EOP Equity Office Properties Tru

Equity Office Properties Trust (NYSE:EOP) announced today that it has sold $2.4 billion of non-strategic assets to date during 2005, and has closed on the purchase of $520.7 million of properties in markets the company has targeted for growth. In addition, the company has previously announced a $505.0 million agreement to acquire 1095 Avenue of the Americas in New York, which is expected to close before year-end. "We continue to execute upon our plan to take advantage of today's favorable market conditions to reposition the company for long-term growth," commented Richard D. Kincaid, president and chief executive officer of Equity Office. "We expect to sell $2.5 billion to $3 billion of non-strategic assets by year-end. Although we are very pleased with the success of our disposition program to date, we also recognize that sales of this magnitude cause earnings dilution and that the amount and duration of this dilution will depend upon our use of proceeds over time. We have concluded, however, that these consequences are outweighed by the company's improved prospects for the long term. When our disposition program is complete, our portfolio will be comprised of an exceptional mixture of largely Class A buildings in diverse geographic markets." Year-to-date, Equity Office has sold whole or partial interests in 127 buildings totaling 15.3 million square feet for approximately $2.4 billion. The net operating income (NOI) associated with these assets in 2004 was approximately $184.8 million. Had Equity Office continued to own these assets for the full year, the 2005 NOI for these properties would have differed due to effective changes from 2004 in factors such as rental rates, occupancy, and expenses. The plans for use of asset sale proceeds depend upon opportunity and market conditions, and include: acquisitions with a stabilized unleveraged internal rate of return over the next three to five years currently targeted to be in the 8% to 9% range; reinvestment in the existing portfolio; debt repayment; distributions; and share repurchases. Year-to-date, Equity Office has repaid $1.6 billion of mortgage debt and unsecured notes with a weighted average interest rate of 6.8%, and has repurchased 99,600 EOP common shares at an average price of $31.14. Also, year-to-date, Equity Office has purchased 27 buildings totaling 2.4 million square feet (including one development property comprising 93,349 square feet) for $520.7 million, further strengthening its portfolio in six targeted growth markets. The company also announced an agreement to purchase approximately 80%, or 1.0 million square feet, of the 1095 Avenue of the Americas property for $505.0 million. -0- *T DISPOSITIONS ------------ Following is a list of dispositions that EOP has closed to date in 2005: July through September 15, 2005: 6.2 Million Square Feet for $784.4 Million Property Closing Submarket Market Date ---------------------------------------------------------------------- -- North Central Plaza Three 8/31/2005 LBJ Freeway Dallas, TX -- 9400 NCX and 8080 Central 8/31/2005 Central Dallas, TX Expressway -- Cupertino Business Center 8/24/2005 Cupertino San Jose, CA -- Borregas Avenue and Meier 8/10/2005 Sunnyvale San Jose, Sunnyvale CA -- 3045 Stender Way, Meier 8/10/2005 Santa Clara San Jose, Central North Buildings CA 16 and 19, and Meier Central South Buildings 1-4 -- Intercontinental Center 8/04/2005 North Belt Houston, TX -- Brookhollow Central 8/04/2005 Northwest Houston, TX -- 2500 City West 8/04/2005 Westchase Houston, TX -- San Felipe Plaza (a) 8/04/2005 San Felipe/Voss Houston, TX -- Creekside I and II, and 7/27/2005 North San Jose San Jose, Aspect Telecommunications CA -- Ridder Park 7/27/2005 North San Jose San Jose, CA -- Redwood Shores 7/27/2005 Redwood City/ San San Carlos Francisco, CA -- Vintage Park Office 7/27/2005 Belmont/Foster San City/Redwood Francisco, Shores CA -- Vintage Industrial Park 7/27/2005 Belmont/Foster San City/Redwood Francisco, Shores CA -- Bayside Corporate Center 7/27/2005 Belmont/Foster San City/Redwood Francisco, Shores CA -- Ravendale at Central 7/27/2005 Mountain View San Jose, CA -- Meier Mountain View 7/27/2005 Mountain View San Jose, Buildings 5-10, CA 17 and 20 -- Texaco Center/601 Garage 7/25/2005 CBD New Orleans, LA -- Stadium Towers Land 7/18/2005 Anaheim Orange County, CA -- The Orchard 7/14/2005 Campus Commons Sacramento, CA -- 580 California (b) 7/06/2005 Financial San District Francisco, CA -- 201 Mission Street (b) 7/06/2005 South San Financial Francisco, District CA Second Quarter: 7.5 Million Square Feet for $1.28 Billion Property Closing Submarket Market Date ---------------------------------------------------------------------- -- 5813 Shellmound Street, 6/28/2005 