MEPT

DURING THE QUARTER, MEPT EXECUTED A FORWARD COMMITMENT OF $120 MILLION TO PURCHASE, UPON COMPLETION IN 2011, ONE FRANKLIN-LE MERIDIEN,
a planned 250-room, four-star hotel property in Boston. The hotel will be part of a 1.4 million square foot, mixed-use development that will incorporate the former historic Filenes Basement clothing store into space for retail, hotel, residential, and office.

IN SEPTEMBER, MEPT PURCHASED AN ADDITIONAL OWNERSHIP INTEREST IN ARBORETUM LAKES WEST FOR $1.7 MILLION.
The purchase of the outstanding 5 percent interest brings the total MEPT ownership to 100 percent. Arboretum Lakes West is a Class A, 190,361 square foot, mid-rise suburban office building located in Chicago.

Procter & Gamble Co.
Procter & Gamble Co. - maker of Tide laundry detergent, Charmin bathroom tissue and Crest toothpaste - leased 1.2 million square feet of space at Gateway Commerce Center in Edwardsville. P&G has moved into nearly 580,000 square feet at the Gateway Commerce Center's Westway III building at 3101 Westway Drive under the $17 million deal.

Symantec Expands in Downtown San Francisco
Firm Takes Additional 17,000 SF at 303 2nd Street Symantec leased 16,966 square feet on the fifth and eighth floors for six years at 303 2nd St. in San Francisco, where it already occupies 38,734 square feet.

Ozburn-Hessey Expands Operations in Dallas
Ozburn-Hessey Logistics signed a 15-month lease for an additional 148,000 square feet at the Pinnacle Park I building at 3700 Pinnacle Point Drive in Dallas, TX. The firm moved into this new space on July 1.


	PERFORMANCE \| GROWTH IN VALUE \| QUARTERLY RETURNS BENCHMARK COMPARISONS

Performance

MEPT's objective is to provide investors with competitive and stable returns over an entire real estate cycle. MEPT targets property types that will generate a steady stream of income, thus reducing the adverse effects of significant swings in real estate market performance. On a risk-adjusted basis, MEPT consistently outperforms the long-term returns of the indices in its asset class.

MEPT has had only one year of negative returns in its 26 year history. In 1992, a severe recession and real estate downturn caused negative returns for MEPT as well as the overall industry benchmarks. MEPT has performed well against benchmarks and its peers, meeting or exceeding expectations.

as of 9/30/08

Net of Fees

Trailing 4 Quarters (compounded)

Gross of Fees

Trailing 4 Quarters (compounded)


Total	-2.42%	1.77%	-2.21%	2.64%

Income	0.93%	3.97%	1.14%	4.86%

Appreciation	-3.34%	-2.14%	-3.34%	-2.14%

Note: All MEPT returns are calculated according to the Association of Investment Management and Research (AIMR) standards as well as standards established by the National Council of Real Estate Investment Fiduciaries (NCREIF). Investment results are reported in compliance with AIMR-PPS (Association for Investment Management and Research Performance Presentation Standards) Level I and II requirements and independently verified.

Total return is computed by adding the net operating income/loss and capital appreciation/depreciation for each property in the portfolio, as well as any realized gain/loss on asset dispositions. This valuation is done on a calendar quarter basis, and completed ten business days after the quarter end.

Net operating income is calculated on a property-by-property basis according to Real Estate Information Standards set forth by the National Council of Real Estate Investment Fiduciaries (NCREIF). Operating income is recorded when it is contractually earned and billable.

Annualized returns are computed by chain linking, or compounding, quarterly returns. Returns are annualized for periods under one year to forecast what an annual return would be if returns remained at current levels. Returns are annualized for periods over one year to time weight, and therefore more effectively compare returns with other indices.

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