Building momentum

Frank Stella art commision, Gas Company Tower,

2006 annual report San Diego Tech Gardens, San Diego

Downtown skyline, Los Angeles Capitalizing on significant acquisition opportunities. Expanding our development pipeline. Leveraging strong leasing demand. Executing on our balanced strategy. Creating communities around our properties. Maximizing profitability for our shareholders.

At Maguire, 2006 was a year of new developments. A balanced strategy for disciplined growth

Dear Shareholders:

The last 12 months have been an exciting pipelines in the REIT industry. As part of these initiatives, we have period of building momentum at Maguire pursued favorable acquisition and development opportunities. Properties. Throughout 2006 we continued We have selectively sold or joint ventured properties that have to focus on our top priority: maximizing stabilized, or that do not adhere to our strategic objectives. value for our shareholders. It is our strong And we are working toward achieving a targeted debt to market belief that the key to doing so lies in capitalization of 50% to 55% with fixed charge coverage of staying true to the strategy that has guided 2.0x covering our dividend with margin after all charges. our company’s success from the very beginning. This balanced approach allows As we continue to review attractive new opportunities to yield us to leverage our bold vision and collective increased profitability, we will adhere to the balanced strategy strengths to our best advantage, while that has guided us thus far. We are confident that, by doing so, taking disciplined measures to minimize we will be building a strong foundation for sustained growth in debt and mitigate risk. It’s a strategy that the years to come. places our Company in an optimal position for significant future growth.

In the past year, we’ve continued to expand our footprint in the high-growth, supply-constrained markets of Los Angeles, Orange and San Diego Counties. This expansion has been shaped by an approach that maximizes returns on existing assets and new acquisitions, while making wise use of one of the largest development

Since our IPO on June 25, 2003, our stock price has increased 103.9%. 03

“Whenever we acquire or develop a new property, the first thing we ask ourselves is: how can we make this property better for our tenants?” – Paul Rutter, Executive Vice President, Maguire Properties

Gas Company Tower, Los Angeles “We take great pride in integrating the capability and expertise of new team members gained through acquisitions into the Maguire culture.” – Jessie Maemori, Human Resources, Maguire Properties

Two California Plaza, Los Angeles 05

Our trophy quality portfolio

There’s a reason why the Maguire name stands for unparalleled quality in Southern California. Over the years, we’ve amassed a portfolio of trophy quality, architecturally distinctive Class A properties with exceptionally high credit tenants. We are continually seeking to add acquisitions that uphold our outstanding standards of design, location, amenities and maintenance.

Early in 2007 we built on our dominant position in Southern California yet again with one of our most ambitious acquisitions to date. On February 21, 2007, Maguire Properties entered into an agree- ment with the Blackstone Group to acquire all of the real property assets in Orange County and that were part of the former Equity Office Properties portfolio. This unique portfolio of trophy quality assets and development properties is highly The acquisition of Two complementary to our existing assets, and will enable us to generate significant growth in rental and parking rates, as well as development. California Plaza now The acquisition includes landmark properties like Two California Plaza and 550 South Hope in the Los Angeles Central Business boosts Maguire Properties District; and 1920 Main Plaza, 2010 Main Plaza, 18301 Von Karman, to a 70% share of the Stadium Towers Plaza, Griffin Towers and City Tower in Orange County, among others. Bunker Hill market in It’s a bold move, but also an attractive one, from a profitability downtown Los Angeles. standpoint. We anticipate that this acquisition will drive significant growth in NOI and cash flow for our Company. The lease expiration schedule over the next five years will allow us to maximize rental revenues by increasing in place below-market rents to current market rates, while simultaneously reducing property level expenses. We will also be able to realize additional revenues from parking by immediately increasing parking rates to market value.

This acquisition also offers many exciting opportunities going forward. It will allow us to expand our footprint in our key markets. It will enable us to build upon our portfolio of trophy quality assets. And it will provide the means by which we can generate the cash flow necessary to pursue future investments. Geographic distribution—rentable square feet 1

Downtown 60% Los Angeles 53%

Orange County 40% 37%

20%

San Diego Santa Monica Denver Tri-cities 4% Cerritos 2% 2% 2% 0.4%

Red indicates key markets

Note: Based on effective square feet. 1 Pro forma for sale of 17 properties.

