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<SEC-DOCUMENT>0000950148-04-000333.txt : 20040218
<SEC-HEADER>0000950148-04-000333.hdr.sgml : 20040218
<ACCEPTANCE-DATETIME>20040218163755
ACCESSION NUMBER:		0000950148-04-000333
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20040218

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LTC PROPERTIES INC
		CENTRAL INDEX KEY:			0000887905
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				710720518
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-106555
		FILM NUMBER:		04613596

	BUSINESS ADDRESS:	
		STREET 1:		300 ESPLANADE DR STE 1860
		CITY:			OXNARD
		STATE:			CA
		ZIP:			93030
		BUSINESS PHONE:		8059818655

	MAIL ADDRESS:	
		STREET 1:		300 ESPLANADE DR SUITE 1860
		CITY:			OXNARD
		STATE:			CA
		ZIP:			93030
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>v96609e424b5.htm
<DESCRIPTION>424(B)5
<TEXT>
<HTML>
<HEAD>
<TITLE>LTC Properties, Form 424(b)5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2"><B>This prospectus supplement relates to an effective registration statement
under the Securities Act of 1933, but is not complete and may be changed. This
prospectus supplement and the accompanying prospectus are not an offer to sell
these securities and it is not soliciting an offer to buy these securities in
any state where the offer or sale is not permitted.</B>
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><FONT size="2">SUBJECT TO COMPLETION, DATED FEBRUARY 17, 2004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">PRELIMINARY PROSPECTUS SUPPLEMENT</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">
<B>Filed Pursuant to Rule&nbsp;424 (b)(5) under the Securities Act of 1933</B></FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">(TO PROSPECTUS DATED SEPTEMBER 12, 2003)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top"><FONT size="2">
<B>Registration No 333-106555</B></FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="4"><B>2,000,000 Shares</B>
</FONT>

<P align="center"><HR align="center" size="1" width="15%" noshade>

<P align="center"><FONT size="6"><B>LTC Properties, Inc.</B>
</FONT>

<DIV align="center"><FONT size="4"><B>% Series&nbsp;F Cumulative Preferred Stock<BR>
(Liquidation Preference $25.00 Per Share)</B>
</FONT></DIV>
<P align="center"><HR align="center" size="1" width="15%" noshade>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are offering 2,000,000 shares of our &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% Series&nbsp;F Cumulative Preferred
Stock, or Series&nbsp;F Preferred Stock. We will pay quarterly cumulative
dividends, in arrears, on the Series&nbsp;F Preferred Stock from the date of
original issue. These dividends will be payable on January&nbsp;15, April&nbsp;15, July
15 and October&nbsp;15 of each year, when and as declared, beginning April&nbsp;15, 2004,
at a yearly rate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the $25.00 liquidation preference, or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
Series&nbsp;F Preferred Stock per year. We may not redeem the Series&nbsp;F Preferred
Stock prior to February&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009, except as necessary to preserve our status as
a real estate investment trust. On or after February&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009, we may, at our
option, redeem the Series&nbsp;F Preferred Stock, in whole or from time to time in
part, for $25.00 per Series&nbsp;F Preferred Stock in cash plus any accrued and
unpaid dividends to the date of redemption. The shares of Series&nbsp;F Preferred
Stock have no stated maturity, are not subject to any sinking fund and will
remain outstanding indefinitely unless we redeem them.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have agreed to engage Cohen &#038; Steers Capital Advisors, LLC, as
placement agent for this offering. Cohen &#038; Steers has no commitment to
purchase securities and will act only as an advisor in obtaining indications of
interest on the securities for certain investors. After paying the placement
advisor fee and other estimated expenses payable by us, we anticipate receiving
approximately $49.1&nbsp;million in net proceeds from this offering.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have applied to list the Series&nbsp;F Preferred Stock on the New York Stock
Exchange under the symbol &#147;LTC PrF.&#148; The New York Stock Exchange has various
requirements for listing, including requirements relating to the distribution
of the shares to be listed to no fewer than 100 beneficial owners. We expect
that there will initially be not less than 100 holders of our Series&nbsp;F
Preferred Stock. Trading of our Series&nbsp;F Preferred Stock on the New York Stock
Exchange is expected to commence within 30&nbsp;days of initial delivery of our
Series&nbsp;F Preferred Stock or at such time thereafter as the requirements for the
listing are met.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to deliver our Series&nbsp;F Preferred Stock on or about&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004.
</FONT>

<P align="left"><FONT size="2">
<HR align="center" size="1" width="15%" noshade>
</FONT>

<DIV align="center"><FONT size="2"><B>Investing in our securities involves certain risks. See &#147;Risk Factors&#148; on page S-10 of this prospectus supplement and<BR>
beginning on page 7 of the accompanying prospectus.</B>
</FONT></DIV>

<HR align="center" size="1" width="15%" noshade>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
    <TD width="84%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Per share</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Total</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Public offering price(1)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Placement Advisor Fees</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Proceeds, before expenses, to us</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">(1)&nbsp;Plus accrued dividends, if any, from February&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus supplement is truthful or complete. Any representation to the
contrary is a criminal offense.</B>
</FONT>
<P align="center"><HR align="center" size="1" width="15%" noshade>

<P align="center"><FONT size="2">Placement Advisor
</FONT>

<P align="center"><FONT size="2"><B>Cohen &#038; Steers Capital Advisors, LLC</B>
</FONT>

<P align="center"><HR align="center" size="1" width="15%" noshade>

<P align="center"><FONT size="2">THE DATE OF THIS PROSPECTUS SUPPLEMENT IS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2004
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>



<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">FORWARD-LOOKING STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">PROSPECTUS SUPPLEMENT SUMMARY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">RISK FACTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">CAPITALIZATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">USE OF PROCEEDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">SELECTED CONSOLIDATED FINANCIAL DATA</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">LEGAL PROCEEDINGS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">DESCRIPTION OF OUR CAPITAL STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">ADDITIONAL FEDERAL INCOME TAX CONSIDERATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">PLAN OF DISTRIBUTION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">LEGAL MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">EXPERTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">WHERE YOU CAN FIND ADDITIONAL INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">DOCUMENTS INCORPORATED BY REFERENCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">ABOUT THIS PROSPECTUS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">FORWARD-LOOKING STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">WHERE YOU CAN FIND ADDITIONAL INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#018">DOCUMENTS INCORPORATED BY REFERENCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#019">ABOUT OUR COMPANY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#020">OUR STRATEGY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#021">RISK FACTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#022">USE OF PROCEEDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#023">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#024">GENERAL DESCRIPTION OF THE OFFERED SECURITIES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#025">DESCRIPTION OF DEBT SECURITIES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#026">DESCRIPTION OF OUR COMMON STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#027">DESCRIPTION OF OUR PREFERRED STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#028">RESTRICTIONS ON OWNERSHIP AND TRANSFER</A></TD></TR>
<TR><TD colspan="9"><A HREF="#029">CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#030">CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#031">LEGAL MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#032">EXPERTS</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>






<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We have not authorized any dealer, salesman or other person to give
any information or to make any representation other than those contained
or incorporated by reference in this prospectus supplement and the
accompanying prospectus. You must not rely upon any information or
representation not contained or incorporated by reference in this
prospectus supplement or the accompanying prospectus. This prospectus
supplement and the accompanying prospectus do not constitute an offer to
sell or the solicitation of an offer to buy securities in any jurisdiction
to any person to whom it is unlawful to make such offer or solicitation in
such jurisdiction.</B>
</FONT>




<P align="center"><FONT size="2"><B>TABLE OF CONTENTS</B>
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><FONT size="1"><B>Prospectus Supplement</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Forward-looking statements</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Prospectus supplement summary</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Risk factors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Capitalization</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

    <TD nowrap align="right"><FONT size="2">S-11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Use of proceeds</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Selected consolidated financial data</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Legal proceedings</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Ratios of earnings to fixed charges and earnings
to combined fixed charges and preferred stock dividends</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of our capital stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Additional federal income tax considerations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Plan of distribution</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Legal matters</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Experts</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Where you can find additional</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Documents incorporated by reference</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><FONT size="1"><B>Prospectus</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">About this prospectus</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Forward-looking statements</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Where you can find additional information</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Documents incorporated by reference</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">About our company</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Our strategy</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Risk factors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Use of proceeds</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Ratios of earnings to fixed charges and earnings
to combined fixed charges and preferred stock dividends</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">General description of the offered securities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of debt securities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of common stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of preferred stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Restrictions on ownership and transfer</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Certain provisions of Maryland law and of our charter and bylaws</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Certain US federal income tax considerations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Legal matters</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Experts</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>




<P align="center"><FONT size="2">&nbsp;</FONT>
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<!-- link1 "FORWARD-LOOKING STATEMENTS" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="left"><FONT size="2">Forward-looking statements
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement contains or incorporates by reference
forward-looking statements within the meaning of Section&nbsp;27A of the Securities
Act of 1933 and Section&nbsp;21E of the Securities Exchange Act of 1934. You can
identify some of the forward-looking statements by their use of forward-looking
words, such as &#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;seeks,&#148;
&#147;approximately,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;estimates&#148; or &#147;anticipates,&#148; or the
negative of those words or similar words. Forward-looking statements involve
inherent risks and uncertainties regarding events, conditions and financial
trends that may affect our future plans of operation, business strategy,
results of operations and financial position. A number of important factors
could cause actual results to differ materially from those included within or
contemplated by such forward-looking statements, including, but not limited to,
the status of the economy, the status of capital markets including prevailing
interest rates, compliance with and changes to regulations and payment policies
within the healthcare industry, changes in financing terms, competition within
the healthcare and senior housing industries, and changes in federal, state and
local legislation. For a discussion of these and other factors that could cause
actual results to differ from those contemplated in the forward-looking
statements, please see the discussion under &#147;Risk factors&#148; contained in this
prospectus supplement and in other information contained in our publicly
available filings with the Securities and Exchange Commission, including our
annual report on Form&nbsp;10-K for the year ended December&nbsp;31, 2002 and other
reports we file under the Securities Exchange Act of 1934. We do not undertake
any responsibility to update any of these factors or to announce publicly any
revisions to forward-looking statements, whether as a result of new
information, future events or otherwise.
</FONT>
<P align="center"><FONT size="2">S-3</FONT>
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<!-- link1 "PROSPECTUS SUPPLEMENT SUMMARY" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="center"><FONT size="2"><B>PROSPECTUS SUPPLEMENT SUMMARY</B>
</FONT>

<P align="left"><FONT size="2"><I>The following summary may not contain all of the information that is important
to you. You should read this entire prospectus supplement, the accompanying
prospectus and the documents incorporated by reference carefully before
deciding whether to invest in our Series&nbsp;F Preferred Stock. In this prospectus
supplement, unless otherwise indicated, the &#147;company,&#148; &#147;we,&#148; &#147;us&#148; and &#147;our&#148;
refer to LTC Properties, Inc. and our consolidated subsidiaries.</I>
</FONT>
<P align="left"><FONT size="2"><B>ABOUT OUR COMPANY</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a self-administered real estate investment trust that invests
primarily in long-term care and other healthcare related properties through
mortgage loans, property lease transactions and other investments. As of
December&nbsp;31, 2003, long-term care facilities, which include skilled nursing and
assisted living facilities, comprised approximately 98% of our investment
portfolio. We have been operating since August 1992.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Skilled nursing facilities provide restorative, rehabilitative and nursing
care for people not requiring the more extensive and sophisticated treatment
available at acute care hospitals. Many skilled nursing facilities provide
ancillary services that include occupational, speech, physical, respiratory and
IV therapies, as well as provide sub-acute care services which are paid either
by the patient, the patient&#146;s family, or through federal Medicare or state
Medicaid programs.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assisted living facilities serve elderly persons who require assistance
with activities of daily living, but do not require the constant supervision
skilled nursing facilities provide. Services are usually available 24-hours a
day and include personal supervision and assistance with eating, bathing,
grooming and administering medication. The facilities provide a combination of
housing, supportive services, personalized assistance and health care designed
to respond to individual needs.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our senior management team is comprised of four individuals with a
combined 51&nbsp;years of experience in healthcare and real estate finance.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2003, we had approximately $516&nbsp;million in carrying
value of net real estate investments. At that date, our portfolio included 96
assisted living facilities, 83 skilled nursing facilities and one charter
school in 30 states. We had approximately $383&nbsp;million (74%) invested in owned
and leased properties, approximately $71&nbsp;million (14%) invested in mortgage
loans, and investments in certificates of a real estate mortgage investment
conduit (or REMIC) with a carrying value of approximately $62&nbsp;million (12%).
</FONT>
<P align="left"><FONT size="2"><B>Owned Properties</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2003, we owned 53 skilled nursing facilities with a total
of 6,047 beds, 88 assisted living facilities with 4,182 units and one school
located in 23 states. The properties are leased pursuant to non-cancelable
leases generally with an initial term of 10 to 30&nbsp;years. The leases provide
for a fixed minimum base rent during the initial and renewal periods. Most of
the leases provide for annual fixed rent increases or increases based on
consumer price indices over the term of the lease. In addition, certain of our
leases provide for additional rent through revenue participation (as defined in
the lease agreement) in incremental revenues generated by the facilities over a
defined base period effective at various times during the term of the lease.
Each lease is a triple net lease which requires the lessee to pay additional
charges including all taxes, insurance, assessments, maintenance and repair
(capital and non-capital expenditures) and other costs necessary in the
operation of the facility. Many of the leases contain renewal options and one
contains a limited period option that permits the operator to purchase the
property.
</FONT>
<P align="left"><FONT size="2"><B>Mortgage Loans</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2003, we had 37 mortgage loans secured by first mortgages
on 30 skilled nursing facilities with a total of 3,681 beds and eight assisted
living facilities with a total of 369 units located in 19 states. At December
31, 2003, these mortgage loans had interest rates ranging from 9.5% to 12.6%
and maturities ranging from 2003 to 2018. In addition, the loans may contain
guarantees, provide for facility fees and generally have 25-year amortization
schedules. The majority of the mortgage loans provide for annual increases in
the interest rate based upon a specified increase of 10 to 25 basis points.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, the mortgage loans may not be prepaid except in the event of
the sale of the collateral property to a third party that is not affiliated
with the borrower, although partial prepayments (including the prepayment
premium) are often permitted where a mortgage loan is secured by more than one
property upon the sale of one or more, but not all, of the collateral
properties to a third party which is not an affiliate of the borrower. The
terms of the mortgage loans generally impose a premium upon prepayment of the
loans depending upon the period in which the prepayment occurs, whether such
prepayment was permitted or required, and certain other conditions such as upon
the sale of the property under a pre-existing
</FONT>
<P align="center"><FONT size="2">S-4</FONT>
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<P align="left"><FONT size="2">purchase option, destruction or condemnation, or other circumstances as
approved by us. On certain loans, such prepayment amount is based upon a
percentage of the then outstanding balance of the loan, usually declining
ratably each year. For other loans, the prepayment premium is based on a yield
maintenance formula. In addition to a lien on the mortgaged property, the
loans are generally secured by certain non-real estate assets of the properties
and contain certain other security provisions in the form of letters of credit,
pledged collateral accounts, security deposits, cross-default and
cross-collateralization features and certain guarantees.
</FONT>
<P align="left"><FONT size="2"><B>REMIC Certificates</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2003, the outstanding certificate principal balance and
the weighted average pass-through rate for the senior REMIC certificates (all
held by outside third parties) were $154.7&nbsp;million and 7.06%. As of December
31, 2003, the carrying value of the subordinated REMIC certificates held by us
was $61.7&nbsp;million. The effective yield on the subordinated REMIC certificates
held by us, based on expected future cash flows discounted to give effect to
potential risks associated with prepayments and credit losses was 15.73% at
December&nbsp;31, 2003.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The REMIC certificates we retain are subordinate in rank and right of
payment to the REMIC certificates sold to third-party investors and as such
would bear the first risk of loss in the event of an impairment to any of the
underlying mortgages. The REMIC certificates are collateralized by three pools
consisting of 69 first mortgage loans secured by 103 skilled nursing
properties. The mortgage loans underlying the REMIC certificates generally
have 25-year amortization schedules with final maturities due from 2003 to
2028, unless prepaid prior thereto. Distributions on any of the REMIC
certificates will depend, in large part, on the amount and timing of payments,
collections, delinquencies and defaults with respect to mortgage loans
represented by the REMIC certificates, including the exercise of certain
purchase options under existing property leases or the sale of the mortgaged
properties. Each of the mortgage loans securing the REMIC certificates
contains similar prepayment and security provisions as our mortgage loans.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the REMIC transactions, we serve as the sub-servicer and, in
such capacity, are responsible for performing substantially all of the
servicing duties relating to the mortgage loans represented by the REMIC
certificates. We receive monthly fees equal to a fixed percentage of the then
outstanding mortgage loan balance in the REMIC, which in our opinion, represent
currently prevailing terms for similar transactions. In addition, we will act
as the special servicer to restructure any mortgage loans in the REMIC that
default.
</FONT>
<P align="left"><FONT size="2"><B>OUR STRATEGY</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary objectives are to enhance stockholder equity value and provide
current income for distribution to stockholders through real estate investments
in long-term care properties and other healthcare related properties run by
experienced operators providing quality care. To meet these objectives, we
attempt to invest in fee simple properties or in mortgages that provide
opportunity for additional value and current returns to our stockholders and to
diversify our investment portfolio by geographic location, operator and form of
investment.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">For investments in skilled nursing facilities, we favor low cost per
bed opportunities, whether in fee simple properties or in mortgages.
Thus, the average per bed cost of our owned skilled nursing facilities
is approximately $26,500 per bed while that of our mortgages is
approximately $13,700 per bed.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">For assisted living investments we have attempted to diversify our
portfolio both geographically and across product levels. Thus, we
believe that although the majority of our investments are in
affordably priced units, our portfolio also includes a significant
number of upscale units in appropriate markets with certain operators.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">As skilled nursing facilities reimbursement cuts have created cost and
pricing pressures in that industry, we have tended to emphasize fee
simple investments in the assisted living sector where we believe
facilities tend to be both newer and less dependent, if at all, on any
government reimbursement.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2"><B>RECENT DEVELOPMENTS</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We announced on October&nbsp;23, 2003 we had leased to a third party operator
two skilled nursing facilities in Washington formerly operated by Sun
Healthcare Group, Inc. (or Sun) for $0.5&nbsp;million in the initial year beginning
October&nbsp;1, 2003 with 2.0% increases annually for 10&nbsp;years. Additionally, we
leased three skilled nursing facilities in Arizona formerly operated by Sun to
a third party operator for $1.0&nbsp;million in the initial year beginning September
1, 2003 with annual increases based on the consumer price index beginning in
September 2008 and a lease term of 16&nbsp;years.
</FONT>
<P align="center"><FONT size="2">S-5</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;12, 2003 we announced a quarterly dividend of $.25 per share
on our common stock. The first three quarterly common dividends per share in
fiscal 2003 were $.10, $.15 and $.15, respectively.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On that date we also announced the signing of a 30&nbsp;year triple-net master
lease with Center Healthcare, Inc. covering 19 skilled nursing properties
formerly leased to CLC Healthcare, Inc. (or CLC). The lease provides for
rental payments of approximately $4,337,000 in the first year with a 3%
escalation each year for the first subsequent 10&nbsp;years, 2% each year for the
second 10&nbsp;years and 1% each year thereafter. These 19 properties had been
managed by a company affiliated with Center Healthcare, Inc. under a
month-to-month triple net management agreement with CLC and we have received
monthly rental income of approximately $361,000 since September 2003. At a
special meeting of stockholders of CLC on November&nbsp;12, 2003, the shareholders
of CLC approved the merger of CLC with a subsidiary of Center Healthcare, Inc.
and as a result CLC ceased to be a publicly traded company and its leases with
us were terminated.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have signed a new unsecured Credit Agreement dated December&nbsp;26, 2003.
The Credit Agreement provides for $45&nbsp;million of total commitments and is a
revolving line with no scheduled maturities other than the three year term of
the Credit Agreement. The pricing varies between LIBOR plus 2.75% and LIBOR
plus 3.25% depending on our leverage ratio. Had we drawn on the credit at the
time of signing, the pricing would have been LIBOR plus 3.00%. Additionally,
the Credit Agreement provides for the inclusion of additional banks and an
expansion of the Credit Agreement under certain terms and conditions.
Simultaneous with the signing of the Credit Agreement, we cancelled our
previous Senior Secured Revolving Credit Agreement which would have expired on
October&nbsp;2, 2004, and all security interests in assets secured under the Senior
Secured Revolving Credit were released.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;31, 2003, we announced as a result of an announcement by
Assisted Living Concepts, Inc. (or ALC) of the redemption of ALC&#146;s Senior
Secured and Junior Secured Notes, we will receive approximately $12.3&nbsp;million,
plus accrued interest, on or about January&nbsp;30, 2004, for the ALC Senior Secured
and Junior Secured Notes owned by us. We had purchased and recorded some of
these notes at a discount and as a result of ALC&#146;s call at the notes&#146; face
values, the redemption call will result in a gain of approximately $2.2&nbsp;million
in our 2003 fourth quarter results.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also announced that we have sold to an operator who had an option to
purchase one skilled nursing facility which resulted in cash proceeds (net of a
$2.0&nbsp;million deposit previously received) of approximately $4.2&nbsp;million and a
gain on sale of approximately $1.1&nbsp;million.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also on December&nbsp;31, 2003, we called for the redemption of 1,225,680
shares of our 9.5% Series&nbsp;A Cumulative Preferred Stock representing 40% of the
total number of outstanding shares of Series&nbsp;A Preferred Stock. The redemption
date of the Series&nbsp;A Preferred Stock is January&nbsp;30, 2004, and the redemption
price is $25.00 per share of Series&nbsp;A Preferred Stock, plus accrued and unpaid
dividends, up to and including the Redemption Date or a total of $25.1914 per
share. We will use the proceeds from the redemption of the ALC securities and
the proceeds from the asset sale mentioned above, together with cash on hand to

