EOP Equity Office Properties Tru

Equity Office (NYSE:EOP) announced a series of investment transactions today, including the sale of nine non-strategic assets totaling nearly 1.7 million square feet for $314.3 million. Six of the buildings were owned in joint venture partnerships resulting in total sale proceeds to EOP of $211.7 million. Equity Office also acquired two Class A office buildings - 11111 Sunset Hills Road in Reston, VA, and The Summit at Douglas Ridge Phase II in Roseville, CA - for a total of approximately $69.4 million. "We continue to pursue our previously announced plan to sell non-strategic assets, and have sold a total of 5.2 million square feet of assets year-to-date," commented Richard Kincaid, Equity Office's president and chief executive officer. "Our goal is to redeploy the capital and grow in our top 17 markets. Our acquisitions in the Washington, D.C., and Sacramento markets support this strategy." Dispositions Year-to-date, Equity Office has sold $861.5 million in assets with total proceeds to EOP of $746.7. In May 2005, the company sold the following nine buildings: -0- *T Number of Total Building Property Market Bldgs Square Footage Closing Date ---------------------------------------------------------------------- LL&E Tower New Orleans 1 545,157 5/4/05 ---------------------------------------------------------------------- Preston Commons and Sterling Plaza(i) Dallas 4 721,351 5/20/05 ---------------------------------------------------------------------- Oak Creek II San Jose 1 40,455 5/25/05 ---------------------------------------------------------------------- Concar(i) San Francisco 2 218,985 5/26/05 ---------------------------------------------------------------------- The Solarium Denver 1 162,817 5/27/05 ---------------------------------------------------------------------- Totals 9 1,688,765 ---------------------------------------------------------------------- (i) Owned by Equity Office in a joint venture. *T Acquisitions The five-story 11111 Sunset Hills Road building (known locally as the XO Communications Building) totals 216,469 square feet. The asset is located in the Dulles Corridor of Washington, D.C.'s Reston submarket. The building features excellent Dulles Toll Road exposure; large, high-efficiency floor plates; and generous parking. With the acquisition of this property, Equity Office owns four buildings totaling more than 942,000 square feet in the submarket. As of March 31, 2005, the company's portfolio occupancy in the submarket was 99.2%. The Summit at Douglas Ridge Phase II is a three-story, 93,349-square-foot Class A office building located in the Roseville / Rocklin submarket, one of Sacramento's strongest submarkets. Equity Office purchased the building, which is 22% pre-leased, at the completion of its shell construction. The building is located near executive housing in Granite Bay, and main arteries, including Interstate 80, and highways 50 & 65. The addition of this asset brings Equity Office's portfolio on Douglas Boulevard to more than 887,000 square feet. As of March 31, 2005, the company's portfolio occupancy in the submarket was nearly 93%. These transactions bring Equity Office's acquisition activity year-to date to approximately $642.6 million, including the $505 million sales agreement for 1095 Avenue of the Americas, which is scheduled to close by fourth quarter 2005. 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 672 buildings comprising 121.3 million square feet in 18 states and the District of Columbia. Equity Office has an ownership presence in 27 Metropolitan Statistical Areas (MSAs) and in 117 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 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.