Exhibit 99.1

Supplemental Information

(Unaudited)

December 31, 2003

Corporate Office Properties Trust

Index to Supplemental Information (Unaudited)

December 31, 2003

	Page No.
Highlights and Discussion
Shareholder Return	1
Reporting Period Highlights – Year Ended December 31, 2003	1
Reporting Period Highlights – Fourth Quarter 2003	3
Forward-Looking Statements	4

Financial Statements
Quarterly Selected Financial Summary Data	6
Quarterly Consolidated Balance Sheets	7
Quarterly Consolidated Statements of Operations	8
Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Earnings per diluted share, as adjusted	9
Quarterly Consolidated Reconciliations of Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA), Combined Net Operating Income (NOI), Discontinued Operations and Gains on Sales of Real Estate	10
Annual Selected Financial Summary Data	11
Annual Consolidated Balance Sheets	12
Annual Consolidated Statements of Operations	13
Annual Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Earnings per diluted share, as adjusted	14
Annual Consolidated Reconciliation of Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA)	15

Selected Financial Analyses
Quarterly Equity Analysis	16
Quarterly Valuation Analysis	17
Quarterly Debt Analysis	18
Quarterly Operating Ratios	19
Quarterly Dividend Analysis	20
Investor Composition and Analyst Coverage	21
Debt Maturity Schedule –December 31, 2003	22

Portfolio Summary
Property Summary by Region – December 31, 2003	23
Property Occupancy Rates by Region by Quarter	27
Top Twenty Office Tenants as of December 31, 2003	28
Combined Real Estate Revenue and Combined Net Operating Income by Geographic Region by Quarter	29
Same Office Property Cash and GAAP Net Operating Income by Quarter	30
Average Occupancy Rates by Region for Same Office Properties	31
Office Lease Expiration Analysis by Year	32
Annual Office Renewal Analysis	33
Quarterly Office Renewal Analysis	34
Year to Date Acquisition and Disposition Summary as of December 31, 2003	36

Development Summary as of December 31, 2003	37
Development Placed into Service during the Year Ended December 31, 2003	38
Joint Venture Summary as of December 31, 2003	39
Reconciliations of Non GAAP Measurements	40
Reclassifications and Definitions	41

To Members of the Investment Community:

We prepared this supplemental information package to provide you with additional detail on our properties and operations. The information in this package is unaudited, furnished to the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our quarterly and annual reports. If you have any questions or comments, please contact Ms. Mary Ellen Fowler, Vice President, Finance and Investor Relations at (410) 992-7324 or maryellen.fowler@copt.com. Reconciliations between GAAP and non-GAAP measurements, along with reclassifications and definitions for certain terms used herein, have been provided on pages 40 through 43.

Shareholder Return

• Our shareholders earned a total return of 57.6% for the year 2003 and 329.0% for the past five years, the highest total five-year return among all office REITs and the second highest total return among all publicly traded REITs, on the basis of numbers compiled by the National Association of Real Estate Investment Trusts. The 57.6% total return for the year 2003 ranked second highest among all office REITs. These return computations include the re-investment of dividends on the ex-dividend date for the calendar years 1999, 2000, 2001, 2002 and 2003.

Reporting Period Highlights – Year Ended December 31, 2003

Financial Results

• Reported Net Income Available to Common Shareholders of $7,650,000 or $.27 per diluted share for the year ended December 31, 2003 as compared to $13,167,000 or $.56 per diluted share for the comparable 2002 period, representing a decrease of (51.8)% per share. Included in this net income available to common shareholders is recognition of an accounting charge of $11.2 million associated with our repurchase of preferred units in excess of recorded book value which contributed $(.39) per diluted share. Without this accounting charge of $11.2 million, our net income available to common shareholders would have been $.66 per diluted share, representing an increase of 17.9% over the comparable 2002 period.

• Reported FFO – diluted of $61,268,000 or $1.56 per share/unit for the year ended December 31, 2003 as compared to $52,854,000 or $1.44 per share/unit for the comparable 2002 period, as recomputed for the effects of Statement of Financial Accounting Standards No. 141, “Business Combinations” or (“SFAS 141”) and Statement of Financial Accounting Standards No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections” or (“SFAS 145”), representing an increase of 8.3% per share/unit. Excluding the effects of SFAS 141, our FFO per share would have been $1.51 per share for the year ended December 31, 2003 as compared to $1.38 per share for the comparable 2002 period, representing an increase of 9.4% per share.

• Reported AFFO – diluted of $43,155,000 for the year ended December 31, 2003 as compared to $41,483,000 for the comparable 2002 period, representing an increase of 4.0%.

• Our FFO payout ratio was 56.8% for the year ended December 31, 2003 as compared to 58.2% for the comparable 2002 period. Our AFFO payout ratio was 80.6% for the year ended December 31, 2003 as compared to 74.2% for the comparable 2002 period.

Financing Activity and Capital Transactions

• Raised $105.0 million in gross proceeds ($101.6 million in net proceeds) from the sale of preferred shares to the public and used the proceeds to repay debt and finance acquisition activity. In August, we issued 2,200,000 Series G preferred shares with an annual dividend of 8.0% and in December, we issued 2,000,000 Series H preferred shares with an annual dividend of 7.5%.

• Sold 5,290,000 common shares to certain underwriters for $15.03 per share, generating $79.4 million in net proceeds in May 2003.

• Repurchased all of our 1,016,662 outstanding Series C convertible preferred units for $36.1 million or $14.90 per unit, on an as-if converted basis, in June 2003.

• Increased our quarterly common dividend by 6.82% to $.235 per share from $.22 per share.

• Closed a $52.0 million, seven-year, 5.36% fixed rate mortgage, collateralized by five Northern Virginia properties and utilized the proceeds to repay a $45.0 million interim loan and generated $7.0 million of excess cash flow.

Acquisitions / Dispositions

• Acquired seven office buildings totaling 993,479 rentable square feet for $165.1 million, representing an average cost of $166 per square foot. These properties were 98.4% occupied at the acquisition date. Accomplished our strategic objective of growth in targeted submarkets in Northern Virginia as we invested $147.0 million, or 89.1% of our total investment for the year, in the Herndon (571,486 rentable square feet in three properties) and Chantilly (266,993 rentable square feet in three properties) submarkets.

• Disposed of two non-core properties and adjacent development land parcels for total proceeds of $41.2 million in the first quarter of 2003 and generated net cash proceeds after debt repayment of $15.6 million.

Development

• Acquired 108 acres of land adjacent to the National Business Park for $30.0 million in two phases — $21.0 million which closed in January 2003 and the remaining $9.0 million which closed in November 2003. The purchase was funded through two five-year seller loans totaling $25.7 million, with a fixed interest rate of 3.0% for each loan, and $4.3 million in cash. The 108 acres can accommodate approximately 1.3 million square feet of development.

• Placed into service 275,595 rentable square feet which was 72.7% leased as of December 31, 2003, including 119,904 rentable square feet located at 140 National Business Parkway (100% leased).

• Leased the entire 156,730 square foot building located at 2720 Technology Drive (known as 220 NBP) and commenced construction in the second quarter of 2003. We contributed this property into a joint venture in January 2003 in exchange for a 20% interest and $4.0 million. Stabilization is anticipated in the third quarter of 2004 at which time we anticipate acquiring the remaining joint venture interest not owned by us.

• Leased the entire 88,094 square foot building located at 4851 Stonecroft Boulevard (known as Greens III) to The Aerospace Corporation. This wholly-owned development property is anticipated to reach stabilization in the fourth quarter of 2004.

Operations

• We renewed 908,501 square feet or 75.7% of our office leases (based upon square footage) with an average capital cost of $3.68 per square foot during the year ended December 31, 2003. For our renewed and retenanted space of 1.6 million square feet, we realized changes in base rent and total rent, on a straight-line basis, of 5.7% and 3.4%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base rent and total rent on a cash basis changed (1.0)% and (2.5)%, respectively, on this same space.

• Realized $1.4 million of profit associated with third party construction management and design services provided primarily to the United States of America as part of our growth initiative to generate additional fee income. This profit is included in the income from service operations line item on our statement of operations.

Reporting Period Highlights – Fourth Quarter 2003

Financial Results

• Reported Net Income Available to Common Shareholders of $4,291,000 or $.14 per share for the fourth quarter of 2003 as compared to $3,426,000 or $.14 per diluted share for the comparable 2002 period, remaining flat per share.

• Reported FFO – diluted of $16,187,000 or $.40 per share/unit for the fourth quarter of 2003 as compared to $14,298,000 or $.39 per share/unit for the comparable 2002 period, as recomputed for the effects of SFAS 141 and SFAS 145, representing an increase of 2.6% per share/unit. Excluding the effects of SFAS 141 described below, our FFO per share would have been $.39 per share for the fourth quarter of 2003 as compared to $.37 per share for the comparable 2002 period, representing an increase of 5.4% per share.

• Recorded SFAS 141 accretion of intangible assets and liabilities classified as revenues of $352,000 and $426,000 in the fourth quarter of 2003 and 2002, respectively, which increased FFO.

• Reported AFFO – diluted of $11,060,000 for the fourth quarter of 2003 as compared to $11,564,000 for the comparable 2002 period, representing a decrease of (4.4)%. This decrease is the result of higher recurring capital expenditures.

• Our FFO payout ratio was 55.8% for the fourth quarter of 2003 as compared to 55.1% for the comparable 2002 period. Our AFFO payout ratio was 81.6% for the fourth quarter of 2003 as compared to 68.1% for the comparable 2002 period.

Financing Activity and Capital Transactions

• On December 18, 2003, we received $48.4 million in net proceeds from the sale of 2,000,000 Series H preferred shares to the public with an annual dividend of 7.5%. We utilized the net proceeds to repay $48.4 million on our revolving line of credit.

• As of December 31, 2003, our debt to market capitalization was 42.1% and our debt to undepreciated book value of real estate assets was 54.8%. We achieved an EBITDA interest coverage ratio of 2.9x and an EBITDA fixed charge coverage ratio of 2.2x for this quarter.

Operations

• Overall occupancy was 91.2% and our portfolio was 92.8% leased as of December 31, 2003.

• Our same property cash NOI decreased by 6.6% or $1,856,000 as compared to the quarter ended December 31, 2002. This decline in cash NOI for our same property portfolio was primarily caused by $2,850,000 in reduced lease termination fees. Excluding the lease termination fees from cash NOI for the same property portfolio, our same property cash NOI would have increased by 4.0% in the fourth quarter 2003 as compared to the fourth quarter 2002. Our same property portfolio consists of 107 properties and represents 85.0% of our total square feet owned as of December 31, 2003.

• Weighted average lease term of our office portfolio is 4.9 years as of December 31, 2003, with an average contractual rental rate (including tenant reimbursements of operating costs) of $20.06 per square foot.

• We renewed 266,883 square feet or 88.0% of our office leases (based upon square footage) with an average capital cost of $2.61 per square foot during the fourth quarter. For our renewed and retenanted space of 553,476 square feet, we realized changes in base rent and total rent, on a straight-line basis, of 1.0% and (.4)%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base rent and total rent on a cash basis changed (4.0)% and (5.0)%, respectively, on this same space.

Joint Ventures

• In December 2003, we acquired for $5,351,000, the remaining joint venture interest in the property located at 140 National Business Parkway. This former development property was placed into service upon lease commencement in December 2003. The entire 119,904 rentable square foot building is leased to the United States of America under a long term lease.

• We paid $857,000 for the remaining interest in a joint venture which owned a parcel of land held for development and two operating properties located at 8661 and 8671 Robert Fulton Drive in December 2003. The two operating properties, containing 105,850 rentable square feet, were 48.9% occupied as of December 31, 2003.

Forward-Looking Statements

This supplemental information contains “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on our current expectations, estimates and projections about future events and financial trends affecting us. Forward-looking statements can be identified by the use of words such as “may”, “will”, “should”, “expect”, “estimate” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Accordingly, we can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.

Important factors that may affect these expectations, estimates, and projections include, but are not limited to:

• our ability to borrow on favorable terms;

• general economic and business conditions, which will, among other things, affect office property demand and rents, tenant creditworthiness, interest rates and financing availability;

• adverse changes in the real estate markets including, among other things, increased competition with other companies;

• risk of real estate acquisition and development, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;

• risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives;

• governmental actions and initiatives; and

• environmental requirements.

We undertake no obligation to update or supplement any forward-looking statements. For further information, please refer to our filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2002.

Quarterly Selected Financial Summary Data

(Dollars in thousands)

	2003												2002
	December 31			September 30			June 30			March 31			December 31

Revenues from Real Estate Operations	$	46,579		$	45,448		$	40,878		$	41,518		$	41,371

Combined Revenues from Real Estate Operations	46,579			45,447			40,880			42,412			42,363

Combined Net Operating Income	32,710			32,385			29,755			28,410			29,983

EBITDA	30,688			31,289			27,876			26,808			28,231

Net Income	8,070			8,582			6,238			7,987			5,960
Preferred Share dividends	(3,779		)	(3,157		)	(2,534		)	(2,533		)	(2,534		)
Repurchase of preferred units in excess of recorded book value	—			—			(11,224		)	—			—

Net Income (Loss) Available to Common Shareholders	$	4,291		$	5,425		$	(7,520	)	$	5,454		$	3,426

Earnings per diluted share	$	0.14		$	0.18		$	(0.30	)	$	0.22		$	0.14

Funds From Operations (FFO) - Diluted	$	16,187		$	16,725		$	14,909		$	13,621		$	14,298
FFO per diluted share	$	0.40		$	0.41		$	0.38		$	0.37		$	0.39

FFO - Diluted, excluding SFAS 141	$	15,835		$	16,378		$	14,340		$	13,072		$	13,872
FFO per diluted share, excluding SFAS 141	$	0.39		$	0.41		$	0.37		$	0.35		$	0.37

Adjusted FFO - Diluted	$	11,060		$	11,963		$	11,167		$	9,139		$	11,564

Payout Ratios:

Earnings Payout	158.63		%	125.31		%	n/a			94.22		%	149.27		%

FFO - Diluted (A)	55.77		%	53.93		%	60.32		%	58.06		%	55.06		%

AFFO - Diluted (B)	81.62		%	75.39		%	80.53		%	86.53		%	68.08		%

Total Dividends/Distributions	$	12,670		$	12,040		$	11,301		$	10,222		$	10,196

(A) Computed by dividing total dividends/distributions (except for dividends on Series B, E, F, G and H Cumulative Redeemable Preferred Shares which are deducted to calculate FFO and including dividends on restricted shares for the 4th quarter of 2002 and 1st and 2nd quarters of 2003) by FFO diluted.

