<SUBMISSION>
<ACCESSION-NUMBER>0000898430-01-503514
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20010930
<FILING-DATE>20011114
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>KILROY REALTY CORP
<CIK>0001025996
<ASSIGNED-SIC>6798
<IRS-NUMBER>954598246
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-12675
<FILM-NUMBER>1787525
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2250 E IMPERIAL HWY
<STREET2>C/O KILROY INDUSTRIES
<CITY>EL SEGUNDO
<STATE>CA
<ZIP>90245
<PHONE>3105635500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>C/O KILROY INDUSTRIES
<STREET2>2250 E IMPERIAL HIGHWAY #1200
<CITY>EL SEGUNDO
<STATE>CA
<ZIP>90245
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML><HEAD>
<TITLE>Form 10-Q</TITLE>
</HEAD>
  <BODY BGCOLOR="WHITE"><HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <HR SIZE="4" NOSHADE ALIGN="left"><DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman"
SIZE="5"><B>UNITED STATES </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Washington, D.C. 20549
</B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <HR NOSHADE WIDTH="18%"><DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 10-Q </B></FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%" VALIGN="top"><DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(M</FONT></DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2">ark One) </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="017" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B></B><FONT FACE="WINGDINGS">&#120;</FONT><B></B></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2"><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>For the quarterly period ended September 30, 2001 </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>OR </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="017" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B></B></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"><B></B></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2"><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </B> </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Commission file number 1-12675
</B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>KILROY REALTY CORPORATION </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact name
of registrant as specified in its charter) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP WIDTH="27%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Maryland </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="19%" ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>95-4598246 </B></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" ALIGN="center" NOWRAP WIDTH="27%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or other jurisdiction </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>of incorporation or
organization) </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center" NOWRAP WIDTH="19%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(I.R.S. Employer </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Identification Number) </B></FONT></DIV>
</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>2250 East Imperial Highway, Suite 1200, El Segundo, California 90245
</B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive offices) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><B>(310) 563-5500 </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Registrant&#146;s telephone number, including area code) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>N/A </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Former name, former address and former fiscal year, if changed since last report) </B></FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports required to
be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the
past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#120;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman"
SIZE="2"> </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of November 12, 2001, 27,426,071 shares of common
stock, par value $.01 per share, were outstanding. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <HR SIZE="4" NOSHADE ALIGN="left">
   <HR>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>KILROY REALTY CORPORATION </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>QUARTERLY REPORT FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>TABLE OF
CONTENTS </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Page </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="top" COLSPAN="6" ALIGN="center" NOWRAP WIDTH="100%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B></B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>PART I&#151;FINANCIAL INFORMATION </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 1. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">FINANCIAL STATEMENTS (unaudited) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx1">Consolidated Balance Sheets as of September 30, 2001 and December 31, 2000 </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV><FONT SIZE=2><BR></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx2">Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2001 <BR>and 2000 </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx3">Consolidated Statement of Stockholders&#146; Equity for the Nine Months Ended September 30, 2001 </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx4">Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2001 and 2000 </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx5">Notes to Consolidated Financial Statements </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 2. </FONT></DIV> <DIV><FONT SIZE=2><BR></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx6">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND <BR>RESULTS OF OPERATIONS </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 3. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx7">QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" COLSPAN="6" ALIGN="center" NOWRAP WIDTH="100%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B></B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>PART II&#151;OTHER INFORMATION </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 1. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx8">LEGAL PROCEEDINGS </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 2. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx9">CHANGES IN SECURITIES </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 3. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx10">DEFAULTS UPON SENIOR SECURITIES </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 4. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx11">SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 5. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx12">OTHER INFORMATION </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP WIDTH="7%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ite</FONT><FONT FACE="Times New Roman" SIZE="2">m 6. </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx13">EXHIBITS AND REPORTS ON FORM 8-K </A> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR>
<TD VALIGN="top" COLSPAN="3" NOWRAP WIDTH="100%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
<A HREF="#190tx14">SIGNATURES </A></FONT><FONT FACE="Times New Roman" SIZE="2"> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="3%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">i </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx1">PART I&#151;FINANCIAL INFORMATION </A></B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM 1. &nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS
</B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>KILROY REALTY CORPORATION </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CONSOLIDATED BALANCE SHEETS </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(unaudited, in thousands, except share data) </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
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<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>September 30, <BR>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>December 31, <BR>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>ASSETS </B></FONT></DIV> <HR NOSHADE WIDTH="50"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">IN</FONT><FONT FACE="Times New Roman" SIZE="1">VESTMENT IN REAL ESTATE (Notes 2 and 9): </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;La</FONT><FONT FACE="Times New Roman" SIZE="1">nd and improvements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;274,569 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;266,444 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bu</FONT><FONT FACE="Times New Roman" SIZE="1">ildings and improvements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,136,946 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,054,995 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Un</FONT><FONT FACE="Times New Roman" SIZE="1">developed land and construction in progress, net </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">170,122 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">162,633 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inv</FONT><FONT FACE="Times New Roman" SIZE="1">estment in unconsolidated real estate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">12,405 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="1">tal investment in real estate
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,581,637 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,496,477 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="1">cumulated depreciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(232,029</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(205,332</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inv</FONT><FONT FACE="Times New Roman" SIZE="1">estment in real estate, net
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,349,608 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,291,145 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">CA</FONT><FONT FACE="Times New Roman" SIZE="1">SH AND CASH EQUIVALENTS </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">10,718 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">17,600 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">RE</FONT><FONT FACE="Times New Roman" SIZE="1">STRICTED CASH (Note 2) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">25,800 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">35,014 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">TE</FONT><FONT FACE="Times New Roman" SIZE="1">NANT RECEIVABLES, NET </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">32,236 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">32,521 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">NO</FONT><FONT FACE="Times New Roman" SIZE="1">TE RECEIVABLE FROM RELATED PARTY (Note 2) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">33,274 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">DE</FONT><FONT FACE="Times New Roman" SIZE="1">FERRED FINANCING AND LEASING COSTS, NET </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">37,470 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">39,674 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">PR</FONT><FONT FACE="Times New Roman" SIZE="1">EPAID EXPENSES AND OTHER ASSETS </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">4,890 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">7,941 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TO</FONT><FONT FACE="Times New Roman" SIZE="1">TAL ASSETS </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1,460,722 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1,457,169 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY </B></FONT></DIV> <HR NOSHADE WIDTH="264"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIA</FONT><FONT FACE="Times New Roman" SIZE="1">BILITIES: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sec</FONT><FONT FACE="Times New Roman" SIZE="1">ured debt (Note 3) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;437,688 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;432,688 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Un</FONT><FONT FACE="Times New Roman" SIZE="1">secured line of credit (Note 3) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">185,000 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">191,000 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Un</FONT><FONT FACE="Times New Roman" SIZE="1">secured term facility </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">100,000 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">100,000 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="1">counts payable, accrued expenses and other liabilities (Note 4) </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">48,336 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">33,911 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="1">crued distributions (Note 9) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">14,634 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">13,601 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="1">nts received in advance and tenant security deposits </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">14,643 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">17,810 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="1">tal liabilities </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">800,301 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">789,010 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">CO</FONT><FONT FACE="Times New Roman" SIZE="1">MMITMENTS AND CONTINGENCIES </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">MI</FONT><FONT FACE="Times New Roman" SIZE="1">NORITY INTERESTS (Note 5): </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.0</FONT><FONT FACE="Times New Roman" SIZE="1">75% Series A Cumulative Redeemable Preferred unitholders </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">73,716 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">73,716 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3</FONT><FONT FACE="Times New Roman" SIZE="1">75% Series C Cumulative Redeemable Preferred unitholders </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">34,464 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">34,464 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2</FONT><FONT FACE="Times New Roman" SIZE="1">50% Series D Cumulative Redeemable Preferred unitholders </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">44,321 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">44,321 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Co</FONT><FONT FACE="Times New Roman" SIZE="1">mmon unitholders of the Operating Partnership </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">49,573 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">62,485 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mi</FONT><FONT FACE="Times New Roman" SIZE="1">nority interests in Development LLCs </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">14,164 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">11,748 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="1">tal minority interests </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">216,238 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">226,734 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">ST</FONT><FONT FACE="Times New Roman" SIZE="1">OCKHOLDERS&#146; EQUITY: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre</FONT><FONT FACE="Times New Roman" SIZE="1">ferred stock, $.01 par value, 26,200,000 shares authorized, none issued and
outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.0</FONT><FONT FACE="Times New Roman" SIZE="1">75% Series A Cumulative Redeemable Preferred stock, $.01 par value,
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,700,000 shares authorized, none issued and outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser</FONT><FONT FACE="Times New Roman" SIZE="1">ies B Junior Participating Preferred stock, $.01 par value,
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;400,000 shares authorized, none issued and outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3</FONT><FONT FACE="Times New Roman" SIZE="1">75% Series C Cumulative Redeemable Preferred stock, $.01 par value,
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;700,000 shares authorized, none issued and outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2</FONT><FONT FACE="Times New Roman" SIZE="1">50% Series D Cumulative Redeemable Preferred stock, $.01 par value,
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000,000 shares authorized, none issued and outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Co</FONT><FONT FACE="Times New Roman" SIZE="1">mmon stock, $.01 par value, 150,000,000 shares authorized,
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,426,071 and 26,475,470 shares issued and outstanding, respectively </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">274 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">265 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ad</FONT><FONT FACE="Times New Roman" SIZE="1">ditional paid-in capital </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">478,986 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">460,390 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dis</FONT><FONT FACE="Times New Roman" SIZE="1">tributions in excess of earnings </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(27,623</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(19,230</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="1">cumulated other comprehensive loss </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(7,454</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="1">tal stockholders&#146; equity
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">444,183 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">441,425 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TO</FONT><FONT FACE="Times New Roman" SIZE="1">TAL LIABILITIES AND
STOCKHOLDERS&#146; EQUITY </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1,460,722 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1,457,169 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="1" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="1" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">See accompanying notes to consolidated financial statements. </FONT></DIV>
<P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx2">KILROY REALTY CORPORATION </A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CONSOLIDATED STATEMENTS OF OPERATIONS </B></FONT></DIV> <DIV
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(unaudited, in thousands, except share and per share data) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Three Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Nine Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">RE</FONT><FONT FACE="Times New Roman" SIZE="2">VENUES (Note 7): </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44,992 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,555 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;135,400 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117,627 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,901 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,748 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,591 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,036 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">170 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,706 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">883 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,008 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income (Note 6) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">383 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">240 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,173 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,684 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
revenues </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">51,446 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">47,249 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">160,047 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">136,355 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">EX</FONT><FONT FACE="Times New Roman" SIZE="2">PENSES: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,911 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,217 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22,254 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,749 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,106 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,523 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,480 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,959 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ge</FONT><FONT FACE="Times New Roman" SIZE="2">neral and administrative expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,949 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,890 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,337 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,077 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gr</FONT><FONT FACE="Times New Roman" SIZE="2">ound leases </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">379 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">423 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,146 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,211 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest expense </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,657 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,024 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,800 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman" SIZE="2">preciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,680 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,941 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,634 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,909 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,682 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33,018 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">115,911 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">93,705 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">IN</FONT><FONT FACE="Times New Roman" SIZE="2">COME FROM OPERATIONS BEFORE NET GAINS <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ON DISPOSITIONS OF OPERATING PROPERTIES,
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MINORITY INTERESTS AND CUMULATIVE <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EFFECT OF CHANGE IN ACCOUNTING <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRINCIPLE </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,764 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,231 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">44,136 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">42,650 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">NE</FONT><FONT FACE="Times New Roman" SIZE="2">T GAINS ON DISPOSITIONS OF OPERATING <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROPERTIES </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,468 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,288 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,007 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,256 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">IN</FONT><FONT FACE="Times New Roman" SIZE="2">COME BEFORE MINORITY INTERESTS AND <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CUMULATIVE EFFECT OF CHANGE IN
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTING PRINCIPLE </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15,232 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">21,519 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">48,143 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">53,906 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">MI</FONT><FONT FACE="Times New Roman" SIZE="2">NORITY INTERESTS: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dis</FONT><FONT FACE="Times New Roman" SIZE="2">tributions on Cumulative Redeemable Preferred
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,375</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,375</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10,125</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10,125</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mi</FONT><FONT FACE="Times New Roman" SIZE="2">nority interest in earnings of Operating Partnership
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,027</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,227</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,668</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5,442</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mi</FONT><FONT FACE="Times New Roman" SIZE="2">nority interest in earnings of Development LLCs </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,547</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(238</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,152</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(279</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
minority interests </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5,949</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5,840</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(15,945</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(15,846</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">NE</FONT><FONT FACE="Times New Roman" SIZE="2">T INCOME BEFORE CUMULATIVE EFFECT OF <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHANGE IN ACCOUNTING PRINCIPLE </FONT></DIV> </TD>

