Prentiss Properties Reports $0.84 Per Share FFO In 1st Quarter

Prentiss Properties Trust Summary for 1st Quarter 2001

-- Funds from Operations (FFO) totaled $35.58 million, or $0.84 per common

share (diluted) for the first quarter, representing a per share growth

of 9.1 percent over the quarter ended March 31, 2000.

-- Same-store cash NOI growth for three months ending March 31, 2001 was

4.7 percent compared to the three months ending March 31, 2000.

-- Average straight-line net rents for new office leases increased

25 percent over average straight-line net rents for expiring leases.

-- First quarter 2001 occupancy rate remains high at 95 percent. Since the

Company's IPO in October 1996, occupancy has remained at or above

95 percent.

-- As of March 31, 2001, the Company had $123.5 million, or 677,000 square

feet, of office developments underway, excluding the developments sold

or under contract to Brandywine Realty Trust. These developments are

66 percent leased or committed, with expected first-year stabilized

cash-on-cash yields of 11.7 percent.

-- Interest and fixed charge coverage ratios improved to 2.97x and 2.56x,

respectively.

-- During the first quarter, the Company continued its strategy of

disposing of industrial properties and properties located outside its

core markets, closing $53.1 million of gross asset sales.

-- During the first quarter, the Company collected $7 million from the

cash escrow related to the termination of the merger with Mack-Cali.

Subsequent to the end of the first quarter, the Company received a

private letter ruling from the U.S. Treasury which allowed it to

collect the remaining $10 million from the original $25 million escrow

in April 2001.

-- Subsequent to the end of the first quarter, the Company closed an asset

exchange with Brandywine Realty Trust. This exchange involved Prentiss

disposing of its assets in its Northeast Region (Pennsylvania, New

Jersey and Delaware) in exchange for Brandywine's office holdings in

Northern Virginia.



Apr 18, 2001, 01:00 ET from Prentiss Properties Trust

    DALLAS, April 18 /PRNewswire/ -- Prentiss Properties Trust (NYSE:   PP), a
 real estate investment trust (REIT) which focuses on office ownership and
 development in select markets, today announced results for the first quarter
 of 2001.  Diluted FFO reached $0.84 per share compared to $0.77 per share,
 diluted, in the first quarter of 2000, a 9.1 percent increase.  Results were
 driven by same-store growth and by the success of the Company's development
 program.  Same-store growth totaled 4.7 percent compared to the first quarter
 of 2000 due to continued strong occupancy at 95 percent, and average
 25 percent and 48 percent straight-line net rental rate increases on new and
 renewed leases for the existing office and industrial portfolio, respectively.
 Since becoming public in October 1996, the Company has achieved cumulative FFO
 per share growth of 71.4 percent.
     "The first quarter was another solid quarter for Prentiss as we continued
 to boost our FFO per share due to strong leasing rates on our lease rollovers
 and due to the success of our development program," stated Thomas F. August,
 President and CEO of Prentiss Properties.  "Heading into an uncertain near-
 term macro-economic environment, we feel good about our relatively low
 exposure to leasing risks from either maturing leases or from our development
 program.  Furthermore, we feel that the strength of our balance sheet provides
 additional insulation to any downturn.  In particular, the Brandywine asset
 exchange reduces our debt to market capitalization to approximately 44 percent
 from 48 percent.  Additionally, we have only $9.4 million of debt maturing in
 2001 and 2002 as the result of the repayment of our $100 million unsecured
 loan during the quarter."
     At March 31, 2001, the Company's portfolio of properties consisted of
 169 operating properties containing 18.1 million square feet and 8 development
 projects containing 833,000 net rentable square feet. Total square footage
 owned by the Company totaled 19.0 million -- 15.5 million of office properties
 and 3.5 million of industrial properties.  Including properties managed for
 third parties, the Company operated 38.5 million square feet of commercial
 office and industrial real estate as of March 31, 2001.
 
     Development Activity
     As of March 31, 2001, the Company had five office projects under
 development, totaling 677,000 square feet, excluding the developments sold or
 under contract to Brandywine Realty Trust.  The total projected cost of these
 current developments is $123.5 million, $54.4 million of which had been funded
 as of March 31, 2001.  Currently, this development pipeline is 63 percent
 leased and 66 percent leased or committed, with expected first-year cash-on-
 cash returns of 11.7 percent and FFO yields typically 100 to 150 basis points
 higher.
     During the first quarter, the Company transitioned two office projects,
 Del Mar Gateway in San Diego and Barton Skyway II in Austin from its
 development portfolio into operating properties.  These two projects, which
 total approximately 360,000 square feet, are 100 percent leased with a
 weighted average first-year cash return of 11.5 percent.  Additionally, the
 Company began development of Carlsbad Pacific Center III in San Diego, CA
 during the quarter.  The Company expects to complete the 40,000 square foot,
 $7.5 million project in November 2001, with a projected stabilized cash yield
 after lease-up of 11.4 percent.
     As of March 31, 2001, Prentiss Properties Trust owned approximately
 65.6 acres of land for future office development that can accommodate
 3.0 million square feet of leasable space, the majority of which is adjacent
 to existing Company-owned properties.  All of this land is located in one of
 the Company's core markets.  Additionally, the Company controls land through
 purchase and sale agreements, options and rights of first refusal that can
 accommodate another 961,000 square feet of office development.
 
     Consolidated Financial Results
     First quarter 2001 revenues of $88.4 million represented a 9.0 percent
 increase over the prior-year first quarter.  FFO of $35.58 million ($0.84 per
 share, diluted) represented a $0.07 per share increase over first quarter 2000
 FFO of $32.10 million ($0.77 per share, diluted).
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 for the first quarter 2001 was $58.62 million, a 7.8 percent increase over
 first quarter 2000.  Office properties produced approximately 94 percent of
 property EBITDA in the first quarter of 2001, while the remaining industrial
 portfolio represented only 6 percent of EBITDA.
     For the quarter ended March 31, 2001, the Company reported income before
 gain on sale and minority interests of $28.7 million and net income of
 $29.3 million, an increase from the first quarter of 2000 of 44.9 percent and
 73.0 percent, respectively.  The increase in income before gain on sale and
 minority interests was driven by the $7 million Mack-Cali termination fee
 recognized as income by the Company during the quarter.  This $7 million
 represented a portion of the $25.0 million total cash payment made by Mack-
 Cali to Prentiss in conjunction with Termination and Release Agreement that
 terminated the planned merger between the two companies.  Since the
 termination fee was accounted for as nonrecurring income, it had no effect on
 the Company's FFO.  The additional increase in net income compared to the
 first quarter of 2000 was the result of an increase in the gain on sale of
 properties.
     Subsequent to the end of the first quarter, the Company received a
 favorable private letter ruling from the U.S. Treasury regarding the treatment
 of the $25 million termination fee.  As a result of the ruling, Prentiss
 collected the remaining $10 million of the original $25 million held in
 escrow.  The $10 million will be treated as nonrecurring income and will have
 no effect on the Company's second quarter 2001 FFO.
 