(B) Computed by dividing total dividends/distributions (except for dividends on Series B, E, F, G and H Cumulative Redeemable Preferred Shares which are deducted to calculate AFFO and including dividends on restricted shares for the 4th quarter of 2002 and 1st and 2nd quarters of 2003) by AFFO diluted.

Note: The above presentation does not separately report discontinued operations.

Quarterly Consolidated Balance Sheets

(Dollars in thousands except per share data)

	2003												2002
	December 31			September 30			June 30			March 31			December 31
Assets
Investment in real estate:
Land - operational	$	214,794		$	206,316		$	196,857		$	187,344		$	190,247
Land - development	53,404			43,482			43,357			43,233			24,998
Construction in progress	13,812			9,474			6,847			5,334			9,926
Buildings and improvements	995,347			973,092			926,389			876,246			887,854
Investment in and advances to unconsolidated real estate joint ventures	4,651			9,576			9,817			9,679			7,999
Less: accumulated depreciation	(103,070		)	(96,538		)	(88,174		)	(80,513		)	(78,069		)
Net investment in real estate	1,178,938			1,145,402			1,095,093			1,041,323			1,042,955

Cash and cash equivalents	9,481			13,372			8,367			6,282			5,991
Restricted cash	11,030			7,878			9,547			14,569			9,739
Accounts receivable, net	13,047			7,049			6,129			7,359			3,509
Investment in and advances to other unconsolidated entities	1,621			1,621			1,621			1,621			1,621
Deferred rent receivable	17,903			16,728			15,535			14,278			13,698
Deferred charges, net	17,723			17,487			17,399			18,062			19,848
Intangible assets on real estate acquisitions, net	66,012			67,691			45,527			30,765			28,424
Prepaid and other assets	14,311			21,237			16,403			12,516			11,260
Furniture, fixtures and equipment, net of accumulated depreciation	2,010			2,006			1,745			1,565			1,676
Total assets	$	1,332,076		$	1,300,471		$	1,217,366		$	1,148,340		$	1,138,721

Liabilities and shareholders’ equity
Liabilities:
Mortgage and other loans payable	$	738,698		$	759,298		$	736,117		$	707,990		$	705,056
Accounts payable and accrued expenses	23,126			15,450			13,756			12,040			11,670
Rents received in advance and security deposits	10,112			11,503			7,060			9,168			8,253
Deferred revenue associated with acquired operating leases	9,630			10,292			10,941			11,639			12,250
Dividends/distributions payable	12,098			11,637			10,421			9,819			9,794
Fair value of derivatives	467			726			921			793			494
Other liabilities	7,768			7,114			6,633			6,157			1,821
Total liabilities	801,899			816,020			785,849			757,606			749,338

Minority interests:
Preferred Units in the Operating Partnership	—			—			—			24,367			24,367
Common Units in the Operating Partnership	79,796			80,411			81,274			76,687			76,519
Total minority interests	79,796			80,411			81,274			101,054			100,886

Commitments and contingencies	—			—			—			—			—

Shareholders’ equity:
Preferred Shares ($0.01 par value; 15,000,000 authorized);
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of December 31, 2003)	13			13			13			13			13
544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of December 31, 2003)	5			5			5			5			5
1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of December 31, 2003)	11			11			11			11			11
1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of December 31, 2003)	14			14			14			14			14
2,200,000 designated as Series G Cumulative Redeemable Preferred Shares of beneficial interest (2,200,000 shares issued as of December 31, 2003)	22			22			—			—			—
2,000,000 designated as Series H Cumulative Redeemable Preferred Shares of beneficial interest (2,000,000 shares issued as of December 31, 2003)	20			—			—			—			—
Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 29,563,867 shares issued as of December 31, 2003)	296			296			293			239			238
Treasury Shares, at cost (166,600 shares as of December 31, 2003)	(1,415		)	(1,415		)	(1,415		)	(1,415		)	(1,415		)
Additional paid-in capital	494,299			445,717			390,794			315,781			313,786
Cumulative distributions in excess of net income	(38,483		)	(35,968		)	(34,595		)	(20,751		)	(21,067		)
Value of unearned restricted common share grants	(4,107		)	(4,107		)	(4,185		)	(3,657		)	(2,739		)
Accumulated other comprehensive loss	(294		)	(548		)	(692		)	(560		)	(349		)
Total shareholders’ equity	450,381			404,040			350,243			289,680			288,497
Total shareholders’ equity and minority interests	530,177			484,451			431,517			390,734			389,383
Total liabilities and shareholders’ equity	$	1,332,076		$	1,300,471		$	1,217,366		$	1,148,340		$	1,138,721

Quarterly Consolidated Statements of Operations

(Dollars and units in thousands)

	2003												2002
	December 31			September 30			June 30			March 31			December 31
Real Estate Operations
Revenues
Rental revenue	$	40,127		$	40,210		$	36,722		$	35,989		$	37,093
Tenant recoveries and other revenue	6,452			5,238			4,156			5,529			4,278
Revenues from Real Estate Operations	46,579			45,448			40,878			41,518			41,371

Expenses
Property operating	13,869			13,075			11,101			13,654			12,033
Interest	10,471			10,436			10,037			10,135			10,991
Amortization of deferred financing costs	810			773			595			589			708
Depreciation and amortization	10,387			9,462			9,229			8,044			8,918
Expenses from Real Estate Operations	35,537			33,746			30,962			32,422			32,650

Earnings from real estate operations before equity in (loss) income of unconsolidated real estate joint ventures	11,042			11,702			9,916			9,096			8,721
Equity in (loss) income of unconsol. real estate joint ventures	(7		)	95			(33		)	(153		)	35
Earnings from real estate operations	11,035			11,797			9,883			8,943			8,756
Income (losses) from service operations	227			742			(81		)	(81		)	(696		)
General and administrative	(2,242		)	(1,937		)	(1,766		)	(1,948		)	(1,772		)
Income before gain on sales of real estate, minority interests, income taxes and discontinued operations	9,020			10,602			8,036			6,914			6,288
Gains on sales of real estate	24			23			21			404			822
Income before minority interests, income taxes and discontinued operations	9,044			10,625			8,057			7,318			7,110
Minority interests	(1,279		)	(1,833		)	(1,815		)	(1,787		)	(1,753		)
Income before income taxes and discontinued operations	7,765			8,792			6,242			5,531			5,357
Income tax benefit (expense), net	305			(221		)	19			21			199
Income before discontinued operations	8,070			8,571			6,261			5,552			5,556
Discontinued operations, net	—			11			(23		)	2,435			404
Net Income	8,070			8,582			6,238			7,987			5,960
Preferred share dividends	(3,779		)	(3,157		)	(2,534		)	(2,533		)	(2,534		)
Repurchase of preferred units in excess of recorded book value	—			—			(11,224		)	—			—
Net Income (Loss) Available to Common Shareholders	$	4,291		$	5,425		$	(7,520	)	$	5,454		$	3,426

For EPS Computations:
Numerator:
Net Income (Loss) Available to Common Shareholders	$	4,291		$	5,425		$	(7,520	)	$	5,454		$	3,426
Dividends on convertible preferred shares	136			136			—			136			136
Expense on dilutive options	—			—			—			—			—
Numerator for Dilutive EPS Computation	$	4,427		$	5,561		$	(7,520	)	$	5,590		$	3,562

Denominator:
Weighted Average Common Shares - Basic	28,951			28,832			25,443			23,323			23,234
Dilutive options	1,658			1,480			—			972			898
Preferred shares outstanding assuming conversion	1,197			1,197			—			1,197			1,197
Weighted Average Common Shares - Diluted	31,806			31,509			25,443			25,492			25,329

Earnings per diluted share	$	0.14		$	0.18		$	(0.30	)	$	0.22		$	0.14

Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From

Operations (AFFO) and Earnings per diluted share, as adjusted

(Dollars and shares in thousands)

	2003												2002
	December 31			September 30			June 30			March 31			December 31

Net Income	$	8,070		$	8,582		$	6,238		$	7,987		$	5,960
Preferred share dividends	(3,779		)	(3,157		)	(2,534		)	(2,533		)	(2,534		)
Combined real estate related depreciation and other amortization	10,292			9,337			9,108			7,944			8,766
Depreciation and amortization of unconsolidated real estate entities	112			86			61			36			39
Minority interest - common units, gross	1,378			1,763			1,338			2,233			1,433
Gain on sale of real estate properties, excluding redevelopment	(23		)	(23		)	(8		)	(2,843		)	(156		)
Funds From Operations (FFO) - basic	16,050			16,588			14,203			12,824			13,508

Minority interest - preferred units	—			—			477			572			571
Convertible preferred share dividends	136			136			136			136			136
Restricted common share dividends	—			—			90			83			75
Expense on dilutive options	1			1			3			6			8
Funds From Operations (FFO) - Diluted	$	16,187		$	16,725		$	14,909		$	13,621		$	14,298

Straight line rents	(1,061		)	(1,293		)	(1,309		)	(1,177		)	(317		)
Accretion of intangible assets and liabilities classified as revenues	(352		)	(347		)	(569		)	(549		)	(426		)
Recurring capital improvements	(3,714		)	(3,122		)	(1,864		)	(2,756		)	(1,991		)
Adjusted Funds from Operations - Diluted	$	11,060		$	11,963		$	11,167		$	9,139		$	11,564

Preferred dividends - redeemable non-convertible (1)	3,643			3,021			2,397			2,397			2,398
Preferred dividends - redeemable convertible	136			136			136			136			136
Preferred distributions	—			—			478			572			571
Common distributions	2,084			2,085			1,968			1,978			1,977
Common dividends (2)	6,807			6,798			6,322			5,139			5,114
Total Dividends/Distributions	$	12,670		$	12,040		$	11,301		$	10,222		$	10,196

Denominator for earnings per share - diluted	31,806			31,509			25,443			25,492			25,329
Preferred shares outstanding assuming conversion	—			—			1,197			—			—
Common units	8,870			8,909			8,963			8,990			8,990
Restricted shares	—			—			334			330			326
Dilutive options	5			—			1,274			43			46
Convertible preferred units	—			—			2,022			2,421			2,421
Denominator for funds from operations per share - diluted	40,681			40,418			39,233			37,276			37,112

Funds From Operations (FFO) - Diluted	$	16,187		$	16,725		$	14,909		$	13,621		$	14,298
Less: reclassification of accretion of intangible assets and liabilities classified as revenues	(352		)	(347		)	(569		)	(549		)	(426		)
Funds From Operations (FFO) - Diluted, excluding SFAS 141	$	15,835		$	16,378		$	14,340		$	13,072		$	13,872

Numerator for Dilutive EPS Computation	$	4,427		$	5,561		$	(7,520	)	$	5,590		$	3,562
Add: Dividends on convertible preferred shares	—			—			136			—			—
Add: Expense on dilutive options	—			—			3			—			—
Less: Repurchase of preferred units in excess of recorded book value (3)	n/a			n/a			11,224			n/a			n/a
Numerator for Dilutive EPS Computation, as adjusted	$	4,427		$	5,561		$	3,843		$	5,590		$	3,562

Weighted Average Common Shares - Diluted	31,806			31,509			25,443			25,492			25,329
Add: dilutive options	n/a			n/a			1,274			n/a			n/a
Add: preferred shares assuming conversion	n/a			n/a			1,197			n/a			n/a
Weighted Average Common Shares - Diluted, as adjusted	31,806			31,509			27,914			25,492			25,329

Earnings per diluted share, as adjusted for repurchase of preferred units in excess of recorded book value	$	0.14		$	0.18		$	0.14		$	0.22		$	0.14

(1) Includes Series B, E, F, G and H Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.

(2) Includes dividends on restricted shares for the 4th quarter of 2002 and the 1st and 2nd quarters of 2003.

(3) Earnings per diluted share has been adjusted to exclude the effect of the repurchase of preferred units in excess of recorded book value.

Quarterly Consolidated Reconciliations of Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA), Combined Net Operating Income (NOI), Discontinued Operations and Gains on Sales of Real Estate

(Dollars and shares in thousands)

	2003												2002
	December 31			September 30			June 30			March 31			December 31

Net Income	$	8,070		$	8,582		$	6,238		$	7,987		$	5,960
Preferred share dividends	(3,779		)	(3,157		)	(2,534		)	(2,533		)	(2,534		)
Combined interest expense	10,471			10,436			10,037			10,235			11,061
Amortization of deferred financing costs	810			773			595			589			708
Income tax (expense) benefit, gross	(406		)	297			(30		)	(29		)	(282		)
Depreciation of furniture, fixtures and equipment	96			124			121			120			170
Combined real estate related depreciation and other amortization	10,292			9,337			9,108			7,944			8,766
Gain on sale of depreciated real estate properties	(23		)	(23		)	(8		)	(2,843		)	(156		)
Minority interest - preferred units	—			—			477			572			571
Minority interest - common units, gross	1,378			1,763			1,338			2,233			1,433
Other consolidated entities	—			—			—			—			—
Preferred share dividends	3,779			3,157			2,534			2,533			2,534
Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA)	$	30,688		$	31,289		$	27,876		$	26,808		$	28,231
Addback:
General and administrative	2,242			1,937			1,766			1,948			1,772
(Income) losses from service operations	(227		)	(742		)	81			81			696
Equity in loss (income) of unconsol. real estate joint ventures	7			(95		)	33			153			(35		)
Merchant sales and real estate services	—			(4		)	(1		)	(580		)	(681		)
Combined Net Operating Income (NOI)	$	32,710		$	32,385		$	29,755		$	28,410		$	29,983

Discontinued Operations:
Revenues from real estate operations	$	—		$	2		$	6		$	902		$	1,008
Property operating expenses	—			13			(24		)	(348		)	(347		)
Depreciation and amortization	—			—			—			(19		)	(19		)
Interest	—			—			—			(100		)	(70		)
Gain on sale of real estate	(1		)	—			(16		)	3,011			—
Income from discontinued operations	(1		)	15			(34		)	3,446			572
Minority interests in discontinued operations	—			(4		)	11			(1,011		)	(168		)
Income from discontinued operations, net of minority interests	$	(1	)	$	11		$	(23	)	$	2,435		$	404

Gains on sales of real estate per statement of operations	$	24		$	23		$	21		$	404		$	822
Gain on sale of real estate from discontinued operations	(1		)	—			(16		)	3,011			—
Combined gains on sale of real estate	23			23			5			3,415			822
Other	—			—			4			8			15
Merchant sales and real estate services	—			(4		)	(1		)	(580		)	(681		)
Gain on sale of depreciated real estate properties	$	23		$	19		$	8		$	2,843		$	156

Annual Selected Financial Summary Data

(Dollars in thousands)

	December 31
	2003			2002			2001

Revenues from Real Estate Operations	$	174,423		$	150,335		$	121,663

EBITDA	116,659			103,913			84,111

Net Income	30,877			23,301			19,922
Preferred Share dividends	(12,003		)	(10,134		)	(6,857		)
Repurchase of preferred units in excess of recorded book value	(11,224		)	—			—

Net Income Available to Common Shareholders	$	7,650		$	13,167		$	13,065


Earnings per diluted share	$	0.27		$	0.56		$	0.63


Funds From Operations (FFO) - Diluted	$	61,268		$	52,854		$	43,001
FFO per diluted share	$	1.56		$	1.44		$	1.28

FFO - Diluted, excluding SFAS 141	$	59,451		$	50,512		$	43,001
FFO per diluted share, excluding SFAS 141	$	1.51		$	1.38		$	1.28


Adjusted FFO - Diluted	$	43,155		$	41,483		$	34,396

Payout Ratios:

Earnings Payout	327.66		%	149.86		%	126.33		%

FFO - Diluted (A)	56.76		%	58.21		%	62.87		%

AFFO - Diluted (B)	80.58		%	74.17		%	78.60		%

Total Dividends/Distributions	$	46,233		$	40,357		$	33,384

Note: The above presentation does not separately report discontinued operations.

