BED Bedford Property Inv

Bedford Property Investors, Inc. (NYSE:BED) presents in the following table the income tax treatment of the dividends on its common stock, CUSIP #076 446 301, declared in 2005: -0- *T Record Payable Distribution Ordinary L-T Capital Unrecaptured Date Date Per Share Income Gains Sec. 1250 Gain ---------------------------------------------------------------------- 3/31/05 4/15/05 $ 0.510000 $0.107610 $ 0.402390 $ 0.155091 6/30/05 7/15/05 0.510000 0.107610 0.402390 0.155091 9/30/05 10/17/05 0.510000 0.107610 0.402390 0.155091 12/30/05 1/17/06 0.510000 0.107610 0.402390 0.155091 12/30/05 1/17/06 1.640000 0.346040 1.293960 0.498724 --------------------------------------------------- TOTAL $ 3.680000 $0.776480 $ 2.903520 $ 1.119088 =================================================== *T Bedford Property Investors, Inc. presents in the following table the income tax treatment of the dividends on its Series A preferred stock, CUSIP #076 446 509, declared in 2005: -0- *T Record Payable Distribution Ordinary L-T Capital Unrecaptured Date Date Per Share Income Gains Sec. 1250 Gain ---------------------------------------------------------------------- 3/31/05 4/15/05 $ 1.093750 $0.230781 $ 0.862969 $ 0.332609 6/30/05 7/15/05 1.093750 0.230781 0.862969 0.332610 9/30/05 10/17/05 1.093750 0.230781 0.862969 0.332609 12/30/05 1/17/06 1.093750 0.230782 0.862968 0.332610 -------------------------------------------------- TOTAL $ 4.37500 $0.923125 $ 3.451875 $ 1.330438 ================================================== *T Bedford Property Investors, Inc. presents in the following table the income tax treatment of the dividends on its Series B preferred stock, CUSIP #076 446 608, declared in 2005: -0- *T Record Payable Distribution Ordinary L-T Capital Unrecaptured Date Date Per Share Income Gains Sec. 1250 Gain ---------------------------------------------------------------------- 3/31/05 4/15/05 $ 0.476560 $0.100554 $ 0.376006 $ 0.144922 6/30/05 7/15/05 0.476560 0.100554 0.376006 0.144922 9/30/05 10/17/05 0.476560 0.100554 0.376006 0.144922 12/30/05 1/17/06 0.476560 0.100555 0.376005 0.144922 -------------------------------------------------- TOTAL $ 1.906240 $0.402217 $ 1.504023 $ 0.579688 ================================================== *T The Company's dividend distribution per share of its common stock and its Series A and B preferred stock in 2005 is classified for income tax purposes as follows: -- 78.90% as long-term capital gain, of which 38.54% is unrecaptured section 1250 gain. -- 21.10% as taxable ordinary income, none of which is eligible for treatment as "Qualified Income Dividends." Bedford Property Investors, Inc. is a self-administered equity real estate investment trust (REIT) with investments in suburban office buildings and industrial properties concentrated in the western United States. Its common stock is traded on the New York Stock Exchange and the Pacific Exchange under the symbol "BED" and its web site is www.bedfordproperty.com.