     Asset Acquisitions & Sales
     During the first quarter of 2001, the Company continued with its strategy
 of disposing of industrial properties and properties located outside of its
 core markets, as it disposed of the following properties totaling
 $53.1 million in gross proceeds:
 
     1) Seven Mile Crossing -- a 336,000 square foot office complex located in
        the Detroit, Michigan area.
     2) 225 and 375 North Fairway Drive - two industrial buildings totaling
        248,000 square feet located in the Chicago, Illinois area.
 
     Subsequent to quarter end, the Company closed an asset exchange with
 Brandywine Realty Trust.  In the transaction, Brandywine acquired all of the
 operating assets of the Company in Pennsylvania, New Jersey and Delaware,
 along with approximately 6.9 acres of developable land, in exchange for
 Brandywine's Northern Virginia assets.  The operating assets acquired by
 Brandywine consist of approximately 1.6 million square feet in 30 existing
 office buildings.  The Northern Virginia portfolio Prentiss acquired consists
 of approximately 657,400 square feet in four existing office buildings and an
 interest in a joint venture that owns two additional office buildings
 containing approximately 451,600 square feet.  Additional information on the
 background of the asset exchange, including more information on the specific
 assets acquired from Brandywine, is available on the Company's Web site at
 http://www.prentissproperties.com .
     In addition to the asset exchange that closed with Brandywine, Prentiss
 has entered into a separate contract to sell a 206,000 square foot office
 development to Brandywine, of which the first phase of 103,000 square feet is
 currently under construction by Prentiss.  This asset represents the Company's
 last holding in its former Northeast Region.
 
     Portfolio Performance
     The Company ended the quarter with a 95 percent occupancy rate and has
 maintained occupancy rates of 95 percent or more since its inception on
 October 22, 1996.  Approximately 607,000 square feet of the Company's office
 portfolio leases expired during the first quarter, and 469,000 square feet
 were renewed or newly leased, with average straight-line net rents on new
 leases exceeding those on expired leases by 25 percent.  The office portfolio
 had an occupancy rate of 95 percent at the end of the first quarter.
     Approximately 69,000 square feet of the Company's industrial portfolio
 leases expired during the first quarter, and 50,000 square feet were renewed
 or newly leased, with average straight-line net rents on new leases exceeding
 those on expired leases by 48 percent.  The industrial portfolio was 97
 percent leased as of March 31, 2001.
     Lease expirations for the Company's office and industrial properties in
 2001 total 1.5 million square feet (11 percent of the office portfolio) and
 595,000 square feet (17 percent of the industrial portfolio), respectively.
 Same-store cash NOI growth for the Company was 4.7 percent compared to the
 first quarter of 2000.  This same-store growth result included 152 properties
 totaling 16.2 million square feet.
     Significant leases executed during the first quarter of 2001 for the
 Company's operating portfolio included:
 
     1)  Regus Business Centers Inc. executed a new 44,561 square foot, 12-year
         lease at Barton Skyway IV in Austin, Texas.
     2)  Southern Union executed a new 44,000 square foot 10-year lease at
         Barton Skyway IV in Austin, Texas.  With the Regus and Southern Union
         lease, Barton Skyway IV is 89 percent leased and 99 percent committed
         with an expected stabilized cash return of 12.8 percent.  Construction
         of Barton Skyway IV is scheduled for completion in November 2001.
     3)  The Securities and Exchange Commission executed a 35,548 square foot,
         12-year renewal and expansion at Burnett Plaza in Fort Worth, Texas.
     4)  Dermalogica Inc. executed a 51,731 square foot, 4-year lease renewal
         at Pacific Gateway Center in the Los Angeles, California suburb of
         Torrance.
     5)  24 Hour Fitness executed a new 49,675 square foot, 4-year lease at The
         Campus industrial building in the San Diego, California suburb of
         Carlsbad.
     6)  FWC Partners executed a new 33,562 square foot, 8-year lease at
         Bachman Plaza East in Dallas, Texas.
     7)  Houlihan Lokey Howard & Zukin Financial Advisors executed a new
         25,465 square foot, 10-year lease at 123 North Wacker in Chicago,
         Illinois.
     8)  Americredit executed a 24,303 square foot, 10-year expansion at
         Burnett Plaza in Fort Worth, Texas.
     9)  Georgia Association of Educators executed a new 19,925 square foot,
         7-year lease at The Crescent Centre in Atlanta, Georgia.
     10) Pipcor Enterprises executed an 18,049 square foot, 7-year renewal at
         One Westchase in Houston, Texas.
 
     Capital Markets and Financing
     At March 31, 2001, the Company's market value of equity was $1.2 billion.
 Total market capitalization at March 31, 2001 was $2.3 billion, compared to
 total assets at book value of $2.2 billion (including unconsolidated joint
 venture assets).
     The Company's debt balance at March 31, 2001, including its share of
 unconsolidated joint venture debt was $1.08 billion.  Of this amount,
 $733.6 million was fixed rate, non-recourse, long-term mortgages.  The
 remaining $348.6 million was floating rate debt, of which $210.0 million was
 hedged with $110.0 million fixing 30-day LIBOR at 6.25 percent until September
 2004, $50.0 million fixing 30-day LIBOR at 4.84 percent until April 2002, and
 $50.0 million fixing 30-day LIBOR at 5.99 percent until March 2006.  At March
 31, 2001, Debt to Total Market Capitalization (market value equity plus debt)
 stood at 47.8 percent.  After adjusting for the asset exchange with
 Brandywine, the proforma Debt to Total Market Capitalization for the Company
 as of March 31, 2001 was approximately 44 percent.
     The Company views Coverage Ratios as a more stable and indicative measure
 of its ability to meet its obligations than Debt to Total Market
 Capitalization.  For the quarter, the Company's Interest Coverage Ratio was
 2.97x and the Fixed Charge Coverage was 2.56x, including perpetual preferred
 dividends.  Both of these ratios are expected to improve noticeably during the
 second quarter based on the Brandywine asset exchange.
     During the quarter, the Company repaid the $100 million Bank Term Facility
 which had a maturity date of October 2002 and a variable rate equal to LIBOR
 plus 137.5 basis points.  The loan was repaid with proceeds from a
 $75.0 million Bank Term Facility that was completed during the quarter and
 from the Company line of credit.  The new Bank Term Facility has a variable
 rate of interest with a spread over LIBOR subject to the Company's overall
 leverage (initially LIBOR plus 137.5 basis points) and a maturity of March
 2006.
     During the first quarter, the Company's weighted average cost of debt,
 including all costs related to hedge amortization, swap payments and unused
 commitments fees, was 7.47 percent.  As of March 31, 2001, the  weighted
 average maturity of the Company's debt was 6.4 years, excluding the line of
 credit.
     During the first quarter, the Company repurchased 105,300 shares under its
 share repurchase program.  Subsequent to quarter end, another 137,500 shares
 were bought.  The average purchase price for all shares was $23.97 per share.
 The Company currently has 265,300 shares remaining under its repurchase
 authorization.
 