fund this redemption. After the redemption date, dividends on such Series&nbsp;A
Preferred Stock will cease to accrue on such shares and such shares of Series&nbsp;A
Preferred Stock shall no longer be deemed outstanding and all rights of the
holders in respect of such Series&nbsp;A Preferred Stock being redeemed will
terminate, except for the right to receive the redemption price, without
interest thereon.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;12, 2004, we filed a Form&nbsp;8-K with the SEC and announced the
results of our operations for the three and twelve months ended December&nbsp;31,
2003, including net income available to common stockholders of $1.6&nbsp;million or
$0.09 per diluted share. Included in these results was a $2.1&nbsp;million
write-off of debt issue costs related to the Company&#146;s early retirement of our
Secured Revolving Credit, an additional charge of $1.2&nbsp;million related to the
redemption of 40% of our 9.5% Series&nbsp;A Preferred Stock, a gain of $2.0&nbsp;million
resulting from redemption by Assisted Living Concepts, Inc. of its secured
debentures owned by us and a gain on sale of assets of $2.0&nbsp;million. We
reported $3.3&nbsp;million of depreciation expense of which $0.1&nbsp;million is included
in income from discontinued operations, for the three months ended December&nbsp;31,
2003. For the same period in 2002, net income available to common stockholders
was $0.9&nbsp;million or $0.05 per diluted share including a gain on sale of assets
of $0.5&nbsp;million and depreciation expense of $3.5&nbsp;million of which $0.2&nbsp;million
is included in income from discontinued operations. We recorded no impairment
charge in the fourth quarter of 2003. Revenues for the three months ended
December&nbsp;31, 2003 were $15.9&nbsp;million versus $17.1&nbsp;million for the same period
last year.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the twelve months ended December&nbsp;31, 2003, net income available to
common stockholders was $6.5&nbsp;million or $0.36 per diluted share compared to
$16.8&nbsp;million or $0.91 per diluted share for the twelve months ended December
31, 2002. Results for the year ended December&nbsp;31, 2003 include a gain on sale
of assets of $2.3&nbsp;million compared to $14.5&nbsp;million in 2002. Revenues for the
twelve months ended December&nbsp;31, 2003 were $63.4&nbsp;million versus $68.1&nbsp;million
last year.
</FONT>
<P align="center"><FONT size="2">S-6</FONT>
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<P align="left"><FONT size="2"><B>Recent Medicare and Medicaid Developments</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;8, 2003, President Bush signed into law the &#147;Medicare
Prescription Drug, Improvement and Modernization Act of 2003&#148; (P.L. 108-173).
In addition to expanded Medicare prescription drug coverage, the new act
modifies Medicare payments to a variety of health care providers. With respect
to skilled nursing facilities, the new act provides a temporary 128&nbsp;percent
increase in the per diem resource utilization group payment for a skilled
nursing facility resident with acquired immune deficiency syndrome, applicable
to services furnished on or after October&nbsp;1, 2004. In addition, President
Bush&#146;s fiscal year 2005 proposed budget indicates that for Medicare skilled
nursing facilities, the refinements in patient categories for medically-complex
patients will not be adopted, thereby continuing the temporary increase in the
payment for certain high-cost nursing home patients through fiscal year 2005.
There can be no assurances, however, that future legislation or regulations
will not reduce Medicare reimbursement for nursing facilities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, budget shortfalls at the state level continue to pressure
Medicaid programs. According to a September 2003 report by the Kaiser
Commission on Medicaid and the Uninsured, nursing home rates were cut or frozen
in 17 states in fiscal year 2003 and in 19 states in fiscal year 2004. On the
other hand, nursing homes were the provider group most likely to be given a
rate increase in both years, with increases in 33 states in fiscal year 2003
and in 29 states in fiscal year 2004; these increases often are mandated by
state statutory funding formulas.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal executive offices are located at 22917 Pacific Coast Hwy,
Suite&nbsp;350, Malibu, California 90265, and our telephone number is (310)
455-6010.
</FONT>
<P align="center"><FONT size="2">S-7</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="center"><FONT size="2"><B>THE OFFERING</B>
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">Securities offered</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">2,000,000 shares of Series&nbsp;F Preferred Stock</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Price per share</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">$25.00</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Maturity</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The Series&nbsp;F Preferred Stock has no stated maturity and
will not be subject to any sinking fund or mandatory
redemption.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Rank</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The Series&nbsp;F Preferred Stock will, with respect to
dividend rights and rights upon our liquidation,
dissolution or winding up, rank:</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
&#149;
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">senior to all classes or
series of our Common Stock, our Series&nbsp;D Junior
Participating Preferred Stock and to all equity
securities ranking junior to the Series&nbsp;F
Preferred Stock;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
&#149;
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">on parity with our 9.5%
Series&nbsp;A Preferred Stock, our 9.0% Series&nbsp;B
Preferred Stock, our 8.5% Series&nbsp;C Preferred
Stock, and our 8.5% Series&nbsp;E Preferred Stock and
all other equity securities to be issued by us,
the terms of which specifically provide that such
equity securities rank on parity with the Series&nbsp;F
Preferred Stock; and</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
&#149;
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">junior to all our
existing and future indebtedness.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The term &#147;equity securities&#148; does not include
convertible debt securities, which will rank senior to
the Series&nbsp;F Preferred Stock prior to the conversion of
such convertible debt securities. There are currently
no convertible debt securities outstanding.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Dividends</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">Dividends on the Series&nbsp;F Preferred Stock will be
cumulative from the date of original issue and are
payable quarterly in arrears for the period
covering the preceding quarter on or before the
15th day of January, April, July and October of
each year, commencing April&nbsp;15, 2004, at the
annual rate of % of the $25.00 liquidation
preference per share, equivalent to a fixed annual
amount of $per share. Dividends on the Series&nbsp;F
Preferred Stock will accrue regardless of whether
or not we have earnings, whether there are funds
legally available for the payment of such
dividends and whether or not such dividends are
declared.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Liquidation preference</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The Series&nbsp;F Preferred Stock will have a
liquidation preference of $25.00 per share, plus
an amount equal to any accrued and unpaid
dividends thereon.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Optional redemption</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The Series&nbsp;F Preferred Stock is not redeemable
prior to February , 2009, except in limited
circumstances to preserve our status as a REIT.
On or after February , 2009, the Series&nbsp;F
Preferred Stock will be redeemable for cash at our
option in whole or from time to time in part, at
$25.00 per share, plus accrued and unpaid
dividends to the redemption date. See
&#147;Description of Series&nbsp;F Preferred
Stock&#151;Redemption.&#148;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Voting rights</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">Holders of the Series&nbsp;F Preferred Stock will
generally have no voting rights. However, if
dividends on the Series&nbsp;F Preferred Stock or the
Series&nbsp;E Preferred Stock are in arrears for six or
more quarterly periods, or dividends on the Series
A Preferred Stock or Series&nbsp;B Preferred Stock are
in arrears for eighteen or more months, holders of
the Series&nbsp;F Preferred Stock (voting separately as
a class with all other series of preferred stock
upon which like voting rights have been conferred
and are exercisable) will be entitled to vote for
the election of two additional directors to serve
on our Board of Directors until all dividend
arrearages have been paid or a sum sufficient for
payment thereof is set aside for payment. In
addition, some changes that would be materially
adverse to the rights of holders of the Series&nbsp;F
Preferred Stock outstanding at the time cannot be
made without the affirmative vote of the holders
of two-thirds of the shares of Series&nbsp;F Preferred
Stock, voting as a single class.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Conversion</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The Series&nbsp;F Preferred Stock is not convertible
into or exchangeable for any other property or
securities.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">S-8</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="54%">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Restrictions on
ownership and transfer</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The Series&nbsp;F Preferred Stock will be subject to
certain restrictions on ownership and transfer
intended to preserve our status as a real estate
investment trust or REIT for United States federal
income tax purposes.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Listing</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">We have applied for approval to list the Series&nbsp;F
Preferred Stock on the NYSE under the symbol &#147;LTC
PrF.&#148; In addition, the purchase agreement
relating to our sale of the Series&nbsp;F Preferred
Stock provides that we will use our reasonable
best efforts to obtain approval of our application
within 30&nbsp;days after the original issuance of the
Series&nbsp;F Preferred Stock, or if not, as soon as
practicable thereafter. The New York Stock
Exchange has various requirements for listing,
including requirements relating to the
distribution of the shares to be listed to no
fewer than 100 beneficial owners. No assurance
can be given that the application will be approved
or, even if it is approved, that a market for the
Series&nbsp;F Preferred Stock will develop or, if
developed, will be maintained.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Use of proceeds</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">The net proceeds from the sale of the Series&nbsp;F
Preferred Stock offered hereby will be used to
redeem all of our outstanding Series&nbsp;A Preferred
Stock and for other corporate purposes.</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">S-9</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "RISK FACTORS" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="center"><FONT size="2"><B>RISK FACTORS</B>
</FONT>

<P align="left"><FONT size="2">You should carefully consider the risks described below and in the accompanying
prospectus before making an investment decision in our company. The risks and
uncertainties described below are not the only ones facing our company and
there may be additional risks that we do not presently know of or that we
currently consider immaterial. Other important factors are identified in our
annual report on Form&nbsp;10-K for the year ended December&nbsp;31, 2002 and other
reports we filed under the Securities Exchange Act of 1934, which are
incorporated by reference into this prospectus supplement, including factors
identified under the headings &#147;Business&#148; and &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#148;, and in the other
documents incorporated by reference into this prospectus supplement. All of
these risks could adversely affect our business, financial condition, results
of operations and cash flows. As a result, our ability to pay dividends on, and
the market price of, our equity securities may be adversely affected if any of
such risks are realized.
</FONT>
<P align="left"><FONT size="2"><B>We could incur more debt.</B>
</FONT>
<P align="left"><FONT size="2">We operate with a policy of incurring debt when, in the opinion of our
directors, it is advisable. Accordingly, we could become more highly leveraged.
The degree of leverage could have important consequences to stockholders,
including affecting our ability to obtain additional financing in the future
for working capital, capital expenditures, acquisitions, development or other
general corporate purposes and making us more vulnerable to a downturn in
business or the economy generally.
</FONT>
<P align="left"><FONT size="2">Our use of debt financing presents the risk to holders of the Series&nbsp;F
Preferred Stock that payments of principal and interest on borrowings will
leave us with insufficient cash resources to pay dividends required by the
terms of the Series&nbsp;F Preferred Stock or to pay declared dividends on our
Common Stock or distributions in respect to capital stock required to be paid
in order for us to maintain our qualification as a REIT.
</FONT>
<P align="left"><FONT size="2"><B>There is no established trading market for our Series&nbsp;F Preferred Stock, which
may negatively affect its market value and your ability to transfer or sell
your Series&nbsp;F Preferred Stock.</B>
</FONT>
<P align="left"><FONT size="2">We have applied to list the Series&nbsp;F Preferred Stock on the NYSE. There is no
assurance that the NYSE will approve our listing application. An active trading
market on the NYSE for the shares may not develop or, even if it develops, may
not last, in which case the trading price of the Series&nbsp;F Preferred Stock could
be adversely affected.
</FONT>
<P align="left"><FONT size="2"><B>The market value of our Series&nbsp;F Preferred Stock could be substantially
affected by various factors.</B>
</FONT>
<P align="left"><FONT size="2">As with other publicly traded securities, the trading price of our Series&nbsp;F
Preferred Stock will depend on many factors, which may change from time to
time, including:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the market for similar securities;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>

    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">additional issuance of other classes or series of our preferred shares;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">general economic and financial market conditions; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">our financial condition, performance and prospects.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">S-10</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "CAPITALIZATION" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="center"><FONT size="2"><B>CAPITALIZATION</B>
</FONT>

<P align="left"><FONT size="2">The following table sets forth our capitalization (i)&nbsp;as of September&nbsp;30, 2003,
(ii)&nbsp;as adjusted to give effect to the redemption of 1,225,680 shares of our
Series&nbsp;A Preferred Stock on January&nbsp;30, 2004, and (iii)&nbsp;to give proforma effect
of the sale of the Series&nbsp;F Preferred Stock offered hereby at an assumed
offering price of $25.00 per share and to the anticipated redemption of the
balance of the outstanding shares of our Series&nbsp;A Preferred Stock with the net
proceeds of the offering.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="11"><FONT size="1"><B>As of September 30, 2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" colspan="11"><FONT size="1"><B>(in thousands)</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="11"><FONT size="1"><B>(unaudited)</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="11"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Proforma</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Actual</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>As adjusted</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>As adjusted</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Debt:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Bank borrowings</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">       &#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">        &#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">        &#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Mortgage loans payable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">127,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">127,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">127,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Bonds payable and capital lease obligations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Senior participation payable</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,017</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,017</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,017</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total debt</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">171,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">171,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">171,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Stockholders&#146; equity</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Preferred Stock, $0.01 par value; 15,000,000 shares authorized</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Series&nbsp;A Cumulative Preferred Stock, 3,064,200 shares issued and outstanding,
shares issued and outstanding as adjusted(1)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">76,703</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">46,022</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Series&nbsp;B Cumulative Preferred Stock, 1,988,000 shares issued and outstanding,
shares issued and outstanding</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Series&nbsp;C Cumulative Convertible Preferred Stock, 2,000,000 shares issued and
outstanding</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Series&nbsp;D Junior Participating Preferred Stock, 0 shares issued and outstanding</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Series&nbsp;E Cumulative Convertible Preferred Stock, 2,200,000 shares issued and
outstanding</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">52,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">52,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">52,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Series&nbsp;F Preferred Stock, 2,000,000 shares issued and outstanding as adjusted</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49,100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Common Stock, $0.01 par value; 35,000,000 authorized; 17,806,351 shares issued
and outstanding(2)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Capital in excess of par value</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">251,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">252,373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">254,293</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cumulative net income</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">266,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">266,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">266,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other equity</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3,967</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3,967</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3,967</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cumulative distributions</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(334,060</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(335,575</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(337,760</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total stockholders&#146; equity</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">397,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">366,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">369,533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total capitalization</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">569,084</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">538,130</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">540,943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">On January&nbsp;30, 2004 we redeemed 1,225,680 shares of our Series&nbsp;A
Preferred Stock at a redemption price of $25.1914 per share, including
accrued and unpaid dividends.</FONT></TD>
</TR>
<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Excludes: (i)&nbsp;345,447 shares reserved under our 1992 Stock Option Plan
and our 1998 Equity Participation Plan; (ii)&nbsp;2,000,000 shares reserved
for issuance upon the conversion of our Series&nbsp;C Preferred Stock; and
(iii)&nbsp;4,400,000 shares reserved for issuance upon the conversion of our
Series&nbsp;E Preferred Stock.</FONT></TD>
</TR>
</TABLE>
<!-- link1 "USE OF PROCEEDS" -->
<DIV align="left"><A NAME="004"></A></DIV>
<P align="center"><FONT size="2"><B>USE OF PROCEEDS</B>
</FONT>

<P align="left"><FONT size="2">The net proceeds from the sale of the 2,000,000 shares of Series&nbsp;F Preferred
Stock offered hereby are estimated to be $49.1million at a public offering
price of $25.00 per share. Of the net proceeds, approximately $46.3&nbsp;million
will be used to redeem the remaining outstanding shares of our Series&nbsp;A
Preferred Stock, including accrued and unpaid dividends through the redemption
date, and the balance will be used for other corporate purposes. Of the
remaining outstanding shares of our Series&nbsp;A Preferred Stock, affiliates of the
company own a total of 66,527 shares of Series&nbsp;A Preferred Stock.
</FONT>
<P align="center"><FONT size="2">S-11</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "SELECTED CONSOLIDATED FINANCIAL DATA" -->
<DIV align="left"><A NAME="005"></A></DIV>
<P align="center"><FONT size="2"><B>SELECTED CONSOLIDATED FINANCIAL DATA</B>
</FONT>

<P align="left"><FONT size="2">The following selected consolidated financial data for the five years ended
December&nbsp;31, 2002 are derived from our audited consolidated financial
statements. The selected consolidated financial data for the nine month periods
ended September&nbsp;30, 2003 and September&nbsp;30, 2002 are derived from our unaudited
financial statements. The unaudited financial statements include all
adjustments, which we consider necessary for a fair presentation of our
financial position and results of operation for these periods. Operating
results for the nine months ended September&nbsp;30, 2003 are not necessarily
indicative of the results that may be expected for the entire year ending
December&nbsp;31, 2003. The data should be read in conjunction with our consolidated
financial statements, related notes and other financial information
incorporated by reference herein.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>Nine months</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="19"><FONT size="1"><B>Year ended December 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="7"><FONT size="1"><B>ended September 30,</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="19"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="7"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Consolidated statement of operations data</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1998</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1999</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2000</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" colspan="27"><FONT size="1"><B>(in thousands, except per share amounts)</B></FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Revenues</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">86,132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">84,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">84,364</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">68,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">69,203</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">51,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">48,121</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Expenses:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Interest expense</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">22,267</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21,745</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">16,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,931</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Depreciation and amortization</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">11,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12,717</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,390</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12,987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">10,620</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Provision for loan losses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Impairment charge</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,620</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">19,647</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,260</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Operating and other expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,084</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,863</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,887</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6,827</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,865</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total expenses</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">39,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">55,314</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">55,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">63,478</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">36,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">31,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income before minority interest and other</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">46,458</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,504</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,284</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">19,447</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,955</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">16,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Minority interest</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,415</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,018</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(982</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(973</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,308</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(978</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(968</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(6,797</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,304</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Income from continuing operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">38,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">28,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4,273</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">18,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,977</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">15,936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Discontinued operations:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">(Loss) gain from discontinued operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,037</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(5,655</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(8,741</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(819</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(819</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Gain on sale of assets, net</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,926</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">8,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1,560</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)&nbsp;from discontinued operations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">12,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2,037</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3,335</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(7,181</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,120</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">381</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">50,593</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">31,827</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">31,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(2,908</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">31,803</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">27,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">16,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Preferred stock dividends</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(12,896</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(15,087</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(15,087</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(15,077</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(15,042</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(11,281</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(11,441</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Net income (loss)&nbsp;available to common stockholders</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">37,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">16,740</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">16,550</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(17,985</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">16,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">15,816</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">4,876</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Per share information:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Basic net income (loss)&nbsp;available to common stockholders</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">1.390</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(0.75</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.86</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Diluted net income (loss)&nbsp;available to common stockholders</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">1.390</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(0.75</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Common stock distributions declared</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">1.535</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">1.56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">0.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="19"><FONT size="1"><B>As of December 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>As of</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="19"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>September 30,</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><FONT size="1"><B>Consolidated balance sheet data</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1998</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1999</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2000</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" colspan="23"><FONT size="1"><B>(in thousands)</B></FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Real estate investments, net</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">663,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">683,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">622,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">604,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">552,434</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">538,073</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">689,814</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">721,811</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">676,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">648,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">599,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">590,057</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total debt</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">229,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">292,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">262,560</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">284,634</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">230,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">171,410</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">237,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">303,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">272,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">294,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">239,113</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">179,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Minority interest</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">10,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,912</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,399</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13,155</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total stockholders&#146; equity</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">441,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">408,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">394,127</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">340,379</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">347,413</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">397,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<!-- link1 "LEGAL PROCEEDINGS" -->
<DIV align="left"><A NAME="006"></A></DIV>
<P align="center"><FONT size="2"><B>LEGAL PROCEEDINGS</B>
</FONT>

<P align="left"><FONT size="2">We are a party from time to time to various general and professional liability
claims and lawsuits asserted against the lessees or borrowers of our
properties, which in our opinion are not singularly or in the aggregate
material to our results of operations or financial condition. These types of
claims and lawsuits may include matters involving general or professional
liability, which we believe under applicable legal principles are not our
responsibility as a non-possessory landlord or mortgage holder. We believe that
these matters are the responsibility of our lessees and borrowers pursuant to
general legal principles and pursuant to insurance and indemnification
provisions in the applicable leases or mortgages. We intend to continue to
vigorously defend such claims.
</FONT>
<P align="center"><FONT size="2">S-12</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS" -->
<DIV align="left"><A NAME="007"></A></DIV>
<P align="left"><FONT size="2"><B>RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</B>
</FONT>

<P align="left"><FONT size="2">The following table sets forth our ratios of earnings to fixed charges and
earnings to combined fixed charges and preferred stock dividends for the
periods indicated. The ratio of earnings to fixed charges was computed by
dividing earnings by our fixed charges. The ratio of earnings to combined fixed
charges and preferred stock dividends was computed by dividing earnings by our
combined fixed charges and preferred stock dividends. For purposes of
calculating these ratios, &#147;earnings&#148; includes income from continuing operations
before minority interest plus fixed charges. &#147;Fixed charges&#148; consists of
interest on all indebtedness and the amortization of debt issue costs.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="19"><FONT size="1"><B>Year ended December 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Nine months ended</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="19"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>September 30,</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1998</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1999</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2000</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consolidated ratio of earnings to fixed charges (unaudited)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consolidated ratio of earnings to combined fixed charges
and preferred stock dividends (unaudited)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.88</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.71</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">We issued 3,080,000 shares of Series&nbsp;A Preferred Stock in March 1997,
2,000,000 shares of Series&nbsp;B Preferred Stock in December 1997, 2,000,000 shares
of Series&nbsp;C Preferred Stock in September 1998 and 2,200,000 shares of Series&nbsp;E
Preferred Stock in September 2003. During 2001, the total dollar amount of the
deficiency in the consolidated ratio of earnings to combined fixed charges and
preferred stock dividends was $10.9&nbsp;million.
</FONT>
<P align="center"><FONT size="2">S-13</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "DESCRIPTION OF OUR CAPITAL STOCK" -->
<DIV align="left"><A NAME="008"></A></DIV>
<P align="center"><FONT size="2"><B>DESCRIPTION OF OUR CAPITAL STOCK</B>
</FONT>

<P align="left"><FONT size="2">This description of the particular terms of the Series&nbsp;F Preferred Stock
supplements, and to the extent inconsistent therewith replaces, the description
of the general terms and provisions of the preferred stock set forth in the
accompanying prospectus, to which description reference is hereby made.
</FONT>
<P align="left"><FONT size="2"><B>GENERAL</B>
</FONT>
<P align="left"><FONT size="2">Pursuant to our Articles of Amendment and Restatement, as amended and
supplemented to date, and referred to in this prospectus supplement as our
&#147;Charter,&#148; we are authorized to issue 50,000,000 shares of all classes of
stock, each share having a par value of $0.01 of which 35,000,000 shares are
Common Stock and 15,000,000 shares are Preferred Stock. Our Board of Directors
may issue the Preferred Stock in such one or more series consisting of such
numbers of shares and having such preferences, conversion and other rights,
voting powers, restrictions and limitations as to dividends, qualifications and
terms and conditions of redemption as our Board of Directors may from time to
time determine when designating such series. Our Board of Directors also may
classify or reclassify any unissued stock from time to time by setting or
changing the preferences, conversion and other rights, voting powers,
restrictions and limitations as to dividends, qualifications, and terms and
conditions of redemption of stock.
</FONT>
<P align="left"><FONT size="2">Of our preferred stock:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">3,080,000 shares have been designated as 9.5% Series&nbsp;A Cumulative Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">2,000,000 shares have been designated as 9.0% Series&nbsp;B Cumulative Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">2,000,000 shares have been designated as 8.5% Series&nbsp;C Cumulative Convertible Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">40,000 shares have been designated as Series&nbsp;D Junior Participating Preferred Stock; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">2,200,000 shares have been designated as 8.5% Series&nbsp;E Cumulative Convertible Preferred Stock.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">As of September&nbsp;30, 2003, 3,064,200, 1,988,000, 2,000,000 and 2,200,000 shares
of Series&nbsp;A, Series&nbsp;B, Series&nbsp;C, and Series&nbsp;E Preferred Stock, respectively
were outstanding. No shares of Series&nbsp;D Junior Participating Preferred Stock
are issued or outstanding. On December&nbsp;31, 2003, we called for the redemption
of 1,225,680 shares of our Series&nbsp;A Preferred Stock, to be redeemed January&nbsp;30,
2004 which leaves 1,838,520 shares of Series&nbsp;A Preferred Stock outstanding.
</FONT>
<P align="left"><FONT size="2">Of our Common Stock, 17,806,351 shares were issued and outstanding on September
30, 2003.
</FONT>
<P align="left"><FONT size="2"><B>SERIES A, SERIES B AND SERIES D AND SERIES E PREFERRED STOCK</B>
</FONT>
<P align="left"><FONT size="2">The SEC allows us to &#147;incorporate by reference&#148; the information we file with
the SEC, which means we consider incorporated documents to be part of the
prospectus supplement and we may disclose important information to you by
referring you to those documents. See the section entitled, &#147;Documents
incorporated by reference&#148; below.
</FONT>
<P align="left"><FONT size="2">For descriptions of our Series&nbsp;A, Series&nbsp;B and Series&nbsp;D and Series&nbsp;E Preferred
Stock, we refer you to
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">the description of our Series&nbsp;A Preferred Stock contained in our registration statement on Form&nbsp;8-A;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">the description of our Series&nbsp;B Preferred Stock contained in our registration statement on Form&nbsp;8-A;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">the description of our Series&nbsp;D Preferred Stock contained in our registration statement on Form&nbsp;8-A; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="96%"><FONT size="2">the description of our Series&nbsp;E Preferred Stock contained in our registration statement on Form&nbsp;8-A.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2"><B>SERIES C CONVERTIBLE PREFERRED STOCK</B>
</FONT>

<P align="left"><FONT size="2"><B>Rank</B></FONT>

<P align="center"><FONT size="2">S-14</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left"><FONT size="2">The Series&nbsp;C Preferred Stock ranks, with respect to dividend rights and rights
upon liquidation, dissolution or winding up, (i)&nbsp;senior to Common Stock, and to
all equity securities ranking junior to the Series&nbsp;C Preferred Stock (including
the Series&nbsp;D Junior Participating Preferred Stock) with respect to dividend
rights or rights on liquidation, dissolution or winding up of our company; (ii)
on parity with our Series&nbsp;A Preferred Stock, our Series&nbsp;B Preferred Stock, our
Series&nbsp;E Preferred Stock, the Series&nbsp;F Preferred Stock and all equity
securities that may be issued in the future which rank on a parity with the
Series&nbsp;C Preferred Stock, and (iii)&nbsp;junior to all of our existing and future
indebtedness. The term &#147;equity securities&#148; does not include convertible debt
securities, which will rank senior to the Series&nbsp;C Preferred Stock prior to
conversion.
</FONT>
<P align="left"><FONT size="2"><B>Other terms</B>
</FONT>