Annual Consolidated Balance Sheets

(Dollars in thousands except per share data)

	December 31
	2003			2002			2001
Assets
Investment in real estate:
Land - operational	$	214,794		$	190,247		$	163,513
Land - development	53,404			24,998			26,751
Construction in progress	13,812			9,926			37,492
Buildings and improvements	995,347			887,854			736,660
Investment in and advances to unconsolidated real estate joint ventures	4,651			7,999			11,047
Less: accumulated depreciation	(103,070		)	(78,069		)	(51,763		)
Net investment in real estate	1,178,938			1,042,955			923,700


Cash and cash equivalents	9,481			5,991			6,640
Restricted cash	11,030			9,739			4,947
Accounts receivable, net	13,047			3,509			6,389
Investment in and advances to other unconsolidated entities	1,621			1,621			2,112
Deferred rent receivable	17,903			13,698			11,447
Deferred charges, net	17,723			19,848			16,886
Intangible assets on real estate acquisitions, net	66,012			28,424			14,036
Prepaid and other assets	14,311			11,260			6,968
Furniture, fixtures and equipment, net of accumulated depreciation	2,010			1,676			1,771
Total assets	$	1,332,076		$	1,138,721		$	994,896

Liabilities and shareholders’ equity
Liabilities:
Mortgage and other loans payable	$	738,698		$	705,056		$	573,327
Accounts payable and accrued expenses	23,126			11,670			10,674
Rents received in advance and security deposits	10,112			8,253			6,567
Deferred revenue associated with acquired operating leases	9,630			12,250			10,684
Dividends/distributions payable	12,098			9,794			8,965
Fair value of derivatives	467			494			3,781
Other liabilities	7,768			1,821			12,192
Total liabilities	801,899			749,338			626,190

Minority interests:
Preferred Units in the Operating Partnership	—			24,367			24,367
Common Units in the Operating Partnership	79,796			76,519			80,415
Total minority interests	79,796			100,886			104,782

Commitments and contingencies	—			—			—

Shareholders’ equity:
Preferred Shares ($0.01 par value; 15,000,000 authorized);
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of December 31, 2003)	13			13			13
544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of December 31, 2003)	5			5			5
1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of December 31, 2003)	11			11			11
1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of December 31, 2003)	14			14			14
2,200,000 designated as Series G Cumulative Redeemable Preferred Shares of beneficial interest (2,200,000 shares issued as of December 31, 2003)	22			—			—
2,000,000 designated as Series H Cumulative Redeemable Preferred Shares of beneficial interest (2,000,000 shares issued as of December 31, 2003)	20			—			—
Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 29,563,867 shares issued as of December 31, 2003)	296			238			209
Treasury Shares, at cost (166,600 shares as of December 31, 2003)	(1,415		)	(1,415		)	(1,415		)
Additional paid-in capital	494,299			313,786			285,363
Cumulative distributions in excess of net income	(38,483		)	(21,067		)	(14,501		)
Value of unearned restricted common share grants	(4,107		)	(2,739		)	(3,275		)
Accumulated other comprehensive loss	(294		)	(349		)	(2,500		)
Total shareholders’ equity	450,381			288,497			263,924
Total shareholders’ equity and minority interests	$	530,177		$	389,383		$	368,706
Total liabilities and shareholders’ equity	$	1,332,076		$	1,138,721		$	994,896

Annual Consolidated Statements of Operations

(Dollars and units in thousands)

	December 31
	2003			2002			2001
Real Estate Operations
Revenues
Rental revenue	$	153,048		$	134,421		$	107,166
Tenant recoveries and other revenue	21,375			15,914			14,497
Revenues from Real Estate Operations	174,423			150,335			121,663

Expenses
Property operating	51,699			43,929			35,413
Interest	41,079			39,065			32,297
Amortization of deferred financing costs	2,767			2,501			2,031
Depreciation and amortization	37,122			30,859			20,405
Expenses from Real Estate Operations	132,667			116,354			90,146

Earnings from real estate operations before equity in (loss) income of unconsolidated real estate joint ventures	41,756			33,981			31,517
Equity in (loss) income of unconsol. real estate joint ventures	(98		)	169			208
Earnings from real estate operations	41,658			34,150			31,725
Income (losses) from service operations	807			(875		)	(782		)
General and administrative	(7,893		)	(6,697		)	(5,289		)
Income before gain on sales of real estate, minority interests, income taxes, discontinued operations and cumulative effect of accounting change	34,572			26,578			25,654
Gains on sales of real estate	472			2,564			1,618
Income before minority interests, income taxes, discontinued operations and cumulative effect of accounting change	35,044			29,142			27,272
Minority interests	(6,714		)	(7,356		)	(8,415		)
Income before income taxes, discontinued operations and cumulative effect of accounting change	28,330			21,786			18,857
Income tax benefit, net	124			242			269
Income before discontinued operations and cumulative effect of accounting change	28,454			22,028			19,126
Discontinued operations, net	2,423			1,273			970
Cumulative effect of accounting change, net	—			—			(174		)
Net Income	30,877			23,301			19,922
Preferred share dividends	(12,003		)	(10,134		)	(6,857		)
Repurchase of preferred units in excess of recorded book value	(11,224		)	—			—
Net Income Available to Common Shareholders	$	7,650		$	13,167		$	13,065

For EPS Computations:
Numerator:
Net Income Available to Common Shareholders	$	7,650		$	13,167		$	13,065
Dividends on convertible preferred shares	—			544			508
Expense on dilutive options	—			—			—
Numerator for Dilutive EPS Computation	$	7,650		$	13,711		$	13,573

Denominator:
Weighted Average Common Shares - Basic	26,659			22,472			20,099
Dilutive options	1,362			878			406
Preferred shares outstanding assuming conversion	—			1,197			1,118
Weighted Average Common Shares - Diluted	28,021			24,547			21,623

Earnings per diluted share	$	0.27		$	0.56		$	0.63

Annual Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From
Operations (AFFO) and Earnings per diluted share, as adjusted
(Dollars and shares in thousands)

	December 31
	2003			2002			2001

Net Income	$	30,877		$	23,301		$	19,922
Preferred share dividends	(12,003		)	(10,134		)	(6,857		)
Combined real estate related depreciation and other amortization	36,681			30,832			20,558
Depreciation and amortization of unconsolidated real estate entities	295			165			144
Minority interest - common units, gross	6,712			5,800			6,592
Cumulative effect of accounting change, gross	—			—			263
Gain on sale of real estate properties, excluding redevelopment	(2,897		)	(268		)	(416		)
Funds From Operations (FFO) - basic	59,665			49,696			40,206

Minority interest - preferred units	1,049			2,287			2,287
Convertible preferred share dividends	544			544			508
Restricted common share dividends	—			283			—
Expense on dilutive options	10			44			—
Funds From Operations (FFO) - Diluted	$	61,268		$	52,854		$	43,001

Straight line rents	(4,840		)	(2,389		)	(3,175		)
Accretion of intangible assets and liabilities classified as revenues	(1,817		)	(2,342		)	—
Recurring capital improvements	(11,456		)	(6,640		)	(5,430		)
Adjusted Funds from Operations - Diluted	$	43,155		$	41,483		$	34,396


Preferred dividends - redeemable non-convertible (1)	11,459			9,590			6,350
Preferred dividends - redeemable convertible	544			544			508
Preferred distributions	1,049			2,287			2,287
Common dividends on restricted shares	—			283			—
Common distributions	8,115			7,921			7,734
Common dividends (2)	25,066			19,732			16,505
Total Dividends/Distributions	$	46,233		$	40,357		$	33,384

Denominator for earnings per share - diluted	28,021			24,547			21,623
Preferred shares outstanding assuming conversion	1,197			—			—
Common units	8,932			9,282			9,437
Restricted shares	—			326			—
Dilutive options	43			58			—
Convertible preferred units	1,101			2,421			2,421
Denominator for funds from operations per share - diluted	39,294			36,634			33,481

Funds From Operations (FFO) - Diluted	$	61,268		$	52,854		$	43,001
Less: reclassification of accretion of intangible assets and liabilities classified as revenues	(1,817		)	(2,342		)	—
Funds From Operations (FFO) - Diluted, excluding SFAS 141	$	59,451		$	50,512		$	43,001

Numerator for Dilutive EPS Computation	$	7,650		$	13,711		$	13,573
Add: Dividends on convertible preferred shares	544			—			—
Add: Expense on dilutive options	10			—			—
Less: Repurchase of preferred units in excess of recorded book value (3)	11,224			—			—
Numerator for Dilutive EPS Computation, as adjusted	$	19,428		$	13,711		$	13,573

Weighted Average Common Shares - Diluted	28,021			24,547			21,623
Add: dilutive options	43			n/a			n/a
Add: preferred shares assuming conversion	1,197			n/a			n/a
Weighted Average Common Shares - Diluted, as adjusted	29,261			24,547			21,623


Earnings per diluted share, as adjusted for repurchase of preferred units in excess of recorded book value	$	0.66		$	0.56		$	0.63

(1) Includes Series B, E, F, G and H Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.

(2) Includes dividends on restricted shares for the 4th quarter of 2002 and the 1st and 2nd quarters of 2003.

(3) Earnings per diluted share has been adjusted to exclude the effect of the repurchase of preferred units in excess of recorded book value.

Annual Consolidated Reconciliation of Earnings Before Interest,
Income Taxes, Depreciation and Amortization (EBITDA)
(Dollars and shares in thousands)

	December 31
	2003			2002			2001

Net Income	$	30,877		$	23,301		$	19,922
Preferred share dividends	(12,003		)	(10,134		)	(6,857		)
Combined interest expense	41,179			39,358			32,781
Amortization of deferred financing costs	2,767			2,501			2,031
Income tax (expense) benefit, gross	(169		)	(347		)	(409		)
Depreciation of furniture, fixtures and equipment	460			508			418
Combined real estate related depreciation and other amortization	36,681			30,832			20,558
Gain on sale of depreciated real estate properties	(2,897		)	(268		)	(416		)
Minority interest - preferred units	1,049			2,287			2,287
Minority interest - common units, gross	6,712			5,800			6,592
Minority interestholders' share of operations	—			(59		)	84
Cumulative effect of accounting change	—			—			263
Preferred share dividends	12,003			10,134			6,857
Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA)	$	116,659		$	103,913		$	84,111

Common dividends for Earning Payout Ratio	$	25,066		$	19,732		$	16,505
Common distributions	8,115			7,921			7,734
Common dividends on restricted shares	—			283			—
Convertible preferred dividends	544			544			508
Convertible preferred unit distributions	1,049			2,287			2,287
Dividends and distributions for FFO and AFFO Payout Ratio	$	34,774		$	30,767		$	27,034

Quarterly Equity Analysis
(Amounts in thousands except per share data, share prices and ratios)

	2003												2002
	December 31			September 30			June 30			March 31			December 31
Common Equity - End of Quarter
Common Shares (1)	29,397			29,361			29,178			23,766			23,606
Common Units	8,870			8,870			8,947			8,990			8,990
Total	38,267			38,231			38,125			32,756			32,596
End of Quarter Common Share Price	$	21.00		$	18.51		$	16.93		$	14.90		$	14.03
Market Value of Common Shares/Units	$	803,607		$	707,656		$	645,456		$	488,064		$	457,322

Common Shares Trading Volume
Average Daily Volume (Shares)	89			99			121			73			70
Average Daily Volume (Dollars in thousands)	$	1,828.61		$	1,778.15		$	1,919.19		$	1,027.57		$	948.95
As a Percentage of Common Shares	0.3		%	0.3		%	0.5		%	0.3		%	0.3		%

Common Share Price Range
Quarterly High	$	22.40		$	19.35		$	16.96		$	15.07		$	14.16
Quarterly Low	$	18.51		$	16.79		$	14.75		$	13.50		$	11.60
Quarterly Average	$	20.45		$	18.01		$	15.92		$	14.00		$	13.49
End of Quarter	$	21.00		$	18.51		$	16.93		$	14.90		$	14.03

Convertible Preferred Equity - End of Quarter
Convertible Series D Preferred Shares Outstanding	544			544			544			544			544
Conversion Ratio	2.200			2.200			2.200			2.200			2.200
Common Shares Issued Assuming Conversion	1,197			1,197			1,197			1,197			1,197

Convertible Series C Preferred Units Outstanding (2)	n/a			n/a			n/a			1,017			1,017
Conversion Ratio	n/a			n/a			n/a			2.381			2.381
Common Units Issued Assuming Conversion	n/a			n/a			n/a			2,421			2,421

Nonconvertible Preferred Equity - End of Quarter
Redeemable Series B Shares Outstanding	1,250			1,250			1,250			1,250			1,250
Redeemable Series E Shares Outstanding	1,150			1,150			1,150			1,150			1,150
Redeemable Series F Shares Outstanding	1,425			1,425			1,425			1,425			1,425
Redeemable Series G Shares Outstanding (3)	2,200			2,200			n/a			n/a			n/a
Redeemable Series H Shares Outstanding (4)	2,000			n/a			n/a			n/a			n/a
Total Nonconvertible Preferred Equity	8,025			6,025			3,825			3,825			3,825
Total Convertible Preferred Equity	544			544			544			1,561			1,561
Total Preferred Equity	8,569			6,569			4,369			5,386			5,386
Preferred Share Recorded Book Value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Recorded Book Value of Preferred Equity	$	214,225		$	164,225		$	109,225		$	134,642		$	134,642

Weighted Average Shares:
Common Shares Outstanding	28,951			28,832			25,443			23,323			23,234
Restricted Shares Outstanding	—			—			334			330			326
Preferred Shares Outstanding Assuming Conversion	1,197			1,197			1,197			1,197			1,197
Dilutive Options	1,663			1,480			1,274			1,015			944
Common Units	8,870			8,909			8,963			8,990			8,990
Preferred Units Assuming Conversion	—			—			2,022			2,421			2,421
Denominator for funds from operations per share - diluted	40,681			40,418			39,233			37,276			37,112

Capitalization
Recorded Book Value of Preferred Shares	$	214,225		$	164,225		$	109,225		$	134,642		$	134,642
Market Value of Common Shares/Units	803,607			707,656			645,456			488,064			457,322
Total Equity Market Capitalization	$	1,017,832		$	871,881		$	754,681		$	622,706		$	591,963

Total Debt	$	738,698		$	759,298		$	736,117		$	707,990		$	705,056

Total Market Capitalization	$	1,756,530		$	1,631,179		$	1,490,798		$	1,330,696		$	1,297,019

Debt to Total Market Capitalization	42.1		%	46.5		%	49.4		%	53.2		%	54.4		%
Debt to Total Assets	55.5		%	58.4		%	60.5		%	61.7		%	61.9		%
Debt to Undepreciated Book Value of Real Estate Assets	54.8		%	58.0		%	59.9		%	61.4		%	61.3		%

(1) Net of 166,600 treasury shares.