     Dividends, Capital Expenditures and Funds Available for Distribution (FAD)
     The Company declared a $0.485 regular quarterly dividend on March 14,
 2001, to owners (shares and units) of record as of March 31, 2001, and paid
 the dividend on April 12, 2001.   This quarterly dividend represents an
 annualized dividend of $1.94 per share and a yield of 7.9 percent on
 yesterday's closing share price of $24.48.  The FFO payout ratio for the
 quarter ended March 31, 2001, was 57.4 percent.
     Non-incremental capital expenditures for the quarter were $8.4 million, of
 which $279,000 represented capital improvements to the properties, and
 $8.1 million represented costs paid with respect to leasing and tenant
 improvements.  The Company's average non-incremental capital expenditures per
 square foot for leases completed during the quarter were $9.90 for office
 properties.  These costs were based on 410,000 square feet of leases during
 the quarter.
     The Funds Available for Distribution (FAD) totaled approximately
 $25.1 million for the quarter, after deducting non-incremental capital
 expenditures and straight-line rent and adding amortization of deferred
 financing fees.  The first quarter dividend represented an 81.2 percent payout
 of FAD.
 
     Additional Information
     The Company will broadcast its first quarter earnings conference call live
 via the Internet on Thursday, April 19, 2001.  The conference call will begin
 at 10:00 am CDT and will last for approximately one hour.  Those interested in
 listening can access the conference call at http://www.ccbn.com .   Please go
 to the CCBN web site 15 minutes prior to the start of the call to register.
 It may be necessary to download audio software to hear the conference call.
 To do so, click on the Real Player icon and follow directions from there.  A
 replay of the conference call will be available through StreetEvents for
 90 days or via telephone at (888) 266-2086, passcode #5106340, through May 3,
 2001.
     Additional information on Prentiss Properties Trust, including the
 Company's first quarter 2001 Supplemental Operating and Financial Data and an
 archive of corporate press releases and conference calls, is also available on
 the Company's Web site at http://www.prentissproperties.com .
 
     About Prentiss Properties Trust
     Prentiss Properties Trust is a self-administered and self-managed real
 estate investment trust ("REIT").  It owns interests in 169 operating
 properties with approximately 18.1 million net rentable square feet and
 8 development projects containing 833,000 net rentable square feet.  Prentiss
 Property Services, the real estate services subsidiary of the Trust, is one of
 the 20 largest managers of office and industrial properties in the U.S.,
 managing approximately 38.5 million square feet of office and industrial
 properties owned by Prentiss, its affiliates and third parties.
     With its headquarters in Dallas, Texas, Prentiss Properties has regional
 management offices in Los Angeles, Dallas, Chicago and Washington D.C.  It is
 a full service real estate company with in-house expertise in areas such as
 acquisitions, development, facilities management, property management and
 leasing.
     The statements in this release regarding anticipated operating results for
 properties are forward-looking and are included in reliance on the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  Although
 projections are based upon reasonable assumptions, actual results may differ
 from those projected. The key factors that could lead to variance from the
 anticipated results include downturns in the local or national economies,
 retention of tenants, unanticipated vacancies in competitive properties, new
 construction or sub-lease availability which could negatively impact space
 absorption, and other risks inherent to the real estate business. These and
 other factors are described in the Company's filings with the Securities and
 Exchange Commission (SEC).
 
     For more information on Prentiss Properties Trust, visit the Company's
 websites at www.prentissproperties.com or dial 1-800-PRO-INFO and enter the
 company ticker:  PP
 
 
                             Calculation of FFO and FAD
                   For Common Shares and Common Share Equivalents
                           (000s, except per share data)
 
                                                   Three Months Ended March 31,
     Funds from Operations (FFO):                       2001              2000
 
     Net income (after minority interests)           $29,323           $16,947
     Add:
      Real estate depreciation and
       amortization (A)                               16,324            14,815
      Real estate depreciation and
       amortization of unconsolidated subsidiary
       and joint ventures (B)                            749               676
      Minority interests (C)                           4,426             3,865
     Adjustments:
      Extraordinary items                                367
      Merger Termination fee, net                     (7,000)
      Gain on sale of property                        (5,453)           (1,047)
      Dividends paid on perpetual preferred
       units                                          (3,152)           (3,153)
 
     Funds from operations                           $35,584           $32,103
 
     Weighted average shares and units
      (shares) outstanding (diluted)                  42,371            41,579
 
     FFO per weighted average shares
      outstanding (diluted)                            $0.84             $0.77
 
     Weighted average shares and units
      (shares) outstanding (non-diluted)              42,054            41,523
 
     FFO per weighted average shares
      outstanding (non-diluted)                        $0.85             $0.77
 
     Funds Available for Distribution
      (FAD):
 
     Funds from operations                           $35,584           $32,103
 
     Adjustments:
      Straight-line rental income                     (2,473)           (1,881)
      Amortization of deferred financing
       fees                                              423               338
      Capital expenditures                            (8,398)           (4,530)
 
     Funds available for distribution                $25,136           $26,030
 
     Weighted average shares and units
      (shares) outstanding (diluted)                  42,371            41,579
 
     FAD per weighted average shares
      outstanding (diluted)                            $0.59             $0.63
 
     Dividend per share                                $0.49             $0.44
 
     Total dividend declared (excludes
      dividend on perpetual preferred)               $20,416           $18,273
 
     Payout ratio of FFO                              57.37%            56.92%
 
     Payout ratio of FAD                              81.22%            70.20%
 
     (A) - Excludes depreciation and amortization not related to real estate.
 