<P align="left"><FONT size="2">Other than as described below, the material rights, preferences and privileges
of the Series&nbsp;C Preferred Stock are substantially the same as those of the
Series&nbsp;F Preferred Stock offered hereby.
</FONT>
<P align="left"><FONT size="2">Holders of the Series&nbsp;C Preferred Stock are entitled to receive preferential
cumulative cash dividends at the rate of 8.5% per annum of the liquidation
preference per share (equivalent to a fixed annual amount of $1.63625 per
share). Dividends are payable quarterly in arrears on each of March&nbsp;31, June
30, December&nbsp;31 and December&nbsp;31. Accrued but unpaid dividends on the Series&nbsp;C
Preferred Stock bear interest from the applicable dividend payment date at the
prime rate of interest established from time to time in the Wall Street
Journal.
</FONT>
<P align="left"><FONT size="2">Holders of the Series&nbsp;C Preferred Stock are entitled to be paid a liquidation
preference of $19.25 per share, plus dividends, with interest, before any
distribution of assets is made to holders of any junior stock as described
above in &#147;Rank.&#148;
</FONT>
<P align="left"><FONT size="2">Except in certain circumstances relating to our maintenance of the ability to
qualify as a REIT, the shares of Series&nbsp;C Preferred Stock are not redeemable.
</FONT>
<P align="left"><FONT size="2">Whenever any dividend payment on any Series&nbsp;C Preferred Stock is in arrears for
more than 10 business days after its dividend payment date, the number of
directors then constituting the Board of Directors will be increased by two and
the two vacancies will be filled by the Series&nbsp;C Preferred Stock holders voting
as one class. Such increase and the right to fill such vacancies is separate
and apart from any increase in the number of directors which the holders of
Series&nbsp;A Preferred Stock, the Series&nbsp;B Preferred Stock, the Series&nbsp;E Preferred
Stock, the Series&nbsp;F Preferred Stock or any other class or series of preferred
stock may be entitled.
</FONT>
<P align="left"><FONT size="2">In addition, in the case of a preferred dividend default, the holders of Series
C Preferred Stock shall be granted voting rights equivalent to those rights of
holders of the Common Stock except that the holders of Series&nbsp;C Preferred Stock
will not have the right to vote generally in the election of directors but with
respect to the election of directors will only have the voting rights as set
forth above to elect Series&nbsp;C directors. In such case, the voting rights of the
holders of the Series&nbsp;C Preferred Stock would be determined on an as converted
basis, determined pursuant to the conversion provisions as described below.
These voting rights shall continue only during a Series&nbsp;C Preferred dividend
default, and all such rights shall immediately terminate at such time as the
Series&nbsp;C Preferred dividend default ceases to exist.
</FONT>
<P align="left"><FONT size="2">The Series&nbsp;C Preferred Stock is convertible in whole or in part, at any time at
the option of the holders, into shares of Common Stock at a conversion price of
$19.25 per share, subject to adjustments. At June&nbsp;30, 2003, there was one
stockholder of record of our Series&nbsp;C Preferred Stock. This Series&nbsp;C Preferred
stockholder has a separate contractual right, outside of the terms of the
Series&nbsp;C Preferred Stock, to receive from us should we offer, issue or sell, or
enter into any agreement or commitment to issue or sell any debentures,
preferred stock or any other equity security convertible into Common Stock at a
conversion price of less than $19.25 per share (as adjusted for stock splits,
combinations and similar events) an offer in writing to sell to this Series&nbsp;C
Preferred stockholder, on the same terms and conditions and at the same
equivalent price, up to the same aggregate principal amount (or any $1,000
incremental principal amount thereof) of such securities.
</FONT>
<P align="left"><FONT size="2"><B>SERIES F PREFERRED STOCK</B>
</FONT>

<P align="left"><FONT size="2">The following summary of the terms and provisions of the Series&nbsp;F Preferred
Stock does not purport to be complete and is qualified in its entirety by
reference to the pertinent sections in the Articles Supplementary creating the
Series&nbsp;F Preferred
</FONT>
<P align="center"><FONT size="2">S-15</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2">Stock, which have been filed with the Securities and Exchange Commission, and
which are available as described under the heading &#147;Where you can find
additional information&#148; in the accompanying prospectus.
</FONT>
<P align="left"><FONT size="2"><B>Maturity</B>
</FONT>

<P align="left"><FONT size="2">The Series&nbsp;F Preferred Stock has no stated maturity and will not be subject to
any sinking fund or mandatory redemption.
</FONT>
<P align="left"><FONT size="2"><B>Rank</B>
</FONT>

<P align="left"><FONT size="2">The Series&nbsp;F Preferred Stock will, with respect to dividend rights and rights
upon liquidation, dissolution or winding up of our company, rank (i)&nbsp;senior to
our Common Stock, and to all equity securities ranking junior to the Series&nbsp;F
Preferred Stock (including the Series&nbsp;D Junior Participating Preferred Stock)
with respect to dividend rights or rights upon liquidation, dissolution or
winding up of our company; (ii)&nbsp;on parity with our Series&nbsp;A Preferred Stock,
our Series&nbsp;B Preferred Stock, our Series&nbsp;C Preferred Stock and our Series&nbsp;E
Preferred Stock and with all equity securities that may be issued by us in the
future the terms of which specifically provide that such equity securities rank
on a parity with the Series&nbsp;F Preferred Stock with respect to dividend rights
or rights upon liquidation, dissolution or winding up of our company, and (iii)
junior to all of our existing and future indebtedness. The term &#147;equity
securities&#148; does not include convertible debt securities, which will rank
senior to the Series&nbsp;F Preferred Stock prior to the conversion of such
convertible debt securities.
</FONT>
<P align="left"><FONT size="2"><B>Dividends</B>
</FONT>
<P align="left"><FONT size="2">Holders of shares of the Series&nbsp;F Preferred Stock are entitled to receive, when
and as declared by the Board of Directors or a duly authorized committee
thereof, out of funds legally available for the payment of dividends,
preferential cumulative cash dividends at the rate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per annum of the
liquidation preference per share, equivalent to a fixed annual amount of $
per share.
</FONT>
<P align="left"><FONT size="2">Dividends on the Series&nbsp;F Preferred Stock will be cumulative from the date of
original issue and will be payable quarterly in arrears for the period covering
the preceding quarter on or before the 15th day of January, April, July and
October of each year, or, if not a business day, the next succeeding business
day. The first dividend, which will be paid on April&nbsp;15, 2004, will be for less
than the full preceding quarter. Such dividend and any dividend payable on the
Series&nbsp;F Preferred Stock for any partial dividend period will be computed on
the basis of a 360-day year consisting of twelve 30-day months. Dividends will
be payable to holders of record as they appear in our stock records at the
close of business on the applicable record date, which will be the last day of
the calendar month first preceding the applicable dividend payment date, or on
such other date designated by our Board of Directors for the payment of
dividends that is not more than 30 nor less than 10&nbsp;days prior to such dividend
payment date.
</FONT>
<P align="left"><FONT size="2">No dividends on shares of Series&nbsp;F Preferred Stock will be declared by our
Board of Directors or any committee thereof or paid or set apart for payment by
us at such time as the terms and provisions of any agreement to which we are
bound, including any agreement relating to our indebtedness, prohibits such
declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach
thereof or a default thereunder, or if such declaration or payment shall be
restricted or prohibited by law.
</FONT>
<P align="left"><FONT size="2">Notwithstanding the foregoing, dividends on the Series&nbsp;F Preferred Stock will
accrue whether or not we have earnings, whether or not there are funds legally
available for the payment of such dividends and whether or not such dividends
are declared. Accrued but unpaid dividends on the Series&nbsp;F Preferred Stock will
not bear interest and holders of the Series&nbsp;F Preferred Stock will not be
entitled to any distributions in excess of full cumulative distributions
described above. Except as set forth in the next sentence, no dividends will be
declared or paid or set apart for payment on any shares of our capital stock,
or any other series of preferred stock ranking, as to dividends, on a parity
with or junior to the Series&nbsp;F Preferred Stock (other than a dividend in shares
of our Common Stock or in shares of any other class of stock ranking junior to
the Series&nbsp;F Preferred Stock as to dividends and upon liquidation) for any
period unless full cumulative dividends have been or contemporaneously are
declared and paid or declared and a sum sufficient for the payment thereof is
set apart for such payment on the Series&nbsp;F Preferred Stock for all dividend
periods ending prior to or on the most recent past dividend payment date. When
dividends are not paid in full for all such dividend periods (or a sum
sufficient for such full payment is not so set apart) upon the Series&nbsp;F
Preferred Stock and the shares of any other series of preferred stock ranking
on a parity as to dividends with the Series&nbsp;F Preferred Stock, all dividends
declared upon the Series&nbsp;F Preferred Stock and any other series of our
preferred stock ranking on a parity as to dividends with the Series&nbsp;F Preferred
Stock will be declared pro rata so that the amount of dividends declared per
share of Series&nbsp;F Preferred Stock and such other series of preferred stock,
will in all cases
</FONT>
<P align="center"><FONT size="2">S-16</FONT>
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<P align="left"><FONT size="2">bear to each other the same ratio that accrued dividends per share on the
Series&nbsp;F Preferred Stock and such other series of our preferred stock ranking
on a parity as to dividends with the Series&nbsp;F Preferred Stock (which will not
include any accrual in respect of unpaid dividends for prior dividend periods
if such preferred stock does not have a cumulative dividend) bear to each
other.
</FONT>
<P align="left"><FONT size="2">Except as provided in the immediately preceding paragraph, unless full
cumulative dividends on the Series&nbsp;F Preferred Stock have been or
contemporaneously are declared and paid or declared and a sum sufficient for
the payment thereof is set apart for payment for all dividend periods ending
prior to or on the most recent past dividend payment date, no dividends (other
than in shares of Common Stock or other shares of capital stock ranking junior
to the Series&nbsp;F Preferred Stock as to dividends and upon liquidation) will be
declared or paid or set aside for payment nor will any other distribution be
declared or made upon the Common Stock or any other shares of our capital stock
ranking junior to or on a parity with the Series&nbsp;F Preferred Stock as to
dividends or upon liquidation, nor will any shares of Common Stock or any other
shares of our capital stock ranking junior to or on a parity with the Series&nbsp;F
Preferred Stock as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made
available for a sinking fund for the redemption of any such shares) by us
(except by conversion into or exchange for other shares of our capital stock
ranking junior to the Series&nbsp;F Preferred Stock as to dividends and upon
liquidation or redemptions for the purpose of preserving our qualification as a
REIT). Holders of shares of the Series&nbsp;F Preferred Stock will not be entitled
to any dividend, whether payable in cash, property or stock, in excess of full
cumulative dividends on the Series&nbsp;F Preferred Stock as provided above. Any
dividend payment made on shares of the Series&nbsp;F Preferred Stock will first be
credited against the earliest accrued but unpaid dividend due with respect to
such shares which remains payable.
</FONT>
<P align="left"><FONT size="2"><B>Liquidation preferences</B>
</FONT>
<P align="left"><FONT size="2">Upon any voluntary or involuntary liquidation, dissolution or winding up of the
affairs of our company, the holders of shares of Series&nbsp;F Preferred Stock are
entitled to be paid out of our assets legally available for distribution to our
stockholders a liquidation preference of $25 per share, plus an amount equal to
any accrued and unpaid dividends to the date of payment, but without interest,
before any distribution of assets is made to holders of Common Stock or any
other class or series of our capital stock that ranks junior to the Series&nbsp;F
Preferred Stock as to liquidation rights. Holders of Series&nbsp;F Preferred Stock
will be entitled to prompt written notice by us of any event triggering the
right to receive such liquidation preference. After payment of the full amount
of this liquidation preference, plus any accrued and unpaid dividends to which
they are entitled, the holders of Series&nbsp;F Preferred Stock will have no right
or claim to any of our remaining assets. The consolidation or merger of our
company with or into any other corporation, trust or entity or of any other
corporation with or into our company, or the sale, lease or conveyance of all
or substantially all of our property or business, will not be deemed to
constitute a liquidation, dissolution or winding up of our company.
</FONT>
<P align="left"><FONT size="2">In determining whether a distribution (other than upon voluntary or involuntary
liquidation) by dividend, redemption or other acquisition of shares of our
stock or otherwise is permitted under the Maryland General Corporation Law, no
effect will be given to amounts that would be needed, if we were to be
dissolved at the time of the distribution, to satisfy the preferential rights
upon distribution of holders of shares of our stock whose preferential rights
upon distribution are superior to those receiving the distribution.
</FONT>
<P align="left"><FONT size="2"><B>Redemption</B>
</FONT>
<P align="left"><FONT size="2">On or after February&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009, we, at our option, upon not less than 30 nor
more than 60&nbsp;days&#146; written notice, may redeem shares of the Series&nbsp;F Preferred
Stock, in whole or in part, at any time or from time to time, for cash at a
redemption price of $25.00 per share, plus all accrued and unpaid dividends
thereon to the date fixed for redemption (except with respect to Excess Shares,
See &#147;&#151;Restrictions on ownership and transfer.&#148;), without interest. We, at our
option, may also redeem any outstanding series of preferred stock, other than
the Series&nbsp;C Preferred Stock, in whole or in part. We may redeem the Series&nbsp;F
Preferred Stock or other such series without redeeming any other of our
currently outstanding series of preferred stock.
</FONT>
<P align="left"><FONT size="2">The Series&nbsp;F Preferred Stock is not otherwise redeemable prior to February&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2009. However, in order to ensure that we will continue to meet the
requirements for qualification as a REIT, the Series&nbsp;F Preferred Stock will be
subject to provisions in our Charter pursuant to which our capital stock owned
by a stockholder in excess of the applicable ownership limit will be deemed
&#147;Excess Shares&#148;, and we will have the right to purchase such Excess Shares from
the holder. See &#147;&#151;Restrictions on ownership and transfer.&#148;
</FONT>
<P align="left"><FONT size="2">Holders of Series&nbsp;F Preferred Stock to be redeemed will be required to
surrender such Series&nbsp;F Preferred Stock at the place designated in such notice
and will be entitled to the redemption price and any accrued and unpaid
dividends payable upon
</FONT>
<P align="center"><FONT size="2">S-17</FONT>
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<P align="left"><FONT size="2">such redemption following such surrender. If notice of redemption of any shares
of Series&nbsp;F Preferred Stock has been given and if the funds necessary for such
redemption have been set aside by us in trust for the benefit of the holders of
any shares of Series&nbsp;F Preferred Stock so called for redemption, then from and
after the redemption date dividends will cease to accrue on such shares of
Series&nbsp;F Preferred Stock, such shares of Series&nbsp;F Preferred Stock will no
longer be deemed outstanding and all rights of the holders of such shares will
terminate, except the right to receive the redemption price. If less than all
of the outstanding Series&nbsp;F Preferred Stock is to be redeemed, the Series&nbsp;F
Preferred Stock to be redeemed will be selected pro rata (as nearly as may be
practicable without creating fractional shares) or by any other equitable
method determined by us.
</FONT>
<P align="left"><FONT size="2">Unless full cumulative dividends on all shares of Series&nbsp;F Preferred Stock
shall have been or contemporaneously are declared and paid or declared and a
sum sufficient for the payment thereof set apart for payment for all dividend
periods ending prior to or on the most recent past dividend payment date, no
shares of Series&nbsp;F Preferred Stock will be redeemed unless all outstanding
shares of Series&nbsp;F Preferred Stock are simultaneously redeemed and we will not
purchase or otherwise acquire directly or indirectly any shares of Series&nbsp;F
Preferred Stock (except by exchange for our capital stock ranking junior to the
Series&nbsp;F Preferred Stock as to dividends and upon liquidation).
</FONT>
<P align="left"><FONT size="2">However, the foregoing will not prevent our purchase of Excess Shares in order
to ensure that we continue to meet the requirements for qualification as a
REIT, or the purchase or acquisition of shares of Series&nbsp;F Preferred Stock
pursuant to a purchase or exchange offer made on the same terms to holders of
all outstanding shares of Series&nbsp;F Preferred Stock. So long as no dividends are
in arrears, we will be entitled at any time and from time to time to repurchase
shares of Series&nbsp;F Preferred Stock in open-market transactions duly authorized
by the Board of Directors and effected in compliance with applicable laws.
</FONT>
<P align="left"><FONT size="2">Notice of redemption will be given by publication in a newspaper of general
circulation in the City of New York, such publication to be made once a week
for two successive weeks commencing not less than 30 nor more than 60&nbsp;days
prior to the redemption date. A similar notice will be mailed by us, postage
prepaid, not less than 30 nor more than 60&nbsp;days prior to the redemption date,
addressed to the respective holders of record of the Series&nbsp;F Preferred Stock
to be redeemed at their respective addresses as they appear on our stock
transfer records. No failure to give such notice or any defect therein or in
the mailing thereof will affect the validity of the proceedings for the
redemption of any shares of Series&nbsp;F Preferred Stock except as to the holder to
whom notice was defective or not given.
</FONT>
<P align="left"><FONT size="2">Each notice will state:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(i)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the redemption date;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(ii)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the redemption price;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(iii)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the number of shares of Series&nbsp;F Preferred Stock to be redeemed;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(iv)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the place or places where the Series&nbsp;F Preferred Stock is to be
surrendered for payment of the redemption price; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(v)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">that dividends on the shares to be redeemed will cease to accrue on
such redemption date.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">If less than all of the Series&nbsp;F Preferred Stock held by any holder is to be
redeemed, the notice mailed to such holder will be required to also specify the
number of shares of Series&nbsp;F Preferred Stock held by such holder to be
redeemed.
</FONT>
<P align="left"><FONT size="2">Immediately prior to any redemption of Series&nbsp;F Preferred Stock, we will pay,
in cash, any accumulated and unpaid dividends to the redemption date, unless a
redemption date falls after a dividend record date and prior to the
corresponding dividend payment date, in which case each holder of Series&nbsp;F
Preferred Stock at the close of business on such dividend record date will be
entitled to the dividend payable on such shares on the corresponding dividend
payment date notwithstanding the redemption of such shares before such dividend
payment date.
</FONT>
<P align="left"><FONT size="2">The Series&nbsp;F Preferred Stock has no stated maturity and will not be subject to
any sinking fund or mandatory redemption. However, in order to ensure that we
continue to meet the requirements for qualification as a REIT, Series&nbsp;F
Preferred Stock acquired by a stockholder in excess of the ownership limit will
automatically become Excess Shares, and we will have the right to purchase such
Excess Shares from the holder. In addition, Excess Shares may be redeemed, in
whole or in part, at any time when outstanding shares of Series&nbsp;F Preferred
Stock are being redeemed, for cash at a redemption price of $25 per share,
</FONT>
<P align="center"><FONT size="2">S-18</FONT>
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<P align="left"><FONT size="2">but excluding accrued and unpaid dividends on such Excess Shares, without
interest. Such Excess Shares will be redeemed in such proportion and in
accordance with such procedures as shares of Series&nbsp;F Preferred Stock are being
redeemed.
</FONT>
<P align="left"><FONT size="2"><B>Voting rights</B>
</FONT>