<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,283 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15,679 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32,198 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">CU</FONT><FONT FACE="Times New Roman" SIZE="2">MULATIVE EFFECT OF CHANGE IN <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTING PRINCIPLE (Note 1) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,392</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">NE</FONT><FONT FACE="Times New Roman" SIZE="2">T INCOME </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,283 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,679 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income per common share&#151;basic (Note 8) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.34 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income per common share&#151;diluted (Note 8) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.34 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">We</FONT><FONT FACE="Times New Roman" SIZE="2">ighted average shares outstanding&#151;basic (Note 8) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,359,343 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,455,400 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,079,702 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,646,871 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">We</FONT><FONT FACE="Times New Roman" SIZE="2">ighted average shares outstanding&#151;diluted (Note 8) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,586,503 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,696,985 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,314,967 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,757,751 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="2">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">See accompanying notes to
consolidated financial statements. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx3">KILROY REALTY CORPORATION </A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CONSOLIDATED STATEMENT OF STOCKHOLDERS&#146; EQUITY </B></FONT></DIV>
<DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(unaudited in thousands, except share and per share data) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Number of <BR>Shares </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Common <BR>Stock </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Additional <BR>Paid-in <BR>Capital </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Distributions <BR>in Excess of <BR>Earnings </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Accumulated <BR>Other <BR>Comp. Loss </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">BA</FONT><FONT FACE="Times New Roman" SIZE="1">LANCE AT DECEMBER 31, 2000 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;26,475,470 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;$265 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;$460,390 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;$(19,230</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;$441,425 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ex</FONT><FONT FACE="Times New Roman" SIZE="1">change of common units of the Operating
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partnership (Note 5) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">687,591 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">7 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">13,652 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">13,659 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ex</FONT><FONT FACE="Times New Roman" SIZE="1">ercise of stock options </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">270,190 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">5,028 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">5,030 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</FONT><FONT FACE="Times New Roman" SIZE="1">n-cash amortization of restricted stock grants </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,643 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">1,643 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="1">purchase of common stock </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(7,180</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(228</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(228</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ad</FONT><FONT FACE="Times New Roman" SIZE="1">justment for minority interest </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(1,499</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(1,499</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Div</FONT><FONT FACE="Times New Roman" SIZE="1">idends declared ($1.44 per share) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(39,199</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(39,199</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="1">t income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="1">er comprehensive loss (Notes 1 and 4) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(7,454</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">(7,454</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">BA</FONT><FONT FACE="Times New Roman" SIZE="1">LANCE AT SEPTEMBER 30, 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">27,426,071 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="5%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$274 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$478,986 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$(27,623</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$(7,454</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$444,183 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="2">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">See accompanying notes to consolidated financial statements. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx4">KILROY REALTY CORPORATION </A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS </B></FONT></DIV> <DIV
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(unaudited, in thousands) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Nine Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">CA</FONT><FONT FACE="Times New Roman" SIZE="2">SH FLOWS FROM OPERATING ACTIVITIES: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;38,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ad</FONT><FONT FACE="Times New Roman" SIZE="2">justments to reconcile net income to net cash provided by operating activities: </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman" SIZE="2">preciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,634 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,909 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu</FONT><FONT FACE="Times New Roman" SIZE="2">mulative effect of change in accounting principle </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,392 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">vision for uncollectable tenant receivables and deferred rent
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,542 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,636 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mi</FONT><FONT FACE="Times New Roman" SIZE="2">nority interest in earnings of Operating Partnership and
Development LLCs </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,820 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,721 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</FONT><FONT FACE="Times New Roman" SIZE="2">n-cash amortization of restricted stock grants </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,643 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">744 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t gains on dispositions of operating properties </FONT></DIV> </TD>

<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4,007</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(11,256</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(130</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(284</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ch</FONT><FONT FACE="Times New Roman" SIZE="2">anges in assets and liabilities: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant receivables </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,138</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(7,610</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman" SIZE="2">ferred leasing costs </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,506</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,739</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre</FONT><FONT FACE="Times New Roman" SIZE="2">paid expenses and other assets
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">20 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4,430</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="2">counts payable, accrued expenses and other
liabilities </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,439 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,920 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">nts received in advance and tenant security
deposits </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,167</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,514</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="2">crued distributions to Cumulative
Redeemable Preferred unitholders </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">299 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t cash provided by
operating activities </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">75,348 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59,456 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">CA</FONT><FONT FACE="Times New Roman" SIZE="2">SH FLOWS FROM INVESTING ACTIVITIES: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ex</FONT><FONT FACE="Times New Roman" SIZE="2">penditures for operating properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(9,244</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(8,509</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ex</FONT><FONT FACE="Times New Roman" SIZE="2">penditures for undeveloped land and construction in progress </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(79,388</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(128,401</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ca</FONT><FONT FACE="Times New Roman" SIZE="2">sh paid to acquire note receivable </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(45,278</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t proceeds received from dispositions of operating properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">44,832 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">110,642 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t advances to unconsolidated subsidiary </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">470 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t cash used in
investing activities </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(43,800</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(71,076</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">CA</FONT><FONT FACE="Times New Roman" SIZE="2">SH FLOWS FROM FINANCING ACTIVITIES: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t repayments on unsecured line of credit </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(6,000</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(42,000</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">ceeds from secured debt </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,243 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">163,961 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Pri</FONT><FONT FACE="Times New Roman" SIZE="2">ncipal payments on secured debt (Note 3) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(21,368</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10,421</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Fin</FONT><FONT FACE="Times New Roman" SIZE="2">ancing costs </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(129</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(3,932</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Sh</FONT><FONT FACE="Times New Roman" SIZE="2">are repurchase program </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(41,270</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">ceeds from exercise of stock options </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,030 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman" SIZE="2">crease (increase) in restricted cash (Note 2) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,214 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(28,870</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t contributions from minority interests in Development LLCs </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">263 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,396 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Dis</FONT><FONT FACE="Times New Roman" SIZE="2">tributions paid to common stockholders and common unitholders </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(42,683</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(40,559</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t cash used in
financing activities </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(38,430</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,695</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t decrease in cash and cash equivalents </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(6,882</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(13,315</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ca</FONT><FONT FACE="Times New Roman" SIZE="2">sh and cash equivalents, beginning of period </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,600 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,116 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ca</FONT><FONT FACE="Times New Roman" SIZE="2">sh and cash equivalents, end of period </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;10,718 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;12,801 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">SU</FONT><FONT FACE="Times New Roman" SIZE="2">PPLEMENTAL CASH FLOW INFORMATION: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ca</FONT><FONT FACE="Times New Roman" SIZE="2">sh paid for interest, net of capitalized interest </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;28,794 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;26,441 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Dis</FONT><FONT FACE="Times New Roman" SIZE="2">tributions paid to Cumulative Redeemable Preferred unitholders </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;10,125 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,827 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">NO</FONT><FONT FACE="Times New Roman" SIZE="2">N-CASH TRANSACTIONS: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Ac</FONT><FONT FACE="Times New Roman" SIZE="2">crual of distributions payable (Note 9) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;14,634 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;13,591 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;No</FONT><FONT FACE="Times New Roman" SIZE="2">te receivable repaid in connection with property acquisition (Note 2) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;33,274 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Iss</FONT><FONT FACE="Times New Roman" SIZE="2">uance of secured note payable in connection with undeveloped land acquisition (Note 2)
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;9,125 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,500 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="2">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">See accompanying notes to consolidated financial statements. </FONT></DIV>
<P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx5">KILROY REALTY CORPORATION </A></B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Nine Months Ended September 30, 2001 and 2000 </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(Unaudited) </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;Organization and Basis of Presentation </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Organization </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kilroy Realty Corporation (the &#145;&#145;Company&#146;&#146;) develops, owns, and operates office and industrial real estate, primarily in Southern California. The Company
operates as a self-administered real estate investment trust (&#145;&#145;REIT&#146;&#146;). As of September 30, 2001, the Company&#146;s stabilized portfolio of operating properties consisted of 86 office buildings (the &#145;&#145;Office
Properties&#146;&#146;) and 71 industrial buildings (the &#145;&#145;Industrial Properties&#146;&#146;), which encompassed an aggregate of approximately 7.1 million and 5.3 million rentable square feet, respectively, and was approximately 94.8%
occupied. The Company&#146;s stabilized portfolio of operating properties consists of all of the Company&#146;s Office Properties and Industrial Properties excluding properties recently developed by the Company that have not yet reached 95.0%
occupancy (&#145;&#145;lease-up&#146;&#146; properties) and projects currently under construction, renovation or in pre-development. As of September 30, 2001, the Company had four office properties encompassing an aggregate of approximately 345,800
rentable square feet which were in the lease-up phase. Lease-up properties are included in land and improvements and building and improvements on the consolidated balance sheets upon building shell completion. In addition, as of September 30, 2001,
the Company had six office properties under construction or committed for construction and one property under renovation which when completed are expected to encompass an aggregate of approximately 617,700 and 78,000 rentable square feet,
respectively. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company owns its interests in all of its
properties through Kilroy Realty, L.P. (the &#145;&#145;Operating Partnership&#146;&#146;) and Kilroy Realty Finance Partnership, L.P. (the &#145;&#145;Finance Partnership&#146;&#146;) and conducts substantially all of its operations through the
Operating Partnership. The Company owned a 90.0% general partnership interest in the Operating Partnership as of September 30, 2001. The Operating Partnership owns a 50% interest in two limited liability companies (the &#145;&#145;Development
LLCs&#146;&#146;) which were formed to develop two multi-phased office projects in San Diego, California. The Allen Group, a group of affiliated real estate development and investment companies based in San Diego, California, is the other 50% member
of the Development LLCs. The Development LLCs are consolidated for financial reporting purposes since the Company controls all significant development and operating decisions. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 1, 2001, Kilroy Services, Inc. (&#145;&#145;KSI&#146;&#146;) was merged into a newly formed entity, Kilroy Services, LLC
(&#145;&#145;KSLLC&#146;&#146;). The Company historically accounted for the operating results of the development services business conducted by KSI under the equity method of accounting. Prior to the merger, John B. Kilroy, Sr., the Chairman of the
Company&#146;s Board of Directors, and John B. Kilroy, Jr., the Company&#146;s President and Chief Executive Officer, owned 100% of the voting interest of KSI, and the Operating Partnership owned 100% of the non-voting preferred stock representing a
95% economic interest in KSI. In connection with the merger, Messrs. Kilroy received $8,000 in cash for their economic interest and KSLLC became a wholly-owned subsidiary of the Company. As a result, KSLLC was consolidated for financial reporting
purposes beginning January 1, 2001. Unless otherwise indicated, all references to the Company include the Operating Partnership, the Finance Partnership, KSLLC, the Development LLC&#146;s, and all wholly-owned subsidiaries and controlled entities.
</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
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<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Basis of Presentation </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying interim financial statements have been prepared by the Company&#146;s management in accordance with generally accepted accounting principles
(&#145;&#145;GAAP&#146;&#146;) and in conjunction with the rules and regulations of the Securities and Exchange Commission (&#145;&#145;SEC&#146;&#146;). Certain information and footnote disclosures
</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></DIV>

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required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information
and footnotes required by GAAP in the United States of America for complete financial statements. In the opinion of management, the interim financial statements presented herein reflect all adjustments of a normal and recurring nature which are
considered necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2001.
These financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2000. Certain prior year
amounts have been reclassified to conform to the current period&#146;s presentation. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
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<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>New Accounting Pronouncements </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the Company&#146;s overall interest rate risk management strategy, the Company uses derivative instruments, including interest rate swaps and
caps, to hedge exposures to interest rate risk on its debt. The Company does not enter into any derivative instruments for speculative purposes. On January 1, 2001, the Company adopted Statement of Financial Accounting Standards
(&#145;&#145;SFAS&#146;&#146;) 133, &#145;&#145;Accounting for Derivative Instruments and Hedging Activities,&#146;&#146; as amended by SFAS 138, &#145;&#145;Accounting for Certain Derivative Instruments and Certain Hedging Activities&#146;&#146;
(collectively, &#145;&#145;SFAS 133&#146;&#146;). SFAS 133 establishes accounting and reporting standards for derivative instruments. Specifically, SFAS 133 requires an entity to recognize all derivatives as either assets or liabilities on the
balance sheet at fair value. Additionally, any of the adjustments to fair value will affect either shareholders&#146; equity or net income depending on the nature of the hedge and whether the derivative instrument qualifies as a hedge for accounting
purposes. The Company determines fair value based upon available market information at each balance sheet date using standard valuation techniques such as discounted cash flow analysis and option pricing models. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the adoption of SFAS 133, the Company applied deferral accounting for all derivative financial
instruments that were designated as hedges. Amounts paid or received under these agreements were recognized as adjustments to interest expense. The initial premiums on cap agreements were amortized over the life of the agreement using the
straight-line method. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 1, 2001, in connection with the
adoption of SFAS 133, the Company recorded a $1.4 million cumulative effect of change in accounting principle to record an existing cap agreement at fair market value. The Company also recorded a $2.0 million non-cash charge to other comprehensive
loss to record the Company&#146;s swap on the balance sheet at fair market value. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the Financial Accounting Standards Board issued two new pronouncements: SFAS 141, &#145;&#145;Business Combinations&#146;&#146; (&#145;&#145;SFAS 141&#146;&#146;),
and SFAS 142, &#145;&#145;Goodwill and Other Intangible Assets&#146;&#146; (&#145;&#145;SFAS 142&#146;&#146;). These statements make significant changes to the accounting for business combinations, goodwill, and intangible assets. Among other
provisions, SFAS 141 prohibits the use of the pooling-of-interests method, requiring all business combinations initiated after September 30, 2001 to be accounted for using the purchase method of accounting. SFAS 142 discontinues the practice of
amortizing goodwill and other intangible assets and requires a periodic review process for impairment. SFAS 142 is effective for fiscal periods beginning after December 15, 2001. Management does not expect that the adoption of these statements will
have a material effect on the Company&#146;s results of operations or financial condition. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2001, the Financial Accounting Standards Board issued SFAS 144 &#147;Accounting for the Impairment or Disposal of Long-Lived Assets&#148; (&#147;SFAS 144&#148;). SFAS
144 addresses financial accounting and
 </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">8 </FONT></DIV>

