio," commented Richard Kincaid, Equity Office's president and chief executive officer. "While current conditions present a challenging acquisitions environment, we have 17 targeted growth markets in which we can seek opportunities that meet our return standards. We apply a disciplined acquisitions approach with highly specific criteria for location, market characteristics and yields." EOP's most recent acquisitions included buildings in the Austin and San Francisco markets totaling 13 office buildings comprising 1 million square feet for approximately $217.3 million. Nine of these assets, totaling 514,606 square feet, were acquired in San Francisco's Marin and Santa Rosa counties for $105.8 million. This portfolio, which is 89% leased, represents the first in a series of acquisitions totaling 1.4 million square feet in 36 buildings. EOP expects the balance of 27 properties totaling 870,549 square feet to close by fourth quarter 2005, subject to satisfaction of contingencies. All of these buildings are being purchased from the same seller in the North Bay submarket. "This portfolio will provide us with a leading ownership position in San Francisco's North Bay submarket," added Kincaid. "EOP will have a strong concentration of assets from Southern Marin County to Northern Sonoma County, enabling us to take advantage of the migration of firms we're seeing into this supply-constrained area. Once these acquisitions are completed, Equity Office will own more than 2 million square feet in the North Bay." In a separate transaction, EOP acquired Shorebreeze I&II, a two-building Class A office complex totaling 230,853 square feet for $56.5 million. The waterfront asset, which is 80% leased, is part of a master-planned community, and complements Equity Office's tight concentration of other buildings in the Redwood Shores submarket. Finally, Equity Office acquired Austin Research Park I&II, a 271,882-square-foot Class A suburban property, for $55.0 million. The asset comprises two buildings which are 97% leased. The property is located on 11 acres in Austin's Northwest submarket, along with EOP's Westech 360 and Park 22 assets. Following is a list of properties acquired in the first and second quarter 2005. -0- *T Property Closing Date Market First Quarter Acquisitions Comprising 296,657 Square Feet in Four ----------------------------------------------------------------- Buildings for $68.3 Million --------------------------- Summit at Douglas Ridge - Phase I 1/21/05 Sacramento Park 22 3/22/05 Austin Two Main Place (land site) 3/14/05 Portland Second Quarter Acquisitions Activity Comprising 2.4 Million Square ------------------------------------------------------------------ Feet in 16 Buildings for $791.7 Million- Includes a Transaction --------------------------------------------------------------- Expected to Close by Fourth Quarter 2005 ---------------------------------------- 11111 Sunset Hills Road (XO Building) 5/4/05 Washington, D.C. Summit at Douglas Ridge - Phase II 5/20/05 Sacramento Shorebreeze I&II 6/9/05 San Francisco Austin Research Park I&II 6/16/05 Austin Golden Gate Plaza 6/30/05 San Francisco Woodside Office Center 6/30/05 San Francisco McDowell Corporate Campus 6/30/05 San Francisco Brickway I&II 6/30/05 San Francisco Oak Valley Business Center 6/30/05 San Francisco 1095 Avenue of the Americas Est. by 12/31/05 New York *T Equity Office Properties Trust (NYSE:EOP), operating through its various subsidiaries and affiliates, is the nation's largest office real estate investment trust with a portfolio of 643 buildings comprising 117.9 million total office portfolio square feet in 18 states and the District of Columbia. Equity Office has an ownership presence in 26 Metropolitan Statistical Areas (MSAs) and in 116 submarkets, enabling it to provide a wide range of office solutions for local, regional and national customers. For more company information, visit the Equity Office website at www.equityoffice.com. Forward - Looking Statements This release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's present expectations and beliefs about future events. As with any projection or forecast, these statements are inherently susceptible to uncertainty and changes in circumstances. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating this release and the outlook of Equity Office include, but are not limited to, the following: declines in overall activity in our markets have adversely affected our operating results and are expected to continue to adversely affect our operating results until market conditions further improve; in order to continue to pay distributions to our common shareholders at current levels, we must borrow funds or sell assets; we expect to be a net seller of real estate in 2005, which will further reduce our income from continuing operations and funds from operations and may result in gains or losses on sales of real estate and impairment charges; our ability to dispose of assets on terms we find acceptable will be subject to market conditions we do not control; we may not be successful closing all of our pending investment transactions; our properties face significant competition; we face potential adverse effects from tenant bankruptcies or insolvencies; competition for acquisitions or an oversupply of properties for sale could adversely affect us;; and an earthquake or terrorist act could adversely affect our business and such losses, or other potential losses, may not be fully covered by insurance. These and other risks and uncertainties are detailed from time to time in Equity Office's filings with the SEC, including its 2004 Form 10-K filed on March 16, 2005 and Form 8-K filed on May 20, 2005. Equity Office is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of changes, new information, subsequent events or otherwise.