<P align="left"><FONT size="2">Holders of the Series&nbsp;F Preferred Stock will not have any voting rights, except
as set forth below.
</FONT>
<P align="left"><FONT size="2">Whenever (i)&nbsp;dividends on the Series&nbsp;F Preferred Stock or the Series&nbsp;E
Preferred Stock are in arrears for six or more quarterly periods, or (ii)
dividends on any Series&nbsp;A Preferred Stock or Series&nbsp;B Preferred Stock are in
arrears for eighteen or more months, the number of directors then constituting
the Board of Directors will be increased by two if not already increased by
reason of a similar arrearage with respect to the Series&nbsp;A Preferred Stock, the
Series&nbsp;B Preferred Stock, the Series&nbsp;E Preferred Stock or any series of
preferred stock ranking on parity with the Series&nbsp;F Preferred Stock as to
dividends or upon liquidation and upon which like voting rights have been
conferred and are exercisable (for convenience the Series&nbsp;A Preferred Stock,
the Series&nbsp;B Preferred Stock, the Series&nbsp;E Preferred Stock and such other
series of preferred stock are sometimes referred to as voting parity
preferred). The holders of such shares of Series&nbsp;F Preferred Stock (voting
separately as a class with the voting parity preferred) will then be entitled
to vote separately as a class, in order to fill the vacancies thereby created,
for the election of a total of two additional directors of our company at a
special meeting called by the holders of record of at least 20% of the Series&nbsp;F
Preferred Stock or the holders of record of at least 20% of any other series of
voting parity preferred so in arrears (unless such request is received less
than 90&nbsp;days before the date fixed for the next annual or special meeting of
stockholders) or at the next annual meeting of stockholders, and at each
subsequent annual meeting until all dividends accumulated on such shares of
Series&nbsp;F Preferred Stock and Series&nbsp;A Preferred Stock and Series&nbsp;B Preferred
Stock, and Series&nbsp;E Preferred Stock for the past dividend periods and the
dividend for the then current dividend period have been fully paid or declared
and a sum sufficient for the payment thereof set aside for payment. In the
event our directors are divided into classes, each such vacancy will be
apportioned among the classes of directors to prevent stacking in any one class
and to insure that the number of directors in each of the classes of directors,
are as equal as possible.
</FONT>
<P align="left"><FONT size="2">Each director so elected by the holders of the voting parity preferred, as a
qualification for election (and regardless of how elected) will be required to
submit to our Board of Directors a duly executed, valid, binding and
enforceable letter of resignation from the Board of Directors, to be effective
upon the date upon which all dividends accumulated on such shares of Series&nbsp;F
Preferred Stock and other voting parity preferred in arrears for the past
dividend periods and the dividend for the then current dividend period shall
have been fully paid or declared and a sum sufficient for the payment set aside
for payment. At that time, the terms of office of all persons elected as
directors by the holders of the Series&nbsp;F Preferred Stock and the voting parity
preferred will terminate, and the number of directors then constituting the
Board of Directors shall be reduced accordingly. A quorum for any such meeting
will exist if at least a majority of the outstanding shares of Series&nbsp;F
Preferred Stock and each other series of voting parity preferred are
represented in person or by proxy at such meetings. The directors to be elected
by the holders of preferred stock will be elected by the affirmative vote of a
plurality of the shares of Series&nbsp;F Preferred Stock (together with such other
voting parity preferred) present and voting in person or by proxy at a duly
called and held meeting at which a quorum is present.
</FONT>
<P align="left"><FONT size="2">If and when all accumulated dividends and the dividend for the then current
dividend period on the Series&nbsp;F Preferred Stock, the Series&nbsp;A Preferred Stock
and Series&nbsp;B Preferred Stock and Series&nbsp;E Preferred Stock shall have been paid
in full or declared and set aside for payment in full, the holders of Series&nbsp;F
Preferred Stock will be divested of the foregoing voting rights (subject to
revesting in the event of another preferred dividend default allowing for the
election of directors by the holders of Series&nbsp;F Preferred Stock). If all
accumulated dividends and the dividend for the then current dividend period
have been paid in full or declared and set aside for payment in full on all
series of preferred stock upon which like voting rights have been conferred and
are exercisable, the term of office of each director so elected by the holders
of preferred stock shall terminate. Any director elected by the holders of
preferred stock may be removed at any time with or without cause by, and cannot
be removed otherwise than by the vote of, the holders of record of a majority
of the outstanding shares of the Series&nbsp;F Preferred Stock when they have the
voting rights described above (voting separately as a class with the voting
parity preferred). So long as a default on the preferred stock dividend
continues, any vacancy in the office of a director elected by the holders of
preferred stock may be filled by written consent of the director remaining in
office previously elected by the holders of preferred stock, or if none remains
in office, by a vote of the holders of record of a majority of the outstanding
shares of Series&nbsp;F Preferred Stock when they have the voting rights described
above (voting separately as a class with the voting parity preferred). The
directors elected by the holders of the preferred stock shall each be entitled
to one vote per director on any matter.
</FONT>
<P align="center"><FONT size="2">S-19</FONT>
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<P align="left"><FONT size="2">So long as any shares of Series&nbsp;F Preferred Stock remain outstanding, we will
not, without the affirmative vote or consent of the holders of at least
two-thirds of the shares of the Series&nbsp;F Preferred Stock outstanding at the
time, given in person or by proxy, either in writing or at a meeting (voting
separately as a class) amend, alter or repeal the provisions of the Charter or
the Articles Supplementary creating the Series&nbsp;F Preferred Stock, whether by
merger, consolidation or otherwise, so as to materially and adversely affect
any right, preference, privilege or voting power of the Series&nbsp;F Preferred
Stock or the holders thereof.
</FONT>
<P align="left"><FONT size="2">However, with respect to the occurrence of any such event set forth in the
paragraph above, so long as the Series&nbsp;F Preferred Stock (or any equivalent
class or series of stock issued in exchange for the Series&nbsp;F Preferred Stock by
the surviving corporation in any merger or consolidation to which we became a
party) remains outstanding with the terms thereof materially unchanged, the
occurrence of any such event will not be deemed to materially and adversely
affect such rights, preferences, privileges or voting power of holders of the
Series&nbsp;F Preferred Stock. In addition,
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any increase in the amount of the authorized preferred stock or the
creation or issuance of any other series of preferred stock, or</FONT></TD>
</TR>
<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any increase in the amount of authorized shares of such series,</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">in each case ranking on a parity with or junior to the Series&nbsp;F Preferred Stock
with respect to payment of dividends or the distribution of assets upon
liquidation dissolution or winding up will not be deemed to materially and
adversely affect such rights, preferences, privileges or voting powers of the
Series&nbsp;F Preferred Stock.
</FONT>
<P align="left"><FONT size="2">The foregoing voting provisions will not apply if, at or prior to the time when
the act with respect to which such vote would otherwise be required to be
effected, all outstanding shares of Series&nbsp;F Preferred Stock shall have been
redeemed or called for redemption upon proper notice and sufficient funds have
been deposited in trust to effect such redemption.
</FONT>
<P align="left"><FONT size="2">Except as expressly stated in the Articles Supplementary creating the Series&nbsp;F
Preferred Stock, the Series&nbsp;F Preferred Stock will not have any relative,
participating, optional or other special voting rights and powers, and the
consent of the holders thereof will not be required for the taking of any
corporate action, including but not limited to, any merger or consolidation
involving our company or a sale of all or substantially all of our assets,
irrespective of the effect that such merger, consolidation or sale may have
upon the rights, preferences or voting power of the holders of the Series&nbsp;F
Preferred Stock.
</FONT>
<P align="left"><FONT size="2"><B>Conversion</B>
</FONT>
<P align="left"><FONT size="2">The Series&nbsp;F Preferred Stock is not convertible into or exchangeable for any of
our other property or securities.
</FONT>
<P align="left"><FONT size="2"><B>Restrictions on ownership and transfer</B>
</FONT>
<P align="left"><FONT size="2">In addition to other qualifications, for us to qualify as a REIT, (1)&nbsp;not more
than 50% in value of our outstanding capital stock may be owned, actually or
constructively, by five or fewer individuals during the last half of our
taxable year, and (2)&nbsp;such capital stock must be beneficially owned by 100 or
more persons during at least 335&nbsp;days of a taxable year of 12&nbsp;months or during
a proportionate part of a shorter taxable year.
</FONT>
<P align="left"><FONT size="2">To ensure that we continue to meet the requirements for qualification as a
REIT, our Charter and the Articles Supplementary creating this Series&nbsp;F
Preferred Stock, subject to some exceptions, provide that no holder may own, or
be deemed to own by virtue of the attribution provisions of the Code, shares of
our Series&nbsp;F Preferred Stock in excess of 9.8% (ownership limit) of the number
of then outstanding shares of our Series&nbsp;F Preferred Stock. Our Board of
Directors may waive the ownership limit with respect to a stockholder if
evidence satisfactory to the Board of Directors and our tax counsel is
presented that the changes in ownership will not then or in the future
jeopardize our status as a REIT. Any transfer of capital stock or any security
convertible into capital stock that would result in actual or constructive
ownership of capital stock by a stockholder in excess of the ownership limit or
that would result in our failure to meet the requirements for qualification as
a REIT, including any transfer that results in the capital stock being owned by
fewer than 100 persons or results in our company being &#147;closely held&#148; within
the meaning of section 856(h) of the Internal Revenue Code, not withstanding
any provisions of our Charter to the contrary, will be null and void, and the
intended transferee will acquire no rights to the capital stock. The foregoing
restrictions on transferability and ownership will not apply if the Board of
Directors determines that it is no longer in our best interest to attempt to
qualify, or to continue to qualify, as a REIT.
</FONT>
<P align="center"><FONT size="2">S-20</FONT>
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<P align="left"><FONT size="2">Any shares of our capital stock held by a stockholder in excess of the
applicable ownership limit become &#147;Excess Shares&#148;. Upon shares of any class or
series of capital stock becoming Excess Shares, such shares will be deemed
automatically to have been converted into a class separate and distinct from
their original class and from any other class of Excess Shares. Upon any
outstanding Excess Shares ceasing to be Excess Shares, such shares will be
automatically reconverted back into shares of their original class or series of
capital stock.
</FONT>
<P align="left"><FONT size="2">The holder of Excess Shares will not be entitled to vote the Excess Shares nor
will such Excess Shares be considered issued and outstanding for purposes of
any stockholder vote or the determination of a quorum for such vote. The Board
of Directors, in its sole discretion, may choose to accumulate all
distributions and dividends payable upon the Excess Shares of any particular
holder in a non-interest bearing escrow account payable to the holder of the
Excess Shares upon such Excess Shares ceasing to be Excess Shares.
</FONT>
<P align="left"><FONT size="2">In addition, we will have the right to redeem all or any portion of the Excess
Shares from the holder at the redemption price, which will be the average
market price (as determined in the manner set forth in the Charter) of the
capital stock for the prior 30&nbsp;days from the date we give notice of our intent
to redeem such Excess Shares, or as determined by the Board of Directors in
good faith. The redemption price will only be payable upon the liquidation of
our company and will not exceed the sum of the per share distributions
designated as liquidating distributions declared subsequent to the redemption
date with respect to unredeemed shares of record of the class from which such
Excess Shares were converted. We will rescind the redemption of the Excess
Shares in the event that within 30&nbsp;days of the redemption date, due to a sale
of shares by the holder, such holder would not be the holder of Excess Shares,
unless such rescission would jeopardize our tax status as a REIT or would be
unlawful in any regard.
</FONT>
<P align="left"><FONT size="2">Each stockholder will upon demand be required to disclose to us in writing any
information with respect to the actual and constructive ownership of shares of
our capital stock as our Board of Directors deems necessary to comply with the
provisions of the Internal Revenue Code applicable to REITs, to comply with the
requirements of any taxing authority or governmental agency or to determine any
such compliance.
</FONT>
<P align="left"><FONT size="2">The ownership limit may have the effect of precluding the acquisition of
control of our company unless the Board of Directors determines that
maintenance of REIT status is no longer in our best interests.
</FONT>
<P align="left"><FONT size="2"><B>Transfer and dividend paying agent</B>
</FONT>
<P align="left"><FONT size="2">Computershare Investor Services, LLC will act as the transfer, dividend payment
agent and conversion agent for the Series&nbsp;F Preferred Stock and acts as
transfer agent and dividend paying agent for the Common Stock, the Series&nbsp;A
Preferred Stock, the Series&nbsp;B Preferred Stock and the Series&nbsp;E Preferred Stock.
</FONT>
<P align="center"><FONT size="2">S-21</FONT>
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<!-- link1 "ADDITIONAL FEDERAL INCOME TAX CONSIDERATIONS" -->
<DIV align="left"><A NAME="009"></A></DIV>
<P align="center"><FONT size="2"><B>ADDITIONAL FEDERAL INCOME TAX CONSIDERATIONS</B>
</FONT>

<P align="left"><FONT size="2"><B>GENERAL</B>
</FONT>

<P align="left"><FONT size="2">The following is a summary of the additional material federal income tax
considerations related to the acquisition, ownership, conversion and
disposition of our Series&nbsp;F Preferred Stock and to our REIT election which we
anticipate may be material to purchasers of our securities offered in this
prospectus supplement, and that are not discussed in our annual report on Form
10-K for the year ended December&nbsp;31, 2002 under the heading &#147;Taxation of Our
Company&#148;. This summary is limited to the tax consequences of those persons who
are original owners of the Series&nbsp;F Preferred Stock, who purchase Series&nbsp;F
Preferred Stock at its issue price and who hold such Series&nbsp;F Preferred Stock
as capital assets within the meaning of Section&nbsp;1221 of the Code. This summary
does not purport to deal with all aspects of US federal income taxation that
might be relevant to particular stockholders in light of their particular
investment circumstances or status, nor does it address specific tax
consequences that may be relevant to particular persons (including, for
example, financial institutions, broker-dealers, insurance companies,
tax-exempt organizations and persons that have a functional currency other than
the US dollar or persons in special situations, such as those who have elected
to mark securities to market, or those who hold Series&nbsp;F Preferred Stock as
part of a straddle, hedge, conversion transaction, or other integrated
investment). In addition, this summary does not address US federal alternative
minimum tax consequences or consequences under the tax laws of any state, local
or foreign jurisdiction. This summary is based upon the Code, the Treasury
Department regulations promulgated or proposed thereunder and administrative
and judicial interpretations thereof, all as of the date hereof and all of
which are subject to change, possibly on a retroactive basis. We have not
sought any ruling from the Internal Revenue Service with respect to the
statements made and the conclusions reached in this summary, and we cannot
assure you that the IRS will agree with such statements and conclusions.
</FONT>
<P align="left"><FONT size="2">This summary is for general information only. Prospective purchasers of the
Series&nbsp;F Preferred Stock are urged to consult their tax advisors concerning the
US federal income and other tax consequences to them of acquiring, owning, and
disposing of the Series&nbsp;F Preferred Stock, as well as the application of state,
local and foreign income and other tax laws.
</FONT>
<P align="left"><FONT size="2"><B>CERTAIN FEDERAL INCOME TAX CONSIDERATIONS RELATING TO BUYING, OWNING AND
SELLING OUR SERIES F PREFERRED STOCK</B>
</FONT>
<P align="left"><FONT size="2"><B>Basis</B>
</FONT>
<P align="left"><FONT size="2">A stockholder&#146;s tax basis in our Series&nbsp;F Preferred Stock will be the amount
that the stockholder pays for the Series&nbsp;F Preferred Stock at the time of
purchase adjusted to the extent that our distributions are determined to be
part or all a return of capital. A stockholder&#146;s tax basis will be reduced, but
not below zero, for the portion of our distributions deemed to be a return of
capital.
</FONT>
<P align="left"><FONT size="2"><B>Holding periods</B>
</FONT>
<P align="left"><FONT size="2">A stockholder&#146;s holding period for the Series&nbsp;F Preferred Stock will begin on
the day after the stockholder buys the Series&nbsp;F Preferred Stock.
</FONT>
<P align="left"><FONT size="2"><B>Taxation of disposition of our Series&nbsp;F Preferred Stock</B>
</FONT>
<P align="left"><FONT size="2">Upon the sale, exchange or other disposition of our Series&nbsp;F Preferred Stock, a
stockholder generally will recognize taxable gain or loss equal to the
difference between (i)&nbsp;the sum of cash plus the fair market value of all other
property received in on such disposition and (ii)&nbsp;such stockholder&#146;s adjusted
tax basis in the Series&nbsp;F Preferred Stock.
</FONT>
<P align="left"><FONT size="2">Gain or loss recognized on the disposition of our Series&nbsp;F Preferred Stock
generally will be capital gain or loss, and will be long-term capital gain or
loss if, at the time of such disposition, the stockholder&#146;s holding period is
more than 12&nbsp;months. However, any loss upon sale or exchange of Series&nbsp;F
Preferred Stock by a stockholder who has held such stock for six months or less
will be treated as a long-term capital loss to the extent our distributions are
required to be treated by such stockholder as long-term capital gain. The
maximum federal long-term capital gain rate is 15% for non-corporate
stockholders for taxable years ending on or before December&nbsp;31, 2008, and 20%
thereafter and 35% for corporate stockholders. The deductibility of capital
losses by stockholders is subject to limitations.
</FONT>
<P align="center"><FONT size="2">S-22</FONT>
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<P align="left"><FONT size="2"><B>Taxation of cash redemption of Series&nbsp;F Preferred Stock</B>
</FONT>
<P align="left"><FONT size="2">A cash redemption of shares of the Series&nbsp;F Preferred Stock will be treated
under Section&nbsp;302 of the Code as a distribution taxable as a dividend (to the
extent of our current and accumulated earnings and profits) at ordinary income
rates unless the redemption satisfies one of the tests set forth in Section
302(b) of the Code and is therefore treated as a sale or exchange of the
redeemed stock. The cash redemption will be treated as a sale or exchange if it
(i)&nbsp;is &#147;substantially disproportionate&#148; with respect to the holder, (ii)
results in a &#147;complete termination&#148; of the holder&#146;s stock interest in our
company, or (iii)&nbsp;is &#147;not essentially equivalent to a dividend&#148; with respect to
the holder, all within the meaning of Section&nbsp;302(b) of the Code. In
determining whether any of these tests have been met, shares of capital stock
(including Common Stock and other equity interests in our company) considered
to be owned by the holder by reason of constructive ownership rules set forth
in the Code, as well as shares of capital stock actually owned by the holder,
must generally be taken into account. Because the determination as to whether
any of the alternative tests of Section&nbsp;302(b) of the Code will be satisfied
with respect to any particular holder of the Series&nbsp;F Preferred Stock depends
upon the facts and circumstances at the time that the determination must be
made, prospective holders of the Series&nbsp;F Preferred Stock are advised to
consult their own tax advisors to determine such tax treatment.
</FONT>
<P align="left"><FONT size="2">If a cash redemption of shares of the Series&nbsp;F Preferred Stock is not treated
as a distribution taxable as a dividend to a particular holder, it will be
treated, as to that holder, as a taxable sale or exchange. As a result, such
holder will recognize gain or loss for federal income tax purposes in an amount
equal to the difference between (i)&nbsp;the amount of cash and the fair market
value of any property received (less any portion thereof attributable to
accumulated but unpaid dividends, which will be taxable as a dividend to the
extent of our current and accumulated earnings and profits), and (ii)&nbsp;the
holder&#146;s adjusted basis in the shares of the Series&nbsp;F Preferred Stock for tax
purposes. Such gain or loss will be capital gain or loss if the shares of the
Series&nbsp;F Preferred Stock have been held as a capital asset, and, with respect
to a non-corporate US stockholder, such gain or loss will be long-term capital
gain or loss if at the time of redemption, the shares were held for more than
12&nbsp;months. However, any loss recognized by a stockholder who has held our
Series&nbsp;F Preferred Stock for six months or less will be treated as a long term
loss to the extent our distributions are required to be treated by such
stockholder as long term capital gain.
</FONT>
<P align="left"><FONT size="2">If a cash redemption of shares of the Series&nbsp;F Preferred Stock is treated as a
distribution taxable as a dividend, the amount of the distribution will be
measured by the amount of cash and the fair market value of any property
received by the holder. The holder&#146;s adjusted basis in the redeemed shares of
the Series&nbsp;F Preferred Stock for tax purposes will be transferred to the
holder&#146;s remaining shares of our capital stock, if any. If the holder owns no
other shares of our capital stock, such basis may, under some circumstances, be
transferred to a related person or it may be lost entirely.
</FONT>
<P align="left"><FONT size="2"><B>Redemption premium</B>
</FONT>
<P align="left"><FONT size="2">Under Section&nbsp;305(c) of the Code and applicable Treasury Regulations, if the
redemption price of the Series&nbsp;F Preferred Stock exceeds its issue price the
difference known as a redemption premium may be taxable as a constructive
distribution on the Series&nbsp;F Preferred Stock to the holder (treated as a
dividend to the extent of our current and accumulated earnings and profits and
otherwise subject to the treatment described above for distributions) over a
certain period. Because Series&nbsp;F Preferred Stock provides for an optional right
of redemption by us at a price that may exceed the issue price, stockholders
could be required to recognize such redemption premium under a constant
interest rate method similar to that for accruing original issue discount if,
based on all of the facts and circumstances, the optional redemption is more
likely than not to occur. If stock may be redeemed at more than one time, the
time and price at which such redemption is most likely to occur must be
determined based on all of the facts and circumstances. Applicable Treasury
Regulations provide a safe harbor under which a right to redeem will not be
treated as more likely than not to occur if (i)&nbsp;the issuer and the stockholder
are not related within the meaning of such regulations; (ii)&nbsp;there are no
plans, arrangements, or agreements that effectively require or are intended to
compel the issuer to redeem the stock (disregarding, for this purpose, a
separate mandatory redemption), and (iii)&nbsp;exercise of the right to redeem would
not reduce the yield of the stock, as determined under the regulations.
Regardless of whether the optional redemption is more than likely not to occur,
constructive dividend treatment will not result if the redemption premium does
not exceed a de minimis amount. We intend to take the position that the
existence of our optional redemption right does not result in a constructive
distribution to the holders of Series&nbsp;F Preferred Stock.
</FONT>
<P align="center"><FONT size="2">S-23</FONT>
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<P align="left"><FONT size="2"><B>CERTAIN INCOME TAX CONSIDERATIONS RELATING TO OUR REIT ELECTION</B>
</FONT>
<P align="left"><FONT size="2"><B>Taxation of a REIT</B>
</FONT>
<P align="left"><FONT size="2">We have elected to be taxed as a REIT under Sections&nbsp;856 through 860 of the
Code. We believe that we have been organized and have operated in such a manner
as to qualify for taxation as a REIT under the Code commencing with our taxable
year ending December&nbsp;31, 1992. We intend to continue to operate in such a
manner, but there is no assurance that we have operated or will continue to
operate in a manner so as to qualify or remain qualified.
</FONT>
<P align="left"><FONT size="2">The sections of the Code and corresponding Treasury Regulations that relate to
qualification, operation, and taxation of REITs and their stockholders are
highly technical and complex. Our annual report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2002 under the heading &#147;Taxation of Our Company&#148; sets forth the
material aspects of the sections that govern the federal income tax treatment
of a REIT.
</FONT>
<P align="left"><FONT size="2">In the opinion of Reed Smith, LLP, our legal tax counsel, we have been
organized in conformity with the requirements for qualification as a REIT, and
our method of operation will enable us to meet the requirements for continued
qualification and taxation as a REIT under the Code. This opinion is based on
various factual assumptions relating to our organization and operation, and is
conditioned upon certain representations made by us as to factual matters. In
addition, this opinion is based upon our factual representations concerning our
business and properties as set forth in this prospectus supplement and will
assume that the actions described in this prospectus supplement have been
completed as described. Moreover, our qualification and taxation as a REIT
depends upon our ability to meet, through actual annual operating results,
distribution levels, diversity of share ownership and the various qualification
tests imposed under the Code, the results of which have not been and will not
be reviewed by our tax counsel. Accordingly, no assurance can be given that our
actual results of operation for any particular taxable year will satisfy such
requirements. Further, the anticipated income tax treatment described in our
annual report on Form&nbsp;10-K for the year ended December&nbsp;31, 2002 and this
prospectus supplement may be changed, perhaps retroactively, by legislative or
administrative action at any time.
</FONT>
<P align="left"><FONT size="2">If we continue to qualify for taxation as a REIT, we generally will not be
subject to federal corporate income taxes on our net income that is currently
distributed to our stockholders. This treatment substantially eliminates the
&#147;double taxation&#148; (once at the corporate level when earned and once at
stockholder level when distributed) that generally results from investment in a
non-REIT corporation. However, we will be subject to federal income tax as
follows:
</FONT>
<P align="left"><FONT size="2">First, we will be taxed at regular corporate rates on any undistributed taxable
income, including undistributed net capital gains.
</FONT>
<P align="left"><FONT size="2">Second, under certain circumstances, we may be subject to the alternative
minimum tax, if our dividend distributions are less than our alternative
minimum taxable income.
</FONT>
<P align="left"><FONT size="2">Third, if we have (i)&nbsp;net income from the sale or other disposition of
foreclosure property which is held primarily for sale to customers in the
ordinary course of business or (ii)&nbsp;other non-qualifying income from
foreclosure property, we may elect to be subject to tax at the highest
corporate rate on such income, if necessary to maintain our REIT status.
</FONT>
<P align="left"><FONT size="2">Fourth, if we have net income from prohibited transactions (which are, in
general, certain sales or other dispositions of property (other than
foreclosure property) held primarily for sale to customers in the ordinary
course of business), such income will be subject to a 100% tax.
</FONT>
<P align="left"><FONT size="2">Fifth, if we fail to satisfy the 75% gross income test or the 95% gross income
test, but nonetheless maintain our qualification as a REIT because certain
other requirements have been met, we will be subject to a 100% tax on an amount
equal to (a)&nbsp;the gross income attributable to the greater of the amount by
which we fail the 75% or 95% test multiplied by (b)&nbsp;a fraction intended to
reflect our profitability.
</FONT>
<P align="left"><FONT size="2">Sixth, if we fail to distribute during each calendar year at least the sum of
(i)&nbsp;85% of our ordinary income for such year, (ii)&nbsp;95% of our REIT capital gain
net income for such year, and (iii)&nbsp;any undistributed taxable income from prior
periods, we will be subject to a 4% excise tax on the excess of such required
distribution over the amounts actually distributed.
</FONT>
<P align="left"><FONT size="2">Seventh, if we acquire an asset which meets the definition of a built-in gain
asset from a corporation which is or has been a C corporation (i.e., generally
a corporation subject to full corporate-level tax) in certain transactions in
which the basis of the built-in gain asset in our hands is determined by
reference to the basis of the asset in the hands of the C corporation, and if
we
</FONT>
<P align="center"><FONT size="2">S-24</FONT>
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<P align="left"><FONT size="2">subsequently recognize gain on the disposition of such asset during the
ten-year period, called the recognition period, beginning on the date on which
we acquired the asset, then, to the extent of the built-in gain (i.e., the
excess of (a)&nbsp;the fair market value of such asset over (b)&nbsp;our adjusted basis
in such asset, both determined as of the beginning of the recognition period),
such gain will be subject to tax at the highest regular corporate tax rate,
pursuant to IRS regulations.
</FONT>
<P align="left"><FONT size="2">Pursuant to applicable Treasury Regulations, in order to be able to elect to be
taxed as a REIT, we must maintain certain records and request certain
information from our stockholders designed to disclose the actual ownership of
our stock. We intend to comply with these requirements.
</FONT>
<P align="left"><FONT size="2"><B>Qualifying rents</B>
</FONT>
<P align="left"><FONT size="2">Rents that we receive will qualify as rents from real property in satisfying
the gross income requirements for a REIT described in our annual report Form
10-K for the year ended December&nbsp;31, 2002, only if several conditions are met.
First, the amount of rent must not be based in whole or in part on the income
or profits of any person. However, an amount received or accrued generally will
not be excluded from the term rents from real property solely by reason of
being based on a fixed percentage or percentages of receipts or sales. Second,
the Code provides that rents received from a tenant will not qualify as rents
from real property in satisfying the gross income tests if we, or an actual or
constructive owner of 10% or more of us, actually or constructively owns 10% or
more of a tenant. Third, if rent attributable to personal property, leased in
connection with a lease of real property, is greater than 15% of the total rent
received under the lease, then the portion of rent attributable to such
personal property will not qualify as rents from real property. Rent
attributable to personal property is the amount which bears the same ratio to
the total rent under the lease as the fair market values of personal property
bears to the fair market values of both the real and personal property under
the lease. Finally, for rents received to qualify as &#147;rents from real
property,&#148; we generally must not operate or manage the property or furnish or
render services to the tenants of such property, other than through a taxable
REIT subsidiary or TRS or an independent contractor from whom we derive no
revenue. We may, however, directly perform certain services that are usually or
customarily rendered in connection with the rental of space for occupancy only
and are not otherwise considered rendered to the occupant of the property. In
addition we may render a de minimus amount of impermissible services to
tenants, or in connection with the management of property and treat amounts
received as gross income from the real property, if such amount does not exceed
1% of the gross income from the property and the services are valued at not
less than 150% of our costs to provide the services. We have not and will not
(i)&nbsp;charge rent for any property that is based in whole or in part on the
income or profits of any person (except by reason of being based on a
percentage of receipts or sales, as described above or unless our Board of
Directors determines in its discretion that the rent received on such property
is not material and will not jeopardize our status as a REIT), (ii)&nbsp;rent any
property to a related party tenant (unless our Board of Directors determines in
its discretion that the rent received from a related party tenant is not
material and will not jeopardize our status as a REIT) or (iii)&nbsp;directly
perform services considered to be rendered to the occupant of property unless
provided by our TRS or unless subject to classification as de minimus.
</FONT>
<P align="left"><FONT size="2"><B>LEGISLATIVE DEVELOPMENTS</B>
</FONT>
<P align="left"><FONT size="2">On May&nbsp;28, 2003, President Bush signed into law the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The Jobs and Growth Tax Relief Reconciliation Act
of 2003 generally will reduce the maximum tax rate applicable to non-corporate
stockholders on capital gains recognized on the sale or other disposition of
shares of the Series&nbsp;F Preferred Stock from 20% to 15%.
</FONT>
<P align="left"><FONT size="2">The Jobs and Growth Tax Relief Reconciliation Act of 2003 also generally will
reduce the maximum marginal rate of tax payable by individuals on dividends
received from corporations that are subject to a corporate level of tax. Except
in limited circumstances, this reduced tax rate will not apply to dividends
paid to you by us on shares of the Series&nbsp;F Preferred Stock, because generally
we are not subject to federal income tax on the portion of our REIT taxable
income or capital gains distributed to our stockholders. The reduced maximum
federal income tax rate will apply to that portion, if any, of dividends
received by you with respect to the Series&nbsp;F Preferred Stock that are
attributable to (1)&nbsp;dividends received by us from non-REIT corporations or
other taxable REIT subsidiaries, (2)&nbsp;income from the prior year with respect to
which we were required to pay federal corporate income tax during the prior
year (if, for example, we did not distribute 100% of our REIT taxable income
for the prior year) and (3)&nbsp;distributions by us that we designate as long-term
capital gains dividends (except for some distributions taxable to you at a
maximum rate of 25%).
</FONT>
<P align="left"><FONT size="2">The dividend and capital gains tax rate reductions provided in the Jobs and
Growth Tax Relief Reconciliation Act of 2003 generally are effective for
taxable years ending on or after May&nbsp;6, 2003 through December&nbsp;31, 2008. Without
future legislative changes, the maximum long-term capital gains and dividend
rates discussed above will increase in 2009.
</FONT>
<P align="center"><FONT size="2">S-25</FONT>
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<P align="left"><FONT size="2">These legislative changes affect the discussion in our annual report on Form
10-K for the fiscal year ended December&nbsp;31, 2002 under the heading &#147;Taxation of
Our Company&#148; to the extent that section describes applicable long-term capital
gains tax rates, the taxation of dividends and then-recent legislation.
</FONT>
<P align="left"><FONT size="2"><B>TAXATION OF TAXABLE DOMESTIC STOCKHOLDERS</B>
</FONT>
<P align="left"><FONT size="2">As long as we qualify as a REIT, distributions made to our taxable US
stockholders out of current or accumulated earnings and profits (and not
designated as capital gain dividends) will be taken into account by such US
stockholders as ordinary income and will not be eligible for the dividends
received deduction for corporations. Distributions that are designated as
capital gain dividends will be taxed as long-term capital gains (to the extent
they do not exceed our actual net capital gain for the taxable year or are
designated as unrecaptured &#167; 1250 gain distributions, which are taxable at a
25% rate) without regard to the period for which the stockholder has held its
stock. However, corporate stockholders may be required to treat up to 20% of
certain capital gain dividends as ordinary income.
</FONT>
<P align="left"><FONT size="2">Distributions in excess of current and accumulated earnings and profits will
not be currently taxable to a stockholder to the extent that they do not exceed
the adjusted basis of the stockholder&#146;s stock, but rather will reduce the
adjusted basis of such stock. To the extent that distributions in excess of
current and accumulated earnings and profits exceed the adjusted basis of a
stockholder&#146;s stock, such distributions will be included in income as long-term
capital gain (or short-term capital gain if the stock have been held for one
year or less) assuming the stock is a capital asset in the hands of the
stockholder. In addition, any distribution declared in October, November or
December of any year and payable to a stockholder of record on a specified date
in any such month, will be treated as both paid by us and received by the
stockholder on December&nbsp;31 of the applicable year, provided that we actually
pay the distribution during January of the following calendar year.
Stockholders may not include in their individual income tax returns any of our
net operating losses or capital losses.
</FONT>
<P align="left"><FONT size="2">In general, gain or loss recognized on the disposition of our Series&nbsp;F
Preferred Stock will be a capital gain or loss and will be long-term capital
gain or loss, if at the time of such disposition, the stockholder&#146;s holding
period (after applying certain holding period rules) is more than 12&nbsp;months.
However, any loss upon a sale or exchange of our Series&nbsp;F Preferred Stock by a
stockholder who has held such stock for six months or less will be treated as a
long-term capital loss to the extent our distributions are required to be
treated by such stockholder as long-term capital gain.
</FONT>
<P align="left"><FONT size="2"><B>Backup withholding</B>
</FONT>
<P align="left"><FONT size="2">We will report to our US stockholders and the IRS the amount of distributions
paid during each calendar year, and the amount of tax withheld, if any. Under
the backup withholding rules, a stockholder may be subject to backup
withholding with respect to distributions paid unless such holder (a)&nbsp;is a
corporation or comes within certain other exempt categories and, when required,
demonstrates this fact, or (b)&nbsp;provides a taxpayer identification number,
certifies as to no loss of exemption from backup withholding, and otherwise
complies with applicable requirements of the backup withholding rules. The
amount of such withholding will be equal to the product of the fourth lowest
rate applicable to single filers and the amount of the distribution. This rate
is 28% for tax years beginning in 2003. Any amount paid to the IRS as backup
withholding will be creditable against the stockholder&#146;s income tax liability.
In addition, we may be required to withhold a portion of capital gain
distributions to any stockholders who fail to certify their non-foreign status
to us. See &#147;&#151;Taxation of foreign stockholders.&#148; A stockholder that does not
provide us with his correct taxpayer identification number may also be subject
to penalties imposed by the IRS.
</FONT>
<P align="left"><FONT size="2"><B>TAXATION OF TAX-EXEMPT STOCKHOLDERS</B>
</FONT>
<P align="left"><FONT size="2">In general, a stockholder that is a tax-exempt entity not subject to tax on its
investment income will not be subject to tax on our distributions. In Revenue
Ruling 66-106, 1966-1 C.B. 151, the IRS ruled that amounts distributed as
dividends by a REIT do not constitute unrelated business taxable income as
defined in the Code when received by a qualified plan. Based on that ruling,
regardless of whether we incur indebtedness in connection with the acquisition
of properties, our distributions paid to a stockholder that is a tax-exempt
entity will not be treated as unrelated business taxable income, provided that
(i)&nbsp;the tax-exempt entity has not financed the acquisition of its stock with
acquisition indebtedness within the meaning of the Code and the stock otherwise
is not used in an unrelated trade or business of the tax-exempt entity and (ii)
we are not a pension-held REIT. This ruling applies to a stockholder that is an
organization that qualifies under Code Section&nbsp;401(a), an IRA or any other
tax-exempt organization that would compute unrelated business taxable income,
if any, in accordance with Code Section&nbsp;512(a)(1). However, if we are a
pension-held REIT and a qualified plan owns more than 10% of the value of all
of our stock, such stockholder will be required to recognize as unrelated
business taxable income that percentage of the dividends that it receives from
us as is equal to the percentage of our gross income that would be unrelated
business taxable
</FONT>
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<P align="left"><FONT size="2">income to us if we were a tax-exempt entity required to recognize unrelated
business taxable income. A REIT is a pension-held REIT if at least one
qualified trust holds more than 25% of the value of all of our stock or one or
more qualified trusts, each of whom own more than 10% of the value of all of
our stock, hold more than 50% of the value of all of our stock.
</FONT>
<P align="left"><FONT size="2">For social clubs, voluntary employee benefit associations, supplemental
unemployment benefit trusts and qualified group legal services plans exempt
from federal income taxation under Code Sections&nbsp;501(c)(7), (c)(9), (c)(17) and
(c)(20), respectively, income from an investment in us will constitute
unrelated business taxable income unless the organization is able to deduct
amounts set aside or placed in reserve for certain purposes so as to offset the
unrelated business taxable income generated by its investment in us. Such
prospective stockholders should consult their own tax advisors concerning these
&#147;set aside&#148; and reserve requirements.
</FONT>
<P align="left"><FONT size="2"><B>TAXATION OF FOREIGN STOCKHOLDERS</B>
</FONT>
<P align="left"><FONT size="2">The rules governing US federal income taxation of nonresident alien
individuals, foreign corporations, foreign partnerships and other foreign
stockholders are complex. We have not attempted to provide more than a summary
of these rules. Prospective non-US stockholders should consult with their own
tax advisors to determine the impact of federal, state and local income tax
laws with regard to an investment in stock, including any reporting
requirements.
</FONT>
<P align="left"><FONT size="2">Distributions that are not attributable to gain from our sales or exchanges of
US real property interests and not designated by us as capital gains dividends
will be treated as dividends of ordinary income to the extent that they are
made out of our current or accumulated earnings and profits. Such distributions
will ordinarily be subject to a withholding tax equal to 30% of the gross
amount of the distribution unless an applicable tax treaty reduces or
eliminates that tax. However, if income from the investment in the stock is
treated as effectively connected with the non-US stockholder&#146;s conduct of a US
trade or business, the non-US stockholder generally will be subject to a tax at
graduated rates, in the same manner as US stockholders are taxed with respect
to such distributions and may also be subject to the 30% branch profits tax in
the case of a stockholder that is a foreign corporation. We expect to withhold
US income tax at the rate of 30% on the gross amount of any such distributions
made to a non-US stockholder unless (i)&nbsp;a lower treaty rate applies and the
holder provides us with a properly executed IRS Form&nbsp;W-8BEN (or successor form)
or (ii)&nbsp;the non-US stockholder provides us with a properly executed IRS Form
W-8ECI (or successor form) claiming that the distribution is effectively
connected income.
</FONT>
<P align="left"><FONT size="2">Distributions in excess of our current and accumulated earnings and profits
will not be taxable to a stockholder to the extent that such distributions do
not exceed the adjusted basis of the stockholder&#146;s stock, but rather will
reduce the adjusted basis of such stock. To the extent that distributions in
excess of current accumulated earnings and profits exceed the adjusted basis of
a non-US stockholder&#146;s stock, such distributions will give rise to tax
liability if the non-US stockholder would otherwise be subject to tax on any
gain from the sale or disposition of our stock, as described below. If it
cannot be determined at the time a distribution is made whether or not
distributions will be in excess of current and accumulated earnings and profit,
the distributions will be subject to withholding at the same rate as dividends.
However, amounts thus withheld are refundable if it is subsequently determined
that such distribution was, in fact, in excess of our current and accumulated
earnings and profits.
</FONT>
<P align="left"><FONT size="2">For any year in which we qualify as a REIT, distributions that are attributable
to gain from our sales or exchanges of US real property interests will be taxed
to a non-US stockholder under the provisions of the Foreign Investment in Real
Property Tax Act of 1980 or FIRPTA. Under FIRPTA, distributions attributable to
gain from sales of US real property interests are taxed to a non-US stockholder
as if such gain were effectively connected with a US business. Non-US
stockholders would thus be taxed at the normal capital gain rates applicable to
US stockholders (subject to applicable alternative minimum tax and a special
alternative minimum tax in the case of nonresident alien individuals). Also,
distributions subject to FIRPTA may be subject to a 30% branch profits tax if a
foreign corporate stockholder is not entitled to treaty exemption. We are
required by applicable Treasury Regulations to withhold 35% for foreign
individuals and 35% for foreign corporations of any distribution that we could
designate as a capital gains dividend. This amount is creditable against the
non-US stockholder FIRPTA tax liability. If we designate prior distributions as
capital gains dividends, then subsequent distributions up to the amount of such
prior distributions will be treated as capital gains dividends for purposes of
withholding.
</FONT>
<P align="left"><FONT size="2">Gain recognized by a non-US stockholder upon a sale of our Series&nbsp;F Preferred
Stock generally will not be taxed under FIRPTA if we are a &#147;domestically
controlled real estate investment trust,&#148; defined generally as a real estate
investment trust in which at all times during a specified testing period less
than 50% in value of the stock were held directly or indirectly by foreign
persons. We currently anticipate that we will be a &#147;domestically controlled
real estate investment trust,&#148; and therefore the sale of stock will not be
subject to taxation under FIRPTA. Additionally, the sale of our Series&nbsp;F
Preferred Stock will not be taxed under FIRPTA if the class of stock is
regularly traded on an established securities market and the selling non-US
stockholder has not held more than 5% of the class of stock at any time during
the preceding five-year period. However, gain
</FONT>
<P align="center"><FONT size="2">S-27</FONT>
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<P align="left"><FONT size="2">not subject to FIRPTA will be taxable to a non-US stockholder if the investment
in the stock is effectively connected with the non-US stockholder&#146;s US trade or
business, in which case the non-US stockholder will be subject to the same
treatment as US stockholders with respect to such gain. Also, if the non-US
stockholder is a nonresident alien individual who was present in the United
States for 183&nbsp;days or more during the taxable year and has a &#147;tax home&#148; in the
United States, the nonresident alien individual will be subject to a 30% tax
(unless reduced by treaty) on the individual&#146;s capital gains. A non-resident
alien individual could, however, elect to treat such gain as effectively
connected income and pay tax as a US stockholder would. If the gain on the sale
of stock were to be subject to taxation under FIRPTA, the non-US stockholder
will be subject to the same treatment as US stockholders with respect to such
gain.
</FONT>
<P align="left"><FONT size="2">If the proceeds of a disposition of our Series&nbsp;F Preferred Stock are paid by or
through a US office of a broker, the payment is subject to information
reporting and to backup withholding unless the disposing non-US stockholder
certifies as to his name, address and non-US status or otherwise establishes an
exemption. Generally, US information reporting and backup withholding will not
apply to a payment of disposition proceeds if the payment is made outside the
United States through a non-US office of a non-US broker. US information
reporting requirements (but not backup withholding) will apply, however, to a
payment of disposition proceeds outside the United States if (i)&nbsp;the payment is
made through an office outside the United States of a broker that is either (a)
a US person, (b)&nbsp;a foreign person that derives 50% or more of its gross income
for certain periods from the conduct of a trade or business in the United
States, (c)&nbsp;a controlled foreign corporation for US federal income tax
purposes, or (d)&nbsp;a foreign partnership more than 50% of the capital or profits
of which is owned by one or more US persons or which engages in a US trade or
business and (ii)&nbsp;the broker fails to initiate documentary evidence that the
stockholder is a non-US stockholder and that certain conditions are met or that
the non-US stockholder otherwise is entitled to an exemption.
</FONT>
<P align="left"><FONT size="2"><B>OTHER TAX CONSEQUENCES</B>
</FONT>
<P align="left"><FONT size="2">We and our stockholders may be subject to state or local taxation in various
state or local jurisdictions, including those in which we or they transact
business or reside. Our state and local tax treatment and the state and local
tax treatment of our stockholders may not conform to the federal income tax
consequences discussed above. Consequently, prospective stockholders should
consult their own tax advisors regarding the effect of state and local tax laws
on an investment in us.
</FONT>
<P align="left"><FONT size="2"><B>STATEMENT OF SHARE OWNERSHIP</B>
</FONT>
<P align="left"><FONT size="2">We must obtain annual written statements from any of our record holders who
hold certain percentages of our stock disclosing the actual owners of our
stock. Any record holder who fails to provide us with this information must
include certain specified information relating to ownership of our share in his
federal income tax return. We must also maintain permanent records with the
Internal Revenue Service showing the information we receive relating to the
actual ownership of our stock and a list of holders who fail to provide us with
this information.
</FONT>
<P align="center"><FONT size="2">S-28</FONT>
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<!-- link1 "PLAN OF DISTRIBUTION" -->
<DIV align="left"><A NAME="010"></A></DIV>
<P align="center"><FONT size="2"><B>PLAN OF DISTRIBUTION</B>
</FONT>