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reporting for the disposal of long-lived assets and supercedes FAS 121 &#147;Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.&#148; FAS 144 becomes
effective for financial statements issued for fiscal years beginning after December 15, 2001 and interim periods within those fiscal years. Management does not expect that the adoption of this statement will have a material effect on the
Company&#146;s results of operations or financial condition. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, Dispositions and
Completed Development Projects </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
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<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Acquisition of Land </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the Company acquired 9.8 acres of undeveloped land in San Diego, California from an unaffiliated third party for $15.1 million, consisting of a cash payment of $6.0
million and the issuance of a $9.1 million non-interest bearing mortgage note payable to the seller. The note is secured by the undeveloped land and is due on or before December 6, 2001. The note may be prepaid at any time, in whole or in part,
without penalty or premium. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2001, the Company acquired
the fee interest in a parcel of land at 9455 Town Center Drive, San Diego for $3.1 million. The Company had previously leased this land from the city of San Diego. This land is the site of one of the Company&#146;s Office Properties. </FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
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<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Related Party Acquisition </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2001, the Company purchased a 75% tenancy-in-common interest in a three-building office complex located in El Segundo, California for $33.4
million in cash. The complex, which encompasses an aggregate of approximately 366,000 rentable square feet, is comprised of two office buildings and a parking structure. One of the office buildings is 100% leased to The Boeing Company. The Company
is currently redeveloping the second office building. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
partially funded the acquisition with $28.4 million in proceeds from property dispositions that were held for use in tax-deferred property exchanges and included in restricted cash at December 31, 2000. The remaining $5.0 million was funded with
borrowings under the Company&#146;s unsecured line of credit. The interest was purchased from entities owned by John B. Kilroy, Sr., the Company&#146;s Chairman of the Board of Directors, John B. Kilroy, Jr. the Company&#146;s President and Chief
Executive Officer, and certain other Kilroy family members. Concurrent with the purchase of the 75% interest, the outstanding note receivable from related party and related accrued interest balances were paid to the Company. </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the acquisition, the Company now owns a 100% interest in the complex.
The initial 25% tenancy-in-common interest was acquired by a wholly-owned subsidiary of the Company in October 2000 and was recorded as an investment in unconsolidated real estate on the consolidated balance sheet as of December 31, 2000.
</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">9 </FONT></DIV>

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 <P></P> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
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<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Dispositions </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2001, the Company sold the following properties: </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="89%">

<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Property Type </B></FONT></DIV> <HR NOSHADE WIDTH="102" ALIGN="left"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Location </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Month of <BR>Disposition </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>No. of <BR>Buildings </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Rentable <BR>Square <BR>Feet </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Sale Price <BR>($ in millions) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">San Diego, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">February </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">39,700 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;3.3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Roseville, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">April </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">162,200 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15.4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Camarillo, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">August </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">41,100 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.6 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Las Vegas, NV </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">August </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">106,700 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Reno, NV </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">September </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">75,300 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Temecula, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">September </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">77,600 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5.4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Las Vegas, NV </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="12%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">September </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">102,900 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5.1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" COLSPAN="5" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">605,500 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;48.1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company recorded
a gain of approximately $4.0 million in connection with the sales of these properties. As of September 30, 2001, restricted cash included $19.4 million in proceeds received from property dispositions that are held at a Qualified Intermediary for
future use in tax-deferred exchanges. The Company generally uses disposition sales proceeds to fund development expenditures. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Completed Development Projects </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2001, the Company completed the following development projects which have been added to the Company&#146;s
stabilized portfolio: </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="91%">

<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Property Type </B></FONT></DIV> <HR NOSHADE WIDTH="102" ALIGN="left"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Location </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Stabilization <BR>Date </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>No. of <BR>Buildings </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Rentable <BR>Square <BR>Feet </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Stabilized <BR>Occupancy </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">San Diego, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="11%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Q2 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="1%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">68,000 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="6%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">100% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">San Diego, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="11%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Q2 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="1%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">102,900 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="6%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">100% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Calabasas, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="11%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">Q3 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="1%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,800 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" NOWRAP WIDTH="6%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">100% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" COLSPAN="5" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">182,700 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30,
2001, the Company had the following four office properties in the lease-up phase: </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="91%">

<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Property Type </B></FONT></DIV> <HR NOSHADE WIDTH="102" ALIGN="left"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Location </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Completion <BR>Date </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>No. of <BR>Buildings </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Rentable </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Square <BR>Feet </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Committed(1) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Estimated <BR>Stabilization <BR>Date(2) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Calabasas, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q1 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">98,700 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">66</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q1 2002 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">San Diego, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q2 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">46,700 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">65</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q2 2002 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">San Diego, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q2 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">70,600 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q2 2002 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP WIDTH="17%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Del Mar, CA </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q2 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">129,800 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">100</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">%(3) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Q4 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" COLSPAN="6" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="1%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">345,800 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="010" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Includes executed leases and signed letters of intent calculated on a square footage basis. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="010" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(2)</FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Based on Management&#146;s estimation of the earlier of the stabilized occupancy (95%) or one year from the date of substantial completion. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="010" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(3)</FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">This project is 100% leased to one tenant. The tenant occupied 91% of the project at September 30, 2001 under a staged move-in plan. The Company presently expects the tenant to
occupy the remaining space during the fourth quarter of 2001. </FONT></DIV> </TD></TR></TABLE> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">10 </FONT></DIV>

   <HR>
 <P></P>
 <P></P> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;Unsecured Line of Credit and Secured Debt
</B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2001, the Company had borrowings of $185
million outstanding under its revolving unsecured line of credit (the &#145;&#145;Credit Facility&#146;&#146;) and availability of approximately $159 million. The Credit Facility bears interest at an annual rate of LIBOR plus a spread of between
1.13% and 1.75% (4.93% at September 30, 2001), depending upon the Company&#146;s leverage ratio at the time of borrowing. The Company expects to use the Credit Facility to fund development expenditures, to fund potential undeveloped land
acquisitions and for general corporate purposes. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the
Company repaid the $16.8 million principal balance of an existing construction loan which had an annual interest rate of LIBOR plus 1.75% and a stated maturity of October 2002. The payment was made in conjunction with a tax-deferred property
exchange and was primarily funded with the $15.4 million in proceeds from the disposition of the industrial property in Roseville, California (see Note 2). </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 2001, one of the Development LLCs obtained a construction loan with a total commitment of $9.8 million. The construction loan bears interest at
an annual rate of LIBOR plus 3.00% and matures in May 2003, with the option to extend for up to two six-month periods. The proceeds from the construction loan are being used to finance the development costs of an office building in San Diego,
California that encompasses an aggregate of approximately 60,700 rentable square feet. The construction loan is secured by a first deed of trust on the project. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest capitalized for the three months ended September 30, 2001 and 2000 was $3.1 million and $4.3 million, respectively. Total
interest capitalized for the nine months ended September 30, 2001 and 2000 was $9.8 million and $13.5 million, respectively. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;Derivative Financial Instruments and Interest Rate Risk Management </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is exposed to the effect of interest rate changes in the normal course of business. The Company mitigates these risks by following established risk management policies
and procedures which include the periodic use of derivatives. The Company&#146;s primary strategy in entering into derivative contracts is to minimize the volatility that changes in interest rates could have on its future cash flows. The Company
generally employs derivative instruments that are designated as cash flow hedges, typically interest rate swaps and caps, to effectively convert a portion of its variable-rate debt to fixed-rate debt. The Company does not enter into derivative
instruments for speculative purposes. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Interest Rate Swaps and Caps </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For interest rate swap agreements, the Company receives variable interest rate payments and pays fixed interest rate payments, thereby creating the
equivalent of fixed rate debt. For interest rate cap agreements the Company effectively limits its interest expense to a certain specified rate on a portion of its variable rate debt. These agreements are reflected at fair value in the
Company&#146;s consolidated balance sheet and the related gains or losses on these contracts are deferred in stockholders&#146; equity as a component of accumulated other comprehensive income or loss. To the extent that any of these contracts are
not considered to be perfectly effective in offsetting the change in the value of the interest payments being hedged, any changes in fair value relating to the ineffective portion of these contracts would be recognized in earnings. For the nine
months ended September 30, 2001, the Company did not record any gains or losses attributable to cash flow hedge ineffectiveness since the terms of the Company&#146;s swap contracts and debt obligations are effectively matched. </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2001, the Company had two interest rate swap agreements to
receive variable rates of interest (LIBOR) and pay fixed rates of interest (weighted average rate of 6.21%) on an aggregate notional
 </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">11 </FONT></DIV>

   <HR>
 <P></P>
 <P></P> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
amount of $300 million, $150 million which expires in February 2002 and $150 million which expires in November 2002. The Company, through one of the Development LLC&#146;s, also had one interest
rate cap agreement at September 30, 2001 with a LIBOR based cap rate of 8.50% and a notional amount of $57.0 million which expires in April 2002. Each of these instruments have been designated as cash flow hedges. As of September 30, 2001, the
Company had a derivative liability of $7.5 million, which is included in other liabilities in the consolidated balance sheet. During the twelve-month period ending September 30, 2002, the Company estimates that it will record approximately $7.0
million of interest expense related to these instruments. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January 2001, the Company terminated an interest rate cap agreement which had a LIBOR based cap rate of 6.50% and a notional amount of $150 million. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2"><B>5.&nbsp;&nbsp;&nbsp;&nbsp;Minority Interests </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority interests represent the preferred limited partnership interests in the Operating Partnership, the common limited partnership interests in the Operating Partnership not
owned by the Company, and interests held by The Allen Group in the Development LLCs. The Company owned a 90.0% general partnership interest in the Operating Partnership as of September 30, 2001. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2001, 687,591 common units of the Operating Partnership were
exchanged into shares of the Company&#146;s common stock on a one-for-one basis. Of these 687,591 common limited partnership units, 410,849 common limited partnership units were owned by a partnership affiliated with The Allen Group. In addition,
47,500 of the 687,591 common limited partnership units were owned by Kilroy Industries, an entity owned by John B. Kilroy, Sr., the Chairman of the Company&#146;s Board of Directors, and John B. Kilroy, Jr., the Company&#146;s President and Chief
Executive Officer. Neither the Company nor the Operating Partnership received any proceeds from the issuance of the common stock to the identified common unitholders. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>6.&nbsp;&nbsp;&nbsp;&nbsp;Lease Termination Fee </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2001, one of the Company&#146;s tenants, eToys, Inc. (&#145;&#145;eToys&#146;&#146;) defaulted on its lease and, thereafter, declared bankruptcy on March 7, 2001. Prior
to the eToys&#146; bankruptcy filing, the Company drew $15.0 million under two letters of credit which were held as credit support under the terms of the lease and as security for the related tenant improvements and leasing commissions. In May 2001,
the United States Bankruptcy Court for the District of Delaware approved a stipulation rejecting the eToys&#146; lease. The Company recorded a net lease termination fee of $5.4 million representing the $15.0 million of letter of credit proceeds
offset by $9.6 million of accounts receivable and other costs and obligations associated with the lease. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the execution of the stipulation, the Company obtained possession of approximately 128,000 of the total 151,000 rentable square feet leased to eToys. eToys continued to occupy
the remaining 23,000 rentable square feet through August 15, 2001 and had paid rent on this space based on the terms in the stipulation. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2"><B>7.&nbsp;&nbsp;&nbsp;&nbsp;Segment Disclosure </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s reportable segments consist of the two types of commercial real estate properties for which management internally evaluates operating performance and financial
results: Office Properties and Industrial Properties. The Company also has certain corporate level activities including legal, accounting, finance, and management information systems which are not considered separate operating segments.
</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">12 </FONT></DIV>

   <HR>
 <P></P>
 <P></P> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
evaluates the performance of its segments based upon net operating income. Net operating income is defined as operating revenues (rental income, tenant reimbursements and other income) less property and related expenses (property expenses, real
estate taxes and ground leases) and does not include interest income and expense, depreciation and amortization and corporate general and administrative expenses. All operating revenues are comprised of amounts received from third-party tenants.
</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Three Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Nine Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Re</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>venues and Expenses: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Of</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>fice Properties: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;39,921 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;33,603 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;125,054 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;94,562 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,797 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,183 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31,004 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23,150 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">29,124 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">25,420 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">94,050 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">71,412 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Ind</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>ustrial Properties: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,355 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,940 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">34,110 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,785 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,599 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,980 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,876 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,769 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,756 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,960 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">29,234 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33,016 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>To</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>tal Reportable Segments: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">51,276 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">45,543 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">159,164 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">133,347 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,396 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,163 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">35,880 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,919 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,880 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">35,380 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">123,284 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">104,428 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Re</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>conciliation to Consolidated Net Income: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal net operating income, as defined, for reportable
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;segments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,880 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">35,380 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">123,284 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">104,428 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er unallocated revenues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest
income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">170 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,706 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">883 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,008 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er unallocated expenses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ge</FONT><FONT FACE="Times New Roman" SIZE="2">neral
and administrative expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,949 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,890 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,337 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,077 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest
expense </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,657 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,024 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,800 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman"
SIZE="2">preciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,680 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,941 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,634 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,909 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inc</FONT><FONT FACE="Times New Roman" SIZE="2">ome from operations </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,764 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,231 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">44,136 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">42,650 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t gains on dispositions of operating properties </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,468 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,288 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,007 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,256 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mi</FONT><FONT FACE="Times New Roman" SIZE="2">nority interests </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5,949</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5,840</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(15,945</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(15,846</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu</FONT><FONT FACE="Times New Roman" SIZE="2">mulative effect of change in accounting principle
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,392</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;9,283 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;15,679 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;38,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>8.&nbsp;&nbsp;&nbsp;&nbsp;Earnings Per Share </B></FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share is computed by dividing net income by the weighted-average
number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the sum of the weighted-average number of common shares outstanding for the period plus the number of common shares issuable
assuming the exercise of all dilutive securities. The Company does not consider common units of the Operating Partnership to be dilutive since the exchange of common units into common stock is on a one-for-one
 </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">13 </FONT></DIV>

