Core funds from operations per diluted share (“Core FFO”) was $0.30 for the quarter. Funds from Operations per diluted share (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) was $0.50 for the quarter and included $57.5 million ($0.22 per share) associated with a net gain on the acquisition of our Dugan Realty, L.L.C. (“Dugan”) joint venture partner’s 50% interest in industrial assets, and a $5.7 million ($0.02 per share) reduction from adjustments related to the repurchase of preferred stock in the open market.

Overall portfolio performance improved:

Overall portfolio occupancy at September 30, 2010 was 88.9 percent, up a full one percent from 87.9 percent at June 30, 2010.

Tenant retention rate was 78.5 percent for the quarter.

Over 8.5 million square feet of leases were executed during the quarter.

Same property net operating income for the three months ended September 30, 2010, increased 1.5 percent.

Asset and Capital strategy execution:

Acquisitions completed during the third quarter of 2010 totaled $442.0 million, including the acquisition of our joint venture partner’s 50 percent interest in Dugan for $298.2 million.

$53.7 million face amount of 8.375% Series O preferred stock was repurchased in the open market during the third quarter, at a 7.8 percent yield.

Dispositions of non-strategic assets during the quarter totaled $42.6 million.

2010 Core FFO guidance is being updated to $1.11 to $1.15 per share from previously announced $0.95 - $1.15 per share.

Core FFO for the third quarter was $0.30 compared with $0.32 for the third quarter of 2009. The change is primarily attributable to an increase in the company’s weighted average share count resulting from its June 2010 common equity offering. FFO as defined by NAREIT was $0.50 for the third quarter 2010 and a loss of ($1.02) for the third quarter 2009.

Net income per diluted share (EPS) for third quarter 2010 was $0.13, as compared to a loss of $1.44 for the same quarter in 2009. Third quarter 2010 EPS was positively impacted by the $57.5 million gain on the acquisition of our joint venture partner’s 50% interest in Dugan as noted above. The loss in 2009 was primarily attributable to the impairment and other non-cash charges and losses on debt transactions recognized in the third quarter of 2009.

Overall portfolio occupancy, including projects under development, was 88.9 percent as of September 30, 2010, compared to 87.9 percent at June 30, 2010.

Occupancy in the bulk distribution portfolio surpassed the 90.0 percent threshold, ending at 90.2 percent as of September 30, 2010.

Occupancy in the suburban office portfolio was 85.7 percent, an increase of 117 basis points over second quarter 2010.

Tenant retention for the quarter was 78.5 percent.

Same-property net operating income for the three months ended September 30^th increased 1.5 percent, improving over a 1.6 percent decrease in same property net operating income for the three months ended June 30, 2010. For the twelve months ended September 30, 2010, same property net operating income decreased by 1.7 percent, improving from a 3.0 percent decrease for the twelve months ended June 30, 2010.

On July 1^st, the company closed the previously announced acquisition of our joint venture partner’s 50 percent interest in Dugan. The acquired portfolio includes 106 industrial buildings totaling 20.8 million square feet located in Midwest and Southeast markets.

In August, the company acquired two suburban office assets in South Florida. The buildings total over 465,000 square feet and were 89 percent leased as of September 30, 2010.

In September, the company acquired a joint venture partner’s 50% interest in a 936,000 square foot bulk industrial asset located in Columbus, OH. The asset is 100 percent leased to a single tenant.

During the quarter, the company executed a build-to-suit lease for a 1.3 million square foot bulk industrial building. The lease is for ten years and the project, which is now under construction, is located in Columbus, Ohio.

The company’s wholly owned development pipeline at September 30, 2010 consists of two pre-leased medical office projects totaling over 250,000 square feet and the 100 percent pre-leased build-to-suit industrial project noted above. The total estimated costs of these projects upon stabilization are $109.4 million, with $49.4 million in costs remaining to be funded. The total pipeline is 1.6 million square feet which is 99.0 percent pre-leased in the aggregate.

During the third quarter 2010, the company placed into service a 48,000 square foot medical office building that was 90.3 percent leased when placed in-service.

During the quarter, the company executed a lease for and began construction of a 406,000 square foot expansion for a single tenant industrial building in Indianapolis.

The company’s joint venture development pipeline at September 30, 2010 consists of two medical office projects which total 522,000 square feet and are 94 percent pre-leased, and a 406,000 square foot expansion noted above. The total estimated costs of these projects upon stabilization are $202.7 million, with $100.1 million in remaining costs to be funded. (All joint venture costs and square footage are reported for 100 percent ownership.)