<P align="left"><FONT size="2">We have agreed to engage Cohen &#038; Steers Capital Advisors, LLC, which we
sometimes refer to as &#147;Cohen &#038; Steers,&#148; as a placement advisor for this
offering. Cohen &#038; Steers (and certain subadvisors it may engage in connection
with the offering) may be an underwriter within the meaning of the Securities
Act of 1933, as amended, in connection with its activities in connection with
this offering.
</FONT>
<P align="left"><FONT size="2">Cohen &#038; Steers has no commitment to purchase any of our Series&nbsp;F Preferred
Stock and will act only as an advisor in obtaining indications of interest in
our Series&nbsp;F Preferred Stock from certain investors. We agreed to pay the
placement advisor a fee of $ . We and the placement advisor will each pay
certain expenses relating to the offering.
</FONT>
<P align="left"><FONT size="2">In a placement advisor agreement to be entered into with Cohen &#038; Steers in
connection with the offering, we agree to indemnify Cohen &#038; Steers and each of
its partners, directors, officers, associates, affiliates, subsidiaries,
employees, consultants, attorneys and advisors, and each person, if any,
controlling Cohen &#038; Steers and any of its affiliates, against liabilities
resulting from this offering and to contribute to payments Cohen &#038; Steers may
be required to make for these liabilities.
</FONT>
<P align="left"><FONT size="2">In connection with this offering, Cohen &#038; Steers may engage broker-dealers as
sub-placement advisors to participate in the placement of the Series&nbsp;F
Preferred Stock. Such sub-placement advisors may receive a portion of the
placement advisor fee to be paid to Cohen &#038; Steers as well as other
compensation and fees.
</FONT>
<P align="left"><FONT size="2">In the ordinary course of business, Cohen &#038; Steers, and/or one or more of the
sub-placement advisors referred to above, and their respective affiliates have
or may have engaged, and may in the future engage, in financial advisory,
investment banking and other transactions with us for which customary
compensation has been, and will be paid.
</FONT>
<P align="left"><FONT size="2">Subject to the terms and conditions of a purchase agreement to be dated the
date this offering is consummated, with respect to which Cohen &#038; Steers acted
as placement advisor, certain institutional investors will agree to purchase,
and we will agree to sell, 2,000,000 Series&nbsp;F Preferred Stock at a price of
$25.00 per share. The purchase agreement is to provide that the obligations of
the purchasers to purchase these shares included in this offering are subject
to customary closing conditions. We have applied to list the Series&nbsp;F
Preferred Stock on the New York Stock Exchange. The purchase agreement
provides that we are to use our reasonable best efforts to obtain such approval
within 30&nbsp;days of the original issuance of the Series&nbsp;F Preferred Stock, or if
not, as soon as practicable thereafter. However, no assurance can be given
that the application will be approved.
</FONT>
<P align="left"><FONT size="2">Jeffries &#038; Company, Inc. is acting as settlement agent in connection with the
sale of our Series&nbsp;F Preferred Stock under the purchase agreement and will
receive a fee of $&#091;20,000&#093;.
</FONT>
<P align="left"><FONT size="2">After paying the fees to the placement advisor and other estimated expenses, we
anticipate receiving approximately $49.1&nbsp;million in net proceeds from this
offering.
</FONT>
<!-- link1 "LEGAL MATTERS" -->
<DIV align="left"><A NAME="011"></A></DIV>
<P align="center"><FONT size="2"><B>LEGAL MATTERS</B>
</FONT>

<P align="left"><FONT size="2">Certain legal matters relating to this offering will be passed upon for us by
Reed Smith, LLP, New York, New York, and certain matters with respect to
Maryland law, including the validity of the shares of the securities offered
hereby, will be passed upon for us by Ballard Spahr Andrews &#038; Ingersoll, LLP,
Baltimore, Maryland. Reed Smith LLP will rely upon the opinion of the Ballard
Spahr Andrews &#038; Ingersoll, LLP as to matters of Maryland law.
</FONT>
<!-- link1 "EXPERTS" -->
<DIV align="left"><A NAME="012"></A></DIV>
<P align="center"><FONT size="2"><B>EXPERTS</B>
</FONT>

<P align="left"><FONT size="2">The consolidated financial statements and schedules of LTC Properties, Inc.
appearing in our annual report on Form&nbsp;10-K for the year ended December&nbsp;31,
2002 have been audited by Ernst &#038; Young LLP, independent auditors, as set forth
in their report thereon included therein and which is incorporated herein by
reference. Such consolidated financial statements and schedules are
incorporated herein by reference in reliance on such report given on the
authority of such firm as experts in accounting and auditing.
</FONT>
<P align="center"><FONT size="2">S-29</FONT>
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<!-- link1 "WHERE YOU CAN FIND ADDITIONAL INFORMATION" -->
<DIV align="left"><A NAME="013"></A></DIV>
<P align="center"><FONT size="2"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and current reports, proxy statements and other
information with the SEC. You may read and copy the registration statement and
any reports, statements or other information on file at the SEC&#146;s public
reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. You can
request copies of those documents upon payment of a duplicating fee to the SEC.
You may also review a copy of the registration statement at the SEC&#146;s regional
offices in Chicago, Illinois and New York, New York. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the public reference
rooms. You can review our SEC filings and the registration statement by
accessing the SEC&#146;s Internet site at http://www.sec.gov, as well as on our
website at http://www/ltcproperties.com. Information on our website is not
incorporated by reference herein and out web address is included as an inactive
textual reference only.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can also inspect our reports, proxy statements and other information
about us at the offices of the New York Stock Exchange, 20 Broad Street, New
York, New York 10005.
</FONT>
<!-- link1 "DOCUMENTS INCORPORATED BY REFERENCE" -->
<DIV align="left"><A NAME="014"></A></DIV>
<P align="center"><FONT size="2"><B>DOCUMENTS INCORPORATED BY REFERENCE</B>
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; the information we file
with the SEC, which means:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">we consider incorporated documents to be part of the prospectus;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">we may disclose important information to you by referring you to those documents; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">information we subsequently file with the SEC will
automatically update and supersede the information in this
prospectus.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus incorporates by reference the following documents:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Annual report on Form&nbsp;10-K for the year ended December&nbsp;31,
2002.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Quarterly reports on Form&nbsp;10-Q for the quarterly periods ended
March&nbsp;31, 2003, June&nbsp;30, 2003 and September&nbsp;30, 2003.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Definitive proxy statement for the annual meeting of stockholders to be held on July&nbsp;28, 2003.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Current Report on Form&nbsp;8-K filed on January&nbsp;26, 2004</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Current Report on Form&nbsp;8-K filed on February&nbsp;12, 2004</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">All subsequent documents filed by us under Sections&nbsp;13(a),
13(c), 14 or 15(d) of the Exchange Act of 1934 after the date of this
prospectus and before the termination of the offering.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Common Stock contained in our
registration statement on Form&nbsp;8-A, including any amendment or report
for the purpose of updating such description.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Series&nbsp;A Cumulative Preferred Stock
contained in our registration statement on Form&nbsp;8-A, including any
amendment or report for the purpose of updating such description.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Series&nbsp;B Cumulative Preferred Stock
contained in our registration statement on Form&nbsp;8-A, including any
amendment or report for the purpose of updating such description.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Series&nbsp;D Junior Participating Preferred
Stock contained in our registration statement on Form&nbsp;8-A, including
any amendment or report for the purpose of updating such description.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus and the documents incorporated by reference summarize
certain material provisions of contracts and other documents to which we refer.
Since this prospectus may not contain all the information that you may find
important, you should review the full text of those documents. Upon request,
we will provide each person receiving this prospectus a free copy, without
exhibits, of any or all documents incorporated by reference into this
prospectus. You may direct such requests to:
</FONT>
<P align="center"><FONT size="2">Alex J. Chavez<BR>
Senior Vice President and Corporate Secretary<BR>
LTC Properties, Inc.<BR>
22917 Pacific Coast Hwy, Suite&nbsp;350<BR>
Malibu, California 90265<BR>
Telephone Number: (310)&nbsp;455-6010
</FONT>


<P align="center"><FONT size="2">S-30</FONT>



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<P align="center"><FONT size="2">PROSPECTUS
</FONT>

<P align="center"><FONT size="2">$200,000,000<BR>
LTC PROPERTIES, INC.<BR>
DEBT SECURITIES, PREFERRED STOCK<BR>
AND COMMON STOCK
</FONT>