   <HR>
 <P></P>
 <P></P> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
basis and would not have any effect on diluted earnings per share. The following table reconciles the numerator and denominator of the basic and diluted per-share computations for net income.
</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Three Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Nine Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="8" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(in thousands, except share and per share amounts) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Nu</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>merator: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income before cumulative effect of change in
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting principle </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,283 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,679 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,198 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,060 </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu</FONT><FONT FACE="Times New Roman" SIZE="2">mulative effect of change in accounting principle
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,392</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income&#151;numerator for basic and diluted
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;earnings per share </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,283 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,679 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,060 </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>De</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>nominator: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba</FONT><FONT FACE="Times New Roman" SIZE="2">sic weighted average shares outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,359,343 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,455,400 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,079,702 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,646,871 </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eff</FONT><FONT FACE="Times New Roman" SIZE="2">ect of dilutive securities&#151;stock options </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">227,160 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">241,585 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">235,265 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">110,880 </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dil</FONT><FONT FACE="Times New Roman" SIZE="2">uted weighted average shares and common share
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equivalents outstanding </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,586,503 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,696,985 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,314,967 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,757,751 </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Ba</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>sic earnings per share: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income before cumulative effect of change in
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting principle </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.34 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu</FONT><FONT FACE="Times New Roman" SIZE="2">mulative effect of change in accounting principle
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(0.05</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.34 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Dil</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>uted earnings per share: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income before cumulative effect of change in
<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting principle </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.34 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu</FONT><FONT FACE="Times New Roman" SIZE="2">mulative effect of change in accounting principle
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(0.05</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.34 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.59 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30,
2001, Company employees and directors held options to purchase 13,000 shares of the Company&#146;s common stock that were antidilutive to the diluted earnings per share computation. These options could become dilutive in future periods if the
average market price of the Company&#146;s common stock exceeds the exercise price of the outstanding options. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2"><B>9.&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Events </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 17, 2001, aggregate distributions of $14.6 million were paid to common stockholders and common unitholders of record on September 28, 2001. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 25, 2001, the Company sold ten industrial buildings encompassing approximately 157,500 aggregate rentable square feet to an unaffiliated third
party. The buildings, which are located in Irvine, California, were sold for an aggregate sales price of approximately $19.0 million in cash. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 13, 2001, one of the Development LLCs obtained a $9.8 million construction loan (see Note 3). </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">14 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;&nbsp;2.&nbsp;&nbsp; &nbsp;&nbsp;MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND </B></FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="011%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>RESULTS OF OPERATIONS </B></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion relates to the consolidated financial statements of the Company and should be read in conjunction with the financial statements and notes thereto appearing
elsewhere in this report. Statements contained in this &#145;&#145;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#146;&#146; that are not historical facts may be forward-looking statements. Such
statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Some of the enclosed information presented is forward-looking in nature, including information concerning
development timing and investment amounts. Although the information is based on the Company&#146;s current expectations, actual results could vary from expectations stated here. Numerous factors will affect the Company&#146;s actual results, some of
which are beyond its control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels and capital market conditions.
You are cautioned not to place undue reliance on this information, which speaks only as of the date of this report. The Company assumes no obligation to update publicly any forward-looking information, whether as a result of new information, future
events or otherwise, except to the extent the Company is required to do so in connection with its ongoing requirements under Federal securities laws to disclose material information. For a discussion of important risks related to the Company&#146;s
business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption
&#145;&#145;Business Risks&#146;&#146; in the Company&#146;s annual report on Form 10-K for the year ended December 31, 2000 and under the caption &#147;Industry Trends and Other Factors Influencing Future Results of Operations&#148; within this
report. In light of these risks, uncertainties and assumptions, the forward-looking events contained herein might not occur. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2"><B>Overview and Background </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kilroy Realty Corporation
(the &#145;&#145;Company&#146;&#146;) develops, owns, and operates office and industrial real estate, primarily in Southern California. The Company operates as a self-administered real estate investment trust (&#145;&#145;REIT&#146;&#146;). The
Company owns its interests in all of its properties through Kilroy Realty, L.P. (the &#145;&#145;Operating Partnership&#146;&#146;) and Kilroy Realty Finance Partnership, L.P. and conducts substantially all of its operations through the Operating
Partnership. The Company owned a 90.0% general partnership interest in the Operating Partnership as of September 30, 2001. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2"><B>Industry Trends and Other Factors Influencing Future Results of Operations </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our future results of operations may be impacted by factors outside of our control, including the following: </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>General Economic Conditions </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Periods of economic slowdown or recession in the United States and in other countries, rising interest rates or declining demand for real estate, or the
public perception that any of these events may occur, could result in a general decline in rents or an increased incidence of defaults under existing leases, which would adversely affect our financial condition and results of operations. <I></I>
</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>California Energy Situation </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The State of California continues to address issues related to the supply of electricity and natural gas. Over the past year, shortages of electricity have
resulted in increased costs for consumers and certain interruptions in service. Increased consumer costs and consumer perception that the State is not able to effectively manage its energy needs may reduce demand for leased space in California
office and industrial properties. A significant reduction in demand for office and industrial space would adversely affect our future financial condition and results of operations. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">15 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="002%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><I>Terrorist Activity </I></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Future terrorist attacks in the United States, such as the attacks that occurred in New York and Washington, D.C., on September 11, 2001, the recent mailings of letters containing
anthrax spores and other acts of terrorism or war, may result in declining economic activity, which could harm the demand for and the value of our properties. In addition, as a result of such attacks locational factors, such as proximity to major
airports, may decrease the demand for and the value of our office and industrial properties. A decrease in demand would make it difficult for us to renew or release our properties at lease rates equal to or above historical rates. Terrorist
activities also could directly impact the value of our properties through damage, destruction or loss, and the availability of insurance for such acts may be less, or cost more, which would adversely affect our financial condition. To the extent
that our tenants are impacted by future attacks, their businesses similarly could be adversely affected, including their ability to continue to honor their existing leases. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These types of events also may adversely affect the markets in which our securities trade. These acts may cause further erosion of
business and consumer confidence and spending and may result in increased volatility in national and international financial markets and economies. Any one of these events may cause a decline in the demand for real estate, delay the time in which
our new or renovated properties reach stable occupancy, increase our operating expenses due to increased physical security for our properties and limit our access to capital or increase our cost of raising capital. </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Results of Operations </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant part of the Company&#146;s revenue growth for each of the three- and nine-month periods ended September 30, 2001 was attributable to its recently completed
development projects. During the nine months ended September 30, 2001, the Company completed the development of three office buildings encompassing an aggregate of approximately 182,700 rentable square feet that were added to the Company&#146;s
stabilized portfolio of operating properties. During the year ended December 31, 2000, the Company completed the development of nine office buildings encompassing an aggregate of approximately 1.0 million rentable square feet, all of which were
included in the Company&#146;s stabilized portfolio of operating properties at September 30, 2001. The Company&#146;s stabilized portfolio of operating properties consists of all of the Company&#146;s office and industrial properties, excluding
properties recently developed by the Company that have not yet reached 95.0% occupancy (&#145;&#145;lease-up&#146;&#146; properties) and projects currently under construction, renovation or in pre-development. At September 30, 2001, the Company had
four office buildings encompassing an aggregate of approximately 345,800 rentable square feet in the lease-up phase which were completed during the nine months ended September 30, 2001 and one renovation property encompassing approximately 78,000
rentable square feet. The Company&#146;s development pipeline at September 30, 2001 included six office projects under construction or committed for construction which are expected to be completed and stabilized over the next two years and encompass
an aggregate of approximately 617,700 rentable square feet. In addition, the Company has an aggregate of approximately 1.3 million rentable square feet of presently planned future office development projects. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2001, the Company acquired a 75% tenancy-in-common interest
in a three-building office complex encompassing an aggregate of approximately 366,000 rentable square feet. The initial 25% tenancy-in-common interest was acquired by a wholly-owned subsidiary of the Company in October 2000 and was recorded as an
investment in unconsolidated real estate on the consolidated balance sheet as of December 31, 2000. As a result, the Company now owns a 100% interest in the complex (see Note 2 to the consolidated financial statements.) The Company did not acquire
any additional operating properties during the year ended December 31, 2000 or the nine months ended September 30, 2001. During the nine months ended September 30, 2001, the Company disposed of one office building and seven industrial buildings
encompassing an aggregate of approximately 41,100 and 564,400 rentable square feet, respectively, for aggregate proceeds of $48.1 million. During the year ended December 31, 2000, the Company disposed of nine office and nine industrial buildings
encompassing an aggregate of approximately 286,700 and 669,800 rentable square feet, respectively, for aggregate proceeds of $113.6 million. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">16 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the property
acquired and the development projects completed and added to the Company&#146;s stabilized portfolio of operating properties subsequent to September 30, 2000, net of the effect of properties disposed of subsequent to September 30, 2000 and the one
renovation project taken out of service during the quarter ended September 30, 2001, rentable square footage in the Company&#146;s portfolio of stabilized properties increased by an aggregate of approximately 272,000 rentable square feet, or 2.2%,
to 12.4 million rentable square feet at September 30, 2001 compared to 12.1 million rentable square feet at September 30, 2000. As of September 30, 2001, the Company&#146;s stabilized portfolio was comprised of 86 office properties (the
&#145;&#145;Office Properties&#146;&#146;) encompassing an aggregate of approximately 7.1 million rentable square feet and 71 industrial properties (the &#145;&#145;Industrial Properties&#146;&#146;) encompassing an aggregate of approximately 5.3
million rentable square feet. The stabilized portfolio occupancy rate at September 30, 2001 was 94.8%, with the Office Properties and Industrial Properties 93.2% and 97.1% occupied, respectively. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Three Months Ended September 30, 2001 Compared to Three Months Ended September 30, 2000 </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Three Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(unaudited, dollars in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Re</FONT><FONT FACE="Times New Roman" SIZE="2">venues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;44,992 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;40,555 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;4,437 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,901 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,748 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,153 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">24.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">170 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,706 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(1,536</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(90.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">383 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">240 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">143 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
revenues </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">51,446 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">47,249 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,197 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ex</FONT><FONT FACE="Times New Roman" SIZE="2">penses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,911 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,217 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,694 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,106 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,523 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">583 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">16.5 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ge</FONT><FONT FACE="Times New Roman" SIZE="2">neral and administrative expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,949 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,890 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gr</FONT><FONT FACE="Times New Roman" SIZE="2">ound leases </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">379 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">423 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(44</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest expense </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,657 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,024 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">633 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman" SIZE="2">preciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,680 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,941 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,739 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,682 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33,018 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,664 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Inc</FONT><FONT FACE="Times New Roman" SIZE="2">ome from operations </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;12,764 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;14,231 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;(1,467</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10.3</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">%) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">17 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Rental Operations </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management evaluates the operations of its portfolio based on operating property type. The following tables compare the net operating
income, defined as operating revenues (rental income, tenant reimbursements and other income) less property and related expenses (property expenses, real estate taxes and ground leases) before depreciation, for the Office Properties and for the
Industrial Properties for the three months ended September 30, 2001 and 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Office Properties </B></FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="9" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total Office Portfolio </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="13" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Core Office Portfolio(1) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="23" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(dollars in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;35,115 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;29,997 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;5,118 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;25,399 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;24,971 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;428 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,749 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,423 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,326 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,848 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,143 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">705 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">183 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(126</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(68.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">126 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(103</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(81.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">39,921 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33,603 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,318 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">18.8 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">29,270 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,240 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,030 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related <BR>&nbsp;&nbsp;&nbsp;&nbsp;expenses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,295 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,241 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,054 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">39.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,259 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,515 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">744 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">16.5 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,123 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,519 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">604 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">24.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,233 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,004 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">229 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gr</FONT><FONT FACE="Times New Roman" SIZE="2">ound leases </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">379 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">423 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(44</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">329 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">362 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(33</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(9.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,797 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,183 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,614 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,821 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,881 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">940 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as <BR>&nbsp;&nbsp;&nbsp;&nbsp;defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;29,124 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;25,420 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;3,704 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;21,449 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;21,359 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;90 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">0.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="010" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Stabilized office properties owned at January 1, 2000 and still owned at September 30, 2001. </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues from Office Properties increased $6.3 million, or 18.8% to $39.9 million for the three
months ended September 30, 2001 compared to $33.6 million for the three months ended September 30, 2000. Rental income from Office Properties increased $5.1 million, or 17.1% to $35.1 million for the three months ended September 30, 2001 compared to
$30.0 million for the three months ended September 30, 2000. Rental income generated by the Core Office Portfolio increased $0.4 million, or 1.7% for the three months ended September 30, 2001 as compared to the three months ended September 30, 2000.
This increase was primarily attributable to growth provided by increases in rental rates on renewed and released space in this portfolio. Average occupancy in the Core Office Portfolio decreased 0.6% to 94.2% for the three months ended September 30,
2001 compared to 94.8% for the three months ended September 30, 2000. Of the remaining increase of $4.7 million in rental income from Office Properties, an increase of $4.3 million was generated by the office properties developed by the Company in
2001 and 2000 (the &#145;&#145;Office Development Properties&#146;&#146;), and an increase of $0.4 million was attributable to the office property acquired in 2001, net of the effect of the office properties sold during 2001 and 2000, (the
&#145;&#145;Net Office Acquisition&#146;&#146;). </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
reimbursements from Office Properties increased $1.3 million, or 38.7% to $4.7 million for the three months ended September 30, 2001 compared to $3.4 million for the three months ended September 30, 2000. An increase of $0.7 million, or 22.4% in
tenant reimbursements was generated by the Core Office Portfolio and was primarily due to an increase in utility costs, other property expenses and real estate taxes which were reimbursable by tenants. Of the remaining increase of $0.6 million, an
increase of $0.3 million in tenant reimbursements was generated by the Office Development Properties and an increase of $0.3 million was attributable to the Net Office Acquisition. Other income from Office Properties decreased $0.1 million to
$57,000 for the three months ended September 30, 2001 compared to $0.2 million for the three months ended September 30, 2000. Other income from Office Properties for both periods consisted primarily of lease termination fees, management fees and
tenant late charges. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">18 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses from Office
Properties increased $2.6 million, or 31.9% to $10.8 million for the three months ended September 30, 2001 compared to $8.2 million for the three months ended September 30, 2000. Property expenses from Office Properties increased $2.1 million, or
39.2% to $7.3 million for the three months ended September 30, 2001 compared to $5.2 million for the three months ended September 30, 2000. An increase of $0.7 million in property expenses was attributable to the Core Office Portfolio and was offset
by an increase in tenant reimbursements. This increase was primarily attributable to higher utility costs due to an increase in rates. Of the remaining increase of $1.4 million, an increase of $0.9 million was generated by the Office Development
Properties and an increase of $0.5 million was attributable to the Net Office Acquisition. Real estate taxes increased $0.6 million, or 24.0% to $3.1 million for the three months ended September 30, 2001 as compared to $2.5 million for the three
months ended September 30, 2000. Real estate taxes for the Core Office Portfolio increased $0.2 million, or 11.4% for the three months ended September 30, 2001 compared to the comparable period in 2000. This increase was primarily due to
supplemental real estate taxes paid during the three months ended September 30, 2001 and real estate tax refunds received during the three months ended September 30, 2000. Of the remaining increase of $0.4 million, an increase of $0.3 million was
attributable to the Office Development Properties and an increase of $0.1 million was attributable to the Net Office Acquisition. Ground lease expense from Office Properties remained consistent for both periods. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating income, as defined, from Office Properties increased $3.7 million, or 14.6% to $29.1
million for the three months ended September 30, 2001 compared to $25.4 million for the three months ended September 30, 2000. Of this increase, $0.1 million was generated by the Core Office Portfolio and represented a 0.4% increase in net operating
income for the Core Office Portfolio. The remaining increase of $3.6 million was generated by an increase of $3.4 million from the Office Development Properties, and an increase of $0.2 million attributable to the Net Office Acquisition.
</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Industrial Properties </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="10" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total Industrial Portfolio </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="13" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Core Industrial Portfolio(1) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="24" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(dollars in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;9,877 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$10,558 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;$(681) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(6.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">)% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;9,400 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;9,094 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$306 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,152 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,325 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(173) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(13.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,107 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,199 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(92</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(7.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">326 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">57 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">269 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">471.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">21 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">30 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(30.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,355 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,940 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(585) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,528 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,323 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">205 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related expenses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">616 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">976 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(360) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(36.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">604 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">508 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">96 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">18.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">983 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,004 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(21) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">942 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">855 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">87 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,599 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,980 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(381) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(19.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,546 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,363 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">183 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;9,756 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;9,960 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$(204) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">)% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;8,982 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="7%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;8,960 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;22 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">0.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="010" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Stabilized industrial properties owned at January 1, 2000 and still owned at September 30, 2001. </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues from Industrial Properties decreased $0.6 million, or 4.9% to $11.4 million for the three
months ended September 30, 2001 compared to $12.0 million for the three months ended September 30, 2000. Rental income from Industrial Properties decreased $0.7 million, or 6.5% to $9.9 million for the three months ended September 30, 2001 compared
to $10.6 million for the three months ended September 30, 2000. Rental income generated by the Core Industrial Portfolio increased $0.3 million, or 3.4% for the three months ended September 30, 2001 as compared to the three months ended September
30, 2000. This increase was primarily attributable to an increase in rental rates on renewed and released space in this portfolio. Average occupancy in the Core Industrial Portfolio decreased 1.5% to 97.0% for the three months ended September 30,
2001 compared to 98.5% for the three months ended September 30, 2000. The $0.3 million increase in rental income generated by the Core Industrial Portfolio was offset by a decrease of $1.0 million in rental income attributable to the 16 industrial
buildings sold during 2001 and 2000 (the &#145;&#145;Industrial Dispositions&#146;&#146;). </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">19 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant reimbursements from
Industrial Properties decreased $0.2 million, or 13.1% to $1.1 million for the three months ended September 30, 2001 compared to $1.3 million for three months ended September 30, 2000. This decrease was attributable to a $0.1 million decrease in
tenant reimbursements attributable to the Core Industrial Portfolio and a $0.1 million decrease in tenant reimbursements for the Industrial Dispositions. The decrease in the Core Industrial Portfolio was due to a decrease in average occupancy. Other
income from Industrial Properties increased $0.3 million, or 471.9% to $0.3 million for the three months ended September 30, 2001 compared to $57,000 for the three months ended September 30, 2000. Other income from Industrial Properties for both
periods consisted primarily of lease termination fees, tenant late charges and other one-time income. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses from Industrial Properties decreased $0.4 million, or 19.2% to $1.6 million for the three months ended September 30, 2001 compared to $2.0 million for the three
months ended September 30, 2000. Property expenses from Industrial Properties decreased $0.4 million, or 36.9% to $0.6 million for the three months ended September 30, 2001 compared to $1.0 million for the three months ended September 30, 2000. An
increase of $0.1 million in property expenses for the Core Industrial Portfolio was offset by a decrease of $0.5 million attributable to the Industrial Dispositions. The increase in the Core Industrial Portfolio was primarily due to higher utility
costs due to an increase in rates. Real estate taxes remained consistent for the three months ended September 30, 2001 compared to the three months ended September 30, 2000. Real estate taxes for the Core Industrial Portfolio increased $0.1 million,