(2) On June 16, 2003, we repurchased 100% of the outstanding 1,016,662 shares of Series C preferred units.

(3) On August 11, 2003, we issued 2,200,000 Series G preferred shares and recorded a prorated dividend of $.2832 per share for the third quarter.

(4) On December 18, 2003, we issued 2,000,000 Series H preferred shares and recorded a prorated dividend of $.0729 per share for the fourth quarter.

Quarterly Valuation Analysis
(Dollars in thousands except per share data and ratios)

	2003												2002
	December 31			September 30			June 30			March 31			December 31
PRICING MULTIPLES

Quarter End Common Stock Price	$	21.00		$	18.51		$	16.93		$	14.90		$	14.03
Dividend Yield	4.48		%	5.08		%	5.20		%	5.91		%	6.27		%

Price / Earnings (P / E) Multiple — includes discontinued operations (Quarter End Common Share Price / Annualized Net Income (Loss) Available to Common Shareholders per diluted share)	37.72x			26.22x			n/a			16.99x			24.94x

Combined NOI Multiple — includes discontinued operations (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units+ Avg. Total Debt) / Annualized Combined NOI	13.37x			12.45x			12.43x			11.85x			10.84x

EBITDA Multiple — includes discontinued operations (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units + Avg. Total Debt) / Annualized EBITDA	14.25x			12.88x			13.27x			12.56x			11.52x

FFO Multiple (Quarter End Common Share Price / Ann. FFO — diluted per share)	13.19x			11.18x			11.14x			10.19x			9.10x

Combined NOI Yield –includes discontinued operations (Annualized Combined NOI / (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units + Avg. Debt))	7.48		%	8.03		%	8.05		%	8.44		%	9.22		%

EBITDA Yield — includes discontinued operations (Annualized EBITDA / (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units + Avg. Debt))	7.02		%	7.76		%	7.54		%	7.96		%	8.68		%

Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Recorded Book Value of Preferred Share/Units + Total Debt) / GLA) (1)	$	175.08		$	164.57		$	157.36		$	146.75		$	145.06

RETURNS

Return on Assets — includes discontinued operations (Net Income (Loss) Available to Common Shareholders / Average Total Assets)	0.33		%	0.43		%	n/a			0.48		%	0.31		%

Yield on Real Estate Owned - Combined NOI – includes discontinued operations (Ann. Combined NOI / Avg. Adjusted Gross Real Estate Investment) (2)	10.37		%	10.72		%	10.52		%	10.33		%	10.89		%

Yield on Real Estate Owned - EBITDA – includes discontinued operations (Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment) (2)	9.73		%	10.36		%	9.85		%	9.74		%	10.25		%

(1) Excludes square footage of assets under development, under construction or held in a joint venture.

(2) Excludes land development, construction in progress and investment in real estate joint ventures as these assets do not generate net operating income.

Quarterly Debt Analysis
(Dollars in thousands)

	2003												2002
	December 31			September 30			June 30			March 31			December 31
Debt Outstanding
Mortgage Loans	$	686,129		$	666,622		$	615,441		$	577,380		$	565,486
Construction Loans	20,894			12,776			12,776			12,710			11,570
Revolving Credit Facility	18,900			18,900			18,900			18,900			—
Secured Revolving Credit Facility	12,775			61,000			89,000			99,000			128,000
	$	738,698		$	759,298		$	736,117		$	707,990		$	705,056

Average Outstanding Balance
Mortgage Loans	$	672,422		$	657,003		$	583,012		$	575,078		$	563,904
Construction Loans	12,865			12,776			12,754			12,353			18,011
Revolving Credit Facility	18,900			18,900			18,900			9,574			—
Secured Revolving Credit Facility	51,910			79,263			97,194			127,052			126,645
	$	756,097		$	767,942		$	711,860		$	724,057		$	708,560

Interest Rate Structure
Fixed	$	548,540		$	492,088		$	494,194		$	496,084		$	481,121
Variable	90,158			167,210			141,923			111,906			123,935
Variable Subject to Interest Rate Protection (1 - 2)	100,000			100,000			100,000			100,000			100,000
	$	738,698		$	759,298		$	736,117		$	707,990		$	705,056

% of Fixed Rate Loans (3)	87.80		%	77.98		%	80.72		%	84.19		%	82.42		%
% of Variable Rate Loans	12.20		%	22.02		%	19.28		%	15.81		%	17.58		%
	100.00		%	100.00		%	100.00		%	100.00		%	100.00		%

Average Interest Rates
Mortgage & Construction Loans	5.92		%	5.92		%	6.32		%	6.38		%	6.36		%
Revolving Credit Facility	3.02		%	3.01		%	3.20		%	3.25		%	n/a
Secured Revolving Credit Facility	4.48		%	3.93		%	3.67		%	3.58		%	6.64		%
Total Weighted Average	5.75		%	5.73		%	6.06		%	6.01		%	6.41		%

Debt Ratios
Debt to Total Market Capitalization	42.1		%	46.5		%	49.4		%	53.2		%	54.4		%
Debt to Undepreciated Book Value of Real Estate Assets	54.8		%	58.0		%	59.9		%	61.4		%	61.3		%

Coverage Ratios (excluding capitalized interest) — All coverage computations include the effect of discontinued operations
Interest Coverage - Combined NOI (Combined NOI / Combined Interest)	3.12x			3.10x			2.96x			2.78x			2.71x
Interest Coverage - EBITDA (EBITDA / Combined Interest)	2.93x			3.00x			2.78x			2.62x			2.55x
Debt Service Coverage - Combined NOI (Combined NOI / (Combined Interest + Principal Amortization))	2.49x			2.52x			2.46x			2.30x			2.31x
Debt Service Coverage - EBITDA (EBITDA / (Combined Interest + Principal Amortization))	2.34x			2.44x			2.31x			2.17x			2.18x
Fixed Charge Coverage - Combined NOI (Combined NOI / (Combined Interest + Preferred Distribution))	2.30x			2.38x			2.28x			2.13x			2.12x
Fixed Charge Coverage - EBITDA (EBITDA / (Combined Interest + Preferred Distribution))	2.15x			2.30x			2.14x			2.01x			1.99x

(1) We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 2.308% which expires January 3, 2005.

(2) We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 1.52% which expired January 7, 2004.

(3) Includes interest rate protection agreements.

Quarterly Operating Ratios

(Dollars in thousands except per share data and ratios)

	2003												2002
	December 31			September 30			June 30			March 31			December 31
OPERATING RATIOS – All computations include the effect of discontinued operations
Net Income as a % of Combined Real Estate Revenues (Net Income / Combined Real Estate Revenues)	17.33		%	18.88		%	15.26		%	18.83		%	14.07		%

Combined NOI as a % of Combined Real Estate Revenues (Combined NOI / Combined Real Estate Revenues)	70.22		%	71.26		%	72.79		%	66.99		%	70.78		%

EBITDA as a % of Combined Real Estate Revenues (EBITDA / Combined Real Estate Revenues)	65.88		%	68.85		%	68.19		%	63.21		%	66.64		%

G&A as a % of Net Income (G&A / Net Income)	27.78		%	22.57		%	28.31		%	24.39		%	29.73		%

G&A as a % of Combined Real Estate Revenues (G&A / Combined Real Estate Revenues)	4.81		%	4.26		%	4.32		%	4.59		%	4.18		%

G&A as a % of EBITDA (G&A / EBITDA)	7.31		%	6.19		%	6.34		%	7.27		%	6.28		%

Quarter end occupancy for operating portfolio	91.24		%	91.74		%	91.58		%	90.85		%	93.05		%
Quarter end % leased for operating portfolio	92.78		%	92.16		%	92.04		%	92.77		%	93.75		%

Recurring Capital Expenditures	$	3,714		$	3,122		$	1,864		$	2,756		$	1,991
Recurring Capital Expenditures per average square foot	$	0.37		$	0.32		$	0.20		$	0.31		$	0.22
Recurring Capital Expenditures as a % of NOI (Combined NOI)	11.35		%	9.64		%	6.26		%	9.70		%	6.64		%

Quarterly Dividend Analysis

	2003												2002
	December 31			September 30			June 30			March 31			December 31
Common Share Dividends
Dividends per share/unit	$	0.235		$	0.235		$	0.220		$	0.220		$	0.220
Increase over prior quarter	0.0		%	6.8		%	0.0		%	0.0		%	0.0		%
Increase over prior year	6.8		%	6.8		%	4.8		%	4.8		%	4.8		%

Common Dividend Payout Ratios
Payout - Earnings (Common Dividends/ Net Income (Loss) Available to Common Shareholders)	158.6		%	125.3		%	n/a			94.2		%	149.3		%

Payout - FFO - Diluted ((Common Dividend + Total Distributions + Convertible Preferred Share Dividends)/FFO)	55.8		%	53.9		%	60.3		%	58.1		%	55.1		%

Payout - AFFO - Diluted ((Common Dividend + Total Distributions + Convertible Preferred Share Dividends) /AFFO)	81.6		%	75.4		%	80.5		%	86.5		%	68.1		%

Dividend Coverage - FFO - Diluted (FFO /(Common Dividend + Total Distributions + Convertible Preferred Share Dividends))	1.79		x	1.85		x	1.66		x	1.72		x	1.82		x

Dividend Coverage - AFFO - Diluted (AFFO /(Common Dividend + Total Distributions + Convertible Preferred Share Dividends))	1.23		x	1.33		x	1.24		x	1.16		x	1.47		x

Common Dividend Yields
Dividend Yield	4.48		%	5.08		%	5.20		%	5.91		%	6.27		%

Series C Preferred Unit Distributions (1)
Preferred Unit Distributions Per Share	n/a			n/a			$	0.56250		$	0.56250		$	0.56250
Preferred Unit Distributions Yield	n/a			n/a			9.00		%	9.00		%	9.00		%
Quarter End Recorded Book Value	n/a			n/a			$	25.00		$	25.00		$	25.00

Series B Preferred Share Dividends
Preferred Share Dividends Per Share	$	0.62500		$	0.62500		$	0.62500		$	0.62500		$	0.62500
Preferred Share Dividend Yield	10.00		%	10.00		%	10.00		%	10.00		%	10.00		%
Quarter End Recorded Book Value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

Series D Preferred Share Dividends
Preferred Share Dividends Per Share	$	0.25000		$	0.25000		$	0.25000		$	0.25000		$	0.25000
Preferred Share Dividend Yield	4.00		%	4.00		%	4.00		%	4.00		%	4.00		%
Quarter End Recorded Book Value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

Series E Preferred Share Dividends
Preferred Share Dividends Per Share	$	0.64063		$	0.64063		$	0.64063		$	0.64063		$	0.64063
Preferred Share Dividend Yield	10.25		%	10.25		%	10.25		%	10.25		%	10.25		%
Quarter End Recorded Book Value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

Series F Preferred Share Dividends
Preferred Share Dividends Per Share	$	0.61719		$	0.61719		$	0.61719		$	0.61719		$	0.61719
Preferred Share Dividend Yield	9.875		%	9.875		%	9.875		%	9.875		%	9.875		%
Quarter End Recorded Book Value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

Series G Preferred Share Dividends (2)
Preferred Share Dividends Per Share	$	0.50000		$	0.50000		n/a			n/a			n/a
Preferred Share Dividend Yield	8.000		%	8.000		%	n/a			n/a			n/a
Quarter End Recorded Book Value	$	25.00		$	25.00		n/a			n/a			n/a

Series H Preferred Share Dividends (3)
Preferred Share Dividends Per Share	$	0.46875		n/a			n/a			n/a			n/a
Preferred Share Dividend Yield	7.500		%	n/a			n/a			n/a			n/a
Quarter End Recorded Book Value	$	25.00		n/a			n/a			n/a			n/a

(1) On June 16, 2003, we repurchased all of the 1,016,662 outstanding Series C convertible preferred units for $36.1 million or $14.90 per common share, on an as-if converted basis.

(2) On August 11, 2003, we issued 2,200,000 Series G preferred shares and recorded a prorated dividend of $.2832 per share for the third quarter.

(3) On December 18, 2003, we issued 2,000,000 Series H preferred shares and recorded a prorated dividend of $.0729 per share for the fourth quarter.

Investor Composition and Analyst Coverage

(as of December 31, 2003)

SHAREHOLDER CLASSIFICATION	Common Shares	Common Units	As if Converted Preferred Shares / Units	Total	Fully Diluted Ownership % of Total

Insiders	928,844	7,732,558	—	8,661,402	21.95	%
Institutional Ownership	20,661,664	—	1,196,800	21,858,464	55.39	%
Other / Retail	7,806,759	1,137,758	—	8,944,517	22.66	%
	29,397,267	8,870,316	1,196,800	39,464,383	100.00	%

RESEARCH COVERAGE	December 31, 2003	September 30, 2003	June 30, 2003	March 31, 2003	December 31, 2002

A. G. Edwards	x	x	x	x	x
BB&T Capital Markets	n/a	n/a	n/a	n/a	x
Credit Suisse First Boston	x	x	x	x	x
Cobblestone Research, LLC	x	x	n/a	n/a	n/a
Deutsche Banc Alex. Brown	n/a	x	x	x	x
Ferris, Baker Watts, Incorporated	x	x	x	x	x
Legg Mason Wood Walker, Inc.	x	x	x	x	x
Maxcor Financial Group, Inc.	x	x	n/a	n/a	n/a
McDonald Investments	x	x	x	x	x
Mercury Partners, LLC	n/a	n/a	x	x	x
Raymond James	x	x	x	x	x
Wachovia Securities	x	x	x	x	x

Source: Institutional ownership was obtained from filed Forms 13(f) as of September 30, 2003 per Vickers Stock Research Corporation.