<P align="center"><HR align="CENTER" size="1" width="15%" noshade>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LTC Properties, Inc. may from time to time offer in one or more series
(i)&nbsp;our debt securities, (ii)&nbsp;shares of our Preferred Stock, $0.01 par value
per share and (iii)&nbsp;shares of our Common Stock, $0.01 par value per share, with
an aggregate public offering price of up to $200,000,000 on terms to be
determined at the time of the offering. Our debt securities, our Preferred
Stock and our Common Stock (collectively referred to as our securities), may be
offered, separately or together, in separate series, in amounts, at prices and
on terms that will be set forth in one or more prospectus supplements to this
prospectus.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The specific terms of the securities with respect to which this prospectus
is being delivered will be set forth in the applicable prospectus supplement
and will include, where applicable:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">in the case of our debt securities, the specific title,
aggregate principal amount, currency, form (which may be registered,
bearer, certificated or global), authorized denominations, maturity,
rate (or manner of calculating the rate) and time of payment of
interest, terms for redemption at our option or repayment at the
holder&#146;s option, terms for sinking fund payments, terms for
conversion into shares of our Preferred Stock or Common Stock,
covenants and any initial public offering price;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">in the case of our Preferred Stock, the specific designation,
preferences, conversion and other rights, voting powers,
restrictions, limitations as to transferability, dividends and other
distributions and terms and conditions of redemption and any initial
public offering price; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">in the case of our Preferred Stock, the specific designation,
preferences, conversion and other rights, voting powers,
restrictions, limitations as to transferability, dividends and other
distributions and terms and conditions of redemption and any initial
public offering price; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">in the case of our Common Stock, any initial public offering
price.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the specific terms may include limitations on actual,
beneficial or constructive ownership and restrictions on transfer of the
securities, in each case as may be appropriate to preserve our status as a real
estate investment trust, or REIT, for federal income tax purposes. The
applicable prospectus supplement will also contain information, where
applicable, about United States federal income tax considerations, and any
exchange listing of the securities covered by the prospectus supplement.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our stock Common Stock is traded on the New York Stock Exchange under the
symbol &#147;LTC.&#148;
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our securities may be offered directly, through agents designated from
time to time by us, or to or through underwriters or dealers. If any agents or
underwriters are involved in the sale of any of our securities, their names,
and any applicable purchase price, fee, commission or discount arrangement
between or among them and us, will be set forth in the applicable prospectus
supplement. None of our securities may be sold without delivery of the
applicable prospectus supplement describing the method and terms of the
offering of those securities.
</FONT>
<P align="center"><FONT size="2">Investing in our securities involves
certain risks. See &#147;Risk Factors&#148; beginning on page 7.
</FONT>

<P align="left"><FONT size="2">Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if
this prospectus is truthful or complete. Any representation to the contrary is
a criminal offense.
</FONT>
<P align="center"><HR align="CENTER" size="1" width="15%" noshade>

<P align="center"><FONT size="2">The date of this prospectus is September&nbsp;12, 2003
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2">TABLE OF CONTENTS
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">ABOUT THIS PROSPECTUS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">FORWARD-LOOKING STATEMENTS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">WHERE YOU CAN FIND ADDITIONAL INFORMATION</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DOCUMENTS INCORPORATED BY REFERENCE</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">ABOUT OUR COMPANY</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">OUR STRATEGY</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">RISK FACTORS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">USE OF PROCEEDS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">GENERAL DESCRIPTION OF THE OFFERED SECURITIES</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DESCRIPTION OF DEBT SECURITIES</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DESCRIPTION OF COMMON STOCK</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">DESCRIPTION OF PREFERRED STOCK</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">RESTRICTIONS ON OWNERSHIP AND TRANSFER</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">LEGAL MATTERS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">EXPERTS</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this prospectus, unless otherwise indicated, the &#147;company,&#148; &#147;we,&#148; &#147;us&#148;
and &#147;our&#148; refer to LTC Properties, Inc. and our consolidated subsidiaries.
</FONT>
<!-- link1 "ABOUT THIS PROSPECTUS" -->
<DIV align="left"><A NAME="015"></A></DIV>
<P align="center"><FONT size="2">ABOUT THIS PROSPECTUS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement that we filed with the
SEC utilizing a &#147;shelf&#148; registration process. Under this shelf registration
process, we may sell any combination of the securities described in this
prospectus in one or more offerings up to a total dollar amount of
$200,000,000. This prospectus provides you with a general description of the
securities we may offer. Each time we sell securities, we will provide a
prospectus supplement that will contain specific information about the terms of
that offering. The prospectus supplement may also add, update or change
information contained in this prospectus. You should read both this prospectus
and any prospectus supplement together with additional information described
under the heading &#147;Where You Can Find Additional Information.&#148;
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As allowed by SEC rules, this prospectus does not contain all the
information you can find in the registration statement or the exhibits to the
registration statement. For further information, we refer you to the
registration statement, including its exhibits and schedules. Statements
contained in this prospectus about the provisions or contents of any contract,
agreement or any other document referred to are not necessarily complete. For
each of these contracts, agreements or documents filed as an exhibit to the
registration statement, we refer you to the actual exhibit for a more complete
description of the matters involved. You should not assume that the
information in this prospectus or any applicable prospectus supplement is
accurate as of any date other than the date on the front of those documents.
For further information about us or the securities offered under this
prospectus, you should refer to the registration statement, which you can
obtain from the SEC as described below under the heading &#147;Where You Can Find
Additional Information.&#148;
</FONT>
<P align="center"><FONT size="2">2</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "FORWARD-LOOKING STATEMENTS" -->
<DIV align="left"><A NAME="016"></A></DIV>
<P align="center"><FONT size="2">FORWARD-LOOKING STATEMENTS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus contains or incorporates by reference forward-looking
statements within the meaning of Section&nbsp;27A of the Securities Act of 1933 and
Section&nbsp;21E of the Securities Exchange Act of 1934. You can identify some of
the forward-looking statements by their use of forward-looking words, such as
&#147;believes,&#148; &#147;expects,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;seeks,&#148; &#147;approximately,&#148;
&#147;intends,&#148; &#147;plans,&#148; &#147;estimates&#148; or &#147;anticipates,&#148; or the negative of those
words or similar words. Forward-looking statements involve inherent risks and
uncertainties regarding events, conditions and financial trends that may affect
our future plans of operation, business strategy, results of operations and
financial position. A number of important factors could cause actual results
to differ materially from those included within or contemplated by such
forward-looking statements, including, but not limited to, the status of the
economy, the status of capital markets including prevailing interest rates,
compliance with and changes to regulations and payment policies within the
healthcare industry, changes in financing terms, competition within the
healthcare and senior housing industries, and changes in federal, state and
local legislation. For a discussion of these and other factors that could
cause actual results to differ from those contemplated in the forward-looking
statements, please see the discussion under &#147;Risk Factors&#148; contained in this
prospectus and in other information contained in our publicly available filings
with the Securities and Exchange Commission, including our annual report on
Form&nbsp;10-K for the year ended December&nbsp;31, 2002. We do not undertake any
responsibility to update any of these factors or to announce publicly any
revisions to forward-looking statements, whether as a result of new
information, future events or otherwise.
</FONT>
<P align="center"><FONT size="2">3</FONT>
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<!-- link1 "WHERE YOU CAN FIND ADDITIONAL INFORMATION" -->
<DIV align="left"><A NAME="017"></A></DIV>
<P align="center"><FONT size="2">WHERE YOU CAN FIND ADDITIONAL INFORMATION
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement on Form&nbsp;S-3 we have
filed with the SEC covering the securities that may be offered under this
prospectus. The registration statement, including the attached exhibits and
schedules, contains additional relevant information about the securities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and current reports, proxy statements and other
information with the SEC. You may read and copy the registration statement and
any reports, statements or other information on file at the SEC&#146;s public
reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. You can
request copies of those documents upon payment of a duplicating fee to the SEC.
You may also review a copy of the registration statement at the SEC&#146;s regional
offices in Chicago, Illinois and New York, New York. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the public reference
rooms. You can review our SEC filings and the registration statement by
accessing the SEC&#146;s Internet site at http://www.sec.gov.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can also inspect our reports, proxy statements and other information
about us at the offices of the New York Stock Exchange, 20 Broad Street, New
York, New York 10005.
</FONT>
<!-- link1 "DOCUMENTS INCORPORATED BY REFERENCE" -->
<DIV align="left"><A NAME="018"></A></DIV>
<P align="center"><FONT size="2">DOCUMENTS INCORPORATED BY REFERENCE
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; the information we file
with the SEC, which means:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">we consider incorporated documents to be part of the prospectus;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">we may disclose important information to you by referring you to those documents; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">information we subsequently file with the SEC will
automatically update and supersede the information in this
prospectus.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus incorporates by reference the following documents:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Annual report on Form&nbsp;10-K for the year ended December&nbsp;31, 2002.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Quarterly reports on Form&nbsp;10-Q for the quarterly periods ended March&nbsp;31, 2003 and June&nbsp;30, 2003.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Definitive proxy statement for the annual meeting of stockholders to be held on July&nbsp;28, 2003.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">All subsequent documents filed by us under Sections&nbsp;13(a),
13(c), 14 or 15(d) of the Exchange Act of 1934 after the date of this
prospectus and before the termination of the offering.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Common Stock contained in our
registration statement on Form&nbsp;8-A, including any amendment or report
for the purpose of updating such description.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Series&nbsp;A Cumulative Preferred Stock
contained in our registration statement on Form&nbsp;8-A, including any
amendment or report for the purpose of updating such description.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Series&nbsp;B Cumulative Preferred Stock
contained in our registration statement on Form&nbsp;8-A, including any
amendment or report for the purpose of updating such description.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The description of our Series&nbsp;D Junior Participating Preferred
Stock contained in our registration statement on Form&nbsp;8-A, including
any amendment or report for the purpose of updating such description.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus and the documents incorporated by reference summarize
certain material provisions of contracts and other documents to which we refer.
Since this prospectus may not contain all the information that you may find
important, you should review the full text of those documents. Upon request,
we will provide each person receiving this prospectus a free copy, without
exhibits, of any or all documents incorporated by reference into this
prospectus. You may direct such requests to:
</FONT>
<P align="center"><FONT size="2">Alex J. Chavez<BR>
Senior Vice President and Corporate Secretary<BR>
LTC Properties, Inc.<BR>
22917 Pacific Coast Hwy, Suite&nbsp;350<BR>
Malibu, California 90265<BR>
Telephone Number: (310)&nbsp;455-6010
</FONT>

<P align="center"><FONT size="2">4</FONT>
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<!-- link1 "ABOUT OUR COMPANY" -->
<DIV align="left"><A NAME="019"></A></DIV>
<P align="center"><FONT size="2">ABOUT OUR COMPANY
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a self-administered real estate investment trust that invests
primarily in long-term care and other healthcare related properties through
mortgage loans, property lease transactions and other investments. As of June
30, 2003, long-term care facilities, which include skilled nursing and assisted
living facilities, comprised approximately 98% of our investment portfolio. We
have been operating since August 1992.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Skilled nursing facilities provide restorative, rehabilitative and nursing
care for people not requiring the more extensive and sophisticated treatment
available at acute care hospitals. Many skilled nursing facilities provide
ancillary services that include occupational, speech, physical, respiratory and
IV therapies, as well as provide sub-acute care services which are paid either
by the patient, the patient&#146;s family, or through federal Medicare or state
Medicaid programs.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assisted living facilities serve elderly persons who require assistance
with activities of daily living, but do not require the constant supervision
skilled nursing facilities provide. Services are usually available 24-hours a
day and include personal supervision and assistance with eating, bathing,
grooming and administering medication. The facilities provide a combination of
housing, supportive services, personalized assistance and health care designed
to respond to individual needs.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our senior management team is comprised of four individuals with a
combined 51&nbsp;years of experience in healthcare and real estate finance.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2003, we had approximately $545&nbsp;million in carrying value
of net real estate investments. At that date, our portfolio included 96
assisted living facilities, 94 skilled nursing facilities and one charter
school in 30 states. We had approximately $398&nbsp;million (73%) invested in owned
and leased properties, approximately $84&nbsp;million (15%) invested in mortgage
loans, and investments in certificates of a real estate mortgage investment
conduit (or REMIC) with a carrying value of approximately $63&nbsp;million (12%).
</FONT>
<P align="left"><FONT size="2">Owned Properties
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June&nbsp;30, 2003, we owned 58 skilled nursing facilities with a total of
6,723 beds, 88 assisted living facilities with 4,182 units and one school
located in 23 states. The properties are leased pursuant to non-cancelable
leases generally with an initial term of 6 to 20&nbsp;years. The leases provide for
a fixed minimum base rent during the initial and renewal periods. Most of the
leases provide for annual fixed rent increases or increases based on consumer
price indices over the term of the lease. In addition, certain of our leases
provide for additional rent through revenue participation (as defined in the
lease agreement) in incremental revenues generated by the facilities over a
defined base period effective at various times during the term of the lease.
Each lease is a triple net lease which requires the lessee to pay additional
charges including all taxes, insurance, assessments, maintenance and repair
(capital and non-capital expenditures) and other costs necessary in the
operation of the facility. Many of the leases contain renewal options and one
contains a limited period option that permits the operator to purchase the
property.
</FONT>
<P align="left"><FONT size="2">Mortgage Loans
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June&nbsp;30, 2003, we had 39 mortgage loans secured by first mortgages on
36 skilled nursing facilities with a total of 4,264 beds and eight assisted
living facilities with a total of 369 units located in 20 states. At June&nbsp;30,
2003, these mortgage loans had interest rates ranging from 9.4% to 12.9% and
maturities ranging from 2003 to 2018. In addition, the loans may contain
guarantees, provide for facility fees and generally have 25-year amortization
schedules. The majority of the mortgage loans provide for annual increases in
the interest rate based upon a specified increase of 10 to 25 basis points.
</FONT>
<P align="center"><FONT size="2">5</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, the mortgage loans may not be prepaid except in the event of
the sale of the collateral property to a third party that is not affiliated
with the borrower, although partial prepayments (including the prepayment
premium) are often permitted where a mortgage loan is secured by more than one
property upon the sale of one or more, but not all, of the collateral
properties to a third party which is not an affiliate of the borrower. The
terms of the mortgage loans generally impose a premium upon prepayment of the
loans depending upon the period in which the prepayment occurs, whether such
prepayment was permitted or required, and certain other conditions such as upon
the sale of the property under a pre-existing purchase option, destruction or
condemnation, or other circumstances as approved by us. On certain loans, such
prepayment amount is based upon a percentage of the then outstanding balance of
the loan, usually declining ratably each year. For other loans, the prepayment
premium is based on a yield maintenance formula. In addition to a lien on the
mortgaged property, the loans are generally secured by certain non-real estate
assets of the properties and contain certain other security provisions in the
form of letters of credit, pledged collateral accounts, security deposits,
cross-default and cross-collateralization features and certain guarantees.
</FONT>
<P align="left"><FONT size="2">REMIC Certificates
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2003, the outstanding certificate principal balance and the
weighted average pass-through rate for the senior REMIC certificates (all held
by outside third parties) were $165,133,000 and 7.16%. As of June&nbsp;30, 2003,
the carrying value of the subordinated REMIC certificates held by us was
$62,933,000. The effective yield on the subordinated REMIC certificates held
by us, based on expected future cash flows discounted to give effect to
potential risks associated with prepayments and credit losses was 16.18% at
June&nbsp;30, 2003. As of June&nbsp;30, 2003, the outstanding certificate principal
balance and the weighted average pass-through rate for the senior REMIC
certificates (all held by outside third parties) was $165,133,000 and 7.16%.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The REMIC certificates we retain are subordinate in rank and right of
payment to the REMIC certificates sold to third-party investors and as such
would bear the first risk of loss in the event of an impairment to any of the
underlying mortgages. The REMIC certificates are collateralized by three pools
consisting of 76 first mortgage loans secured by 107 skilled nursing
properties. The mortgage loans underlying the REMIC certificates generally
have 25-year amortization schedules with final maturities due from 2003 to
2028, unless prepaid prior thereto. Distributions on any of the REMIC
certificates will depend, in large part, on the amount and timing of payments,
collections, delinquencies and defaults with respect to mortgage loans
represented by the REMIC certificates, including the exercise of certain
purchase options under existing property leases or the sale of the mortgaged
properties. Each of the mortgage loans securing the REMIC certificates
contains similar prepayment and security provisions as our mortgage loans.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the REMIC transactions, we serve as the sub-servicer and, in
such capacity, are responsible for performing substantially all of the
servicing duties relating to the mortgage loans represented by the REMIC
certificates. We receive monthly fees equal to a fixed percentage of the then
outstanding mortgage loan balance in the REMIC, which in our opinion, represent
currently prevailing terms for similar transactions. In addition, we will act
as the special servicer to restructure any mortgage loans in the REMIC that
default.
</FONT>
<!-- link1 "OUR STRATEGY" -->
<DIV align="left"><A NAME="020"></A></DIV>
<P align="center"><FONT size="2">OUR STRATEGY
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary objectives are to enhance stockholder equity value and provide
current income for distribution to stockholders through real estate investments
in long-term care properties and other healthcare related properties run by
experienced operators providing quality care. To meet these objectives, we
attempt to invest in fee simple properties or in mortgages that provide
opportunity for additional value and current returns to our stockholders and to
diversify our investment portfolio by geographic location, operator and form of
investment.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">For investments in skilled nursing facilities, we favor low
cost per bed opportunities, whether in fee simple properties or in
mortgages. Thus, the average per bed cost of our owned skilled
nursing facilities is approximately $26,000 per bed while that of our
mortgages is approximately $15,800 per bed.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">6</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">For assisted living investments we have attempted to diversify
our portfolio both geographically and across product levels. Thus,
we believe that although the majority of our investments are in
affordably priced units, our portfolio also includes a significant
number of upscale units in appropriate markets with certain
operators.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">As skilled nursing facilities reimbursement cuts have created
cost and pricing pressures in that industry, we have tended to
emphasize fee simple investments in the assisted living sector where
we believe facilities tend to be both newer and less dependent, if at
all, on any government reimbursement.</FONT></TD>
</TR>
</TABLE>
<P align="center"><HR align="CENTER" size="1" width="5%" noshade>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal executive offices are located at 22917 Pacific Coast Hwy,
Suite&nbsp;350, Malibu, California 90265, and our telephone number is (310)
455-6010.
</FONT>
<!-- link1 "RISK FACTORS" -->
<DIV align="left"><A NAME="021"></A></DIV>
<P align="center"><FONT size="2">RISK FACTORS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should carefully consider the risks described below before making an
investment decision in our company. The risks and uncertainties described
below are not the only ones facing our company and there may be additional
risks that we do not presently know of or that we currently consider
immaterial. Other important factors are identified in our annual report on
Form&nbsp;10-K for the year ended December&nbsp;31, 2002, which is incorporated by
reference into this prospectus, including factors identified under the headings
&#147;Business&#148; and &#147;Management&#146;s Discussion and Analysis of Financial Condition and
Results of Operations&#148;, and in the other documents incorporated by reference
into this prospectus. All of these risks could adversely affect our business,
financial condition, results of operations and cash flows. As a result, our
ability to pay dividends on, and the market price of, our equity securities may
be adversely affected if any of such risks are realized.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our expected results may not be achieved, and actual results may differ
materially from our expectations.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our failure to achieve expected results may be a result of various
factors, including, but not limited to:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the status of the economy;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the status of capital markets, including prevailing interest rates;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">compliance with and changes to regulations and payment policies within the healthcare industry;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">changes in financing terms;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">competition within the healthcare and senior housing industries; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">changes in federal, state and local legislation.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">Recently enacted tax legislation could have an adverse effect on the market
price of our equity securities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;28, 2003, President Bush signed into law legislation that, for
individual taxpayers, will generally reduce the tax rate on corporate dividends
to a maximum of 15% for tax years from 2003 to 2008. REIT dividends generally
will not qualify for this reduced tax rate because a REIT&#146;s income generally is
not subject to corporate level tax. This new law could cause stock in non-REIT
corporations to be a more attractive investment to individual investors than
stock in REITs and could have an adverse effect on the market price of our
equity securities.
</FONT>
<P align="left"><FONT size="2">Income and returns from healthcare facilities can be volatile.
</FONT>
<P align="center"><FONT size="2">7</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The possibility that the healthcare properties in which we invest will not
generate income sufficient to meet operating expenses, will generate income and
capital appreciation, if any, at rates lower than those anticipated or will
yield returns lower than those available through investments in comparable real
estate or other investments are additional risks of investing in healthcare
related real estate. Income from properties and yields from investments in
such properties may be affected by many factors, including changes in
governmental regulation (such as zoning laws and government payment), general
or local economic conditions (such as fluctuations in interest rates and
employment conditions), the available local supply of and demand for improved
real estate, a reduction in rental income as the result of an inability to
maintain occupancy levels, natural disasters (such as earthquakes and floods)
or similar factors.
</FONT>
<P align="left"><FONT size="2">We depend on lease income and mortgage payments from real property.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since a substantial portion of our income is derived from mortgage
payments and lease income from real property, our income would be adversely
affected if a significant number of our borrowers or lessees were unable to
meet their obligations to us or if we were unable to lease our properties or
make mortgage loans on economically favorable terms. There can be no assurance
that any lessee will exercise its option to renew its lease upon the expiration
of the initial term or that if such failure to renew were to occur, we could
lease the property to others on favorable terms.
</FONT>
<P align="left"><FONT size="2">We rely on a few major operators.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assisted Living Concepts, Inc., or ALC, leases 37 assisted living
properties with a total of 1,434 units owned by us representing approximately
12.5%, or $73,599,000, of our total assets as of June&nbsp;30, 2003. In October
2001, ALC filed for reorganization under Chapter&nbsp;11 of the federal bankruptcy
laws. The filing was pre-negotiated with sufficient debt holders to allow ALC
to reorganize its debt and equity and emerge from bankruptcy as of 12:01&nbsp;a.m.
on January&nbsp;1, 2002. We agreed to reduce total rents under the 37 leases by
$875,000 a year, beginning January&nbsp;1, 2002. Our Chairman, CEO and President,
Mr.&nbsp;Andre C. Dimitriadis, became a Board Member of ALC as of January&nbsp;1, 2002.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alterra Healthcare Corporation, or Alterra, leases 35 assisted living
properties with a total of 1,416 units owned by us representing approximately
12.3%, or $72,350,000, of our total assets as of June&nbsp;30, 2003. Alterra
announced on January&nbsp;22, 2003 that it had filed a voluntary petition with the
US Bankruptcy Court for the District of Delaware to reorganize under Chapter&nbsp;11
of the US Bankruptcy Code. On July&nbsp;17, 2003, Alterra conducted an auction to
obtain a new equity investor. The auction process was completed on July&nbsp;23,
2003, and the Bankruptcy Court approved the winning bidder as the new investor
in Alterra, subject to the Merger Agreement and Plan of Reorganization filed
with the Bankruptcy Court. The Plan of Reorganization on file with the
Bankruptcy Court contemplates that our leases with Alterra will be affirmed.
While there can be no certainty that our leases with Alterra will be assumed
pursuant to Alterra&#146;s Plan of Reorganization, we expect such leases will be
assumed consistent with Alterra management&#146;s representations to us. Such
affirmation would have no adverse impact on us. Alterra is current on all
rents due to us through August 2003.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These companies are publicly traded companies, and as such are subject to
the filing requirements of the Securities and Exchange Commission. Our
financial position and our ability to make distributions may be adversely
affected by further financial difficulties experienced by ALC and Alterra or
any of our other lessees and borrowers, including additional bankruptcies,
inability to emerge from bankruptcy, insolvency or general downturn in business
of any such operator, or in the event any such operator does not renew and/or
extend its relationship with us or our company&#146;s borrowers when it expires.
</FONT>
<P align="left"><FONT size="2">Our borrowers and lessees face competition in the healthcare industry.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The long-term care industry is highly competitive and we expect that it
may become more competitive in the future. Our borrowers and lessees are
competing with numerous other companies providing similar long-term care
services or alternatives such as home health agencies, hospices life care at
home, community-based service programs, retirement communities and convalescent
centers. There can be no assurance that our borrowers and lessees will not
encounter increased competition in the future, which could limit their ability
to attract residents or expand their businesses and therefore affect their
ability to make their debt or lease payments to us.
</FONT>
<P align="center"><FONT size="2">8</FONT>
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<P align="left"><FONT size="2">The healthcare industry is heavily regulated by the government.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our borrowers and lessees who operate healthcare facilities are subject to
heavy regulation by federal, state and local governments. These laws and
regulations are subject to frequent and substantial changes resulting from
legislation, adoption of rules and regulations, and administrative and judicial
interpretations of existing law. These changes may have a dramatic effect on
the definition of permissible or impermissible activities, the relative costs
associated with doing business and the amount of reimbursement by both
government and other third-party payors. These changes may be applied
retroactively. The ultimate timing or effect of these changes cannot be
predicted. The failure of any borrower of funds from us or lessee of any of
our properties to comply with such laws, requirements and regulations could
result in sanctions or remedies such as denials of payment for new Medicare and
Medicaid admissions, civil monetary penalties, state oversight and loss of
Medicare and Medicaid participation or licensure. Such action could affect its
ability to operate its facility or facilities and could adversely affect such
borrower&#146;s or lessee&#146;s ability to make debt or lease payments to us.
</FONT>
<P align="left"><FONT size="2">Our borrowers and lessees rely on government and third-party reimbursement.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ability of our borrowers and lessees to generate revenue and profit
determines the underlying value of that property to us. Revenues of our
borrowers and lessees are generally derived from payments for patient care.
Sources of such payments for skilled nursing facilities include the federal
Medicare program, state Medicaid programs, private insurance carriers,
healthcare service plans, health maintenance organizations, preferred provider
arrangements, self-insured employers, as well as the patients themselves.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of the revenue of our skilled nursing facility
borrowers and lessees is derived from governmentally-funded reimbursement
programs, such as Medicare and Medicaid. Because of significant healthcare
costs paid by such government programs, both federal and state governments have
adopted and continue to consider various healthcare reform proposals to control
healthcare costs. In recent years, there have been fundamental changes in the
Medicare program that resulted in reduced levels of payment for a substantial
portion of healthcare services. In many instances, revenues from Medicaid
programs are already insufficient to cover the actual costs incurred in
providing care to those patients. According to a report issued by Kaiser
Family Foundation in January 2003, 19 states have reduced, or are considering
reducing, nursing facility payment rates. Moreover, healthcare facilities have
experienced increasing pressures from private payors attempting to control
healthcare costs, and reimbursement from private payors has in many cases
effectively been reduced to levels approaching those of government payors.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental and public concern regarding healthcare costs may result in
significant reductions in payment to healthcare facilities, and there can be no
assurance that future payment rates for either governmental or private payors
will be sufficient to cover cost increases in providing services to patients.
Any changes in reimbursement policies which reduce reimbursement to levels that
are insufficient to cover the cost of providing patient care could adversely
affect revenues of our skilled nursing facility borrowers and lessees and to a
much lesser extent our assisted living facilities borrowers and lessees and
thereby adversely affect those borrowers&#146; and lessees&#146; abilities to make their
debt or lease payments to us. Failure of the borrowers or lessees to make
their debt or lease payments would have a direct and material adverse impact on
us.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;4, 2003, Centers for Medicare &#038; Medicaid Services, commonly
known as CMS, published a final rule announcing that it will implement a 3.0%
market basket increase in skilled nursing facility prospective payment system
rates for fiscal year 2004, which begins October&nbsp;1, 2003. In addition, the
rule will adjust fiscal year 2004 rates by an additional 3.26% to reflect
cumulative forecast errors since the start of the skilled nursing facility
prospective payment system on July&nbsp;1, 1998.
</FONT>