or 10.2% for the three months ended September 30, 2001 compared to the same period in 2000. This $0.1 million increase was offset by a decrease of $0.1 million attributable to the Industrial Dispositions. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating income, as defined, from Industrial Properties decreased $0.2 million, or 2.0% to $9.8
million for the three months ended September 30, 2001 compared to $10.0 million for the three months ended September 30, 2000. Net operating income for the Core Industrial Portfolio increased $22,000, or 0.2% for the three months ended September 30,
2001 compared to the same period in 2000, offset by a decrease of $0.2 million attributable to the Industrial Dispositions. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2"><B>Non-Property Related Income and Expenses </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
income decreased $1.5 million, or 90.0% to $0.2 million for the three months ended September 30, 2001 compared to $1.7 million for the three months ended September 30, 2000. The decrease was primarily due to a $1.2 million decrease of interest
earned on the note receivable from related party in 2000. This note was acquired in May 2000 and repaid in January 2001. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses remained consistent for the three months ended September 30, 2001 and 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense increased $0.6 million, or 6.3% to $10.6 million for the three months ended September 30, 2001 compared to $10.0
million for the three months ended September 30, 2000 due to a net increase in aggregate indebtedness. The Company&#146;s weighted average annual interest rate decreased approximately 1.14% to 7.03% at September 30, 2001 as compared to 8.17% at
September 30, 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization increased $2.7
million, or 27.6% to $12.7 million for the three months ended September 30, 2001 compared to $10.0 million for the three months ended September 30, 2000. The increase was due primarily to depreciation on development properties completed and added to
the Company&#146;s stabilized portfolio of operating properties subsequent to September 30, 2000, net of the effect of properties disposed of by the Company subsequent to September 30, 2000. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">20 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Nine Months Ended September 30, 2001 Compared to Nine Months Ended September 30, 2000
</B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Nine Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="9" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(unaudited, dollars in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Re</FONT><FONT FACE="Times New Roman" SIZE="2">venues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$135,400 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$117,627 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$17,773 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,591 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,036 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,555 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">25.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">883 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,008 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,125</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(70.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,173 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,684 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,489 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;266.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
revenues </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">160,047 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">136,355 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23,692 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ex</FONT><FONT FACE="Times New Roman" SIZE="2">penses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22,254 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,749 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,505 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">25.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,480 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,959 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,521 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">25.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ge</FONT><FONT FACE="Times New Roman" SIZE="2">neral and administrative expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,337 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,077 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,260 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gr</FONT><FONT FACE="Times New Roman" SIZE="2">ound leases </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,146 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,211 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(65</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Int</FONT><FONT FACE="Times New Roman" SIZE="2">erest expense </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32,060 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,800 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,260 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman" SIZE="2">preciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,634 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,909 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,725 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">115,911 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">93,705 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22,206 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Inc</FONT><FONT FACE="Times New Roman" SIZE="2">ome from operations </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;44,136 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;42,650 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;1,486 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Rental Operations </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management evaluates the operations of its portfolio based on operating property type. The following
tables compare the net operating income, defined as operating revenues (rental income, tenant reimbursements, other income) less property and related expenses (property expenses, real estate taxes and ground leases) before depreciation, for the
Office Properties and for the Industrial Properties for the nine months ended September 30, 2001 and 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Office
Properties </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total Office Portfolio </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Core Office Portfolio(1) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="23" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(dollars in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$105,217 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$84,034 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$21,183 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">25.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$77,274 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$76,176 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$1,098 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,012 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,872 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,140 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">41.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,023 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,377 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,646 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,825 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">656 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,169 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">788.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">428 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">575 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(147</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(25.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">125,054 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">94,562 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">30,492 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">88,725 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">86,128 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,597 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related expenses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">20,286 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15,128 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,158 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">34.1 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,769 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13,889 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">880 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,572 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,811 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,761 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">40.5 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,936 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,010 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">926 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gr</FONT><FONT FACE="Times New Roman" SIZE="2">ound leases </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,146 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,211 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(65</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(5.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">986 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,132 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(146</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(12.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal
</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31,004 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23,150 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,854 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22,691 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">21,031 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,660 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;94,050 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$71,412 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$22,638 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$66,034 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$65,097 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;937 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Stabilized industrial properties owned at January 1, 2000 and still owned at September 30, 2001. </FONT></DIV> </TD></TR></TABLE> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">21 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues from Office
Properties increased $30.5 million, or 32.2% to $125.1 million for the nine months ended September 30, 2001 compared to $94.6 million for the nine months ended September 30, 2000. Rental income from Office Properties increased $21.2 million, or
25.2% to $105.2 million for the nine months ended September 30, 2001 compared to $84.0 million for the nine months ended September 30, 2000. Rental income generated by the Core Office Portfolio increased $1.1 million, or 1.4% for the nine months
ended September 30, 2001 as compared to the nine months ended September 30, 2000. This increase was primarily attributable to growth provided by increases in rental rates on renewed and released space in this portfolio. Average occupancy in the Core
Office Portfolio decreased 1.4% to 94.6% for the nine months ended September 30, 2001 compared to 96.0% for the nine months ended September 30, 2000. Of the remaining increase of $20.1 million in rental income from office properties, an increase of
$19.6 million was generated by the Office Development Properties, and an increase of $0.5 million was generated by the Net Office Acquisition. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant reimbursements from Office Properties increased $4.1 million, or 41.9% to $14.0 million for the nine months ended September 30, 2001 compared to $9.9
million for the nine months ended September 30, 2000. An increase of $1.6 million in tenant reimbursements was generated by the Core Office Portfolio which was primarily due to the increase in utility costs, other property expenses and real estate
taxes which were reimbursable by tenants. An increase of $1.2 million was generated by the Office Development Properties and an increase of $1.3 million was attributable to the Net Office Acquisition. Other income from Office Properties increased
$5.2 million to $5.8 million for the nine months ended September 30, 2001 compared to $0.6 million for the nine months ended September 30, 2000. This increase is attributable to the recognition of a $5.4 million lease termination fee resulting from
the bankruptcy court&#146;s rejection of the eToys&#146; lease (see Note 6 to the consolidated financial statements in Item 1 of this report.) The remaining amounts in other income from Office Properties for both periods consisted primarily of lease
termination fees, management fees and tenant late charges. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
expenses from Office Properties increased $7.9 million, or 33.9% to $31.0 million for the nine months ended September 30, 2001 compared to $23.1 million for the nine months ended September 30, 2000. Property expenses increased $5.2 million, or 34.1%
to $20.3 million for the nine months ended September 30, 2001 compared to $15.1 million for the nine months ended September 30, 2000. An increase of $0.9 million in property expenses was attributable to the Core Office Portfolio which was
attributable higher utility costs due to an increase in rates. Of the remaining increase of $4.3 million in property expenses, an increase of $3.4 million was attributable to the Office Development Properties and an increase of $0.9 million was
attributable to the Net Office Acquisition. Real estate taxes increased $2.8 million, or 40.5% to $9.6 million for the nine months ended September 30, 2001 as compared to $6.8 million for the nine months ended September 30, 2000. Of this increase,
$0.9 million was attributable to real estate taxes on the Core Office Portfolio. This increase was due to supplemental real estate taxes paid during the nine months ended September 30, 2001 and the effect of refunds received during the nine months
ended September 30, 2000. Of the remaining increase of $1.9 million, an increase of $1.8 million was attributable to the Office Development Properties and an increase of $0.1 million was attributable to the Net Office Acquisition. Ground lease
expense from Office Properties was consistent for the nine months ended September 30, 2001 compared to the nine months ended September 30, 2000. A decrease of $0.1 million in the Core Office Portfolio was offset by an increase of $0.1 million in the
Office Development Properties. The decrease in the Core Office Portfolio was due to the acquisition of the fee interest in the land at one of the Core Office Portfolio properties in January 2001. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating income, as defined, from Office Properties increased $22.6 million, or 31.7% to $94.0
million for the nine months ended September 30, 2001 compared to $71.4 million for the nine months ended September 30, 2000. Of this increase, $1.0 million was generated by the Core Office Portfolio and represented a 1.4% increase in net operating
income for the Core Office Portfolio. Of the remaining increase of $21.6 million, an increase of $20.9 million was generated by the Office Development Properties and an increase of $0.7 million was attributable to the Net Office Acquisition.
</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">22 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Industrial Properties </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total Industrial Portfolio </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Core Industrial Portfolio(1) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollar <BR>Change </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>Change </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="23" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(dollars in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Op</FONT><FONT FACE="Times New Roman" SIZE="2">erating revenues: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">ntal income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$30,183 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$33,593 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$(3,410</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(10.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">)% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$29,541 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$27,632 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$1,909 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Te</FONT><FONT FACE="Times New Roman" SIZE="2">nant reimbursements </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,579 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,164 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(585</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(14.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,506 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,392 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">114 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">348 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,028 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(680</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(66.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,016 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(983</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(96.8</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">34,110 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,785 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4,675</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(12.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33,080 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">32,040 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,040 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty and related expenses: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro</FONT><FONT FACE="Times New Roman" SIZE="2">perty expenses </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,968 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,621 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(653</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(24.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,898 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,685 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">213 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re</FONT><FONT FACE="Times New Roman" SIZE="2">al estate taxes </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,908 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,148 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(240</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(7.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,852 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,567 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">285 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11.1 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV>
</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,876 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,769 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(893</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(15.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,750 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,252 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">498 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t operating income, as defined </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$29,234 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$33,016 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$(3,782</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(11.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">)% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$28,330 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$27,788 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;542 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="010" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Stabilized industrial properties owned at January 1, 2000 and still owned at September 30, 2001. <B> </B> </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues from Industrial Properties decreased $4.7 million, or 12.1% to $34.1 million for the nine
months ended September 30, 2001 compared to $38.8 million for the nine months ended September 30, 2000. Rental income from Industrial Properties decreased $3.4 million, or 10.2% to $30.2 million for the nine months ended September 30, 2001 compared
to $33.6 million for the nine months ended September 30, 2000. An increase of $1.9 million was generated by the Core Industrial Portfolio and represented a 6.9% increase in rental income for the Core Industrial Portfolio. This increase in rental
income for the Core Industrial Portfolio is primarily attributable to increases in rental rates on renewed and released space in this portfolio. Average occupancy in the Core Industrial Portfolio decreased 0.9% to 97.3% for the nine months ended
September 30, 2001 as compared to 98.2% for the nine months ended September 30, 2000. The $1.9 million increase in rental income contributed by the Core Industrial Portfolio was offset by a decrease of $5.3 million in rental income attributable to
the Industrial Dispositions. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant reimbursements from Industrial
Properties decreased $0.6 million, or 14.0% to $3.6 million for the nine months ended September 30, 2001 compared to $4.2 million for nine months ended September 30, 2000. An increase of $0.1 million attributable to the Core Industrial Portfolio was
offset by a $0.7 million decrease attributable to the Industrial Dispositions. Other income from Industrial Properties decreased by $0.7 million for the nine months ended September 30, 2001 compared to the nine months ended September 30, 2000. Other
income for the nine months ended September 30, 2000 included a $0.9 million lease termination fee from a building in El Segundo, California. The remaining amounts in other income from Industrial Properties remained consistent for both periods and
was comprised primarily of lease termination fees, management fees and tenant late charges. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses from Industrial Properties decreased $0.9 million, or 15.5% to $4.9 million for the nine months ended September 30, 2001 compared to $5.8 million for the nine months
ended September 30, 2000. Property expenses from Industrial Properties decreased by $0.6 million, or 24.9% to $2.0 million for the nine months ended September 30, 2001 compared to $2.6 million for the nine months ended September 30, 2000. An
increase of $0.2 million in the Core Industrial Portfolio was offset by a decrease of $0.8 million in property expense attributable to the Industrial Dispositions. The increase in property expenses for the Core Industrial Portfolio was primarily
attributable higher utility costs due to an increase in rates. Real estate taxes decreased by $0.2 million or 7.6% to $2.9 million for the nine months ended September 30, 2001 compared to $3.1 million for the nine months ended September 30, 2000. An
increase of $0.3 million attributable to the Core Industrial Portfolio was offset by a decrease of $0.5 million attributable to the Industrial Dispositions. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">23 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating income, as defined,
from Industrial Properties decreased $3.8 million, or 11.5% to $29.2 million for the nine months ended September 30, 2001 compared to $33.0 million for the nine months ended September 30, 2000. An increase of $0.5 million was generated by the Core
Industrial Portfolio and represented a 2.0% increase in net operating income for the Core Industrial Portfolio. This was offset by a decrease of $4.3 million attributable to the Industrial Dispositions. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Non-Property Related Income and Expenses </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income decreased $2.1 million, or 70.6% to $0.9 million for the nine months ended September 30, 2001 compared to $3.0 million for the nine months ended September 30, 2000.
The decrease was primarily due to a $1.8 million decrease of interest earned on the note receivable from related party. This note was acquired in May 2000 and repaid in January 2001. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses increased $1.3 million, or 15.6% to $9.3 million for the nine months ended September 30, 2001
compared to $8.0 million for the nine months ended September 30, 2000. This increase was due primarily to increased compensation expense attributable to the non-cash amortization of restricted stock granted in June 2000. </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense increased $4.3 million, or 15.3% to $32.1 million for the nine
months ended September 30, 2001 compared to $27.8 million for the nine months ended September 30, 2000, due to a net increase in aggregate indebtedness. The Company&#146;s weighted average annual interest rate decreased approximately 1.14% to 7.03%
at September 30, 2001 as compared to 8.17% at September 30, 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization increased $9.7 million, or 33.6% to $38.6 million for the nine months ended September 30, 2001 compared to $28.9 million for the nine months ended
September 30, 2000. The increase was due primarily to depreciation on properties developed and stabilized by the Company in 2001 and 2000 net of the effect of properties disposed of by the Company subsequent to September 30, 2000. </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Liquidity and Capital Resources </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has a $400 million unsecured revolving credit facility (the &#145;&#145;Credit Facility&#146;&#146;) which bears interest at an annual rate
between LIBOR plus 1.13% and LIBOR plus 1.75% (4.93% at September 30, 2001), depending upon the Company&#146;s leverage ratio at the time of borrowing, and matures in November 2002. As of September 30, 2001, the Company had borrowings of $185
million outstanding under the Credit Facility and availability of approximately $159 million. The Company uses the Credit Facility to finance development expenditures, to fund potential undeveloped land acquisitions and for general corporate
purposes. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has a $100 million unsecured debt facility,
which matures in September 2002 with two one-year extension options, requires monthly interest-only payments based upon an annual interest rate between LIBOR plus 1.13% and LIBOR plus 1.75% (4.98% at September 30, 2001), depending upon the
Company&#146;s leverage ratio at the time of borrowing. The same pool of unencumbered assets is used to determine availability for the Credit Facility and the $100 million unsecured debt facility. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 2001, one of the Development LLCs obtained a construction loan with a total commitment of
$9.8 million. The construction loan bears interest at an annual rate of LIBOR plus 3.00% and matures in May 2003, with the option to extend for up to two six-month periods. The proceeds from the construction loan are being used to finance the
development costs of an office building in San Diego, California that encompasses an aggregate of approximately 60,700 rentable square feet. The construction loan is secured by a first deed of trust on the project. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">24 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the
composition of the Company&#146;s secured debt at September 30, 2001 and December 31, 2000: </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>September 30, <BR>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>December 31, <BR>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="7" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due April 2009, fixed interest at 7.20%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and
interest payments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;91,413 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;92,465 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due October 2003, interest at LIBOR plus 1.75%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.25% and 8.32%
at September 30, 2001 and December 31, 2000, respectively), <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly interest-only payments(a) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">83,213 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">83,213 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due February 2022, fixed interest at 8.35%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and
interest payments(b) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">78,434 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">79,495 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Co</FONT><FONT FACE="Times New Roman" SIZE="2">nstruction loan payable, due April 2002, interest between LIBOR plus <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.00% and LIBOR
plus 2.70%, (5.58% and 8.86% at September 30, 2001 and <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2000, respectively)(a)(c)(d) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55,587 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">50,068 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due May 2017, fixed interest at 7.15%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and
interest payments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27,837 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,549 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due June 2004, interest at LIBOR plus 1.75%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.33% and 8.49% at
September 30, 2001 and December 31, 2000, respectively), <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and interest payments(a) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">21,625 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">21,890 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage loan payable, due November 2014, fixed interest at 8.13%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principle and
interest payments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,722 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,844 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due December 2005, fixed interest at 8.45%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and
interest payments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,161 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,523 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Co</FONT><FONT FACE="Times New Roman" SIZE="2">nstruction loan payable, due November 2002, interest at LIBOR plus 3.00% <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6.58% and
9.73% at September 30, 2001 and December 31, 2000, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respectively)(a)(d) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,724 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,367 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due November 2014, fixed interest at 8.43%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and
interest payments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,264 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,578 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due December 6, 2001, non-interest bearing </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,125 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due December 2003, fixed interest at 10.00%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly interest
accrued through December 31, 2000, no interest accrues <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;thereafter </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,227 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,500 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Co</FONT><FONT FACE="Times New Roman" SIZE="2">nstruction loan payable, due April 2002, interest at LIBOR plus 1.75% <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5.08% and 8.44%
at September 30, 2001 and December 31, 2000, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respectively)(a)(d) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8,529 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,727 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Mo</FONT><FONT FACE="Times New Roman" SIZE="2">rtgage note payable, due October 2013, fixed interest at 8.21%, <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monthly principal and
interest payments </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,827 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,070 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Co</FONT><FONT FACE="Times New Roman" SIZE="2">nstruction loan payable, due October 2002, interest at LIBOR plus 1.75% <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8.37% at
December 31, 2000) (a)(e) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,399 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$437,688 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="9%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$432,688</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>(a)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><SUP></SUP></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The variable interest rates stated as of September 30, 2001 and December 31, 2000 are based on the last repricing date during the respective periods. The
repricing rates may not be equal to LIBOR at September 30, 2001 and December 31, 2000. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>(b)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><SUP></SUP></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Beginning February 2005, the mortgage note is subject to increases in the effective annual interest rate to the greater of 10.35% or the sum of the interest
rate for U.S. Treasury Securities maturing 15 years from the reset date plus 2.00%. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>(c)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><SUP></SUP></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The Company, through one of the Development LLCs, has an interest rate cap agreement with a LIBOR based cap rate of 8.50% related to this variable rate
construction loan which expires in April 2002. The notional amount of the interest rate cap agreement was approximately $57.0 and $42.0 million at September 30, 2001 and December 31, 2000, respectively. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>(d)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><SUP></SUP></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">This loan contains options to extend the maturity for up to two six-month periods. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>(e)</SUP></FONT><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><SUP></SUP></FONT></DIV></TD>
<TD WIDTH="008" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">In June 2001, the Company repaid the $16.8 million principal balance of this loan in conjunction with a tax-deferred property exchange. The payment was
primarily funded with the $15.4 million in proceeds from the disposition of the industrial property in Roseville, California (see Note 2 to the Company&#146;s consolidated financial statements in Item 1 of this report). The remaining $1.4 million
was funded with borrowings under the Company&#146;s Credit Facility. </FONT></DIV> </TD></TR></TABLE> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">25 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth
certain information with respect to the maturities and scheduled principal repayments of the Company&#146;s secured debt and unsecured term facility at September 30, 2001, assuming the exercise of available debt extension options: </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="89%">