     (B) - Includes Prentiss Properties Trust's proportionate share of real
           estate depreciation and amortization on the Broadmoor Austin,
           Burnett Plaza and the Oaklands 21/27 properties which are owned
           through unconsolidated joint ventures.
 
     (C) - Includes the minority interest attributable to holders of operating
           partnership units.  Excludes the minority interest attributable to
           property partnerships.
 
 
                          Summary of Financial Information
                       (in thousands, except per share data)
 
                                           For the Quarter Ended March 31, 2001
 
                                                             Real
                                                            Estate
                                               Prentiss      Joint
                                              Properties   Ventures    Combined
                                                 Trust        (A)        Total
 
     Revenues                                   $88,398    $3,568      $91,966
 
     Net income [before minority interest
      (B)]                                       33,040       709       33,749
 
     Funds from operations [before minority
      interest (B)]                              34,126     1,458       35,584
 
     Earnings before interest, taxes,
      depreciation
       and amortization (EBITDA)[before
        minority interest (B)](C)                55,613     3,009       58,622
 
     Interest expense (includes
      amortization of financing costs)           18,188     1,551       19,739
 
     Total assets                            $2,088,726   $83,373   $2,172,099
 
 
     Total debt                                $995,838   $86,400   $1,082,238
 
     Shareholders' equity [book value -
      before minority interest (B)]            $985,955   $(4,351)    $981,604
 
 
     Common shares outstanding                                          36,566
     Convertible preferred shares
      outstanding                                                        3,774
     Partnership units outstanding (D)                                   1,674
       Total common shares, common share
        equivalents and units outstanding
        end of period                                                   42,014
 
     Total weighted average shares and
      units outstanding (and dilutive
      effect of options)                                                42,371
 
     Common share price at end of period                                $24.65
 
     Perpetual preferred equity                                       $145,000
 
     Equity (market value)                                          $1,180,645
 
     Total market capitalization (market
      value of equity and debt)                                     $2,262,883
 
     Debt as a percent of equity plus debt
      (book value)                                                      52.44%
 
     Debt as a percent of equity plus debt
      (market value)                                                    47.83%
 
 
     (A)- The Company accounts for its 50%, 20% and 60% ownership in Broadmoor
          Austin, Burnett Plaza and the Oaklands 21/27 properties respectively,
          using the equity method of accounting.  The information provided
          above represents the Company's proportionate share of each joint
          venture.
 
     (B)- Includes the minority interest attributable to holders of operating
          partnership units.  Excludes the minority interest attributable to
          property partnerships.
 
     (C)- EBITDA includes Prentiss Properties Trust's proportionate share of
          the EBITDA from the Company's third party management business.
 
     (D)- Excludes the 1,900,000, $50 par value, preferred units and the
          2,000,000, $25 par value, preferred units listed above as perpetual
          preferred equity.
 
 
                             Prentiss Properties Trust
                            Consolidated Balance Sheets
                  (in thousands, except share and per share amounts)
 
                                                  March 31,        December 31,
                    Assets                          2001              2000
     Real Estate:
       Land                                        $309,913          $304,417
       Buildings and Improvements                 1,564,434         1,565,277
 
       Less:  accumulated depreciation             (133,814)         (126,630)
       Total operating real estate                1,740,533         1,743,064
 
     Construction in progress                        61,557           112,090
     Land held for future development                47,397            49,784
 
     Deferred charges and other assets,
      net                                           142,409           127,635
     Receivables, net                                37,370            34,093
     Cash and cash equivalents                        5,301             5,452
     Escrowed cash                                   28,635            24,672
     Investments in securities                        2,992             1,495
     Investments in joint ventures and
      unconsolidated subsidiaries                    22,532            19,590
       Total assets                              $2,088,726        $2,117,875
 
 
               Liabilities and Shareholders' Equity
     Liabilities:
       Debt on real estate                         $995,838        $1,007,800
       Interest rate hedges                           6,387
       Accounts payable and other
        liabilities                                  64,736            80,945
       Deferred merger termination fee               10,000            17,000
       Other payables (affiliates)                    2,374             3,575
       Distributions payable                         21,964            23,538
       Total liabilities                          1,101,299         1,132,858
 
     Minority interest in operating
      partnership                                   177,444           177,325
     Minority interest in partnerships                1,472             1,428
 
     Commitments and contingencies
 
     Shareholders' equity:
       Preferred shares $.01 par value,
        20,000,000 shares authorized, and
        3,773,585 shares issued and
        outstanding at March 31, 2001 and
        December 31, 2000                           100,000           100,000
       Common shares $.01 par value,
        100,000,000 shares authorized,
        40,781,084 and 40,687,813 (includes
        4,215,196 and 4,104,371 in treasury)
        shares issued and outstanding at
        March 31, 2001 and December 31, 2000,
        respectively                                    408               407
       Additional paid-in capital                   805,445           802,818
       Common shares in treasury, at cost,
        4,215,196 and 4,104,371 shares
        at March 31, 2001 and December 31,
        2000, respectively                          (95,166)          (92,636)
       Unearned compensation                         (4,260)           (3,186)
       Accumulated other comprehensive
        loss                                         (6,496)
       Retained Earnings/(distributions in
        excess of earnings)                           8,580            (1,139)
       Total shareholders' equity                   808,511           806,264
       Total liabilities and shareholders'
        equity                                   $2,088,726        $2,117,875
 
 
                             Prentiss Properties Trust
                         Consolidated Statements of Income
                     (in thousands, except per share amounts)
 
                                                   Three Months Ended March 31,
                                                      2001              2000
     Revenues:
         Rental income                              $87,310           $80,443
         Management and other fees, net               1,088               670
           Total revenues                            88,398            81,113
 
     Expenses:
         Property operating and
          maintenance                                20,316            17,846
         Real estate taxes                           10,397             9,933
         G&A and personnel cost                       2,788             2,290
         Interest expense                            17,775            17,026
         Amortization of deferred
          financing costs                               413               328
         Depreciation and amortization               16,346            14,834
           Total expenses                            68,035            62,257
 
     Equity in income of joint ventures
      and unconsolidated subsidiary                   1,344               949
 
     Merger termination fee, net                      7,000
 
     Income before gain on sale, minority
      interests, and extraordinary items             28,707            19,805
 