Emeryville Oakland- 5855 Christie, and East Bay, Baybridge Office Plaza CA -- 1871 The Alameda 6/28/2005 North San Jose San Jose, CA -- Seaport Centre & Seaport 6/28/2005 Redwood City/ San Plaza San Carlos Francisco, CA -- Shoreline Technology Park 6/28/2005 Mountain View San Jose, CA -- San Rafael Corporate 6/24/2005 San Rafael San Center & Land Francisco, CA -- Parkside Towers 6/24/2005 Belmont/Foster San City/Redwood Francisco, Shores CA -- 301 Howard Street 6/24/2005 South San (including 195 Beale Financial Francisco, land) & Foundry District CA Square II -- BP Tower & garage 6/24/2005 Downtown Cleveland, OH -- Sierra Point 6/15/2005 Brisbane/Daly San City Francisco, CA -- Point West I & Point West 6/13/2005 Point West Sacramento, III CA -- The Solarium 5/27/2005 Southeast Denver, CO -- Concar (a) 5/26/2005 San Mateo San Francisco, CA -- Oak Creek II 5/25/2005 Milpitas San Jose, CA -- Preston Commons and 5/20/2005 Preston Center Dallas, TX Sterling Plaza (a) -- LL&E Tower 5/04/2005 CBD New Orleans, LA -- Colonnade I, II, & III 4/26/2005 Far North Dallas, TX Dallas -- Meier Central South - 4/18/2005 Santa Clara San Jose, Building 11 CA -- 70-76 Perimeter Center 4/05/2005 Central Atlanta, GA Perimeter -- 545 E. John Carpenter 4/01/2005 Las Colinas Dallas, TX Freeway & 909 Lake Carolyn Parkway First Quarter: 1.6 Million Square Feet for $297.6 Million Property Closing Submarket Market Date ---------------------------------------------------------------------- -- Meier Central North - 3/24/2005 Santa Clara San Jose, CA Building 15 -- Oak Creek I 3/15/2005 Milpitas San Jose, CA -- Four Falls 3/02/2005 Conshohocken Philadelphia, PA -- Oak Hill Plaza & Walnut 3/02/2005 King of Philadelphia, Hill Plaza Prussia/Wayne PA -- One, Two, Three, Four & 3/02/2005 Plymouth Mtg/ Philadelphia, Five Valley Square Blue Bell PA -- Meier Central South - 2/22/2005 Santa Clara San Jose, CA Building 12 -- One, Two & Three Devon 2/11/2005 Main Line Philadelphia, Square PA -- Water's Edge (a) 2/01/2005 Marina Del Rey Los Angeles, CA -- Meier Central North - 1/20/2005 Santa Clara San Jose, CA Buildings 13 & 14 -- Northland Plaza 1/04/2005 I-494 Minneapolis, MN (a) These assets were owned in joint ventures. (b) EOP has retained a minority ownership interest. ACQUISITIONS ------------ Following is a list of acquisitions that EOP has closed to date in 2005: July through September 15, 2005: 791,395 Square Feet in Eight Buildings for $165.8 Million Property Closing Submarket Market Date ---------------------------------------------------------------------- -- Stonebridge Plaza II 8/19/2005 Northwest Austin, TX -- 333 Twin Dolphin Plaza 7/28/2005 Belmont/Foster San City/Redwood Francisco, Shores CA -- The Lakes 7/19/2005 North Bay San Francisco, CA -- 25 Mall Road 7/07/2005 Burlington/ Boston, MA Lowell Second Quarter: 1.3 Million Square Feet in 15 Buildings for $286.7 Million Property Closing Submarket Market Date ---------------------------------------------------------------------- -- Oak Valley Business Center 6/30/2005 North Bay San Francisco, CA -- Parkway Plaza (3850 & 6/30/2005 North Bay San 3880 Brickway) Francisco, CA -- McDowell Corporate Campus 6/30/2005 North Bay San Francisco, CA -- Woodside Office Center 6/30/2005 North Bay San Francisco, CA -- Golden Gate Plaza 6/30/2005 North Bay San Francisco, CA -- Research Park Plaza I&II 6/16/2005 Northwest Austin, TX -- Shorebreeze I&II 6/09/2005 Belmont/Foster San City/Redwood Francisco, Shores CA -- Summit at Douglas Ridge II 5/20/2005 Roseville/ Sacramento, (development) Rocklin CA -- 11111 Sunset Hills Road 5/04/2005 Reston Washington, (XO Building) D.C. First Quarter: 296,657 Square Feet in Four Buildings for $68.3 Million Property Closing Submarket Market Date ---------------------------------------------------------------------- -- Park 22 3/22/2005 Northwest Austin, TX -- Two Main Place (land site) 3/14/2005 Downtown Portland, OR -- Summit at Douglas Ridge I 1/21/2005 Roseville/ Sacramento, Rocklin CA *T 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 in 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. Net operating income (NOI) represents rental revenue, tenant reimbursements, parking, and other revenues less real estate taxes, insurance, repairs and maintenance, and property operating expenses. Equity Office Properties Trust (NYSE:EOP), operating through its various subsidiaries and affiliates, is the nation's largest publicly held office building owner and manager with a total office portfolio of 607 buildings comprising 113.3 million square feet in 18 states and the District of Columbia. Equity Office has an ownership presence in 26 Metropolitan Statistical Areas (MSAs) and in 105 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 Web site at http://www.equityoffice.com.