<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Year Ending </B></FONT></DIV> <HR NOSHADE WIDTH="91" ALIGN="left"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Dollars </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Re</FONT><FONT FACE="Times New Roman" SIZE="2">maining 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;10,669 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,148 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">173,925 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">127,719 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">5 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">16,965 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Th</FONT><FONT FACE="Times New Roman" SIZE="2">ereafter </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">202,262 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To</FONT><FONT FACE="Times New Roman" SIZE="2">tal </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$537,688 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table
sets forth certain information with respect to the Company&#146;s aggregate debt composition at September 30, 2001 and December 31, 2000: </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="9" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage of </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total Debt </B></FONT></DIV> <HR
NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="9" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Weighted Average </B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Interest Rate </B></FONT></DIV> <HR
NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>September 30, <BR>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>December 31, <BR>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>September 30, <BR>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>December 31, <BR>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Sec</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>ured vs. unsecured: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sec</FONT><FONT FACE="Times New Roman" SIZE="2">ured </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">60.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59.8</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Un</FONT><FONT FACE="Times New Roman" SIZE="2">secured </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">39.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">40.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8.3</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Fix</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>ed rate vs. variable rate: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fix</FONT><FONT FACE="Times New Roman" SIZE="2">ed rate (1)(2)(5) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">77.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Va</FONT><FONT FACE="Times New Roman" SIZE="2">riable rate (3)(4) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">44.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8.4</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>To</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>tal Debt</B> </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">8.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">At September 30, 2001 and December 31, 2000, the Company had an interest rate swap agreement to fix LIBOR on $150 million of its floating rate debt at 6.95% that expires in
February 2002. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(2)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">At September 30, 2001, the Company had an interest rate swap agreement to fix LIBOR on $150 million of its floating rate debt at 5.48% that expires in November 2002.
</FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(3)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">At December 31, 2000, the Company had an interest rate cap agreement to cap LIBOR on $150 million of its floating rate debt at 6.50%. The Company terminated this cap agreement
in January 2001. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(4)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">At September 30, 2001 and December 31, 2000, one of the Development LLCs had an interest-rate cap agreement to cap LIBOR on its floating rate construction debt at 8.50%. The
notional amount of the cap increases over the life of the agreement as the balance of the related construction loan increases. At September 30, 2001 and December 31, 2000, the notional amount of the interest rate cap was approximately $57.0 million
and $42.0 million, respectively. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(5)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">The percentage of fixed rate debt to total debt at September 30, 2001 and December 31, 2000 does not take into consideration the portion of floating rate debt capped by the
Company&#146;s interest-rate cap agreements. Including the effects of the interest-rate cap agreements, the Company had fixed or capped approximately 84.8% and 82.1% of its total outstanding debt at September 30, 2001 and December 31, 2000,
respectively. </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 1999, the
Company&#146;s Board of Directors approved a share repurchase program, pursuant to which the Company is authorized to repurchase up to an aggregate of 3.0 million shares of its outstanding common stock. As of November 12, 2001 an aggregate of
735,700 shares remain eligible for repurchase under this program. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of November 12, 2001, the Company had an aggregate of $313 million of equity securities available for issuance under a shelf registration statement. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">26 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Capital Expenditures </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2001, the Company had an aggregate of approximately 963,500 rentable square feet of office space that was either
in lease-up, under construction or committed for construction at a total budgeted cost of approximately $243 million. The Company has spent an aggregate of approximately $140 million on these projects as of September 30, 2001. The Company intends to
finance $10 million of the remaining $103 million of presently budgeted development costs, with proceeds from existing construction loans. The Company intends to finance the remaining $93 million of budgeted development costs with additional
construction loan financing, borrowings under the Credit Facility, proceeds from the Company&#146;s dispositions, long-term secured and unsecured borrowings and from working capital. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with an agreement signed with The Allen Group in October 1997, the Company agreed to purchase one office property
encompassing approximately 128,000 rentable square feet, subject to the property meeting certain occupancy thresholds and other tenancy requirements. The purchase price for this property will be determined at the time of acquisition based on the net
operating income at the time of acquisition. The Company expects that in the event that this acquisition does occur, it would be financed with borrowings under the Credit Facility and the issuance of common limited partnership units of the Operating
Partnership. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that it will have sufficient
capital resources to satisfy its obligations and planned capital expenditures for the next twelve months. The Company expects to meet its long-term liquidity requirements including possible future development and undeveloped land acquisitions,
through retained cash flow, long-term secured and unsecured borrowings, proceeds from property dispositions, or the issuance of common or preferred units of the Operating Partnership. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Building and Lease Information </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth certain information regarding the Company&#146;s Office Properties and Industrial Properties at September 30, 2001: </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Occupancy by Segment Type </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" ROWSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Number of <BR>Buildings </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Square Feet </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Occupancy </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Leased </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Available </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Of</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>fice Properties: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Lo</FONT><FONT FACE="Times New Roman" SIZE="2">s Angeles </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,172,793 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,776,633 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">396,160 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">87.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Or</FONT><FONT FACE="Times New Roman" SIZE="2">ange County </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">546,850 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">507,982 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38,868 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">92.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">San</FONT><FONT FACE="Times New Roman" SIZE="2"> Diego </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">37 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,700,483 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,661,483 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">39,000 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">98.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">709,575 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">698,515 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,060 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">98.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">86 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7,129,701 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,644,613 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">485,088 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">93.2 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Ind</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>ustrial Properties: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Lo</FONT><FONT FACE="Times New Roman" SIZE="2">s Angeles </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">554,490 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">539,606 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,884 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">97.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Or</FONT><FONT FACE="Times New Roman" SIZE="2">ange County </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">62 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,393,537 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,253,978 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">139,559 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">96.8 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Oth</FONT><FONT FACE="Times New Roman" SIZE="2">er </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">295,417 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">295,417 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">100.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">71 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,243,444 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,089,001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">154,443 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">97.1 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">To</FONT><FONT FACE="Times New Roman" SIZE="2">tal Portfolio </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">157 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,373,145 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="11%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11,733,614 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">639,531 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">94.8</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">27 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Lease Expirations by Segment Type </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Year of Lease Expiration </B></FONT></DIV> <HR NOSHADE WIDTH="175" ALIGN="left"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Number of <BR>Expiring <BR>Leases(1) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total <BR>Square <BR>Footage of <BR>Expiring <BR>Leases(2) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Percentage <BR>of Total <BR>Leased <BR>Square Feet <BR>Represented <BR>by Expiring <BR>Leases(3) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Annual <BR>Base Rent <BR>Under <BR>Expiring <BR>Leases <BR>(in 000&#146;s)(4) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Of</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>fice Properties:</B> <B></B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Re</FONT><FONT FACE="Times New Roman" SIZE="2">maining 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">163,255 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.5% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;2,404 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">67 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">505,993 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.7 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,113 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">707,879 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10.8 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10,834 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">53 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">787,303 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">17,608 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">5 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">54 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">921,986 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">16,259 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">6 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">38 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">589,205 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14,042 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">283 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,675,621 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">56.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">70,260 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Ind</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>ustrial Properties:</B> <B></B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Re</FONT><FONT FACE="Times New Roman" SIZE="2">maining 2001 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">99,794 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">640 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">354,760 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">7.2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,006 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">3 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">29 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">691,508 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,408 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">4 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">23 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">542,819 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11.0 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,161 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">5 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">755,742 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15.2 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,748 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">200</FONT><FONT FACE="Times New Roman" SIZE="2">6 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">567,750 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">11.5 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">4,432 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">114 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,012,373 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">60.9 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22,395 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">To</FONT><FONT FACE="Times New Roman" SIZE="2">tal Portfolio </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="4%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">397 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="10%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">6,687,994 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="6%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">58.1% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$92,655 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Represents the total number of tenants. Some tenants have multiple leases. Excludes leases for amenity, retail, parking and month-to-month tenants. </FONT></DIV>
</TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(2)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Excludes expirations at 184-220 Technology Drive which the Company sold in October 2001. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(3)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Based on total leased square footage for the respective portfolios as of September 30, 2001. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(4)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Determined based upon aggregate base rent to be received over the term, divided by the term in months, multiplied by 12, including all leases executed on or before October 1,
2001. </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Leasing Activity by Segment Type </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV><FONT SIZE=2><BR></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="7" NOWRAP> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Number of <BR>Leases(1) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Square Feet(1) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Change In <BR>Rents(2) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Change in <BR>Cash <BR>Rents(3) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Retention <BR>Rate(4) </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" ROWSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Weighted <BR>Average <BR>Lease Term <BR>(in months) </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>New </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Renewal </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>New </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Renewal </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Fo</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>r the Three Months Ended <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2001:</B> <B></B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice Properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26,371 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59,719 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">31.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">69.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">59 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial Properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">15 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">105,516 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">92,637 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28.8</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">10.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">74.8</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">33 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">To</FONT><FONT FACE="Times New Roman" SIZE="2">tal Portfolio </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">19 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">27 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">131,887 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">152,356 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">30.3</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">72.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">41 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10"> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Fo</B></FONT><FONT FACE="Times New Roman" SIZE="2"><B>r the Nine Months Ended <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2001:</B> <B></B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Of</FONT><FONT FACE="Times New Roman" SIZE="2">fice Properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">25 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">34 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">141,757 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">465,981 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">22.2</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">13.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">64.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">68 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ind</FONT><FONT FACE="Times New Roman" SIZE="2">ustrial Properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">37 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">158,198 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">511,073 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">36.9</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">16.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">76.7</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">55 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">To</FONT><FONT FACE="Times New Roman" SIZE="2">tal Portfolio </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">53 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">71 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">299,955 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="8%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">977,054 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">26.6</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">14.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">70.1</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP WIDTH="2%"> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">61 </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="2">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3">&nbsp;</TD>
<TD HEIGHT="10" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left">
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(1)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Includes first and second generation space, net of month-to-month leases. Excludes leasing on new construction. First generation space is defined as the space first leased by
the Company. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(2)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Calculated as the change between GAAP rents for new/renewed leases and the expiring GAAP rents for the same second generation space. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(3)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Calculated as the change between stated rents for new/renewed leases and the expiring stated rents for the same second generation space. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="013" VALIGN="top" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">(4)</FONT></DIV></TD>