     Gain on sale of properties                       5,453             1,047
     Minority interests                              (4,470)           (3,905)
 
     Net income before extraordinary items           29,690            16,947
     Extraordinary items                               (367)                -
 
     Net income                                     $29,323           $16,947
     Preferred dividends                             (1,830)           (1,660)
     Net income applicable to common
      shareholders                                  $27,493           $15,287
 
     Net income per common share before
      extraordinary items - basic                     $0.76             $0.42
 
     Extraordinary items                              (0.01)
 
     Net Income per common share - basic              $0.75             $0.42
 
     Weighted average number of common
      shares outstanding - basic                     36,606            36,067
 
     Net income per common share before
      extraordinary items - diluted                   $0.73             $0.42
 
     Extraordinary items                              (0.01)
 
     Net income per common share - diluted            $0.72             $0.42
 
     Weighted average number of common
      shares and common share equivalents
      outstanding - diluted                          40,697            36,123
 
 

SOURCE Prentiss Properties Trust
    DALLAS, April 18 /PRNewswire/ -- Prentiss Properties Trust (NYSE:   PP), a
 real estate investment trust (REIT) which focuses on office ownership and
 development in select markets, today announced results for the first quarter
 of 2001.  Diluted FFO reached $0.84 per share compared to $0.77 per share,
 diluted, in the first quarter of 2000, a 9.1 percent increase.  Results were
 driven by same-store growth and by the success of the Company's development
 program.  Same-store growth totaled 4.7 percent compared to the first quarter
 of 2000 due to continued strong occupancy at 95 percent, and average
 25 percent and 48 percent straight-line net rental rate increases on new and
 renewed leases for the existing office and industrial portfolio, respectively.
 Since becoming public in October 1996, the Company has achieved cumulative FFO
 per share growth of 71.4 percent.
     "The first quarter was another solid quarter for Prentiss as we continued
 to boost our FFO per share due to strong leasing rates on our lease rollovers
 and due to the success of our development program," stated Thomas F. August,
 President and CEO of Prentiss Properties.  "Heading into an uncertain near-
 term macro-economic environment, we feel good about our relatively low
 exposure to leasing risks from either maturing leases or from our development
 program.  Furthermore, we feel that the strength of our balance sheet provides
 additional insulation to any downturn.  In particular, the Brandywine asset
 exchange reduces our debt to market capitalization to approximately 44 percent
 from 48 percent.  Additionally, we have only $9.4 million of debt maturing in
 2001 and 2002 as the result of the repayment of our $100 million unsecured
 loan during the quarter."
     At March 31, 2001, the Company's portfolio of properties consisted of
 169 operating properties containing 18.1 million square feet and 8 development
 projects containing 833,000 net rentable square feet. Total square footage
 owned by the Company totaled 19.0 million -- 15.5 million of office properties
 and 3.5 million of industrial properties.  Including properties managed for
 third parties, the Company operated 38.5 million square feet of commercial
 office and industrial real estate as of March 31, 2001.
 
     Development Activity
     As of March 31, 2001, the Company had five office projects under
 development, totaling 677,000 square feet, excluding the developments sold or
 under contract to Brandywine Realty Trust.  The total projected cost of these
 current developments is $123.5 million, $54.4 million of which had been funded
 as of March 31, 2001.  Currently, this development pipeline is 63 percent
 leased and 66 percent leased or committed, with expected first-year cash-on-
 cash returns of 11.7 percent and FFO yields typically 100 to 150 basis points
 higher.
     During the first quarter, the Company transitioned two office projects,
 Del Mar Gateway in San Diego and Barton Skyway II in Austin from its
 development portfolio into operating properties.  These two projects, which
 total approximately 360,000 square feet, are 100 percent leased with a
 weighted average first-year cash return of 11.5 percent.  Additionally, the
 Company began development of Carlsbad Pacific Center III in San Diego, CA
 during the quarter.  The Company expects to complete the 40,000 square foot,
 $7.5 million project in November 2001, with a projected stabilized cash yield
 after lease-up of 11.4 percent.
     As of March 31, 2001, Prentiss Properties Trust owned approximately
 65.6 acres of land for future office development that can accommodate
 3.0 million square feet of leasable space, the majority of which is adjacent
 to existing Company-owned properties.  All of this land is located in one of
 the Company's core markets.  Additionally, the Company controls land through
 purchase and sale agreements, options and rights of first refusal that can
 accommodate another 961,000 square feet of office development.
 
     Consolidated Financial Results
     First quarter 2001 revenues of $88.4 million represented a 9.0 percent
 increase over the prior-year first quarter.  FFO of $35.58 million ($0.84 per
 share, diluted) represented a $0.07 per share increase over first quarter 2000
 FFO of $32.10 million ($0.77 per share, diluted).
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 for the first quarter 2001 was $58.62 million, a 7.8 percent increase over
 first quarter 2000.  Office properties produced approximately 94 percent of
 property EBITDA in the first quarter of 2001, while the remaining industrial
 portfolio represented only 6 percent of EBITDA.
     For the quarter ended March 31, 2001, the Company reported income before
 gain on sale and minority interests of $28.7 million and net income of
 $29.3 million, an increase from the first quarter of 2000 of 44.9 percent and
 73.0 percent, respectively.  The increase in income before gain on sale and
 minority interests was driven by the $7 million Mack-Cali termination fee
 recognized as income by the Company during the quarter.  This $7 million
 represented a portion of the $25.0 million total cash payment made by Mack-
 Cali to Prentiss in conjunction with Termination and Release Agreement that
 terminated the planned merger between the two companies.  Since the
 termination fee was accounted for as nonrecurring income, it had no effect on
 the Company's FFO.  The additional increase in net income compared to the
 first quarter of 2000 was the result of an increase in the gain on sale of
 properties.
     Subsequent to the end of the first quarter, the Company received a
 favorable private letter ruling from the U.S. Treasury regarding the treatment
 of the $25 million termination fee.  As a result of the ruling, Prentiss
 collected the remaining $10 million of the original $25 million held in
 escrow.  The $10 million will be treated as nonrecurring income and will have
 no effect on the Company's second quarter 2001 FFO.
 
     Asset Acquisitions & Sales
     During the first quarter of 2001, the Company continued with its strategy
 of disposing of industrial properties and properties located outside of its
 core markets, as it disposed of the following properties totaling
 $53.1 million in gross proceeds:
 
     1) Seven Mile Crossing -- a 336,000 square foot office complex located in
        the Detroit, Michigan area.
     2) 225 and 375 North Fairway Drive - two industrial buildings totaling
        248,000 square feet located in the Chicago, Illinois area.
 