<P align="center"><FONT size="2">9</FONT>




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<P align="left"><FONT size="2">Congress and the states have enacted healthcare reform measures.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The healthcare industry is facing various challenges, including increased
government and private payor pressure on healthcare providers to control costs.
While the Bush Administration has proposed expanded funding for Medicare
prescription drug coverage, it has stated that it intends to offset the cost of
this benefit in part from savings from overpayments to other Medicare
providers. In addition, the Medicare Payment Advisory Commission, known as the
MedPAC, an independent federal body established to advise Congress on issues
affecting the Medicare program, recommended in a March 2003 report that
Congress adopt additional reductions in skilled nursing facility reimbursement.
While the MedPAC recommendations are not binding on Congress, they may affect
congressional consideration of future Medicare reimbursement legislation. In
June 2003, the US House of Representatives and Senate adopted separate
Medicare reform bills, neither of which would reduce Medicare skilled nursing
facility rates. Nevertheless, no assurances can be given that legislation
ultimately enacted by Congress, if any, would not reduce Medicare reimbursement
to skilled nursing facilities or result in additional costs for operators of
skilled nursing facilities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Balanced Budget Act enacted significant changes to the Medicare and
Medicaid programs designed to modernize payment and healthcare delivery systems
while achieving substantial budgetary savings. In seeking to limit Medicare
reimbursement for long term care services, Congress established the prospective
payment system for skilled nursing facility services to replace the cost-based
reimbursement system. Skilled nursing facilities needed to restructure their
operations to accommodate the new Medicare prospective payment system
reimbursement. Since the skilled nursing facility prospective payment system
was enacted, several publicly held operators of long-term care facilities and
at least two publicly held operators of assisted living facilities have filed
for reorganization under Chapter&nbsp;11 of the federal bankruptcy laws. While at
least two of the long-term care operators and an assisted living operator have
emerged from bankruptcy, there can be no assurances given that the remainder of
2003 and future years will not include additional bankruptcies of skilled
nursing and assisted living operators. While the Balanced Budget Refinement
Act and the Benefits Improvement and Protection Act of 2000 contained
provisions that mitigated, to a certain extent, the effects of the Balanced
Budget Act, many of these changes expired in October 2002. If Congress fails
to provide additional relief, or if it actually decreases Medicare
reimbursement in the future, skilled nursing facilities could experience
significant losses in revenue.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, comprehensive reforms affecting the payment for and
availability of healthcare services have been proposed at the federal and state
levels and major reform proposals have been adopted by certain states.
Congress and state legislatures can be expected to continue to review and
assess alternative healthcare delivery systems and payment methodologies.
Changes in the law, new interpretations of existing laws, or changes in payment
methodology may have a dramatic effect on the definition of permissible or
impermissible activities, the relative costs associated with doing business and
the amount of reimbursement by the government and other third party payors.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, many states are facing significant budget shortfalls, and most
states are taking steps to implement cost controls within their Medicaid
programs. On May&nbsp;28, 2003, President Bush signed into law legislation
providing $20&nbsp;billion in temporary assistance to the states, $10&nbsp;billion of
which is earmarked for state Medicaid programs. However, in light of
forthcoming regulations and continuing state Medicaid program reform and budget
cuts, no assurance can be given that the implementation of such regulations and
reform will not have a material adverse effect on our financial condition or
results of operations.
</FONT>
<P align="left"><FONT size="2">We could incur more debt.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate with a policy of incurring debt when, in the opinion of our
directors, it is advisable. We may incur additional debt by issuing debt
securities under a prospectus supplement hereto or in a private transaction.
Accordingly, we could become more highly leveraged. The degree of leverage
could have important consequences to stockholders, including affecting our
ability to obtain additional financing in the future for working capital,
capital expenditures, acquisitions, development or other general corporate
purposes and making us more vulnerable to a downturn in business or the economy
generally.
</FONT>
<P align="center"><FONT size="2">10</FONT>
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<P align="left"><FONT size="2">Our failure to qualify as a REIT would have serious adverse consequences to our
stockholders.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to operate so as to qualify as a REIT under the Code. We
believe that we have been organized and have operated in a manner which would
allow us to qualify as a REIT under the Code beginning with our taxable year
ended December&nbsp;31, 1992. However, it is possible that we have been organized
or have operated in a manner which would not allow us to qualify as a REIT, or
that our future operations could cause us to fail to qualify. Qualification as
a REIT requires us to satisfy numerous requirements (some on an annual and
quarterly basis) established under highly technical and complex Code provisions
for which there are only limited judicial and administrative interpretations,
and involves the determination of various factual matters and circumstances not
entirely within our control. For example, in order to qualify as a REIT, at
least 95% of our gross income in any year must be derived from qualifying
sources, and we must pay dividends to stockholders aggregating annually at
least 90% (95% for taxable years ending prior to January&nbsp;1, 2001) of our REIT
taxable income (determined without regard to the dividends paid deduction and
by excluding capital gains). Legislation, new regulations, administrative
interpretations or court decisions could significantly change the tax laws with
respect to qualification as a REIT or the federal income tax consequences of
such qualification. However, we are not aware of any pending tax legislation
that would adversely affect our ability to operate as a REIT.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we fail to qualify as a REIT in any taxable year, we will be subject to
federal income tax (including any applicable alternative minimum tax) on our
taxable income at regular corporate rates. Unless we are entitled to relief
under statutory provisions, we would be disqualified from treatment as a REIT
for the four taxable years following the year during which we lost
qualification. If we lose our REIT status, our net earnings available for
investment or distribution to stockholders would be significantly reduced for
each of the years involved. In addition, we would no longer be required to
make distributions to stockholders.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain provisions of Maryland law and our Charter and Bylaws as well as
stockholder rights plan could hinder, delay or prevent changes in control.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain provisions of Maryland law, our Charter and our bylaws, as well as
our stockholder rights plan have the effect of discouraging, delaying or
preventing transactions that involve an actual or threatened change in control.
These provisions include the following:
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Classified Board of Directors, Number of Directors, Board Vacancies, and
Term of Office<I>. </I>We may, in the future, elect by resolution of our Board of
Directors or an amendment to our bylaws, to be subject to certain provisions of
Maryland law which divide the board of directors into three classes with
staggered terms of office of three years each, vest in the board of directors
the exclusive right to determine the number of directors and the exclusive
right, by the affirmative vote of a majority of the remaining directors, even
if the remaining directors do not constitute a quorum, to fill vacancies on the
board. These provisions of Maryland law, which are applicable even if other
provisions of Maryland law or the charter or bylaws provide to the contrary,
also provide that any director elected to fill a vacancy shall hold office for
the remainder of the full term of the class of directors in which the vacancy
occurred, rather than the next annual meeting of stockholders as would
otherwise be the case, and until his or her successor is elected and qualifies.
The classification and staggered terms of office of directors make it more
difficult for a third party to gain control of a board of directors. At least
two annual meetings of stockholders, instead of one, generally would be
required to affect a change in a majority of the board of directors.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder Requested Special Meetings<I>. </I>Our bylaws provide that our
stockholders have the right to call a special meeting only upon the written
request of the stockholders entitled to cast not less than 25% of all the votes
entitled to be cast by the stockholders at such meeting. However, we may in
the future, elect by resolution of our Board of Directors or an amendment to
our bylaws, to be subject to certain provisions of Maryland law which require
that special meetings of stockholders may only be called by the stockholders
upon the written request of stockholders entitled to cast at least a majority
of all the votes entitled to be cast at the meeting. These provisions of
Maryland law, like those referred to above, are applicable even if other
provisions of Maryland law or the charter or bylaws provide to the contrary.
</FONT>
<P align="center"><FONT size="2">11</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance Notice Provisions for Stockholder Nominations and Proposals<I>.</I>
Our bylaws require advance written notice for stockholders to nominate persons
for election as directors at, or to bring other business before, any annual
meeting of stockholders. These bylaw provisions limit the ability of
stockholders to make nominations of persons for election as directors or to
introduce other proposals unless we are notified in a timely manner prior to
the meeting. See &#147;Certain Provisions of Maryland Law and of Our Charter and
Bylaws &#150; Advance Notice of Director Nominations and New Business.&#148;
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock<I>. </I>Under our Charter, our Board of Directors has
authority to issue Preferred Stock from time to time in one or more series and
to establish the terms, preferences and rights of any such series of Preferred
Stock, all without approval of our stockholders. The issuance of additional
shares of Preferred Stock could adversely impact the voting power of the
holders of the Common Stock and could have the effect of delaying or preventing
a change in control or other corporate action.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duties of Directors with Respect to Unsolicited Takeovers<I>. </I>Maryland law
provides protection for Maryland corporations against unsolicited takeovers by
limiting, among other things, the duties of the directors in unsolicited
takeover situations. The duties of directors of Maryland corporations do not
require them to (a)&nbsp;accept, recommend or respond to any proposal by a person
seeking to acquire control of the corporation, (b)&nbsp;authorize the corporation to
redeem any rights under, or modify or render inapplicable, any stockholders
rights plan, (c)&nbsp;make a determination under the Maryland Business Combination
Act or the Maryland Control Share Acquisition Act, or (d)&nbsp;act or fail to act
solely because of the effect of the act or failure to act may have on an
acquisition or potential acquisition of control of the corporation or the
amount or type of consideration that may be offered or paid to the stockholders
in an acquisition. Moreover, under Maryland law the act of directors of a
Maryland corporation relating to or affecting an acquisition or potential
acquisition of control is not subject to any higher duty or greater scrutiny
than is applied to any other act of a director. Maryland law also contains a
statutory presumption that an act of a director of a Maryland corporation
satisfies the applicable standards of conduct for directors under Maryland law.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership Limit. In order to preserve our status as a REIT under the
Code, our Charter generally prohibits any single stockholder from
constructively or beneficially owning more than 9.8% of our outstanding Common
Stock, or more than 9.8% of the outstanding shares of any class or series of
our stock other than our Common Stock, unless and to the extent which our Board
of Directors decides to waive or modify this ownership limit with respect to
any stockholder.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland Business Combination Act<I>. </I>The Maryland Business Combination
Act provides that unless exempted, a Maryland corporation may not engage in
business combinations, including mergers, dispositions of 10% or more of its
assets, issuances of shares of stock and other specified transactions, with an
&#147;interested stockholder&#148; or an affiliate of an interested stockholder for five
years after the most recent date on which the interested stockholder became an
interested stockholder, and thereafter unless specified criteria are met. An
interested stockholder is generally a person owning or controlling, directly or
indirectly, 10% or more of the voting power of the outstanding stock of
Maryland corporation. Our Board of Directors has not exempted us from this
statute. Consequently, unless our Board of Directors adopts an exemption from
this statute in the future, the Maryland Business Combination Act will be
applicable to business combinations between our company and other persons. See
&#147;Certain Provisions of Maryland Law and of Our Charter and Bylaws &#150; Business
Combinations.&#148;
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland Control Share Acquisition Act<I>. </I>Maryland law provides that
&#147;control shares&#148; of a corporation acquired in a &#147;control share acquisition&#148;
shall have no voting rights except to the extent approved by a vote of
two-thirds of the vote eligible to cast on the matter under the Maryland
Control Share Acquisition Act. &#147;Control Shares&#148; means shares of stock that, if
aggregated with all other shares of stock previously acquired by the acquiror,
would entitle the acquiror to exercise voting power in electing directors
within one of the following ranges of the voting power: one-tenth or more but
less than one-third, one-third or more but less than a majority or a majority
or more of all voting power. A &#147;control share acquisition&#148; means the
acquisition of control shares, subject to certain exceptions.
</FONT>
<P align="center"><FONT size="2">12</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If voting rights or control shares acquired in a control share acquisition
are not approved at a stockholder&#146;s meeting, then subject to certain conditions
and limitations, the issuer may redeem any or all of the control shares for
fair value. If voting rights of such control shares are approved at a
stockholder&#146;s meeting and the acquiror becomes entitled to vote a majority of
the shares of stock entitled to vote, all other stockholders may exercise
appraisal rights. See &#147;Certain Provisions of Maryland Law and of Our Charter
and Bylaws &#150; Control Share Acquisitions.&#148;
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder Rights Plan<I>. </I>We have adopted a stockholder rights plan that
may discourage any potential acquiror from acquiring more than 15% of our
outstanding Common Stock since, upon this type of acquisition without approval
of our Board of Directors, all other common stockholders will have the right to
purchase a specified amount of Common Stock at a substantial discount from
market price. Our stockholder rights plan is an exhibit to the registration
statement for our Series&nbsp;D Junior Participating Preferred Stock, and therefore
is incorporated by reference as an exhibit to the registration statement of
which this prospectus is a part.
</FONT>
<!-- link1 "USE OF PROCEEDS" -->
<DIV align="left"><A NAME="022"></A></DIV>
<P align="center"><FONT size="2">USE OF PROCEEDS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise described in the applicable prospectus supplement, we
intend to use the net proceeds from the sale of our securities for general
business purposes, which may include, among other things, the repayment of
indebtedness, the redemption of our Series&nbsp;A Preferred Stock, Series&nbsp;B
Preferred Stock, and/or Series&nbsp;C Preferred Convertible Stock, the development
and acquisition of additional properties and other acquisition transactions,
and the expansion and improvement of certain properties in our portfolio.
</FONT>
<!-- link1 "RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS" -->
<DIV align="left"><A NAME="023"></A></DIV>
<P align="center"><FONT size="2">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our ratios of earnings to fixed charges and
earnings to combined fixed charges and Preferred Stock dividends for the
periods indicated. The ratio of earnings to fixed charges was computed by
dividing earnings by our fixed charges. The ratio of earnings to combined
fixed charges and Preferred Stock dividends was computed by dividing earnings
by our combined fixed charges and Preferred Stock dividends. For purposes of
calculating these ratios, &#147;earnings&#148; includes income from continuing operations
before minority interest plus fixed charges. &#147;Fixed charges&#148; consists of
interest on all indebtedness and the amortization of debt issue costs.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Six</B></FONT></TD>
</TR>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>months</B></FONT></TD>
</TR>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="11"><FONT size="1"><B>Year ended December 31,</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>ended</B></FONT></TD>
</TR>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="19"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>June 30,</B></FONT></TD>
</TR>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1998</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>1999</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2000</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2001</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2002</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>2003</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consolidated ratio
of earnings to
fixed charges
(unaudited)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.79</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.88</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Consolidated ratio
of earnings to
combined fixed
charges and
Preferred Stock
dividends
(unaudited)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.88</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">0.71</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">1.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued 3,080,000 shares of 9.5% Series&nbsp;A Cumulative Preferred Stock in
March 1997, 2,000,000 shares of 9.0% Series&nbsp;B Cumulative Preferred Stock in
December 1997 and 2,000,000 shares of 8.5% Series&nbsp;C Cumulative Convertible
Preferred Stock in September 1998. During 2001, the total dollar amount of the
deficiency in the consolidated ratio of earnings to combined fixed charges and
stock Preferred Stock dividends was $10.9&nbsp;million.
</FONT>