<TD WIDTH="006" VALIGN="top"><DIV>&nbsp;</DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="1">Calculated as the percentage of second generation space either renewed or expanded into by existing tenants at lease expiration. </FONT></DIV> </TD></TR></TABLE> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">28 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Historical Cash Flows </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal sources of funding for development, acquisitions, and capital expenditures are the Credit Facility, cash flow from operating activities, secured and unsecured debt
financing and proceeds from the Company&#146;s dispositions. The Company&#146;s net cash provided by operating activities increased $15.8 million, or 26.6% to $75.3 million for the nine months ended September 30, 2001 compared to $59.5 million for
the nine months ended September 30, 2000. This increase was primarily attributable to the effect of the $15.0 million the Company drew under two letters of credit after one of its tenants defaulted on its lease in January 2001 (see Note 6 to the
Company&#146;s consolidated financial statements). </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used
in investing activities decreased $27.3 million, or 38.4% to $43.8 million for the nine months ended September 30, 2001 compared to $71.1 million for the nine months ended September 30, 2000. Cash used in investing activities for the nine months
ended September 30, 2001 consisted primarily of the acquisition of the fee interest in the land at the site of one of the Office Properties for $3.1 million, the purchase of 9.8 acres of undeveloped land for $15.1 million (net of a $9.1 secured note
issued in connection with the acquisition) expenditures for construction in progress of $73.4 million, and $6.1 million in additional tenant improvements and capital expenditures offset by $44.8 million in net proceeds received from the sale of
seven industrial buildings and one office building. Cash used in investing activities for the nine months ended September 30, 2000 consisted primarily of $45.3 million paid to acquire a note receivable, the purchase of 17 acres of undeveloped land
for $11.3 million (net of an $8.5 million mortgage note payable issued in connection with the acquisition), expenditures for construction in progress of $125.6 million, and $8.5 million in additional tenant improvements and capital expenditures
offset by $110.6 million in net proceeds received from the sale of nine office and nine industrial buildings. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities increased $36.7 million, or 2,158.8% to $38.4 million for the nine months ended September 30, 2001 compared to $1.7 million for the nine
months ended September 30, 2000. Cash used in financing activities for the nine months ended September 30, 2001 consisted primarily of $27.4 million in repayments to the Credit Facility and principal payments on secured debt and $42.4 million in
distributions paid to common stockholders and minority interests, partially offset by $17.2 million of additional funding drawn under the Company&#146;s existing construction loans, a $9.2 decrease in restricted cash used in a tax deferred property
exchange and $5.0 million in proceeds received in connection with the exercise of stock options. Cash used in financing activities for the nine months ended September 30, 2000 consisted primarily of $52.4 million in repayments of the Credit Facility
and principal payments on secured debt, $41.0 million in distributions paid to common stockholders and minority interests and $41.3 million paid for the Company&#146;s stock repurchase program and a $28.9 million increase in restricted cash
partially offset by $160.1 million in net proceeds from issuance of mortgage and construction debt. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Funds From Operations
</B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industry analysts generally consider Funds From Operations an
alternative measure of performance for an equity REIT. The Board of Governors of NAREIT in its March 1995 White Paper (as clarified by the November 2000 NAREIT National Policy Bulletin which became effective on January 1, 2000) defines Funds From
Operations to mean net income (loss) before minority interests of common unitholders (computed in accordance with GAAP), excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property, plus real
estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures. </FONT></DIV> <DIV
ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company considers Funds From Operations an appropriate alternative measure of
performance for an equity REIT because it is predicated on cash flow analyses. While Funds From Operations is a relevant and widely used measure of operating performance of equity REITs, other equity REITS may use different methodologies for
calculating Funds From Operations and, accordingly, Funds From Operations as disclosed by such other REITS may not be comparable to Funds From Operations published herein. Therefore, the Company
 </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">29 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">
believes that in order to facilitate a clear understanding of the historical operating results of the Company, Funds From Operations should be examined in conjunction with net income as presented
in the financial statements included elsewhere in this report. Funds From Operations should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of the properties&#146; financial performance or
to cash flow from operating activities (computed in accordance with GAAP) as an indicator of the properties&#146; liquidity, nor is it indicative of funds available to fund the properties&#146; cash needs, including the Company&#146;s ability to pay
dividends or make distributions. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents the
Company&#146;s Funds From Operations for the three and nine months ended September 30, 2001 and 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Three Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Nine Months Ended <BR>September 30, </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(in thousands) </B></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t income </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$&nbsp;&nbsp;&nbsp;9,283 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$15,679 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$30,806 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$38,060 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ad</FONT><FONT FACE="Times New Roman" SIZE="2">justments: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mi</FONT><FONT FACE="Times New Roman" SIZE="2">nority
interest in earnings of Operating Partnership </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,027 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">2,227 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">3,668 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">5,442 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;De</FONT><FONT FACE="Times New Roman"
SIZE="2">preciation and amortization </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">12,123 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">9,941 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">37,123 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">28,909 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ne</FONT><FONT FACE="Times New Roman" SIZE="2">t gains
on dispositions of operating properties </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(2,468</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(7,288</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(4,007</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">(11,256</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">) </FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cu</FONT><FONT FACE="Times New Roman"
SIZE="2">mulative effect of change in accounting principle </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,392 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="2">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</FONT><FONT FACE="Times New Roman" SIZE="2">n-cash
amortization of restricted stock grants </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">547 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">508 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">1,643 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">744 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Fu</FONT><FONT FACE="Times New Roman" SIZE="2">nds From Operations </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$20,512 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$21,067 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$70,625 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">$61,899 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT></DIV> </TD> </TR>
<TR>
<TD HEIGHT="10" NOWRAP> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD HEIGHT="10" COLSPAN="2" NOWRAP> <HR SIZE="4" NOSHADE></TD> </TR>
 </TABLE> </DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>Inflation </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The majority of the Company&#146;s tenant leases require tenants to pay most operating expenses,
including real estate taxes, utilities, insurance, and increases in common area maintenance expenses, which reduces the Company&#146;s exposure to increases in costs and operating expenses resulting from inflation. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">30 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx7">ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK </A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The primary market risk faced by the Company is interest rate risk. The Company mitigates this risk by maintaining prudent amounts of leverage, minimizing capital costs and
interest expense while continuously evaluating all available debt and equity resources and following established risk management policies and procedures which include the periodic use of derivatives. The Company&#146;s primary strategy in entering
into derivative contracts is to minimize the variability that changes in interest rates could have on its future cash flows. The Company generally employs derivative instruments that effectively convert a portion of its variable rate debt to fixed
rate debt. The Company does not enter into derivative instruments for speculative purposes. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information about the Company&#146;s changes in interest rate risk exposures from December 31, 2000 to September 30, 2001 is incorporated herein by reference from &#145;&#145;Item
2: Management Discussion and Analysis of Financial Condition and Results of Operations&#151;Liquidity and Capital Resources.&#146;&#146; </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT
FACE="Times New Roman" SIZE="2"><B>Tabular Presentation of Market Risk </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tabular presentation below provides information about the Company&#146;s interest rate sensitive financial and derivative instruments at September 30, 2001 and December 31,
2000. All of the Company&#146;s interest rate sensitive financial and derivative instruments are held for purposes other than trading. For debt obligations, the table presents principal cash flows and related weighted average interest rates or the
interest rate index by contractual maturity dates with the assumption that all debt extension options will be exercised. The interest rate spreads on the Company&#146;s variable rate debt ranged from LIBOR plus 1.5% to LIBOR plus 3.0% at both
September 30, 2001 and December 31, 2000. For the interest rate cap and swap agreements, the table presents the aggregate notional amount and weighted average interest rates or strike rates by contractual maturity date. The notional amounts are used
solely to calculate the contractual cash flow to be received under the contract and do not reflect outstanding principal balances at September 30, 2001 and December 31, 2000. The table also presents comparative summarized information for financial
and derivative instruments held at December 31, 2000. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Interest Rate Risk Analysis&#151;Tabular Presentation
</B></FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(dollars in millions) </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="11" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Maturity Date </B></FONT></DIV> <HR NOSHADE WIDTH="104"></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>September 30, <BR>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="5" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>December 31, <BR>2000 </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2001 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2002 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2003 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2004 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>2005 </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>There- <BR>after </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Fair <BR>Value </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Total </B></FONT></DIV> <HR NOSHADE></TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Fair <BR>Value </B></FONT></DIV> <HR NOSHADE></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Lia</B></FONT><FONT FACE="Times New Roman" SIZE="1"><B>bilities: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">Un</FONT><FONT FACE="Times New Roman" SIZE="1">secured line of credit: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Va</FONT><FONT FACE="Times New Roman" SIZE="1">riable rate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">185.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1</FONT><FONT FACE="Times New Roman" SIZE="1">85.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">$18</FONT><FONT FACE="Times New Roman" SIZE="1">5.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1</FONT><FONT FACE="Times New Roman" SIZE="1">91.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">$19</FONT><FONT FACE="Times New Roman" SIZE="1">1.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Va</FONT><FONT FACE="Times New Roman" SIZE="1">riable rate index </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">L</FONT><FONT FACE="Times New Roman" SIZE="1">IBOR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIB</FONT><FONT FACE="Times New Roman" SIZE="1">OR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIB</FONT><FONT FACE="Times New Roman" SIZE="1">OR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">Sec</FONT><FONT FACE="Times New Roman" SIZE="1">ured debt and unsecured term debt: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Va</FONT><FONT FACE="Times New Roman" SIZE="1">riable rate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">0.1 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">0.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1</FONT><FONT FACE="Times New Roman" SIZE="1">59.4 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1</FONT><FONT FACE="Times New Roman" SIZE="1">20.9 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$2</FONT><FONT FACE="Times New Roman" SIZE="1">80.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">$28</FONT><FONT FACE="Times New Roman" SIZE="1">0.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">$28</FONT><FONT FACE="Times New Roman" SIZE="1">0.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$280.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Va</FONT><FONT FACE="Times New Roman" SIZE="1">riable rate index </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">L</FONT><FONT FACE="Times New Roman" SIZE="1">IBOR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">L</FONT><FONT FACE="Times New Roman" SIZE="1">IBOR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIB</FONT><FONT FACE="Times New Roman" SIZE="1">OR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIB</FONT><FONT FACE="Times New Roman" SIZE="1">OR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIB</FONT><FONT FACE="Times New Roman" SIZE="1">OR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">LIB</FONT><FONT FACE="Times New Roman" SIZE="1">OR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fix</FONT><FONT FACE="Times New Roman" SIZE="1">ed rate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">10.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">5.8 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">14.5 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">6.8 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$17</FONT><FONT FACE="Times New Roman" SIZE="1">.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$20</FONT><FONT FACE="Times New Roman" SIZE="1">2.3 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$2</FONT><FONT FACE="Times New Roman" SIZE="1">57.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">$26</FONT><FONT FACE="Times New Roman" SIZE="1">5.6 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$2</FONT><FONT FACE="Times New Roman" SIZE="1">52.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$256.7 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Av</FONT><FONT FACE="Times New Roman" SIZE="1">erage interest rate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">7.74</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">7.80</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">7.80</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">7.81</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">8.</FONT><FONT FACE="Times New Roman" SIZE="1">17</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">7</FONT><FONT FACE="Times New Roman" SIZE="1">.73</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">7.76</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">7.50</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Int</B></FONT><FONT FACE="Times New Roman" SIZE="1"><B>erest Rate Derivatives Used to <BR>&nbsp;&nbsp;&nbsp;&nbsp;Hedge Variable Rate Debt: </B></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">Int</FONT><FONT FACE="Times New Roman" SIZE="1">erest rate swap agreements: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</FONT><FONT FACE="Times New Roman" SIZE="1">tional amount </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT FACE="Times New Roman" SIZE="1">300.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$3</FONT><FONT FACE="Times New Roman" SIZE="1">00.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$</FONT><FONT FACE="Times New Roman" SIZE="1">(7.5</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$1</FONT><FONT FACE="Times New Roman" SIZE="1">50.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;(2.0</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">) </FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fix</FONT><FONT FACE="Times New Roman" SIZE="1">ed pay interest rate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">6.21</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">6.21</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1"></FONT><FONT FACE="Times New Roman" SIZE="1">6.95</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Flo</FONT><FONT FACE="Times New Roman" SIZE="1">ating receive rate index </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">L</FONT><FONT FACE="Times New Roman" SIZE="1">IBOR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="top" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Top"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">Int</FONT><FONT FACE="Times New Roman" SIZE="1">erest rate cap agreements: </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</FONT><FONT FACE="Times New Roman" SIZE="1">tional amount </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;57.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$ &#151;&nbsp; </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$207.0 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">$&nbsp;&nbsp;&nbsp;&nbsp;0.1 </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ca</FONT><FONT FACE="Times New Roman" SIZE="1">p rate </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">8.50</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">8.50</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">8.50</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">7.05</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">% </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
<TR>
<TD VALIGN="top" NOWRAP> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fo</FONT><FONT FACE="Times New Roman" SIZE="1">rward rate index </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">LIBOR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="1">LIBOR </FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="1">&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="1%">&nbsp;</TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD ALIGN="right" VALIGN="bottom" NOWRAP> <DIV><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></DIV></TD>
<TD NOWRAP VALIGN="Bottom"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"></FONT></DIV> </TD> </TR>
 </TABLE> </DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">31 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>PART II&#151;OTHER INFORMATION </B></FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM 1.
<A NAME="190tx8">&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS </A></B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July 2001, the Company was named as party to a lawsuit filed by certain limited partnerships affiliated with The Allen Group (&#145;&#145;The Allen Group
Partnerships&#146;&#146;) that are members of the Development LLCs. Management strongly disagrees with the allegations outlined in the suit and plans to vigorously contest the action. The lawsuit alleges that the Operating Partnership breached the
Development LLCs&#146; governing documents (the &#145;&#145;Operating Agreements&#146;&#146;). The complaint also contains other related common law claims and seeks both monetary and non-monetary relief. The Company has filed a response that denies
all of The Allen Group Partnerships&#146; allegations, and a separate cross-complaint that amongst other things, seeks enforcement of the Operating Agreements. Although the ultimate outcome of this lawsuit cannot be determined at this time and the
total amount of any damages cannot be reasonably estimated, management does not believe that an unfavorable result would have a material adverse effect on the Company&#146;s financial condition, results of operations or cash flows. </FONT></DIV>
<DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;
<A NAME="190tx9">CHANGES IN SECURITIES</A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the three
months ended September 30, 2001, the Company redeemed 1,900 common limited partnership units of the Operating Partnership in exchange for shares of the Company&#146;s common stock on a one-for-one basis. The issuance of the 1,900 common shares in
connection with these redemptions was registered on a registration statement declared effective by the SEC in 1999. </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM
3.&nbsp;&nbsp;&nbsp;&nbsp;
<A NAME="190tx10">DEFAULTS UPON SENIOR SECURITIES&#151;None </A></B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;
<A NAME="190tx11">SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS&#151;None </A></B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;
<A NAME="190tx12">OTHER INFORMATION&#151;None</A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;
<A NAME="190tx13">EXHIBITS AND REPORTS ON FORM 8-K</A> </B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman"
SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Exhibits </FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">