     Subsequent to quarter end, the Company closed an asset exchange with
 Brandywine Realty Trust.  In the transaction, Brandywine acquired all of the
 operating assets of the Company in Pennsylvania, New Jersey and Delaware,
 along with approximately 6.9 acres of developable land, in exchange for
 Brandywine's Northern Virginia assets.  The operating assets acquired by
 Brandywine consist of approximately 1.6 million square feet in 30 existing
 office buildings.  The Northern Virginia portfolio Prentiss acquired consists
 of approximately 657,400 square feet in four existing office buildings and an
 interest in a joint venture that owns two additional office buildings
 containing approximately 451,600 square feet.  Additional information on the
 background of the asset exchange, including more information on the specific
 assets acquired from Brandywine, is available on the Company's Web site at
 http://www.prentissproperties.com .
     In addition to the asset exchange that closed with Brandywine, Prentiss
 has entered into a separate contract to sell a 206,000 square foot office
 development to Brandywine, of which the first phase of 103,000 square feet is
 currently under construction by Prentiss.  This asset represents the Company's
 last holding in its former Northeast Region.
 
     Portfolio Performance
     The Company ended the quarter with a 95 percent occupancy rate and has
 maintained occupancy rates of 95 percent or more since its inception on
 October 22, 1996.  Approximately 607,000 square feet of the Company's office
 portfolio leases expired during the first quarter, and 469,000 square feet
 were renewed or newly leased, with average straight-line net rents on new
 leases exceeding those on expired leases by 25 percent.  The office portfolio
 had an occupancy rate of 95 percent at the end of the first quarter.
     Approximately 69,000 square feet of the Company's industrial portfolio
 leases expired during the first quarter, and 50,000 square feet were renewed
 or newly leased, with average straight-line net rents on new leases exceeding
 those on expired leases by 48 percent.  The industrial portfolio was 97
 percent leased as of March 31, 2001.
     Lease expirations for the Company's office and industrial properties in
 2001 total 1.5 million square feet (11 percent of the office portfolio) and
 595,000 square feet (17 percent of the industrial portfolio), respectively.
 Same-store cash NOI growth for the Company was 4.7 percent compared to the
 first quarter of 2000.  This same-store growth result included 152 properties
 totaling 16.2 million square feet.
     Significant leases executed during the first quarter of 2001 for the
 Company's operating portfolio included:
 
     1)  Regus Business Centers Inc. executed a new 44,561 square foot, 12-year
         lease at Barton Skyway IV in Austin, Texas.
     2)  Southern Union executed a new 44,000 square foot 10-year lease at
         Barton Skyway IV in Austin, Texas.  With the Regus and Southern Union
         lease, Barton Skyway IV is 89 percent leased and 99 percent committed
         with an expected stabilized cash return of 12.8 percent.  Construction
         of Barton Skyway IV is scheduled for completion in November 2001.
     3)  The Securities and Exchange Commission executed a 35,548 square foot,
         12-year renewal and expansion at Burnett Plaza in Fort Worth, Texas.
     4)  Dermalogica Inc. executed a 51,731 square foot, 4-year lease renewal
         at Pacific Gateway Center in the Los Angeles, California suburb of
         Torrance.
     5)  24 Hour Fitness executed a new 49,675 square foot, 4-year lease at The
         Campus industrial building in the San Diego, California suburb of
         Carlsbad.
     6)  FWC Partners executed a new 33,562 square foot, 8-year lease at
         Bachman Plaza East in Dallas, Texas.
     7)  Houlihan Lokey Howard & Zukin Financial Advisors executed a new
         25,465 square foot, 10-year lease at 123 North Wacker in Chicago,
         Illinois.
     8)  Americredit executed a 24,303 square foot, 10-year expansion at
         Burnett Plaza in Fort Worth, Texas.
     9)  Georgia Association of Educators executed a new 19,925 square foot,
         7-year lease at The Crescent Centre in Atlanta, Georgia.
     10) Pipcor Enterprises executed an 18,049 square foot, 7-year renewal at
         One Westchase in Houston, Texas.
 
     Capital Markets and Financing
     At March 31, 2001, the Company's market value of equity was $1.2 billion.
 Total market capitalization at March 31, 2001 was $2.3 billion, compared to
 total assets at book value of $2.2 billion (including unconsolidated joint
 venture assets).
     The Company's debt balance at March 31, 2001, including its share of
 unconsolidated joint venture debt was $1.08 billion.  Of this amount,
 $733.6 million was fixed rate, non-recourse, long-term mortgages.  The
 remaining $348.6 million was floating rate debt, of which $210.0 million was
 hedged with $110.0 million fixing 30-day LIBOR at 6.25 percent until September
 2004, $50.0 million fixing 30-day LIBOR at 4.84 percent until April 2002, and
 $50.0 million fixing 30-day LIBOR at 5.99 percent until March 2006.  At March
 31, 2001, Debt to Total Market Capitalization (market value equity plus debt)
 stood at 47.8 percent.  After adjusting for the asset exchange with
 Brandywine, the proforma Debt to Total Market Capitalization for the Company
 as of March 31, 2001 was approximately 44 percent.
     The Company views Coverage Ratios as a more stable and indicative measure
 of its ability to meet its obligations than Debt to Total Market
 Capitalization.  For the quarter, the Company's Interest Coverage Ratio was
 2.97x and the Fixed Charge Coverage was 2.56x, including perpetual preferred
 dividends.  Both of these ratios are expected to improve noticeably during the
 second quarter based on the Brandywine asset exchange.
     During the quarter, the Company repaid the $100 million Bank Term Facility
 which had a maturity date of October 2002 and a variable rate equal to LIBOR
 plus 137.5 basis points.  The loan was repaid with proceeds from a
 $75.0 million Bank Term Facility that was completed during the quarter and
 from the Company line of credit.  The new Bank Term Facility has a variable
 rate of interest with a spread over LIBOR subject to the Company's overall
 leverage (initially LIBOR plus 137.5 basis points) and a maturity of March
 2006.
     During the first quarter, the Company's weighted average cost of debt,
 including all costs related to hedge amortization, swap payments and unused
 commitments fees, was 7.47 percent.  As of March 31, 2001, the  weighted
 average maturity of the Company's debt was 6.4 years, excluding the line of
 credit.
     During the first quarter, the Company repurchased 105,300 shares under its
 share repurchase program.  Subsequent to quarter end, another 137,500 shares
 were bought.  The average purchase price for all shares was $23.97 per share.
 The Company currently has 265,300 shares remaining under its repurchase
 authorization.
 