Debt Maturity Schedule - December 31, 2003

(Dollars in thousands)

	Non-Recourse Debt (1)				Recourse Debt (1)
Year of Maturity	Annual Amortization of Monthly Payments		Due on Maturity		Annual Amortization of Monthly Payments		Due on Maturity		$25,000 Revolving Credit Facility (2)		$150,000 Secured Revolving Credit Facility (3)		Total Scheduled Payments

2004	$	15,223	$	—	$	1,458	$	94,842	$	18,900	$	—	$	130,423
2005	15,631		41,640		686		8,117		—		12,775		78,849
2006	15,405		59,975		478		54,240		—		—		130,098
2007	12,585		55,128		512		1,366		—		—		69,591
2008	7,238		142,903		549		—		—		—		150,690
2009	3,830		52,112		589		—		—		—		56,531
2010	3,381		43,710		50		12,481		—		—		59,622
2011	2,226		—		—		—		—		—		2,226
2012	2,006		21,586		—		—		—		—		23,592
2013	—		37,076		—		—		—		—		37,076
	$	77,525	$	454,130	$	4,322	$	171,046	$	18,900	$	12,775	$	738,698

Notes:

(1) Certain mortgages contain extension options, generally either for a period of six months or one year, subject to certain conditions. The maturity dates presented above in the table assume that the extension options have already been exercised.

(2) The Revolving Credit Facility matures January 23, 2005. However, each individual draw matures one year from the date of the advance.

(3) We have the right to extend the Secured Revolving Credit Facility for a one-year period, subject to certain conditions, upon maturity in March 2004. The maturity date presented in the above table assumes that the extension option has already been exercised.

We have the following interest rate protection agreements in place:

$50 million notional amount swap of one-month LIBOR at 2.3075%, which commenced in January 2003 and expiring in January 2005. $50 million notional amount swap of one-month LIBOR at 1.52%, which commenced in January 2003 and expired in January 2004.

Property Summary by Region - December 31, 2003

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction
	Office Properties

	Baltimore /Washington Corridor
1	2730 Hercules Road	BWI Airport	NBP	1990	M	240,336
	2720 Technology Drive (220 NBP)	BWI Airport	NBP		M		156,730
2	2711 Technology Drive (211 NBP)	BWI Airport	NBP	2002	M	152,000
3	140 National Business Parkway	BWI Airport	NBP	2003	M	119,904
4	132 National Business Parkway	BWI Airport	NBP	2000	M	118,456
5	2721 Technology Drive (221 NBP)	BWI Airport	NBP	2000	M	118,093
6	2701 Technology Drive (201 NBP)	BWI Airport	NBP	2001	M	117,450
7	134 National Business Parkway	BWI Airport	NBP	1999	M	93,482
8	133 National Business Parkway	BWI Airport	NBP	1997	M	88,666
9	141 National Business Parkway	BWI Airport	NBP	1990	M	87,318
10	135 National Business Parkway	BWI Airport	NBP	1998	M	86,863
11	131 National Business Parkway	BWI Airport	NBP	1990	M	69,039
12	114 National Business Parkway	BWI Airport	NBP	2002	S	9,717
						1,301,324	156,730

1	1306 Concourse Drive	BWI Airport	APS	1990	M	114,046
2	1304 Concourse Drive	BWI Airport	APS	2002	M	102,964
3	870-880 Elkridge Landing Road	BWI Airport	APS	1981	M	101,785
4	900 Elkridge Landing Road	BWI Airport	APS	1982	M	97,261
5	1199 Winterson Road	BWI Airport	APS	1988	M	96,636
6	920 Elkridge Landing Road	BWI Airport	APS	1982	M	96,566
7	1302 Concourse Drive	BWI Airport	APS	1996	M	84,134
8	881 Elkridge Landing Road	BWI Airport	APS	1986	M	73,572
9	1099 Winterson Road	BWI Airport	APS	1988	M	71,076
10	1190 Winterson Road	BWI Airport	APS	1987	M	69,529
11	849 International Drive	BWI Airport	APS	1988	M	68,758
12	911 Elkridge Landing Road	BWI Airport	APS	1985	M	68,296
13	1201 Winterson Road	BWI Airport	APS	1985	M	67,903
14	999 Corporate Boulevard	BWI Airport	APS	2000	M	67,351
15	800 International Drive	BWI Airport	APS	1988	S	57,612
16	901 Elkridge Landing Road	BWI Airport	APS	1984	M	57,308
17	900 International Drive	BWI Airport	APS	1986	S	57,140
18	930 International Drive	BWI Airport	APS	1986	S	57,140
19	891 Elkridge Landing Road	BWI Airport	APS	1984	M	56,489
20	921 Elkridge Landing Road	BWI Airport	APS	1983	M	54,175
21	939 Elkridge Landing Road	BWI Airport	APS	1983	M	53,031
22	938 Elkridge Landing Road	BWI Airport	APS	1984	M	52,988
23	940 Elkridge Landing Road	BWI Airport	APS	1984	M	51,704
						1,677,464	—

1	7467 Ridge Road	BWI Airport	Comm./Pkwy.	1990	M	74,273
2	7240 Parkway Drive	BWI Airport	Comm./Pkwy.	1985	M	74,156
3	7318 Parkway Drive	BWI Airport	Comm./Pkwy.	1984	M	59,204
4	7320 Parkway Drive	BWI Airport	Comm./Pkwy.	1983	S	58,453
5	1340 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	46,400
6	7321 Parkway Drive	BWI Airport	Comm./Pkwy.	1984	S	39,822
7	1334 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	37,565
8	1331 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	29,936
9	1350 Dorsey Road	BWI Airport	Comm./Pkwy.	1989	S	19,992
10	1341 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	15,841
11	1344 Ashton Road	BWI Airport	Comm./Pkwy.	1989	M	17,061
12	1343 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	9,962
						482,665	—

47	Subtotal (continued on next page)					3,461,453	156,730

Property Summary by Region - December 31, 2003 (continued)

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction

47	Subtotal (continued from prior page)					3,461,453	156,730

1	2500 Riva Road	BWI Airport		2000	M	155,000

1	9140 Route 108	Howard Co. Perimeter	Oakland Ridge	1985	S	150,000

1	7000 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	1999	M	145,806
2	6731 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	123,743
3	6940 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	1999	M	108,847
4	6950 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	1998	M	107,778
5	7067 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2001	M	82,953
6	6750 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	2001	M	78,460
7	6700 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1988	M	75,655
8	6740 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1992	M	61,957
9	8671 Robert Fulton Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	56,350
10	6716 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1990	M	52,002
11	8661 Robert Fulton Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	49,500
12	7065 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2000	S	38,560
13	7063 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2000	S	36,936
14	6760 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1991	M	36,309
15	6708 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1988	M	35,040
16	7061 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2000	M	29,604
17	6724 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	2001	M	28,420
						1,147,920	—

1	7200 Riverwood Drive	Howard Co. Perimeter	Rivers 95	1986	S	160,000
2	9140 Guilford Road	Howard Co. Perimeter	Rivers 95	1983	S	41,704
3	9160 Guilford Road	Howard Co. Perimeter	Rivers 95	1984	M	36,528
4	9150 Guilford Road	Howard Co. Perimeter	Rivers 95	1984	S	17,655
5	9130 Guilford Road	Howard Co. Perimeter	Rivers 95	1984	S	13,700
						269,587	—

71	Total Baltimore / Washington Corridor					5,183,960	156,730

	Suburban Maryland

1	11800 Tech Road	North Silver Spring	Montgomery Industrial	1989	M	235,954
2	14502 Greenview Drive	Laurel		1988	M	71,926
3	14504 Greenview Drive	Laurel		1985	M	69,194
	4230 Forbes Boulevard	Lanham	Forbes 50		S	—	55,867
3	Total Suburban Maryland					377,074	55,867

	Other

1	9690 Deereco Road	North Baltimore Co.		1988	M	133,737
2	375 West Padonia Road	North Baltimore Co.		1986	M	101,133
3	1615 and 1629 Thames Street	Baltimore City		1989	M	101,115
3	Total Other					335,985	—

Property Summary by Region - December 31, 2003 (continued)

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction
	Northern Virginia

1	15000 Conference Center Drive	Chantilly	Westfields	1989	M	470,413
2	15059 Conference Center Drive	Chantilly	Westfields	2000	M	145,192
3	15049 Conference Center Drive	Chantilly	Westfields	1997	M	145,053
4	14900 Conference Center Drive	Chantilly	Westfields	1999	M	127,572
	4851 Stonecroft Boulevard	Chantilly	Westfields		M		88,094
5	14850 Conference Center Drive	Chantilly	Westfields	2000	M	69,711
6	14840 Conference Center Drive	Chantilly	Westfields	2000	S	69,710
						1,027,651	88,094

1	13200 Woodland Park Drive	Herndon	Woodlands	2002	M	404,665
						404,665	—

1	13454 Sunrise Valley Road	Herndon	Dulles Tech	1998	M	113,093
2	13450 Sunrise Valley Road	Herndon	Dulles Tech	1998	S	53,728
						166,821	—

9	Total Northern Virginia					1,599,137	88,094

	Greater Harrisburg

1	2605 Interstate Drive	East Shore	Commerce Park	1990	M	79,456
2	2601 Market Place	East Shore	Commerce Park	1989	M	66,224
						145,680	—

1	6345 Flank Drive	East Shore	Gtwy Corp. Ctr.	1989	S	69,443
2	6340 Flank Drive	East Shore	Gtwy Corp. Ctr.	1988	S	68,200
3	6400 Flank Drive	East Shore	Gtwy Corp. Ctr.	1992	S	52,439
4	6360 Flank Drive	East Shore	Gtwy Corp. Ctr.	1988	S	46,500
5	6385 Flank Drive	East Shore	Gtwy Corp. Ctr.	1995	S	32,921
6	6380 Flank Drive	East Shore	Gtwy Corp. Ctr.	1991	S	32,668
7	6405 Flank Drive	East Shore	Gtwy Corp. Ctr.	1991	S	32,000
8	95 Shannon Road	East Shore	Gtwy Corp. Ctr.	1999	S	21,976
9	75 Shannon Road	East Shore	Gtwy Corp. Ctr.	1999	S	20,887
10	6375 Flank Drive	East Shore	Gtwy Corp. Ctr.	2000	S	19,783
11	85 Shannon Road	East Shore	Gtwy Corp. Ctr.	1999	S	12,863
						409,680	—

1	5035 Ritter Road	West Shore	Rossmoyne Bus. Ctr.	1988	S	56,556
2	5070 Ritter Road -Building A	West Shore	Rossmoyne Bus. Ctr.	1989	S	32,309
3	5070 Ritter Road - Building B	West Shore	Rossmoyne Bus. Ctr.	1989	S	28,039
						116,904	—

16	Total Greater Harrisburg					672,264	—

Property Summary by Region - December 31, 2003 (continued)

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction

	Greater Philadelphia

1	753 Jolly Road	Blue Bell	Unisys campus	1992	M	419,472
2	785 Jolly Road	Blue Bell	Unisys campus	1996	M	219,065
3	760 Jolly Road	Blue Bell	Unisys campus	1994	M	208,854
4	751 Jolly Road	Blue Bell	Unisys campus	1991	M	112,958
4	Total Greater Philadelphia					960,349	—

	Northern/Central New Jersey

1	431 Ridge Road	Exit 8A — Cranbury	Princeton Tech Cntr.	1998	S	170,000
2	429 Ridge Road	Exit 8A — Cranbury	Princeton Tech Cntr.	1996	M	142,385
3	68 Culver Road	Exit 8A — Cranbury	Princeton Tech Cntr.	2000	M	57,280
4	437 Ridge Road	Exit 8A — Cranbury	Princeton Tech Cntr.	1996	S	30,000
						399,665	—

1	104 Interchange Plaza	Exit 8A — Cranbury	Interchange Plaza	1990	M	47,677
2	101 Interchange Plaza	Exit 8A — Cranbury	Interchange Plaza	1985	M	43,621
						91,298	—

1	47 Commerce	Exit 8A — Cranbury	Centrepoint North	1998	S	41,398
						41,398	—

1	7 Centre Drive	Exit 8A — Cranbury	Monroe Center	1986	S	19,468
2	8 Centre Drive	Exit 8A — Cranbury	Monroe Center	1989	S	16,199
3	2 Centre Drive	Exit 8A — Cranbury	Monroe Center	1989	S	16,132
						51,799	—

1	4301 Route 1	Monmouth Junction	Princeton Exec. Campus	1986	M	61,342
						61,342	—

1	695 Route 46	Wayne	Fairfield Corp. Cntr.	1990	M	157,394
2	710 Route 46	Wayne	Fairfield Corp. Cntr.	1985	M	101,263
						258,657	—

13	Total Northern / Central New Jersey					904,159	—

119	TOTAL PORTFOLIO					10,032,928	300,691

Property Occupancy Rates by Region by Quarter

	Greater Philadelphia		Baltimore / Washington Corridor		Northern / Central New Jersey		Greater Harrisburg		Northern Virginia		Suburban Maryland		Other		Total Portfolio

December 31, 2003

Number of Buildings	4		71		13		16		9		3		3		119
Rentable Square Feet	960,349		5,183,960		904,159		672,264		1,599,137		377,074		335,985		10,032,928
Percent Occupied	100.00	%	90.42	%	88.52	%	87.20	%	94.78	%	79.23	%	90.98	%	91.24	%

September 30, 2003

Number of Buildings	4		70		13		16		9		3		3		118
Rentable Square Feet	960,349		5,063,248		904,128		672,209		1,599,137		376,986		335,985		9,912,042
Percent Occupied	100.00	%	90.12	%	92.10	%	89.56	%	95.39	%	81.17	%	90.40	%	91.74	%

June 30, 2003

Number of Buildings	4		70		13		16		4		3		3		113
Rentable Square Feet	960,349		5,056,934		904,128		673,940		1,165,316		376,986		335,985		9,473,638
Percent Occupied	100.00	%	90.27	%	92.24	%	91.50	%	93.52	%	81.17	%	90.64	%	91.58	%

March 31, 2003

Number of Buildings	4		70		13		16		3		3		3		112
Rentable Square Feet	960,349		5,055,658		904,128		673,940		760,651		376,986		335,985		9,067,697
Percent Occupied	100.00	%	87.47	%	93.02	%	91.14	%	99.12	%	89.14	%	92.45	%	90.85	%

December 31, 2002

Number of Buildings	4		67		13		16		3		4		3		110
Rentable Square Feet	960,349		4,744,691		904,142		673,940		760,651		558,754		338,985		8,941,512
Percent Occupied	100.00	%	91.30	%	93.67	%	90.65	%	98.32	%	93.24	%	88.75	%	93.05	%