<TR>
<TD VALIGN="bottom" NOWRAP WIDTH="5%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit </B></FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="1"><B>Number </B></FONT></DIV> <HR NOSHADE WIDTH="45" ALIGN="left"></TD>

<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Description </B></FONT></DIV> <HR NOSHADE WIDTH="66"></TD> </TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top" NOWRAP WIDTH="5%"> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">No</FONT><FONT FACE="Times New Roman" SIZE="2">ne </FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right" NOWRAP> </TD> </TR>
 </TABLE> </DIV> <HR NOSHADE WIDTH="10%" ALIGN="left"><DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Reports on Form 8-K
</FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company filed a Current Report on Form 8-K (No. 1-12675),
dated August 2, 2001 in connection with its second quarter 2001 earnings release. </FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">32 </FONT></DIV>

   <HR>
 <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>
<A NAME="190tx14">SIGNATURES </A></B></FONT></DIV> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 13, 2001. </FONT></DIV> <DIV ALIGN="left"><FONT
SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="052%">&nbsp;</TD>
<TD WIDTH="002%" VALIGN="top"><DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">K<SMALL>IL</SMALL></FONT></DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman" SIZE="2"><SMALL>ROY</SMALL> R<SMALL>EALTY</SMALL> C<SMALL>ORPORATION</SMALL> </FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="052%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;J<SMALL>OHN</SMALL> B. K<SMALL>ILROY</SMALL>, J<SMALL>R</SMALL>. </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="052%">&nbsp;</TD>
<TD WIDTH="002%" VALIGN="top"><DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">By</FONT></DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman"
SIZE="2">:&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>John B. Kilroy, Jr. </B></FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B><I>President and Chief Executive Officer </I></B></FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B><I>(Principal Executive Officer) </I></B></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;R<SMALL>ICHARD</SMALL> E. M<SMALL>ORAN</SMALL> J<SMALL>R</SMALL>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></DIV>
</TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="052%">&nbsp;</TD>
<TD WIDTH="002%" VALIGN="top"><DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">By</FONT></DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman"
SIZE="2">:&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Richard E. Moran Jr. </B></FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B><I>Executive Vice President and Chief Financial Officer </I></B></FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B><I>(Principal Financial Officer) </I></B></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;A<SMALL>NN</SMALL> M<SMALL>ARIE</SMALL> W<SMALL>HITNEY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL> </FONT></DIV>
</TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="052%">&nbsp;</TD>
<TD WIDTH="002%" VALIGN="top"><DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">By</FONT></DIV></TD>
<TD ALIGN="left" VALIGN="top"><DIV><FONT FACE="Times New Roman"
SIZE="2">:&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Ann Marie Whitney </B></FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B><I>Senior Vice President and Controller </I></B></FONT></DIV> </TD></TR></TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="056%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B><I>(Principal Accounting Officer) </I></B></FONT></DIV> </TD></TR></TABLE> <DIV ALIGN="left"><FONT SIZE="1">&nbsp;</FONT></DIV> <P></P>
 <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">33 </FONT></DIV>

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