     Dividends, Capital Expenditures and Funds Available for Distribution (FAD)
     The Company declared a $0.485 regular quarterly dividend on March 14,
 2001, to owners (shares and units) of record as of March 31, 2001, and paid
 the dividend on April 12, 2001.   This quarterly dividend represents an
 annualized dividend of $1.94 per share and a yield of 7.9 percent on
 yesterday's closing share price of $24.48.  The FFO payout ratio for the
 quarter ended March 31, 2001, was 57.4 percent.
     Non-incremental capital expenditures for the quarter were $8.4 million, of
 which $279,000 represented capital improvements to the properties, and
 $8.1 million represented costs paid with respect to leasing and tenant
 improvements.  The Company's average non-incremental capital expenditures per
 square foot for leases completed during the quarter were $9.90 for office
 properties.  These costs were based on 410,000 square feet of leases during
 the quarter.
     The Funds Available for Distribution (FAD) totaled approximately
 $25.1 million for the quarter, after deducting non-incremental capital
 expenditures and straight-line rent and adding amortization of deferred
 financing fees.  The first quarter dividend represented an 81.2 percent payout
 of FAD.
 
     Additional Information
     The Company will broadcast its first quarter earnings conference call live
 via the Internet on Thursday, April 19, 2001.  The conference call will begin
 at 10:00 am CDT and will last for approximately one hour.  Those interested in
 listening can access the conference call at http://www.ccbn.com .   Please go
 to the CCBN web site 15 minutes prior to the start of the call to register.
 It may be necessary to download audio software to hear the conference call.
 To do so, click on the Real Player icon and follow directions from there.  A
 replay of the conference call will be available through StreetEvents for
 90 days or via telephone at (888) 266-2086, passcode #5106340, through May 3,
 2001.
     Additional information on Prentiss Properties Trust, including the
 Company's first quarter 2001 Supplemental Operating and Financial Data and an
 archive of corporate press releases and conference calls, is also available on
 the Company's Web site at http://www.prentissproperties.com .
 
     About Prentiss Properties Trust
     Prentiss Properties Trust is a self-administered and self-managed real
 estate investment trust ("REIT").  It owns interests in 169 operating
 properties with approximately 18.1 million net rentable square feet and
 8 development projects containing 833,000 net rentable square feet.  Prentiss
 Property Services, the real estate services subsidiary of the Trust, is one of
 the 20 largest managers of office and industrial properties in the U.S.,
 managing approximately 38.5 million square feet of office and industrial
 properties owned by Prentiss, its affiliates and third parties.
     With its headquarters in Dallas, Texas, Prentiss Properties has regional
 management offices in Los Angeles, Dallas, Chicago and Washington D.C.  It is
 a full service real estate company with in-house expertise in areas such as
 acquisitions, development, facilities management, property management and
 leasing.
     The statements in this release regarding anticipated operating results for
 properties are forward-looking and are included in reliance on the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  Although
 projections are based upon reasonable assumptions, actual results may differ
 from those projected. The key factors that could lead to variance from the
 anticipated results include downturns in the local or national economies,
 retention of tenants, unanticipated vacancies in competitive properties, new
 construction or sub-lease availability which could negatively impact space
 absorption, and other risks inherent to the real estate business. These and
 other factors are described in the Company's filings with the Securities and
 Exchange Commission (SEC).
 
     For more information on Prentiss Properties Trust, visit the Company's
 websites at www.prentissproperties.com or dial 1-800-PRO-INFO and enter the
 company ticker:  PP
 
 
                             Calculation of FFO and FAD
                   For Common Shares and Common Share Equivalents
                           (000s, except per share data)
 
                                                   Three Months Ended March 31,
     Funds from Operations (FFO):                       2001              2000
 
     Net income (after minority interests)           $29,323           $16,947
     Add:
      Real estate depreciation and
       amortization (A)                               16,324            14,815
      Real estate depreciation and
       amortization of unconsolidated subsidiary
       and joint ventures (B)                            749               676
      Minority interests (C)                           4,426             3,865
     Adjustments:
      Extraordinary items                                367
      Merger Termination fee, net                     (7,000)
      Gain on sale of property                        (5,453)           (1,047)
      Dividends paid on perpetual preferred
       units                                          (3,152)           (3,153)
 
     Funds from operations                           $35,584           $32,103
 
     Weighted average shares and units
      (shares) outstanding (diluted)                  42,371            41,579
 
     FFO per weighted average shares
      outstanding (diluted)                            $0.84             $0.77
 
     Weighted average shares and units
      (shares) outstanding (non-diluted)              42,054            41,523
 
     FFO per weighted average shares
      outstanding (non-diluted)                        $0.85             $0.77
 
     Funds Available for Distribution
      (FAD):
 
     Funds from operations                           $35,584           $32,103
 
     Adjustments:
      Straight-line rental income                     (2,473)           (1,881)
      Amortization of deferred financing
       fees                                              423               338
      Capital expenditures                            (8,398)           (4,530)
 
     Funds available for distribution                $25,136           $26,030
 
     Weighted average shares and units
      (shares) outstanding (diluted)                  42,371            41,579
 
     FAD per weighted average shares
      outstanding (diluted)                            $0.59             $0.63
 
     Dividend per share                                $0.49             $0.44
 
     Total dividend declared (excludes
      dividend on perpetual preferred)               $20,416           $18,273
 
     Payout ratio of FFO                              57.37%            56.92%
 
     Payout ratio of FAD                              81.22%            70.20%
 
     (A) - Excludes depreciation and amortization not related to real estate.
 
     (B) - Includes Prentiss Properties Trust's proportionate share of real
           estate depreciation and amortization on the Broadmoor Austin,
           Burnett Plaza and the Oaklands 21/27 properties which are owned
           through unconsolidated joint ventures.
 
     (C) - Includes the minority interest attributable to holders of operating
           partnership units.  Excludes the minority interest attributable to
           property partnerships.
 