Top Twenty Office Tenants as of December 31, 2003

(Dollars and square feet in thousands)

Tenant		Number of Leases	Total Occupied Square Feet	Percentage of Total Occupied Square Feet		Total Annualized Rental Revenue (1)		Percentage of Total Annualized Rental Revenue		Weighted Average Remaining Lease Term (2)

United States of America	(3)	26	1,251,035	13.7	%	$	26,329	14.8	%	5.7
Computer Sciences Corporation	(4)	5	468,632	5.1	%	11,133		6.3	%	6.6
AT&T Corporation	(4)	7	451,498	4.9	%	9,228		5.2	%	4.5
VeriSign, Inc.		2	404,665	4.4	%	8,985		5.1	%	10.6
Unisys	(5)	3	741,284	8.1	%	7,745		4.4	%	5.5
General Dynamics Corporation		6	254,692	2.8	%	5,917		3.3	%	4.7
Booz Allen Hamilton, Inc.		7	210,499	2.3	%	4,612		2.6	%	2.7
Northrop Grumman Corporation		4	192,206	2.1	%	4,455		2.5	%	3.7
Ciena Corporation		4	278,749	3.0	%	3,905		2.2	%	2.4
The Boeing Company	(4)	7	148,099	1.6	%	3,676		2.1	%	5.2
The Aerospace Corporation		2	134,272	1.5	%	3,373		1.9	%	10.9
Magellan Health Services		2	150,622	1.6	%	3,112		1.8	%	1.1
Commonwealth of Pennsylvania	(4)	5	181,290	2.0	%	2,664		1.5	%	5.7
Merck & Co.	(5)	1	219,065	2.4	%	2,326		1.3	%	5.5
Johns Hopkins University	(4)	6	102,057	1.1	%	2,302		1.3	%	3.6
Titan Corporation	(4)	6	88,615	1.0	%	2,295		1.3	%	5.4
Carefirst, Inc. and Subsidiaries	(4)	3	94,223	1.0	%	2,204		1.2	%	4.0
USinternetworking, Inc.		1	155,000	1.7	%	1,935		1.1	%	14.3
Comcast Corporation		1	98,897	1.1	%	1,738		1.0	%	5.8
Omniplex World Services		1	69,710	0.8	%	1,633		0.9	%	7.0

Subtotal Top 20 Office Tenants		99	5,695,110	62.2	%	109,567		61.8	%	5.8
All remaining tenants		392	3,459,181	37.8	%	67,784		38.2	%	3.3
Total/Weighted Average		491	9,154,291	100.0	%	$	177,351	100.0	%	4.9

(1) Total Annualized Rental Revenue is the monthly contractual base rent as of December 31, 2003 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

(2) The weighting of the lease term was computed using Total Rental Revenue.

(3) Many of our government leases are subject to early termination provisions which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights.

(4) Includes affiliated organizations or agencies.

(5) Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys’ 960,349 leased rentable square feet.

Combined Real Estate Revenue by Geographic Region by Quarter (1)

(Dollars in thousands)

	2003								2002
	December 31		September 30		June 30		March 31		December 31

Office Properties:

Baltimore/Washington Corridor	$	24,535	$	24,670	$	23,743	$	22,848	$	23,973
Northern Virginia	10,282		9,010		5,246		5,860		4,964
Northern/Central New Jersey	3,780		3,685		3,657		4,522		4,286
Greater Philadelphia	2,506		2,506		2,506		2,506		2,506
Greater Harrisburg	2,374		2,372		2,658		2,493		2,349
Suburban Maryland	1,463		1,480		1,296		2,482		2,586
Other	1,593		1,622		1,633		1,604		1,624

Combined Regional Real Estate Revenue	$	46,533	$	45,345	$	40,739	$	42,315	$	42,288

(1) Combined regional real estate revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments, SFAS 141 revenues and tenant services income not provided by our service companies. Includes the effect of discontinued operations.

Combined Net Operating Income by Geographic Region by Quarter (2)

(Dollars in thousands)

	2003								2002
	December 31		September 30		June 30		March 31		December 31

Office Properties:

Baltimore/Washington Corridor	$	16,845	$	17,428	$	17,413	$	14,821	$	17,216
Northern Virginia	7,288		6,352		3,595		3,977		3,175
Northern/Central New Jersey	2,394		2,384		2,392		2,893		2,774
Greater Philadelphia	2,479		2,470		2,470		2,472		2,468
Greater Harrisburg	1,760		1,709		1,975		1,746		1,640
Suburban Maryland	940		945		706		1,458		1,621
Other	958		997		1,061		945		1,017

Combined Regional NOI	$	32,664	$	32,285	$	29,612	$	28,312	$	29,911

Other income / expenses, net	46		100		143		98		76

Combined NOI	$	32,710	$	32,385	$	29,755	$	28,410	$	29,987

(2) Combined regional NOI represents GAAP revenue including operating expense reimbursements, straight line rent adjustments, SFAS 141 revenues and tenant services income not provided by our service companies. Includes the effect of discontinued operations.

Same Office Property Cash Net Operating Income by Quarter

(Dollars in thousands)

	2003								2002
	December 31		September 30		June 30		March 31		December 31

Office Properties: (1)

Greater Philadelphia	$	2,490	$	2,482	$	2,432	$	2,434	$	2,430
Baltimore/Washington Corridor	15,039		15,957		15,285		13,293		16,852
Northern/Central New Jersey	2,400		2,372		2,380		2,454		2,208
Greater Harrisburg	1,754		1,697		1,958		1,731		1,638
Suburban Maryland	915		866		759		912		945
Northern Virginia	2,528		2,515		2,531		3,732		2,856
Other	952		982		1,018		933		1,005

Total Office Properties	$	26,078	$	26,871	$	26,363	$	25,489	$	27,934

Same Office Property GAAP Net Operating Income by Quarter

(Dollars in thousands)

	2003								2002
	December 31		September 30		June 30		March 31		December 31

Office Properties: (1)

Greater Philadelphia	$	2,479	$	2,470	$	2,470	$	2,472	$	2,468
Baltimore/Washington Corridor	15,979		16,560		16,465		14,473		16,956
Northern/Central New Jersey	2,396		2,366		2,416		2,495		2,250
Greater Harrisburg	1,760		1,708		1,974		1,745		1,639
Suburban Maryland	940		930		727		974		1,054
Northern Virginia	2,769		2,861		2,867		4,042		3,214
Other	958		997		1,061		945		1,016

Total Office Properties	$	27,281	$	27,892	$	27,980	$	27,146	$	28,597

(1) Same office properties include buildings owned for a minimum of five reporting quarters.

Average Occupancy Rates by Region for Same Office Properties (1)

	Greater Philadelphia		Baltimore / Washington Corridor		Northern / Central New Jersey		Greater Harrisburg		Suburban Maryland		Northern Virginia		Other		Total Office

4th Quarter 2003 Average

Number of Buildings	4		66		12		16		3		3		3		107
Rentable Square Feet	960,349		4,678,925		746,744		672,264		377,074		760,658		335,985		8,531,999
Percent Occupied	100.00	%	91.17	%	90.85	%	88.13	%	79.80	%	93.72	%	90.59	%	91.60	%

3rd Quarter 2003 Average

Number of Buildings	4		66		12		16		3		3		3		107
Rentable Square Feet	960,349		4,674,333		746,734		673,363		376,986		760,658		335,985		8,528,408
Percent Occupied	100.00	%	91.51	%	92.55	%	91.08	%	81.17	%	92.67	%	90.56	%	92.13	%

2nd Quarter 2003 Average

Number of Buildings	4		66		12		16		3		3		3		107
Rentable Square Feet	960,349		4,671,969		746,734		673,940		376,986		760,651		335,985		8,526,614
Percent Occupied	100.00	%	90.70	%	92.88	%	91.39	%	81.06	%	90.59	%	91.09	%	91.57	%

1st Quarter 2003 Average

Number of Buildings	4		66		12		16		3		3		3		107
Rentable Square Feet	960,349		4,671,404		746,734		673,940		376,986		760,651		336,985		8,527,049
Percent Occupied	100.00	%	90.35	%	93.04	%	90.52	%	89.42	%	98.58	%	90.08	%	92.37	%

4th Quarter 2002 Average

Number of Buildings	4		66		12		16		3		3		3		107
Rentable Square Feet	960,349		4,670,861		746,700		674,446		376,986		760,651		338,985		8,528,978
Percent Occupied	100.00	%	91.57	%	93.84	%	90.21	%	89.99	%	98.32	%	88.75	%	93.03	%

(1) Same office properties include buildings owned for a minimum of five reporting quarters.

Office Lease Expiration Analysis by Year

Year of Lease Expiration (1)	Number of Leases Expiring	Square Footage of Leases Expiring	Percentage of Total Occupied Square Feet		Total Annualized Rental Revenue of Expiring Leases (2)		Percentage of Total Annualized Rental Revenue Expiring		Total Annual. Rental Revenue of Expiring Leases per Occupied Square Foot
					(000s)

2004	87	858,022	9.4	%	$	15,925	9.0	%	$	18.56
2005	82	913,107	10.0	%	18,273		10.3	%	20.01
2006	78	1,017,402	11.1	%	19,532		11.0	%	19.20
2007	87	1,321,781	14.4	%	26,515		15.0	%	20.06
2008	66	1,178,521	12.9	%	25,201		14.2	%	21.38
2009	32	1,462,512	16.0	%	19,384		10.9	%	13.25
2010	21	865,349	9.5	%	19,602		11.1	%	22.65
2011	3	71,501	0.8	%	1,788		1.0	%	25.01
2012	8	392,978	4.3	%	8,412		4.7	%	21.41
2013	4	311,928	3.4	%	8,098		4.6	%	25.96
2014	3	538,356	5.9	%	12,346		7.0	%	22.93
2015	—	—	0.0	%	—		0.0	%	0.00
2016	—	—	0.0	%	—		0.0	%	0.00
2017	—	—	0.0	%	—		0.0	%	0.00
2018	1	155,000	1.7	%	1,935		1.1	%	12.48

Other (3)	19	67,834	0.7	%	339		0.2	%	5.00

Total/Weighted Average	491	9,154,291	100.0	%	$	177,351	100.0	%	$	20.06

NOTE: As of December 31, 2003, the weighted average lease term is 4.9 years.

(1) Many of our government leases are subject to certain early termination provisions which are customary to government leases. The year of lease expiration was computed assuming no exercise of such early termination rights.

(2) Total Annualized Rental Revenue is the monthly contractual base rent as of December 31, 2003 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

(3) Other consists primarily of amenities, including cafeterias, concierge offices and property management space. In addition, month-to-month leases and leases which have expired but the tenant remains in holdover are included in this line item as the exact expiration date is unknown.

Annual Office Renewal Analysis

	Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Suburban Maryland			Other			Northern Virginia			Total Office

For Year Ended December 31, 2003:
Expiring Square Feet	707,582			68,535			160,441			77,754			23,088			162,196			1,199,596
Vacated Square Feet	189,544			27,012			25,140			35,454			5,844			8,101			291,095
Renewed Square Feet	518,038			41,523			135,301			42,300			17,244			154,095			908,501
Retention Rate (% based upon square feet)	73.21		%	60.59		%	84.33		%	54.40		%	74.69		%	95.01		%	75.73		%

Renewed Space Only:
Change in Base Rent - Straight-line	6.21		%	5.89		%	0.19		%	10.78		%	-0.60		%	12.75		%	6.87		%
Change in Total Rent - Straight-line	4.61		%	1.48		%	0.23		%	9.07		%	-0.84		%	8.80		%	5.05		%

Change in Base Rent - Cash	-0.60		%	2.08		%	-2.91		%	0.25		%	-6.05		%	-0.92		%	-0.84		%
Change in Total Rent - Cash	-1.58		%	-1.93		%	-2.28		%	-0.19		%	-6.26		%	-0.65		%	-1.48		%

Average Capital Cost per Square Foot	$	1.78		$	11.28		$	3.52		$	5.17		$	8.14		$	7.27		$	3.68

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	9.92		%	6.69		%	-2.19		%	1.54		%	-2.98		%	-0.91		%	5.71		%
Change in Total Rent - Straight-line	7.37		%	2.86		%	-1.79		%	0.37		%	-2.11		%	-3.08		%	3.40		%

Change in Base Rent - Cash	3.32		%	3.00		%	-5.22		%	-7.98		%	-6.34		%	-9.86		%	-1.01		%
Change in Total Rent - Cash	1.36		%	-0.46		%	-4.28		%	-8.13		%	-5.20		%	-10.12		%	-2.48		-%

Average Capital Cost per Square Foot	$	7.23		$	13.35		$	4.33		$	8.81		$	7.27		$	5.35		$	6.90

For Year Ended December 31, 2002:
Expiring Square Feet	994,831			91,685			243,050			n/a			n/a			—			1,275,566
Vacated Square Feet	323,179			49,221			58,452			n/a			n/a			—			430,852
Renewed Square Feet	617,652			42,464			184,598			n/a			n/a			—			844,714
Retention Rate (% based upon square feet)	65.65		%	46.32		%	75.95		%	n/a			n/a			0.00		%	66.22		%

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	8.56		%	11.43		%	3.73		%	n/a			n/a			29.72		%	8.52		%
Change in Total Rent - Straight-line	7.64		%	5.49		%	-2.73		%	n/a			n/a			29.72		%	6.46		%

Change in Base Rent - Cash	5.12		%	9.41		%	0.18		%	n/a			n/a			30.11		%	5.22		%
Change in Total Rent - Cash	4.53		%	3.69		%	-5.60		%	n/a			n/a			30.11		%	3.50		%

Average Capital Cost per Square Foot	$	5.13		$	14.22		$	1.60		n/a			n/a			$	0.09		$	5.02

For Year Ended December 31, 2001:
Expiring Square Feet	522,069			36,241			200,524			n/a			n/a			—			758,834
Vacated Square Feet	164,841			6,050			38,031			n/a			n/a			—			208,922
Renewed Square Feet	357,228			30,191			162,493			n/a			n/a			—			549,912
Retention Rate (% based upon square feet)	68.43		%	83.31		%	81.03		%	n/a			n/a			0.00		%	72.47		%

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	19.19		%	32.17		%	11.83		%	n/a			n/a			0.00		%	18.51		%
Change in Total Rent - Straight-line	15.76		%	25.31		%	10.34		%	n/a			n/a			0.00		%	15.24		%

Change in Base Rent - Cash	13.19		%	27.78		%	4.20		%	n/a			n/a			0.00		%	12.27		%
Change in Total Rent - Cash	10.31		%	21.37		%	3.55		%	n/a			n/a			0.00		%	9.60		%

Average Capital Cost per Square Foot	$	6.40		$	11.87		$	7.04		n/a			n/a			$	—		$	6.92

Notes: No renewal or retenanting activity transpired in our Greater Philadelphia region.

