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In total, Trizec acquired $1.1 billion and 3.2 million square feet of assets in the past 18 months, including the three properties purchased in Washington, D.C., and two in Los Angeles. Yet even as the year came to a close, our momentum continued.
Increasing Exposure to Core Markets

(1) Based on property revenues less property expenses for years ended December 31

       On December 22, we announced our agreement to acquire a $1.63 billion Southern California office portfolio from Arden Realty, Inc. Concentrated in West Los Angeles and San Diego, the portfolio is comprised of 13 properties and several development land parcels, totaling 4.1 million square feet. Upon closing, this will be the largest acquisition in Trizec’s history.
       This purchase will nearly double our portfolio in Southern California—from 4.5 million square feet to more than 8.6 million square feet—and catapult Southern California to Trizec’s largest market, representing nearly 30 percent of total net operating income.
       By acquiring this substantial, high-quality office portfolio, Trizec can establish meaningful concentrations in very attractive markets with strong economies, job growth and market fundamentals. Such high-quality assets, with embedded growth opportunities, advance our standing as a significant owner in Southern California.
       As we continue to refine and enhance our portfolio, Trizec’s ability to operate properties efficiently and provide superior customer service is more apparent than ever. In March of 2005, Trizec’s National Leadership Meeting of 150 top employees was the setting to formally introduce our national operating platform, including the launch of 15 strategic and operational initiatives. To carry out these initiatives, we created national operating and national leasing boards, whose members were tasked with driving operational excellence, sharing best practices, translating corporate needs into field activities and identifying opportunities to effect continuous improvement. As the year progressed, the seeds we planted began to flourish and we saw those initiatives take off.
       Trizec continued to set itself apart in life safety and security. Most notably, this year we hired seven regional security managers, one in each of our core markets. With local expertise on the ground, we can institute more proactive measures to ensure the safety and security of our customers and react quickly should emergency situations arise.
       Life safety and security were not the only areas where we excelled. Our energy team experienced a breakout year. In November, Trizec received the 2005 “Leader in the Light” Gold Award from the National Association of Real Estate Investment Trusts, in collaboration with the United States Environmental Protection Agency. Recognizing company-wide operating initiatives that substantially improve energy efficiency and expense management, this award further validated our endless pursuit of excellence in energy management, monitoring, control and consumption.
       Beyond building efficiencies, we recognize our ability to lease space is strongly impacted by broker relationships. To that end, Trizec launched two new broker commission initiatives this year—an expeditious payment system and a 100 percent up-front commission policy. It is our belief that these programs will help Trizec further enhance broker relations across the country.