A 282,000 square foot industrial building located in Louisville, KY sold to the existing tenant;

A 173,000 square foot industrial building located in St. Louis, MO sold to a user; and

A 61,000 square foot office building located in Raleigh, NC sold to a third party.

Class

NYSE Symbol

Quarterly
Amount/Share

Record Date

Payment Date

Revenues:

Rental and related revenue

General contractor and service fee revenue

Expenses:

Rental expenses

Real estate taxes

General contractor and service other services expenses

Depreciation and amortization

Other Operating Activities

Equity in earnings of unconsolidated companies

Gain (loss) on sale of properties

Earnings from sales of land

Undeveloped land carrying costs

Impairment charges

Other operating expenses

General and administrative expense

Operating income (loss)

Other income (expense)

Interest and other income, net

Interest expense

Gain (loss) on debt transactions

Gain (loss) on business combinations, net

Income (loss) from continuing operations before income taxes

Income tax benefit

Other income tax items

Income (loss) from continuing operations

Discontinued Operations:

Income (loss) before impairment charges and gain on sales

Impairment charges

Gain on sale of depreciable properties

Income from discontinued operations

Net income (loss)

Dividends on preferred shares

Adjustments for repurchase of preferred shares

Net (income) loss attributable to noncontrolling interests

Net income (loss) attributable to common shareholders

Basic net income (loss) per common share:

Continuing operations attributable to common shareholders

Discontinued operations attributable to common shareholders

Total

Diluted net income (loss) per common share:

Continuing operations attributable to common shareholders

Discontinued operations attributable to common shareholders

Total

Net Income (Loss) Attributable to Common Shares

Less: Dividends on share based awards expected to vest

Net Income (Loss) Per Common Share - Basic

Add back:

Noncontrolling interest in earnings of unitholders

Other potentially dilutive securities

Net income (Loss) Per Common Share - Diluted

Reconciliation to Funds From Operations (“FFO”)

Net Income (Loss) Attributable to Common Shares

Adjustments:

Depreciation and amortization

Company share of joint venture depreciation and amortization

Earnings from depreciable property sales-wholly owned, discontinued operations

Earnings from depreciable property sales-wholly owned, continuing operations

Earnings from depreciable property sales-JV

Noncontrolling interest share of adjustments

Funds From Operations - Basic

Noncontrolling interest in income ( loss) of unitholders

Noncontrolling interest share of adjustments

Other potentially dilutive securities

Funds From Operations - Diluted

(Gains) losses on debt transactions

Adjustments for repurchases of preferred shares

Impairment charges

Gain on business combinations, net

Other income tax items

Core Funds From Operations - Diluted

Net Loss Attributable to Common Shares

Less: Dividends on share based awards expected to vest

Net Loss Per Common Share - Basic

Add back:

Noncontrolling interest in earnings of unitholders

Other potentially dilutive securities

Net Loss Per Common Share - Diluted

Reconciliation to Funds From Operations (“FFO”)

Net Loss Attributable to Common Shares

Adjustments:

Depreciation and amortization

Company share of joint venture depreciation and amortization

Earnings from depreciable property sales-wholly owned, discontinued operations

Earnings from depreciable property sales-wholly owned, continuing operations

Earnings from depreciable property sales-JV

Noncontrolling interest share of adjustments

Funds From Operations - Basic

Noncontrolling interest in loss of unitholders

Noncontrolling interest share of adjustments

Other potentially dilutive securities

Funds From Operations - Diluted

(Gains) losses on debt transactions

Adjustments for repurchases of preferred shares

Impairment charges

(Gain) loss on business combinations, net

Other income tax items

Core Funds From Operations - Diluted

ASSETS:

Rental Property

Less: Accumulated Depreciation

Construction in Progress

Land Held for Development

Net Real Estate Investments

Cash

Accounts Receivable

Straight-line Rents Receivable

Receivables on Construction Contracts

Investments in and Advances to Unconsolidated Companies

Deferred Financing Costs, Net

Deferred Leasing and Other Costs, Net

Escrow Deposits and Other Assets

Total Assets

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Secured Debt

Unsecured Notes

Unsecured Line of Credit

Construction Payables and Amounts due Subcontractors

Accrued Real Estate Taxes

Accrued Interest

Accrued Expenses

Other Liabilities

Tenant Security Deposits and Prepaid Rents

Total Liabilities

Preferred Stock

Common Stock and Additional Paid-in Capital

Accumulated Other Comprehensive Loss

Distributions in Excess of Net Income

Total Shareholders’ Equity

Non-controlling Interest

Total Liabilities and Equity