The Suburban Maryland and Other submarkets were not segregated until January 1, 2003. Prior to 2003, they were included in the Baltimore/Washington Corridor submarket.

Quarterly Office Renewal Analysis

	Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Suburban Maryland			Other			Northern Virginia			Total Office

Quarter Ended December 31, 2003:

Expiring Square Feet	150,726			12,018			94,695			36,622			8,247			843			303,151
Vacated Square Feet	5,140			—			20,247			6,466			3,572			843			36,268
Renewed Square Feet	145,586			12,018			74,448			30,156			4,675			—			266,883
Retention Rate (% based upon square feet)	96.59		%	100.00		%	78.62		%	82.34		%	56.69		%	0.00		%	88.04		%

Renewed Space Only:
Change in Base Rent - Straight-line	10.21		%	-4.60		%	2.54		%	16.95		%	1.50		%	0.00		%	8.34		%
Change in Total Rent - Straight-line	6.88		%	-9.54		%	2.26		%	14.19		%	.46		%	0.00		%	5.55		%

Change in Base Rent - Cash	2.00		%	-4.86		%	0.97		%	2.68		%	-1.55		%	0.00		%	1.44		%
Change in Total Rent - Cash	-0.58		%	-9.88		%	0.99		%	2.27		%	-2.56		%	0.00		%	-0.53		%

Average Capital Cost per Square Foot	$	1.70		$	6.91		$	2.37		$	5.64		$	4.10		$	—		$	2.61

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	9.80		%	-4.60		%	1.31		%	1.46		%	-2.62		%	-14.39		%	1.05		%
Change in Total Rent - Straight-line	6.52		%	-9.54		%	2.44		%	0.94		%	-2.20		%	-15.51		%	-0.44		%

Change in Base Rent - Cash	3.29		%	-4.86		%	-0.41		%	-9.75		%	-5.55		%	-18.11		%	-3.99		%
Change in Total Rent - Cash	0.54		%	-9.88		%	1.03		%	-8.85		%	-4.90		%	-19.22		%	-5.07		%

Average Capital Cost per Square Foot	$	5.37		$	6.91		$	2.86		$	9.75		$	6.49		$	2.56		$	5.18

Quarter Ended September 30, 2003:

Expiring Square Feet	214,371			29,103			23,779			20,985			2,249			133,691			424,178
Vacated Square Feet	28,184			17,085			—			8,841			—			—			54,110
Renewed Square Feet	186,187			12,018			23,779			12,144			2,249			133,691			370,068
Retention Rate (% based upon square feet)	86.85		%	41.29		%	100.00		%	57.87		%	100.00		%	100.00		%	87.24		%

Renewed Space Only:
Change in Base Rent - Straight-line	9.67		%	5.30		%	-0.10		%	0.51		%	5.62		%	19.09		%	12.30		%
Change in Total Rent - Straight-line	8.21		%	4.99		%	-0.08		%	-0.77		%	5.52		%	12.77		%	9.51		%

Change in Base Rent - Cash	0.25		%	0.36		%	-2.77		%	-4.02		%	4.00		%	0.00		%	-0.08		%
Change in Total Rent - Cash	0.19		%	0.34		%	-2.26		%	-5.12		%	3.93		%	0.00		%	-0.11		%

Average Capital Cost per Square Foot	$	1.45		$	17.00		$	1.05		$	3.90		$	0.80		$	8.37		$	4.51

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	13.51		%	4.31		%	3.18		%	1.17		%	5.62		%	19.09		%	13.88		%
Change in Total Rent - Straight-line	11.29		%	4.46		%	0.36		%	-1.49		%	5.52		%	12.77		%	10.81		%

Change in Base Rent - Cash	5.79		%	-0.81		%	-0.01		%	-4.13		%	4.00		%	0.00		%	3.33		%
Change in Total Rent - Cash	4.53		%	-0.33		%	-2.18		%	-6.52		%	3.93		%	0.00		%	2.29		%

Average Capital Cost per Square Foot	$	8.78		$	18.74		$	1.37		$	5.67		$	0.80		$	8.37		$	8.48

Note: No renewal or retenanting activity transpired in our Greater Philadelphia region. Prior to January 1, 2003, our Suburban Maryland and Other regions were grouped within the Baltimore / Washington Corridor. Historically, this data has not been separately reported.

Quarterly Office Renewal Analysis (continued)

	Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Suburban Maryland			Other			Northern Virginia			Total Office
Quarter Ended June 30, 2003:

Expiring Square Feet	278,730			14,155			28,143			8,221			2,272			27,662			359,183
Vacated Square Feet	109,758			—			2,392			8,221			2,272			7,258			129,901
Renewed Square Feet	168,972			14,155			25,751			—			—			20,404			229,282
Retention Rate (% based upon square feet)	60.62		%	100.00		%	91.50		%	0.00		%	0.00		%	73.76		%	63.83		%

Renewed Space Only:
Change in Base Rent - Straight-line	-0.79		%	14.65		%	-3.78		%	0.00		%	0.00		%	-11.20		%	-1.53		%
Change in Total Rent - Straight-line	-1.25		%	7.27		%	-3.16		%	0.00		%	0.00		%	-8.77		%	-2.08		%

Change in Base Rent - Cash	-3.91		%	9.67		%	-12.46		%	0.00		%	0.00		%	-5.26		%	-3.86		%
Change in Total Rent - Cash	-4.27		%	3.04		%	-10.48		%	0.00		%	0.00		%	-4.05		%	-4.23		%

Average Capital Cost per Square Foot	$	2.16		$	11.16		$	10.63		$	—		$	—		$	—		$	3.48

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	7.75		%	16.05		%	-4.65		%	17.30		%	0.00		%	-16.82		%	3.67		%
Change in Total Rent - Straight-line	5.17		%	9.43		%	-3.87		%	9.45		%	0.00		%	-22.43		%	-0.11		%

Change in Base Rent - Cash	3.51		%	12.18		%	-12.74		%	8.34		%	0.00		%	-18.51		%	-0.28		%
Change in Total Rent - Cash	1.24		%	6.05		%	-10.65		%	1.23		%	0.00		%	-23.78		%	-3.61		%

Average Capital Cost per Square Foot	$	5.92		$	13.76		$	10.07		$	11.23		$	—		$	1.60		$	6.15

Quarter Ended March 31, 2003:

Expiring Square Feet	63,755			13,259			13,824			11,926			10,320			—			113,084
Vacated Square Feet	46,462			9,927			2,501			11,926			—			—			70,816
Renewed Square Feet	17,293			3,332			11,323			—			10,320			—			42,268
Retention Rate (% based upon square feet)	27.12		%	25.13		%	81.91		%	0.00		%	100.00		%	0.00		%	37.38		%

Renewed Space Only:
Change in Base Rent - Straight-line	7.89		%	14.22		%	-5.67		%	0.00		%	-2.39		%	0.00		%	2.71		%
Change in Total Rent - Straight-line	2.61		%	9.08		%	-4.96		%	0.00		%	-2.39		%	0.00		%	0.08		%

Change in Base Rent - Cash	1.03		%	3.71		%	-6.10		%	0.00		%	-9.33		%	0.00		%	-3.35		%
Change in Total Rent - Cash	-3.64		%	-0.74		%	-5.29		%	0.00		%	-9.33		%	0.00		%	-5.50		%

Average Capital Cost per Square Foot	$	2.22		$	6.99		$	0.17		$	—		$	11.51		$	—		$	4.32

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	4.60		%	14.22		%	-15.98		%	0.00		%	-4.91		%	0.00		%	0.09		%
Change in Total Rent - Straight-line	2.01		%	9.08		%	-15.22		%	0.00		%	-2.51		%	0.00		%	-1.42		%

Change in Base Rent - Cash	-7.77		%	3.71		%	-17.19		%	0.00		%	-9.81		%	0.00		%	-9.12		%
Change in Total Rent - Cash	-9.95		%	-0.74		%	-16.21		%	0.00		%	-6.97		%	0.00		%	-10.02		%

Average Capital Cost per Square Foot	$	12.68		$	6.99		$	5.78		$	—		$	11.23		$	—		$	10.76

Quarter Ended December 31, 2002:

Expiring Square Feet	417,227			19,099			103,860			n/a			n/a			—			540,186
Vacated Square Feet	123,656			10,825			39,606			n/a			n/a			—			174,087
Renewed Square Feet	293,571			8,274			64,254			n/a			n/a			—			366,099
Retention Rate (% based upon square feet)	70.36		%	43.32		%	61.87		%	n/a			n/a			0.00		%	67.77		%

Renewed & Retenanted Space:
Change in Base Rent - Straight-line	6.27		%	1.65		%	-4.53		%	n/a			n/a			0.00		%	5.00		%
Change in Total Rent - Straight-line	4.53		%	0.13		%	-5.79		%	n/a			n/a			0.00		%	3.25		%

Change in Base Rent - Cash	2.27		%	-1.17		%	-7.63		%	n/a			n/a			0.00		%	1.14		%
Change in Total Rent - Cash	0.94		%	-2.55		%	-8.34		%	n/a			n/a			0.00		%	-0.20		%

Average Capital Cost per Square Foot	$	4.43		$	13.69		$	2.27		n/a			n/a			$	—		$	4.49

Year to Date Acquisition Summary as of December 31, 2003

(Dollars in thousands)

	Submarket	Acquisition Date	Square Feet	Occupancy Percentage at Acquisition		December 31, 2003 Occupancy Percentage		Investment (1)

Individual Property:

2500 Riva Road	BWI Airport	3/4/2003	155,000	100.0	%	100.0	%	$	18,038
13200 Woodland Park Drive	Herndon	6/2/2003	404,665	100.0	%	100.0	%	71,449
13454 Sunrise Valley Road	Herndon	7/25/2003	113,093	85.7	%	85.7	%	18,328
13450 Sunrise Valley Road	Herndon	7/25/2003	53,728	100.0	%	100.0	%	8,707
14900 Conference Center Drive	Chantilly	7/25/2003	127,572	96.8	%	92.6	%	23,191
14840 Conference Center Drive	Chantilly	7/25/2003	69,710	100.0	%	100.0	%	12,673
14850 Conference Center Drive	Chantilly	7/25/2003	69,711	100.0	%	100.0	%	12,673
Total			993,479	98.4	%	97.4	%	$	165,059

(1) Initial investment recorded by property as of December 31, 2003 for asset purchase.

Year to Date Disposition Summary as of December 31, 2003

(Dollars in thousands)

	Submarket	Disposition Date	Square Feet	Gross Sales Proceeds		Debt Assumption or Repayment		Cash Proceeds After Debt Repayment

Individual Property:

695 Route 46 (1)	Wayne	3/14/2003	157,394	$	19,960	$	12,675	$	7,285
6009 - 6011 Oxon Hill Road (2)	Southern Prince George’s County	3/30/2003	181,768	20,188		13,000		7,188
Total			339,162	$	40,148	$	25,675	$	14,473

(1) This property was contributed to a joint venture in exchange for $19,960 and a 20% joint venture interest. Refer to joint venture summary. The gain on this disposition has been deferred due to our retained 20% interest in this property.

(2) In addition, we sold two adjacent land parcels for $1,100 and realized a gain of $3,371 on the total sale proceeds of $21,288.

Development Summary as of December 31, 2003

(Dollars in thousands except square feet)

Property and Location		Submarket	Wholly Owned or Joint Venture (JV)	Total Rentable Square Feet	Percentage Leased or Committed		Anticipated Total Cost		Cost to date		Outstanding Loan as of 12/31/2003		Anticipated Date of Operations


Under Construction

4230 Forbes Boulevard Lanham, Maryland	(1)	Lanham	JV	55,867	47.95	%	$	6,124	$	4,680	$	3,360	Construction 2Q 04

2720 Technology Drive (220 NBP) Annapolis Junction, Maryland	(2)	BWI Airport	JV	156,730	100.00	%	25,627		13,877		3,299		Construction 3Q 04

4851 Stonecroft Boulevard (Greens III) Chantilly, Virginia		Chantilly	Owned	88,094	100.00	%	15,211		4,116		—		Construction 4Q 04

Total Under Construction				300,691	90.33	%	$	46,962	$	22,673	$	6,659

(1) Total loan commitment for this property is $4,700.

(2) Total loan commitment for this property is $20,000.

Under Development

191 NBP Annapolis Junction, Maryland	BWI Airport	Owned	98,000	0.00	%	$	17,981	$	695	$	—	Development 4Q 05

Total Under Development			98,000	0.00	%	$	17,981	$	695	$	—

Development Placed into Service during the Year Ended December 31, 2003

Property and Location		Wholly Owned or Joint Venture (JV)	Total Square Feet	Year 2002	Year 2003		Percentage Leased as of 12/31/02		Percentage Leased as of 12/31/03

				Development Square Feet Placed into Service

6731 Columbia Gateway Drive		Wholly Owned	123,743	73,902		49,841	63.45	%	66.51	%
8661 Robert Fulton Drive	(1)	Wholly Owned	49,500	—		49,500	46.54	%	46.54	%
8671 Robert Fulton Drive	(1)	Wholly Owned	56,350	—		56,350	0.00	%	50.92	%
140 National Business Parkway	(2)	Wholly Owned	119,904	—		119,904	0.00	%	100.00	%

TOTAL/AVERAGE			349,497	73,902		275,595	29.06	%	72.66	%

(1) We acquired the remaining joint venture interest in these properties in December 2003 for $857,000.

(2) We acquired the remaining joint venture interest in this property in December 2003 for $5,351,000.

Joint Venture Summary as of December 31, 2003

(Dollars in thousands)

Property and Location

Joint Venture
Interest
Held By
COPT

Status

Square
Feet

Acreage

COPT
Investment

Off-Balance
Sheet Debt as
of 12/31/03

Recourse
to COPT

Option to
Acquire
Partner’s
Interest

4230 Forbes Boulevard
Lanham, Maryland

80%

Construction

55,867

5 acres

735

3,360

Yes, up to $4.5 million

Yes

MOR Montpelier 3 LLC
Laurel, Maryland

50%

Development

2 acres

455

—

N/A

Yes

Gateway 70
Columbia, Maryland

80%

Development

12 acres

2,406

—

N/A

Yes

220 NBP
Annapolis Junction, Maryland (1)

20%

Construction

156,730

11 acres

—

3,299

Yes

695 Route 46
Wayne, New Jersey (2)

20%

Operating

157,394

13 acres

1,055

14,329

TOTAL

4,651

20,988

(1) Upon formation of this joint venture in January 2003, we contributed land and have recorded our investment as land, construction in progress and buildings and improvements on our balance sheet. In addition, we have obtained an option to purchase the joint venture partner’s interest for a pre-determined price. Accordingly, we have recorded a liability and have been accreting towards the pre-determined purchase price over the respective time period.