 
                          Summary of Financial Information
                       (in thousands, except per share data)
 
                                           For the Quarter Ended March 31, 2001
 
                                                             Real
                                                            Estate
                                               Prentiss      Joint
                                              Properties   Ventures    Combined
                                                 Trust        (A)        Total
 
     Revenues                                   $88,398    $3,568      $91,966
 
     Net income [before minority interest
      (B)]                                       33,040       709       33,749
 
     Funds from operations [before minority
      interest (B)]                              34,126     1,458       35,584
 
     Earnings before interest, taxes,
      depreciation
       and amortization (EBITDA)[before
        minority interest (B)](C)                55,613     3,009       58,622
 
     Interest expense (includes
      amortization of financing costs)           18,188     1,551       19,739
 
     Total assets                            $2,088,726   $83,373   $2,172,099
 
 
     Total debt                                $995,838   $86,400   $1,082,238
 
     Shareholders' equity [book value -
      before minority interest (B)]            $985,955   $(4,351)    $981,604
 
 
     Common shares outstanding                                          36,566
     Convertible preferred shares
      outstanding                                                        3,774
     Partnership units outstanding (D)                                   1,674
       Total common shares, common share
        equivalents and units outstanding
        end of period                                                   42,014
 
     Total weighted average shares and
      units outstanding (and dilutive
      effect of options)                                                42,371
 
     Common share price at end of period                                $24.65
 
     Perpetual preferred equity                                       $145,000
 
     Equity (market value)                                          $1,180,645
 
     Total market capitalization (market
      value of equity and debt)                                     $2,262,883
 
     Debt as a percent of equity plus debt
      (book value)                                                      52.44%
 
     Debt as a percent of equity plus debt
      (market value)                                                    47.83%
 
 
     (A)- The Company accounts for its 50%, 20% and 60% ownership in Broadmoor
          Austin, Burnett Plaza and the Oaklands 21/27 properties respectively,
          using the equity method of accounting.  The information provided
          above represents the Company's proportionate share of each joint
          venture.
 
     (B)- Includes the minority interest attributable to holders of operating
          partnership units.  Excludes the minority interest attributable to
          property partnerships.
 
     (C)- EBITDA includes Prentiss Properties Trust's proportionate share of
          the EBITDA from the Company's third party management business.
 
     (D)- Excludes the 1,900,000, $50 par value, preferred units and the
          2,000,000, $25 par value, preferred units listed above as perpetual
          preferred equity.
 
 
                             Prentiss Properties Trust
                            Consolidated Balance Sheets
                  (in thousands, except share and per share amounts)
 
                                                  March 31,        December 31,
                    Assets                          2001              2000
     Real Estate:
       Land                                        $309,913          $304,417
       Buildings and Improvements                 1,564,434         1,565,277
 
       Less:  accumulated depreciation             (133,814)         (126,630)
       Total operating real estate                1,740,533         1,743,064
 
     Construction in progress                        61,557           112,090
     Land held for future development                47,397            49,784
 
     Deferred charges and other assets,
      net                                           142,409           127,635
     Receivables, net                                37,370            34,093
     Cash and cash equivalents                        5,301             5,452
     Escrowed cash                                   28,635            24,672
     Investments in securities                        2,992             1,495
     Investments in joint ventures and
      unconsolidated subsidiaries                    22,532            19,590
       Total assets                              $2,088,726        $2,117,875
 
 
               Liabilities and Shareholders' Equity
     Liabilities:
       Debt on real estate                         $995,838        $1,007,800
       Interest rate hedges                           6,387
       Accounts payable and other
        liabilities                                  64,736            80,945
       Deferred merger termination fee               10,000            17,000
       Other payables (affiliates)                    2,374             3,575
       Distributions payable                         21,964            23,538
       Total liabilities                          1,101,299         1,132,858
 
     Minority interest in operating
      partnership                                   177,444           177,325
     Minority interest in partnerships                1,472             1,428
 
     Commitments and contingencies
 
     Shareholders' equity:
       Preferred shares $.01 par value,
        20,000,000 shares authorized, and
        3,773,585 shares issued and
        outstanding at March 31, 2001 and
        December 31, 2000                           100,000           100,000
       Common shares $.01 par value,
        100,000,000 shares authorized,
        40,781,084 and 40,687,813 (includes
        4,215,196 and 4,104,371 in treasury)
        shares issued and outstanding at
        March 31, 2001 and December 31, 2000,
        respectively                                    408               407
       Additional paid-in capital                   805,445           802,818
       Common shares in treasury, at cost,
        4,215,196 and 4,104,371 shares
        at March 31, 2001 and December 31,
        2000, respectively                          (95,166)          (92,636)
       Unearned compensation                         (4,260)           (3,186)
       Accumulated other comprehensive
        loss                                         (6,496)
       Retained Earnings/(distributions in
        excess of earnings)                           8,580            (1,139)
       Total shareholders' equity                   808,511           806,264
       Total liabilities and shareholders'
        equity                                   $2,088,726        $2,117,875
 
 
                             Prentiss Properties Trust
                         Consolidated Statements of Income
                     (in thousands, except per share amounts)
 
                                                   Three Months Ended March 31,
                                                      2001              2000
     Revenues:
         Rental income                              $87,310           $80,443
         Management and other fees, net               1,088               670
           Total revenues                            88,398            81,113
 
     Expenses:
         Property operating and
          maintenance                                20,316            17,846
         Real estate taxes                           10,397             9,933
         G&A and personnel cost                       2,788             2,290
         Interest expense                            17,775            17,026
         Amortization of deferred
          financing costs                               413               328
         Depreciation and amortization               16,346            14,834
           Total expenses                            68,035            62,257
 
     Equity in income of joint ventures
      and unconsolidated subsidiary                   1,344               949
 
     Merger termination fee, net                      7,000
 
     Income before gain on sale, minority
      interests, and extraordinary items             28,707            19,805
 
     Gain on sale of properties                       5,453             1,047
     Minority interests                              (4,470)           (3,905)
 
     Net income before extraordinary items           29,690            16,947
     Extraordinary items                               (367)                -
 
     Net income                                     $29,323           $16,947
     Preferred dividends                             (1,830)           (1,660)
     Net income applicable to common
      shareholders                                  $27,493           $15,287
 
     Net income per common share before
      extraordinary items - basic                     $0.76             $0.42
 
     Extraordinary items                              (0.01)
 
     Net Income per common share - basic              $0.75             $0.42
 
     Weighted average number of common
      shares outstanding - basic                     36,606            36,067
 
     Net income per common share before
      extraordinary items - diluted                   $0.73             $0.42
 
     Extraordinary items                              (0.01)
 
     Net income per common share - diluted            $0.72             $0.42
 
     Weighted average number of common
      shares and common share equivalents
      outstanding - diluted                          40,697            36,123
 
 SOURCE  Prentiss Properties Trust