Form 10-K Trizec Properties, Inc

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2005 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________. Commission File Number: 001-16765 TRIZEC PROPERTIES, INC. (Exact name of registrant as specified in its charter) Delaware 33-0387846 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 10 South Riverside Plaza Chicago, IL 60606 (Address of principal executive offices) (Zip Code) 312-798-6000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Exchange on Which Registered Common Stock, $0.01 par value New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ X ]No[ ] Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [ X ] Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ]No[ ] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one.) Large Accelerated Filer [ X ] Accelerated Filer [ ] Non-accelerated Filer [ ] Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes [ ] No [ X ] The aggregate market value of the registrant’s outstanding common stock held by non-affiliates of the registrant on June 30, 2005 was approximately $1.95 billion based on a closing price of $20.57 as quoted on the New York Stock Exchange on that date. As of March 10, 2006, 157,014,522 shares of common stock, par value $0.01 per share, were issued and outstanding. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 18, 2006 are incorporated herein by reference in Part III of this Form 10-K. 2 TABLE OF CONTENTS Page PART I .............................................................................................................................................................................. 5 Item 1. Business .................................................................................................................................. 5 Item 1A. Risk Factors .......................................................................................................................... 10 Item 1B. Unresolved Staff Comments................................................................................................. 26 Item 2. Properties.............................................................................................................................. 26 Item 3. Legal Proceedings.................................................................................................................. 33 Item 4. Submission of Matters to a Vote of Security Holders........................................................... 34 PART II ............................................................................................................................................................................ 34 Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities............................................................................................ 34 Item 6. Selected Financial Data ........................................................................................................ 35 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations............................................................................................................ 39 Item 7A. Quantitative and Qualitative Disclosures About Market Risk.............................................. 70 Item 8. Financial Statements and Supplementary Data..................................................................... 70 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.................................................................................... 70 Item 9A. Controls and Procedures ....................................................................................................... 70 Item 9B. Other Information................................................................................................................ 71 PART III ............................................................................................................................................................................ 71 Item 10. Directors and Executive Officers of the Registrant ............................................................... 71 Item 11. Executive Compensation...................................................................................................... 71 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters........................................................................................................... 71 Item 13. Certain Relationships and Related Transactions................................................................... 72 Item 14. Principal Accountant Fees and Services................................................................................. 72 PART IV............................................................................................................................................................................ 72 Item 15. Exhibits and Financial Statement Schedules......................................................................... 72 FORWARD-LOOKING STATEMENTS This Form 10-K contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), relating to our business and financial outlook which are based on our current expectations, beliefs, projections, forecasts, future plans and strategies, and anticipated events or trends. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology. We intend these forward-looking statements, which are not guarantees of future performance and financial condition, to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Exchange Act. Forward-looking statements are not historical facts. Instead, such statements reflect estimates and assumptions and are subject to certain risks and uncertainties that are difficult to predict or anticipate. Therefore, actual outcomes and results may differ materially from those projected or anticipated in these forward-looking statements. You should not place undue reliance on these forward- looking statements, which speak only as of the date this Form 10-K is filed with the Securities and Exchange Commission (“SEC”). A number of important factors could cause actual results to differ materially from those indicated by the forward- looking statements, including, without limitation, the risks described under “Item 1A. Risk Factors” in this Form 10-K. These factors include, without limitation, the following: • changes in national and local economic conditions, including those economic conditions in our seven core markets; • the extent, duration and strength of any economic recovery; • our ability to maintain occupancy and to timely lease or re-lease office space; • the extent of any tenant bankruptcies and insolvencies; • our ability to sell our non-core office properties in a timely manner; 3 • our ability to acquire office properties selectively in our core markets; • our ability to integrate and realize the full benefits from our acquisitions, including the pending acquisition of certain office properties and undeveloped land parcels that are currently owned by Arden Realty, Inc.; • our ability to maintain real estate investment trust (“REIT”) qualification and changes to U.S. tax laws that affect REITs; • material increases in the amount of special dividends payable to affiliates of Trizec Canada on shares of our special voting stock as a result of increases in the applicable cross-border withholding tax rates; • Canadian tax laws that affect treatment of investment in U.S. real estate companies; • the competitive environment in which we operate; • the cost and availability of debt and equity financing;

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