(2) Effective March 14, 2003, we contributed our wholly-owned property into a joint venture in exchange for a 20% joint venture interest and a cash payment of $19,960.The joint venture borrowed a $14,500, ten-year, 5.97% fixed interest rate loan from Allstate Life Insurance Company.

Reconciliations of Non GAAP Measurements

(Dollars in thousands)

	2003												2002
	December 31			September 30			June 30			March 31			December 31

Net investment in real estate	$	1,178,938		$	1,145,402		$	1,095,093		$	1,041,323		$	1,042,955
Addback: intangible assests on real estate acquisitions, net		66,012			67,691			45,527			30,765			28,424
Addback: accumulated depreciation	103,070			96,538			88,174			80,513			78,069
Gross investment in real estate or denominator for Debt to Undepreciated Book Value of Real Estate	$	1,348,020		$	1,309,631		$	1,228,794		$	1,152,601		$	1,149,448
Less: land - development	(53,404		)	(43,482		)	(43,357		)	(43,233		)	(24,998		)
Less: construction in progress	(13,812		)	(9,474		)	(6,847		)	(5,334		)	(9,926		)

Less: investment in and advances to unconsolidated real estate joint ventures	(4,651		)	(9,576		)	(9,817		)	(9,679		)	(7,999		)
Gross investment in operating real estate	$	1,276,153		$	1,247,099		$	1,168,773		$	1,094,355		$	1,106,525
Average gross investment in operating real estate	$	1,261,626		$	1,207,936		$	1,131,564		$	1,100,440		$	1,101,526

Gross investment in real estate or denominator for Debt to Undepreciated Book Value of Real Estate	$	1,348,020		$	1,309,361		$	1,228,794		$	1,152,601		$	1,149,448

Add: Assets other than assets included in Gross Investment in Real Estate or denominator for Undepreciated Book Value of Real Estate	87,126			87,378			76,746			76,252			67,342
Denominator for Debt to Total Assets	$	1,435,146		$	1,397,009		$	1,305,540		$	1,228,853		$	1,216,790

GAAP Revenues from Real Estate Operations	$	46,579		$	45,448		$	40,878		$	41,518		$	41,371
Revenues from discontinued operations	—			1			6			902			1,008
Other income (expense)	—			(2		)	(4		)	(8		)	(16		)
Combined Real Estate Revenues	$	46,579		$	45,447		$	40,880		$	42,412		$	42,363
Interest income	(46		)	(102		)	(141		)	(97		)	(80		)
Combined Regional Rental Revenues	$	46,533		$	45,345		$	40,739		$	42,315		$	42,283

GAAP Property Operating	$	13,869		$	13,075		$	11,101		$	13,654		$	12,033
Property operating from discontinued operations	—			(13		)	24			348			347

Combined Property Operating Expenses from Real Estate Operations	$	13,869		$	13,062		$	11,125		$	14,002		$	12,380

GAAP Revenues from Real Estate Operations	$	46,579		$	45,448		$	40,878		$	41,518		$	41,371
Property operating	(13,869		)	(13,075		)	(11,101		)	(13,654		)	(12,033		)
Revenues from discontinued operations	—			1			6			902			1,008
Property operating from discontinued operations	—			13			(24		)	(348		)	(347		)
Other revenue	—			(2		)	(4		)	(8		)	(16		)
Combined Net Operating Income	$	32,710		$	32,385		$	29,755		$	28,410		$	29,983
Interest income and other income (expense), net	(46		)	(100		)	(143		)	(98		)	(76		)
Combined Regional Net Operating Income	$	32,664		$	32,285		$	29,612		$	28,312		$	29,907

GAAP Net Operating Income for Same Office Properties	$	27,281		$	27,892		$	27,980		$	27,146		$	28,597
Less: straight-line rent	(574		)	(469		)	(1,116		)	(1,108		)	(239		)

Less: accretion of intangible assets and liabilities classified as revenues	(629		)	(552		)	(501		)	(549		)	(424		)
Cash Net Operating Income for Same Office Properties	$	26,078		$	26,871		$	26,363		$	25,489		$	27,934

Depreciation and amortization	$	10,387		$	9,462		$	9,229		$	8,044		$	8,918
Depreciation of furniture, fixtures and equipment	(96		)	(124		)	(121		)	(120		)	(170		)
Depreciation and amortization from discontinued operations	—			—			—			19			19
Combined real estate related depreciation and other amortization	$	10,291		$	9,338		$	9,108		$	7,943		$	8,767

Interest expense from continuing operations	$	10,471		$	10,436		$	10,037		$	10,135		$	10,991
Interest expense from discontinued operations	—			—			—			100			70
Combined interest expense or denominator for interest coverage	$	10,471		$	10,436		$	10,037		$	10,235		$	11,061
Scheduled principal amortization	2,667			2,390			2,056			2,108			1,905
Denominator for Debt Service Coverage	$	13,138		$	12,826		$	12,093		$	12,343		$	12,966
Less: Scheduled principal amortization	(2,667		)	(2,390		)	(2,056		)	(2,108		)	(1,905		)
Preferred dividends - redeemable non-convertible	3,643			3,021			2,397			2,397			2,398
Preferred dividends - redeemable convertible	136			136			136			136			136
Preferred distributions	—			—			478			572			571
Denominator for Fixed Charge Coverage	$	14,250		$	13,593		$	13,048		$	13,340		$	14,166

Common dividends for Earnings Payout Ratio	$	6,807		$	6,798		$	6,322		$	5,139		$	5,114
Common distributions	2,084			2,085			1,968			1,978			1,977
Common dividends on restricted shares	—			—			90			83			75
Convertible preferred dividends	136			136			136			136			136
Convertible preferred unit distributions	—			—			477			572			571
Dividends and distributions for FFO and AFFO Payout Ratio	$	9,027		$	9,019		$	8,993		$	7,908		$	7,873

Reclassifications and Definitions

Reclassifications:		Funds from operations as reported for 2002 changed due to our reclassification of certain items in connection with our accounting under Statement of Financial Accounting Standards No. 141 “Business Combinations” or (“SFAS 141”). Funds from operations for 1999 through 2002 changed due to our reclassification of losses on early retirement of debt in connection with our adoption of Statement of Financial Accounting Standards No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections” on January 1, 2003.

NAREIT		National Association of Real Estate Investment Trusts.

GAAP		Generally accepted accounting principles.

Funds from Operations (FFO)		Under NAREIT’s definition, FFO means net income (loss) computed using GAAP, excluding gains (or losses) from sales of real estate, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Gains from sales of newly-developed properties less accumulated depreciation, if any, required under GAAP are included in FFO on the basis that development services are the primary revenue generating activity; we believe that inclusion of these development gains is in compliance with the NAREIT definition of FFO, although others may interpret the definition differently. Additionally, the repurchase of the Series C preferred units for an amount in excess of recorded book value was a transaction not contemplated in the NAREIT definition of FFO; we believe that the exclusion of such amount is appropriate. The FFO we present may not be comparable to the FFO of other REITs since they may interpret the current NAREIT definition of FFO differently or they may not use the current NAREIT definition of FFO.

Basic FFO		Basic FFO is FFO adjusted to (1) subtract preferred share dividends and (2) add back GAAP net income allocated to common units in Corporate Office Properties, L.P. (the “Operating Partnership”) not owned by the Company. With these adjustments, Basic FFO represents FFO available to common shareholders and common unitholders.

Diluted FFO		Diluted FFO is Basic FFO adjusted to add back any convertible preferred share dividends and any other changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares. However, the computation of Diluted FFO does not assume conversion of securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. Diluted FFO is the numerator used to computed diluted FFO per share.

Diluted FFO excluding SFAS 141		Diluted FFO adjusted to eliminate the amortization of the value assigned to in-place operating leases of acquired properties in connection with SFAS 141.

Diluted Adjusted Funds from Operations (AFFO)		Diluted AFFO, is Diluted FFO, adjusted to eliminate the effect of noncash rental revenues (comprised of straight-line rental adjustments and the amortization of the value assigned to in-place operating leases of acquired properties in connection with SFAS 141) and recurring capital expenditures.

Recurring Capital Expenditures		Most capitalizable fixed asset expenditures and leasing costs incurred for operating real estate properties.

Combined Net Operating Income (NOI)		Total revenues from real estate operations less total property expenses from real estate operations, including discontinued operations. Total property operating expenses, as used in this definition, do not include depreciation, amortization and interest expense associated with real estate operations.

Cash Net Operating Income		Cash NOI is Combined NOI adjusted to eliminate the effects of noncash rental revenues (comprised of straight-line rental adjustments and the amortization of value assigned to in-place operating leases of acquired properties in connection with SFAS 141). Under GAAP, rental revenue is recognized evenly over the term of tenant leases. Many leases provide for contractual rent increases and the effect of accounting under GAAP for such leases is to accelerate the recognition of lease revenue. Since some leases provide for periods under the lease in which rental concessions are provided to tenants, the effect of accounting under GAAP is to allocate rental revenue to such periods. Under SFAS 141, when a property is acquired, in-place operating leases carrying rents above or below market are valued as of the date of the acquisition; such value is then amortized into rental revenue over the lives of the related leases.

Earnings Before Interest, Income Taxes and Depreciation and Amortization (EBITDA)		EBITDA is net income adjusted for the effects of interest expense, depreciation and amortization, income taxes, gain on sales of real estate (excluding sales of non-operating properties and development services provided on operating properties), minority interests and preferred share dividends.

Combined Real Estate Revenues		Total revenues from real estate operations, including discontinued operations.

Earnings Payout Ratio		Total dividends on common shares divided by net income (loss) available to common shareholders.

Diluted FFO Payout Ratio		Diluted FFO Payout Ratio is defined as (1) the sum of (A) dividends on common shares and convertible preferred shares and (B) distributions to holders of common units and convertible preferred units in the Operating Partnership not owned by the Company divided by (2) Diluted FFO.

Diluted AFFO Payout Ratio		Diluted AFFO Payout Ratio is defined as (1) the sum of (A) dividends on common shares and convertible preferred shares and (B) distributions to holders of common units and convertible preferred units in the Operating Partnership not owned by the Company divided by (2) Diluted AFFO assuming conversion of share options, common unit warrants, preferred units and preferred shares.

Debt to Undepreciated Book Value of Real Estate Assets		Mortgage loans payable divided by gross investment in real estate as computed by adding accumulated depreciation to the net investment in real estate as presented on our balance sheet.

Base rent - straight-line or straight-line rent		Contractual minimum rent under leases recorded into rental revenue using the average contractual rent over the lease term in accordance with GAAP.

Total rent - straight-line		Contractual minimum rent under leases recorded into rental revenue using the average contractual rent over the lease term in accordance with GAAP plus estimated operating expense reimbursesments, or total rent.

Base rent - cash		Contractual minimum rent under leases remitted by the replacement tenant at lease commencement or the predecessor tenant at date of lease expiration.

Total rent - cash		Contractual minimum rent under leases plus estimated operating expense reimbursesments, or total rent, as remitted by the replacement tenant at lease commencement or the predecessor tenant at date of lease expiration.

Combined NOI Multiple, EBITDA Multiple and FFO Multiple		Combined NOI Multiple and EBITDA Multiple divide (A) the sum of (1) the aggregate market value of the average outstanding common equity, which is comprised of the Registrant’s common shares and common units in the Operating Partnership not owned by the Registrant, (2) the aggregate liquidation value of (a) the Registrant’s average outstanding preferred shares of beneficial interest (the “preferred shares”) and (b) the average outstanding preferred units in the Operating Partnership not owned by the Registrant and (3) the aggregate amount of the average outstanding mortgage loans by (B) the applicable measure for a quarter on an annualized basis (amount for quarter multiplied by four). FFO Multiple divides the quarter end market price for the common shares by the Registrant’s annualized diluted FFO per share (diluted FFO per share for the quarter multiplied by four).

Combined NOI Yield and EBITDA Yield		Combined NOI Yield and EBITDA Yield divide (A) either combined NOI or EBITDA for a quarter on an annualized basis (amount for quarter multiplied by four) by (B) the sum of (1) the aggregate market value of the average outstanding common equity, (2) the aggregate liquidation value of the Registrant’s average outstanding preferred shares and average preferred units in the Operating Partnership not owned by the Registrant and (3) the aggregate amount of the average outstanding mortgage loans.

Yield on Real Estate Owned - Combined NOI and Yield on Real Estate Owned - EBITDA		Yield on Real Estate Owned - Combined NOI and Yield on Real Estate Owned - EBITDA divide either Combined NOI or EBITDA for a quarter on an annualized basis (amount for quarter multiplied by four) by the aggregate average investment in real estate, excluding (A) land under development, (B) construction in progress, and (C) investments in and advances to unconsolidated real estate joint ventures. The Registrant believes that the Return on Assets (defined as net income available to common shareholders for the quarter multiplied by four divided by the aggregate average total assets) is the most directly comparable GAAP number to these two yield measures.

Interest Coverage - Combined NOI and Interest Coverage - EBITDA		Interest Coverage - Combined NOI and Interest Coverage - EBITDA divide either combined NOI or EBITDA by interest expense on continuing and discontinued operations.

Debt Service Coverage - Combined NOI and Debt Service Coverage - EBITDA		Debt Service Coverage - Combined NOI and Debt Service Coverage - EBITDA divide either combined NOI or EBITDA by the sum of interest expense and scheduled principal amortization on mortgage loans for continuing and discontinued operations.

Fixed Charge Coverage - Combined NOI and Fixed Charge Coverage - EBITDA		Fixed Charge Coverage - Combined NOI and Fixed Charge Coverage - EBITDA divide either combined NOI or EBITDA by the sum of (1) interest expense on continuing and discontinued operations, (2) dividends on preferred shares and (3) distributions on preferred units in the Operating Partnership not owned by the Registrant.

Combined NOI as a Percentage of Combined Real Estate Revenues and EBITDA as a Percentage of Combined Real Estate Revenues		Combined NOI and EBITDA as a Percentage of Combined Real Estate Revenues divide either Combined NOI or EBITDA by total real estate revenues from continuing and discontinued operations.

General and Administrative Expenses as a Percentage of EBITDA		General and Administrative Expenses as a Percentage of EBITDA divides general and administrative expenses by EBITDA.

Recurring Capital Expenditures as a Percentage of Combined NOI		Recurring Capital Expenditures as a Percentage of Combined NOI divides recurring capital expenditures (representing mostly capitalized fixed asset expenditures and leasing costs for operating real estate properties) by NOI.

Supplemental Information

December 31, 2003

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Highlights and Discussion

Selected Financial Analyses

Portfolio Summary

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