“I have never worked at a property where management is this committed to maintaining the highest standards of quality.” – Eric Woodward, Security Officer, Maguire Properties

GAAP rent growth 1,2

60% 49.5%

41.1% 40%

23.0% 18.7% 19.1% 20%

5.6% 4.8% 4.1% (1.4%) (1.9%) (32.8%) (5.1%)

(20%)

(40%) 1Q ’04 2Q ’04 3Q ’04 4Q ’04 1Q ’05 2Q ’05 3Q ’05 4Q ’05 1Q ’06 2Q ’06 3Q ’06 4Q ’06

Note: All metrics calculated based on Company’s pro rate share. 1 For newly acquired properties, GAAP rent growth is excluded for spaces that expired prior to MPG ownership and were released after acquisition. 2 Represents estimated cash rent growth adjusted for straight-line rents in accordance with GAAP. 07

Focused on Southern California

From downtown Los Angeles to San Diego, Orange County we continued to build strong momentum in Here, the recent acquisition of several landmark properties as part 2006 by adhering to our strategy — focusing of the EOP portfolio provides Maguire with the means to generate on supply-constrained office markets with significant NOI increases by bringing leasing and parking rates up high job growth. This approach, combined to market. With multiple key development projects scheduled for with fast-paced growth in each of our key delivery in 2007 and early 2008, our Company is poised to capitalize markets, has yielded many opportunities to on one of the most dynamic office markets in the nation. maximize value for shareholders through our leased properties and developments Los Angeles Metro Area in progress. Our Lantana project currently underway represents one of the last available office entitlements in Santa Monica. With numerous Here are some highlights from each of proposals out to prospective tenants for the two buildings slated our key markets: for completion in 2007 and early 2008, this project remains ideally positioned for substantial profitability. Los Angeles Central Business District In 2006, the steady demand for space in San Diego County downtown Los Angeles drove rental rates This market continues to exhibit signs of strength, supported by up across the area, enabling us to complete steady tenant demand. Asking rental rates have increased in four numerous new leases and renewals. With out of the last five quarters within the market. We will build on this our recent acquisition of the EOP portfolio, positive growth in 2007 as we commence construction of Phase we have also added landmark properties One of the San Diego Tech Center. 550 South Hope and Two California Plaza to our portfolio. These assets will enable us to realize additional profits by raising

parking and rental rates to market value. Key county markets: Los Angeles Orange San Diego Maximizing shareholder value

In conclusion, we have been building momentum across every aspect of our business, and look forward to reporting on our progress as we move toward our goals.

In 2007 the Company will maintain its focus on expanding its development pipeline and completing strategic acquisitions that we find financially attractive. As we meet these objectives, it is my belief that we will best serve our shareholders and maximize value for the future by continuing to execute on our balanced strategy for disciplined growth.

This has been a year of exciting opportunity for Maguire Properties. We would like to thank all of our shareholders for their ongoing interest and support.

Robert F. Maguire III Chairman and Chief Executive Officer April 2007 Executive Officers Corporate Information

Robert F. Maguire III Corporate Headquarters Chief Executive Officer and KPMG Tower Chairman of the Board of Directors 355 South Grand Avenue Suite 3300 Martin A. Griffiths Los Angeles, CA 90071-1568 Executive Vice President and 213-626-3300 Chief Financial Officer 1733 Ocean Avenue Mark T. Lammas Suite 400 Executive Vice President, Development Santa Monica, CA 90401-3270

Paul S. Rutter Corporate Counsel Executive Vice President, Latham Watkins Major Transactions 633 West Fifth Street Suite 4000 Ted J. Bischak Los Angeles, CA 90071-2007 Senior Vice President, Asset Management 213-485-1234

Javier F. Bitar Independent Accountants Senior Vice President, Investments KPMG 355 South Grand Avenue William H. Flaherty Suite 2000 Senior Vice President, Marketing Los Angeles, CA 90071-1568 213-972-4000 Robert P. Goodwin Senior Vice President, Construction Transfer Agent and Development Continental Stock Transfer & Trust Company Peter K. Johnston 17 Battery Place Senior Vice President, Leasing New York, NY 10004-1207 212-845-3215 Peggy M. Moretti Senior Vice President, Investor Investor Relations and Public Relations Investor inquiries may be directed to Maguire Properties’ Investor Relations at the Company’s corporate headquarters Board of Directors or by calling 213-626-3300.

Robert F. Maguire III SEC Form 10-K Chief Executive Officer and A copy of the Company’s annual report on Form 10-K filed Chairman of the Board of Directors with the Securities and Exchange Commission may be obtained from the Company free of charge by calling Investor Lawrence S. Kaplan Relations at 213-613-4558. Director Annual Meeting of Shareholders Caroline S. McBride The annual meeting of shareholders of Maguire Properties, Inc. Director will be held Tuesday, June 5, 2007 at 8:00 a.m. local time at the Loews Santa Monica Beach Hotel, 1700 Ocean Avenue, Andrea L. Van de Kamp Santa Monica, California 90401. Director Maguire Properties is an Equal Opportunity Employer. Walter L. “Wally” Weisman Director Visit our website: www.maguireproperties.com | Brand Communications www.bakerbuilds.com Lewis N. Wolff

Baker Director

This Annual Report contains forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify forward-looking statements by the use of forward-looking terminology such as “believe,” “expect,” “plan,” “intend,” “pro forma” or similar words and phrases. Forward- looking statements are not guarantees of future performance. The Company’s future results, financial condition and business may differ materially from those expressed in these forward-looking statements. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. Many of the factors that will influence our future results, financial condition and business are beyond our ability to control or predict. For further discussion of risks and uncertainties that could impact our future results, financial condition and business, see the section entitled “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2006. www.maguireproperties.com