<!-- link1 "GENERAL DESCRIPTION OF THE OFFERED SECURITIES" -->
<DIV align="left"><A NAME="024"></A></DIV>
<P align="center"><FONT size="2">GENERAL DESCRIPTION OF THE OFFERED SECURITIES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer under this prospectus one or more of the following categories
of our securities:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">debt securities, in one or more series;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">shares of our Preferred Stock, par value $0.01 per share, in one or more series;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">13</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">shares of our Common Stock, par value $0.01 per share; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">units consisting of any combination of the foregoing securities.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of any specific offering of securities, including the terms of
any units offered, will be set forth in a prospectus supplement relating to
such offering.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to our Articles of Amendment and Restatement, as amended and
supplemented to date, and referred to in this prospectus as our &#147;Charter,&#148; we
are authorized to issue 50,000,000 shares of all classes of stock, each share
having a par value of $0.01 of which 35,000,000 shares are Common Stock and
15,000,000 shares are Preferred Stock. Of our Preferred Stock, we have
designated 3,080,000 shares as 9.5% Series&nbsp;A Cumulative Preferred Stock (or
Series&nbsp;A Preferred Stock), 2,000,000 shares as 9.0% Series&nbsp;B Cumulative
Preferred Stock (or Series&nbsp;B Preferred Stock), 2,000,000 shares as 8.5% Series
C Cumulative Convertible Preferred Stock and 40,000 shares of Series&nbsp;D Junior
Participating Preferred Stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2003, 17,794,851 shares of Common Stock and 3,064,200,
1,988,000 and 2,000,000 shares of Series&nbsp;A, Series&nbsp;B and Series&nbsp;C Preferred
Stock, respectively were outstanding. There were no shares of Series&nbsp;D Junior
Participating Preferred Stock outstanding.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Common Stock is listed on the New York Stock Exchange under the symbol
&#147;LTC.&#148; Our Series&nbsp;A Preferred Stock is listed on the New York Stock Exchange
under the symbol &#147;LTC PrA&#148; and our Series&nbsp;B Preferred Stock is listed on the
New York Stock Exchange under the symbol &#147;LTC PrB.&#148; Our Series&nbsp;C Cumulative
Convertible Preferred Stock is owned by one holder and is not listed on any
exchange. We may apply to list the securities which are offered and sold
hereunder, as described in the prospectus supplement relating to such
securities.
</FONT>
<!-- link1 "DESCRIPTION OF DEBT SECURITIES" -->
<DIV align="left"><A NAME="025"></A></DIV>
<P align="center"><FONT size="2">DESCRIPTION OF DEBT SECURITIES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debt securities sold under this prospectus will be our direct
obligations, which may be secured or unsecured, and which may be senior or
subordinated indebtedness. The debt securities may be guaranteed on a secured
or unsecured, senior or subordinated basis, by one or more of our subsidiaries.
The debt securities may be issued under one or more indentures between us and
a specified trustee. Any indenture will be subject to and governed by the
Trust Indenture Act of 1939, as amended. We currently have no debt securities
outstanding. The statements made in this prospectus relating to any indentures
and the debt securities to be issued under any indentures are summaries of
certain anticipated provisions of the indentures and are not complete.
</FONT>
<P align="left"><FONT size="2">GENERAL
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may issue debt securities that rank &#147;senior,&#148; &#147;senior subordinated&#148; or
&#147;junior subordinated.&#148; The debt securities that we refer to as &#147;senior&#148; will be
our direct obligations and will rank equally and ratably in right of payment
with our other indebtedness not subordinated. We may issue debt securities
that will be subordinated in right of payment to the prior payment in full of
senior debt, as defined in the applicable prospectus supplement, and may rank
equally and ratably with other senior subordinated indebtedness. We refer to
these as &#147;senior subordinated&#148; securities. We may also issue debt securities
that may be subordinated in right of payment to the senior subordinated
securities. These would be &#147;junior subordinated&#148; securities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may issue the debt securities without limit as to aggregate principal
amount, in one or more series, in each case as we establish in one or more
supplemental indentures. We need not issue all debt securities of one series
at the same time. Unless we otherwise provide, we may reopen a series, without
the consent of the holders of the series, for issuances of additional
securities of that series.
</FONT>
<P align="center"><FONT size="2">14</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate that any indenture will provide that we may, but need not,
designate more than one trustee under an indenture, each with respect to one or
more series of debt securities. Any trustee under any indenture may resign or
be removed with respect to one or more series of debt securities, and we may
appoint a successor trustee to act with respect to that series. The applicable
prospectus supplement will describe the specific terms relating to the series
of debt securities we will offer, including, where applicable, the following:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the title and series designation and whether they are senior
securities, senior subordinated securities or subordinated
securities;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the aggregate principal amount of the securities;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the percentage of the principal amount at which we will issue
the debt securities and, if other than the principal amount of the
debt securities, the portion of the principal amount of the debt
securities payable upon maturity of the debt securities;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if convertible, the securities into which they are convertible,
the initial conversion price, the conversion period and any other
terms governing such conversion;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the stated maturity date;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any fixed or variable interest rate or rates per annum;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the place where principal, premium, if any, and interest will
be payable and where the debt securities can be surrendered for
transfer, exchange or conversion;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the date from which interest may accrue and any interest payment dates;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any sinking fund requirements;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any provisions for redemption, including the redemption price and any remarketing arrangements;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether the securities are denominated or payable in United
States dollars or a foreign currency or units of two or more foreign
currencies;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the events of default and covenants of such securities, to the
extent different from or in addition to those described in this
prospectus;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether we will issue the debt securities in certificated or
book-entry form;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether the debt securities will be in registered or bearer
form and, if in registered form, the denominations if other than in
even multiples of $1,000 and, if in bearer form, the denominations
and terms and conditions relating thereto;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether we will issue any of the debt securities in permanent
global form and, if so, the terms and conditions, if any, upon which
interests in the global security may be exchanged, in whole or in
part, for the individual debt securities represented by the global
security;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">15</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the applicability, if any, of the defeasance and covenant
defeasance provisions described in this prospectus or any prospectus
supplement;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether we will pay additional amounts on the securities in
respect of any tax, assessment or governmental charge and, if so,
whether we will have the option to redeem the debt securities instead
of making this payment;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the subordination provisions, if any, relating to the debt
securities;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if the debt securities are to be issued upon the exercise of
debt warrants, the time, manner and place for them to be
authenticated and delivered;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether any of our subsidiaries will be bound by the terms of
the indenture, in particular any restrictive covenants;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the provisions relating to any security provided for the debt securities; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the provisions relating to any guarantee of the debt securities.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may issue debt securities at less than the principal amount payable at
maturity. We refer to these securities as &#147;original issue discount&#148;
securities. If material or applicable, we will describe in the applicable
prospectus supplement special US federal income tax, accounting and other
considerations applicable to original issue discount securities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as may be described in any prospectus supplement, an indenture will
not contain any other provisions that would limit our ability to incur
indebtedness or that would afford holders of the debt securities protection in
the event of a highly leveraged or similar transaction involving us or in the
event of a change of control. You should review carefully the applicable
prospectus supplement for information with respect to events of default and
covenants applicable to the securities being offered.
</FONT>
<P align="left"><FONT size="2">DENOMINATIONS, INTEREST, REGISTRATION AND TRANSFER
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise described in the applicable prospectus supplement, we
will issue the debt securities of any series that are registered securities in
denominations that are even multiples of $1,000, other than global securities,
which may be of any denomination.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in the applicable prospectus supplement, we
will pay the interest, principal and any premium at the corporate trust office
of the trustee. At our option, however, we may make payment of interest by
check mailed to the address of the person entitled to the payment as it appears
in the applicable register or by wire transfer of funds to that person at an
account maintained within the United States.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not punctually pay or otherwise provide for interest on any
interest payment date, the defaulted interest will be paid either:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">to the person in whose name the debt security is registered at
the close of business on a special record date the trustee will fix;
or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">in any other lawful manner, all as the applicable indenture
describes.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">16</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may have your debt securities divided into more debt securities of
smaller denominations or combined into fewer debt securities of larger
denominations, as long as the total principal amount is not changed. We call
this an &#147;exchange.&#148; You may exchange or transfer debt securities at the office
of the applicable trustee. The trustee acts as our agent for registering debt
securities in the names of holders and transferring debt securities. We may
change this appointment to another entity or perform it ourselves.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The entity performing the role of maintaining the list of registered
holders is called the &#147;registrar.&#148; It will also perform transfers. You will
not be required to pay a service charge to transfer or exchange debt
securities, but you may be required to pay for any tax or other governmental
charge associated with the exchange or transfer. The security registrar will
make the transfer or exchange only if it is satisfied with your proof of
ownership.
</FONT>
<P align="left"><FONT size="2">MERGER, CONSOLIDATION OR SALE OF ASSETS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under any indenture, we would be generally permitted to consolidate or
merge with another company. We would be also permitted to sell substantially
all of our assets to another company, or to buy substantially all of the assets
of another company. However, we would not be able to take any of these actions
unless the following conditions are met:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if we merge out of existence or sell our assets, the other
company must be an entity organized under the laws of one of the
states of the United States or the District of Columbia or under
United States federal law and must agree to be legally responsible
for our debt securities; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">immediately after the merger, sale of assets or other
transaction, we may not be in default on the debt securities. A
default for this purpose would include any event that would be an
event of default if the requirements for giving us default notice or
our default having to exist for a specific period of time were
disregarded.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">CERTAIN COVENANTS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Existence. Except as permitted as described above under &#147;&#151; Merger,
Consolidation or Sale of Assets,&#148; we will agree to do all things necessary to
preserve and keep our existence, rights and franchises, provided that it is in
our best interests for the conduct of business.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions Of Financial Information. Whether or not we remain required to
do so under the Exchange Act, to the extent permitted by law, we will agree to
file all annual, quarterly and other reports and financial statements with the
SEC and an indenture trustee on or before the applicable SEC filing dates as if
we were required to do so.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional Covenants. Any additional or different covenants or
modifications to the foregoing covenants with respect to any series of debt
securities will be described in the applicable prospectus supplement.
</FONT>
<P align="left"><FONT size="2">EVENTS OF DEFAULT AND RELATED MATTERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Events Of Default. The term &#147;event of default&#148; for any series of debt
securities may mean any of the following:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We do not pay the principal or any premium on a debt security
of that series within 30&nbsp;days after its maturity date.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We do not pay interest on a debt security of that series within 30&nbsp;days after its due date.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We do not deposit any sinking fund payment for that series within 30&nbsp;days after its due date.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We remain in breach of any other term of the applicable
indenture (other than a term added to the indenture solely for the
benefit of another series) for 60&nbsp;days after we receive a notice of
default stating we are in breach. Either the trustee or holders of
more than 50% in principal amount of debt securities of the affected
series may send the notice.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">17</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We default under any of our other indebtedness in specified
amounts after the expiration of any applicable grace period, which
default results in the acceleration of the maturity of such
indebtedness. Such default is not an event of default if the other
indebtedness is discharged, or the acceleration is rescinded or
annulled, within a period of 10&nbsp;days after we receive notice
specifying the default and requiring that we discharge the other
indebtedness or cause the acceleration to be rescinded or annulled.
Either the trustee or the holders of more than 50% in principal
amount of debt securities of the affected series may send the notice.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We or one of our &#147;significant subsidiaries,&#148; if any, files for
bankruptcy or certain other events in bankruptcy, insolvency or
reorganization occur. The term &#147;significant subsidiary&#148; means each
of our significant subsidiaries, if any, as defined in Regulation&nbsp;S-X
under the Securities Act.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any other event of default described in the applicable
prospectus supplement occurs.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remedies If An Event Of Default Occurs. If an event of default has
occurred and has not been cured, the trustee or the holders of at least a
majority in principal amount of the debt securities of the affected series may
declare the entire principal amount of all the debt securities of that series
to be due and immediately payable. If an event of default occurs because of
certain events in bankruptcy, insolvency or reorganization, the principal
amount of all the debt securities of that series will be automatically
accelerated, without any action by the trustee or any holder. At any time
after the trustee or the holders have accelerated any series of debt
securities, but before a judgment or decree for payment of the money due has
been obtained, the holders of at least a majority in principal amount of the
debt securities of the affected series may, under certain circumstances,
rescind and annul such acceleration.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trustee will be required to give notice to the holders of debt
securities within 90&nbsp;days after a default under the applicable indenture unless
the default has been cured or waived. The trustee may withhold notice to the
holders of any series of debt securities of any default with respect to that
series, except a default in the payment of the principal of or interest on any
debt security of that series, if specified responsible officers of the trustee
in good faith determine that withholding the notice is in the interest of the
holders.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except in cases of default, where the trustee has some special duties, the
trustee would not be required to take any action under the applicable indenture
at the request of any holders unless the holders offer the trustee reasonable
protection from expenses and liability. We refer to this as an &#147;indemnity.&#148; If
reasonable indemnity is provided, the holders of a majority in principal amount
of the outstanding securities of the relevant series may direct the time,
method and place of conducting any lawsuit or other formal legal action seeking
any remedy available to the trustee. These majority holders may also direct
the trustee in performing any other action under the applicable indenture,
subject to certain limitations.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before you bypass the trustee and bring your own lawsuit or other formal
legal action or take other steps to enforce your rights or protect your
interests relating to the debt securities, the following must occur:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">you must give the trustee written notice that an event of
default has occurred and remains uncured;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the holders of at least a majority in principal amount of all
outstanding securities of the relevant series must make a written
request that the trustee take action because of the default, and must
offer reasonable indemnity to the trustee against the cost and other
liabilities of taking that action; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the trustee must have not taken action for 60&nbsp;days after
receipt of the notice and offer of indemnity.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, you would be entitled at any time to bring a lawsuit for the
payment of money due on your security after its due date.
</FONT>
<P align="center"><FONT size="2">18</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Every year we would furnish to the trustee a written statement by certain
of our officers certifying that to their knowledge we are in compliance with
the applicable indenture and the debt securities, or else specifying any
default.
</FONT>
<P align="left"><FONT size="2">MODIFICATION OF AN INDENTURE
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are three types of changes we may be able to make to the indentures
and the debt securities:
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes Requiring Your Approval. First, there are changes we could not
make to your debt securities without your specific approval. The following is
a list of those types of changes:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">change the stated maturity of the principal or interest on a debt security;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">reduce any amounts due on a debt security;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">reduce the amount of principal payable upon acceleration of the
maturity of a debt security following a default;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">change the currency of payment on a debt security;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">impair your right to sue for payment;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">modify the subordination provisions, if any, in a manner that is adverse to you;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">reduce the percentage of holders of debt securities whose
consent is needed to modify or amend an indenture or to waive
compliance with certain provisions of an indenture;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">reduce the percentage of holders of debt securities whose
consent is needed to waive past defaults or change certain provisions
of the indenture relating to waivers of default;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">waive a default or event of default in the payment of principal
of or premium, if any, or interest on the debt securities; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">modify any of the foregoing provisions.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes Requiring A Majority Vote. The second type of change to an
indenture and the debt securities is the kind that would require a vote in
favor by holders of debt securities owning a majority of the principal amount
of the particular series affected. Most changes fall into this category,
except for clarifying changes and certain other changes that would not
materially adversely affect holders of the debt securities. We would require
the same vote to obtain a waiver of a past default. However, we could not
obtain a waiver of a payment default or any other aspect of an indenture or the
debt securities listed in the first category described above under &#147;&#151;Changes
Requiring Your Approval&#148; unless we obtained your individual consent to the
waiver.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes Not Requiring Approval. The third type of change would not
require any vote by holders of debt securities. This type would be limited to
clarifications and certain other changes that would not materially adversely
affect holders of the debt securities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further Details Concerning Voting. Debt securities are not considered
outstanding, and therefore the holders thereof are not eligible to vote if we
have deposited or set aside in trust for you money for their payment or
redemption or if we or one of our affiliates own them. The holders of debt
securities are also not eligible to vote if they have been fully defeased as
described immediately below under &#147;&#151;Discharge, Defeasance and Covenant
Defeasance&#151;Full Defeasance.&#148; For original issue discount securities, we would
use the principal amount that would be due and payable on the voting date if
the maturity of the debt securities were accelerated to that date because of a
default.
</FONT>
<P align="center"><FONT size="2">19</FONT>
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<P align="left"><FONT size="2">DISCHARGE, DEFEASANCE AND COVENANT DEFEASANCE
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discharge. We may be able to discharge some obligations to holders of any
series of debt securities that either have become due and payable or will
become due and payable within one year, or scheduled for redemption within one
year, by irrevocably depositing with the trustee, in trust, funds in the
applicable currency in an amount sufficient to pay the debt securities,
including any premium and interest.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full Defeasance. We may, under particular circumstances, effect a full
defeasance of your series of debt securities. By this we mean we could legally
release ourselves from any payment or other obligations on the debt securities
if, among other things, we put in place the arrangements described below to
repay you and deliver certain certificates and opinions to the trustee:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">we must deposit in trust for your benefit and the benefit of
all other direct holders of the debt securities a combination of
money or US government or US government agency notes or bonds or,
in some circumstances, depositary receipts representing these notes
or bonds, that will generate enough cash to make interest, principal
and any other payments on the debt securities on their various due
dates;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the current federal tax law must be changed or an IRS ruling
must be issued permitting the above deposit without causing you to be
taxed on the debt securities any differently than if we did not make
the deposit and just repaid the debt securities ourselves. Under
current federal income tax law, the deposit and our legal release
from the debt securities would be treated as though we took back your
debt securities and gave you your share of the cash and notes or
bonds deposited in trust. In that event, you could recognize gain or
loss on the debt securities you give back to us; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">we must deliver to the trustee a legal opinion confirming the
tax law change described above.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we did accomplish full defeasance, you would have to rely solely on the
trust deposit for repayment on the debt securities. You could not look to us
for repayment in the unlikely event of any shortfall. Conversely, the trust
deposit would most likely be protected from claims of our lenders and other
creditors if we ever became bankrupt or insolvent. You would also be released
from any subordination provisions.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Covenant defeasance. Under current federal income tax law, we could make
the same type of deposit described above and be released from some of the
restrictive covenants in the debt securities. This is called &#147;covenant
defeasance.&#148; In that event, you would lose the protection of those restrictive
covenants but would gain the protection of having money and securities set
aside in trust to repay the securities and you would be released from any
subordination provisions.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we accomplish covenant defeasance, the following provisions of an
indenture and the debt securities would no longer apply:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any covenants applicable to the series of debt securities and
described in the applicable prospectus supplement;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any subordination provisions; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">certain events of default relating to breach of covenants and
acceleration of the maturity of other debt set forth in any
prospectus supplement.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we accomplish covenant defeasance, you could still look to us for
repayment of the debt securities if a shortfall in the trust deposit occurred.
If one of the remaining events of default occurs, for example, our bankruptcy,
and the debt securities become immediately due and payable, there may be a
shortfall. Depending on the event causing the default, you may not be able to
obtain payment of the shortfall.
</FONT>
<P align="center"><FONT size="2">20</FONT>
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<P align="left"><FONT size="2">SUBORDINATION
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will describe in the applicable prospectus supplement the terms and
conditions, if any, upon which any series of senior subordinated securities or
subordinated securities is subordinated to debt securities of another series or
to our other indebtedness. The terms will include a description of:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the indebtedness ranking senior to the debt securities being
offered;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the restrictions, if any, on payments to the holders of the
debt securities being offered while a default with respect to the
senior indebtedness is continuing;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the restrictions, if any, on payments to the holders of the
debt securities being offered following an event of default; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">provisions requiring holders of the debt securities being
offered to remit some payments to holders of senior indebtedness.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">GUARANTEES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our payment obligations under any series of our debt securities may be
guaranteed by some or all of our subsidiaries. The guarantees may be secured
or unsecured and may be senior or subordinated obligations. The guarantors
will be identified and the terms of the guarantees will be described in the
applicable prospectus supplement.
</FONT>
<P align="left"><FONT size="2">GLOBAL SECURITIES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If so set forth in the applicable prospectus supplement, we may issue the
debt securities of a series in whole or in part in the form of one or more
global securities that will be deposited with a depositary identified in the
prospectus supplement. We may issue global securities in either registered or
bearer form and in either temporary or permanent form. The specific terms of
the depositary arrangement with respect to any series of debt securities will
be described in the prospectus supplement.
</FONT>
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<DIV align="left"><A NAME="026"></A></DIV>
<P align="center"><FONT size="2">DESCRIPTION OF OUR COMMON STOCK
</FONT>

<P align="left"><FONT size="2">GENERAL
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description of our Common Stock sets forth certain general
terms and provisions of the Common Stock to which any prospectus supplement may
relate, including a prospectus supplement providing that Common Stock will be
issuable upon conversion of our debt securities or our Preferred Stock or upon
the exercise of Common Stock warrants issued by us. The statements below
describing our Common Stock are in all respects subject to and qualified in
their entirety by reference to the applicable provisions of our Charter and
bylaws.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of our Common Stock will be entitled to receive dividends when, as
and if authorized by our Board of Directors and declared by us, out of assets
legally available therefore. Payment and declaration of dividends on the
Common Stock and purchases of shares thereof by us will be subject to certain
restrictions if we fail to pay dividends on our Preferred Stock. Upon our
liquidation, dissolution or winding up, holders of Common Stock will be
entitled to share equally and ratably in any assets available for distribution
to them, after payment or provision for payment of our debts and other
liabilities and the preferential amounts owing with respect to any of our
outstanding Preferred Stock.
</FONT>
<P align="center"><FONT size="2">21</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Common Stock will possess voting rights for the election of directors
and in respect of other corporate matters, with each share entitling the holder
thereof to one vote. Holders of Common Stock will not have cumulative voting
rights in the election of directors, which means that holders of more than 50%
of all of the shares of our Common Stock voting for the election of directors
will be able to elect all of the directors if they choose to do so and,
accordingly, the holders of the remaining shares will be unable to elect any
directors. Holders of shares of Common Stock will not have preemptive rights,
which means they have no right to acquire any additional shares of Common Stock
that may be issued by us at a subsequent date. Our Common Stock will, when
issued, be fully paid and nonassessable and will not be subject to preemptive
or similar rights.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Maryland law and our Charter, a distribution (whether by dividend,
redemption or other acquisition of shares) to holders of shares of our Common
Stock may be made only if, after giving effect to the distribution, we are able
to pay our indebtedness as it becomes due in the usual course of business and
our total assets are greater than our total liabilities plus the amount
necessary to satisfy the preferential rights upon dissolution of stockholders
whose preferential rights on dissolution are superior to the holders of our
Common Stock and we can pay our debts as they become due. We have complied
with these requirements in all of our prior distributions to holders of our
Common Stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each outstanding share of our Common Stock is accompanied by a right to
purchase one one-thousandth of a share of our Series&nbsp;D Junior Participation
Preferred Stock, at the price of $16, subject to certain anti-dilution
adjustments. We have designated and reserved 40,000 shares of our Preferred
Stock as Series&nbsp;D Junior Participating Preferred Stock for issuance upon
exercise of the rights. The existence of such rights could have the effect of
delaying, deterring or preventing a change in our control. The purchase rights
and the Series&nbsp;D Preferred Stock are more fully discussed below under the
caption &#147;Share Purchase Rights.&#148; For a description of other provisions of our
Charter and by-laws that could have the effect of delaying, deterring or
preventing a change in our control, please see &#147;Certain Provisions of Maryland
Law and Our Charter and Bylaws&#148; below.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights, preferences and privileges of holders of our Common Stock are
subject to, and may be adversely affected by, the rights of the holders of
shares of any series of our Preferred Stock which are outstanding or which we
may designate and issue in the future. See &#147;Description of Our Preferred
Stock&#148; below.
</FONT>
<P align="left"><FONT size="2">SHARE PURCHASE RIGHTS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;2, 2000, our Board of Directors adopted a shareholder rights plan,
commonly referred to as a &#147;poison pill,&#148; which authorized the issuance of one
preferred share purchase right for each outstanding share of Common Stock.
Under certain conditions, each right may be exercised to purchase one
one-thousandth of a share of our Series&nbsp;D Junior Participating Preferred Stock,
(or Series&nbsp;D Preferred Stock), for $16, subject to certain antidilution
adjustments. The number of rights outstanding and Series&nbsp;D Preferred Stock
issuable upon exercise, as well as the Series&nbsp;D Preferred Stock purchase price,
are subject to customary antidilution adjustments.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights are evidenced by the certificates for shares of our Common
Stock, and in general are not transferable apart from our Common Stock or
exercisable until after a party has acquired beneficial ownership of, or made a
tender offer for 15% or more of our outstanding Common Stock, or the occurrence
of other events as specified in a rights agreement between us and Harris Trust
&#038; Savings Bank, as rights agent. Under certain conditions as specified in the
rights agreement, including but not limited to, the acquisition by a party of
15% or more of our outstanding Common Stock, or the acquisition of us in a
merger or other business combination, each holder of a right (other than an
acquiring person, whose rights will be void) will receive upon its exercise and
payment of the exercise price that number of shares of our Common Stock, or the
Common Stock of the other party, as applicable, having a market value of $32
based on the market price of the other party&#146;s stock prior to such merger.
</FONT>
<P align="center"><FONT size="2">22</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights expire on May&nbsp;24, 2010, and until they are exercised, their
holder will have no rights as a stockholder. At our option, the rights may be
redeemed in whole at a price of $.001 per right any time prior to becoming
exercisable. In general, we may also exchange the rights at a ratio of one
share of our Common Stock per right after becoming exercisable but prior to any
party acquiring 50% or more of the outstanding shares of our Common Stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series&nbsp;D Preferred Stock issuable upon exercise of the rights will not be
redeemable. Each share of Series&nbsp;D Preferred Stock if issued:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">will entitle holders to quarterly dividend payments of $.001
per share, or an amount equal to the dividend paid on one share of
our Common Stock, whichever is greater;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">will entitle holders to, upon liquidation either to receive
$.10 per share or an amount equal to the payment made on one share of
our Common Stock, whichever is greater;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">will have the same voting power as one share of our Common
Stock; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if shares of our Common Stock are exchanged via merger,
consolidation, or a similar transaction, will entitle holder to a per
share payment equal to the payment made on one share of our Common
Stock.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purchase rights have an anti-takeover effect that is intended to
discourage coercive or unfair takeover tactics and to encourage any potential
acquirer to negotiate a fair price for all of our shareholders. The purchase
rights may cause substantial dilution to any party that may attempt to acquire
us on terms not approved by our Board of Directors. However, the purchase
rights are structured in a way so as not to interfere with any negotiated
merger or other business combination.
</FONT>
<!-- link1 "DESCRIPTION OF OUR PREFERRED STOCK" -->
<DIV align="left"><A NAME="027"></A></DIV>
<P align="center"><FONT size="2">DESCRIPTION OF OUR PREFERRED STOCK
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Charter, our Board of Directors may from time to time establish
and issue one or more classes or series of Preferred Stock and fix the
designations, powers, preferences and rights of the shares of such classes or
series and the qualifications, limitations or restrictions thereon, including,
but not limited to, the fixing of the dividend rights, dividend rate or rates,
conversion rights, voting rights, rights and terms of redemption (including
sinking fund provisions) and the liquidation preferences.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description of our Preferred Stock sets forth certain
general terms and provisions of our Preferred Stock to which any prospectus
supplement may relate. The statements below describing the Preferred Stock are
in all respects subject to and qualified in their entirety by reference to the
applicable provisions of our Charter (including the applicable articles
supplementary) and bylaws.
</FONT>
<P align="left"><FONT size="2">GENERAL
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to limitations prescribed by Maryland law and our Charter, our
Board of Directors is authorized to fix the number of shares constituting each
class or series of Preferred Stock and the designations and powers, preferences
and relative, participating, optional or other special rights and
qualifications, limitations or restrictions thereof, including those provisions
as may be desired concerning voting, redemption, dividends, dissolution or the
distribution of assets, conversion or exchange, and those other subjects or
matters as may be fixed by resolution of our Board of Directors or duly
authorized committee thereof. Our Preferred Stock will, when issued, be fully
paid and non-assessable and will not have, or be subject to, any preemptive or
similar rights.
</FONT>
<P align="center"><FONT size="2">23</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should refer to the prospectus supplement relating to the class or
series of Preferred Stock offered thereby for specific terms, including:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The class or series, title and stated value of that Preferred
Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The number of shares of that Preferred Stock offered, the
liquidation preference per share and the offering price of that
Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The dividend rate(s), period(s) and/or payment date(s) or
method(s) of calculation thereof applicable to that Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(4)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Whether dividends on that Preferred Stock shall be cumulative
or not and, if cumulative, the date from which dividends on that
Preferred Stock shall accumulate;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(5)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The procedures for any auction and remarketing, if any, for
that Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(6)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Provisions for a sinking fund, if any, for that Preferred
Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(7)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Provisions for redemption, if applicable, of that Preferred
Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(8)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any listing of that Preferred Stock on any securities exchange;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(9)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The terms and conditions, if applicable, upon which that
Preferred Stock will be convertible into our Common Stock, including
the conversion price (or manner of calculation thereof);</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(10)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any voting rights;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(11)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The relative ranking and preference of the Preferred Stock as
to distribution rights and rights upon our liquidation, dissolution
or winding up if other than as described in this prospectus;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(12)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any limitations on issuance of any other series of Preferred
Stock ranking senior to or on a parity with the Preferred Stock as to
distribution rights and rights upon our liquidation, dissolution or
winding up;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(13)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">A discussion of certain federal income tax considerations
applicable to that Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(14)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any limitations on actual, beneficial or constructive ownership
and restrictions on transfer of that Preferred Stock and, if
convertible, the related Common Stock, in each case as may be
appropriate to preserve our status as a REIT; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(15)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any other material terms, preferences, rights, limitations or
restrictions of that Preferred Stock.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">RANK
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in the applicable prospectus supplement, the
Preferred Stock will, with respect to rights to the payment of dividends and
distribution of our assets and rights upon our liquidation, dissolution or
winding up, rank:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">senior to all classes or series of our Common Stock and excess
stock and to all of our equity securities the terms of which provide
that those equity securities are junior to the Preferred Stock;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">on a parity with all of our equity securities other than those
referred to in clauses (1)&nbsp;and (3); and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">junior to all of our equity securities the terms of which
provide that those equity securities will rank senior to it.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For these purposes, the term &#147;equity securities&#148; does not include
convertible debt securities.
</FONT>

<P align="center"><FONT size="2">24</FONT>




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<P align="left"><FONT size="2">DIVIDENDS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of shares of our Preferred Stock of each class or series shall be
entitled to receive, when, as and if authorized by our Board of Directors and
declared by us, out of our assets legally available for payment, cash dividends
at rates and on dates as will be set forth in the applicable prospectus
supplement. Each dividend shall be payable to holders of record as they appear
on our stock transfer books on the record dates as shall be fixed by our Board
of Directors.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on any class or series of our Preferred Stock may be cumulative
or non-cumulative, as provided in the applicable prospectus supplement.
Dividends, if cumulative, will accumulate from and after the date set forth in
the applicable prospectus supplement. If our Board of Directors fails to
authorize a dividend payable on a dividend payment date on any class or series
of our Preferred Stock for which dividends are non-cumulative, then the holders
of that class or series of our Preferred Stock will have no right to receive a
dividend in respect of the dividend period ending on that dividend payment
date, and we will have no obligation to pay the dividend accrued for that
period, whether or not dividends on that class or series are declared payable
on any future dividend payment date.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in the applicable prospectus supplement, if any
shares of our Preferred Stock of any class or series are outstanding, no full
dividends shall be authorized or paid or set apart for payment on our Preferred
Stock of any other class or series ranking, as to dividends, on a parity with
or junior to the Preferred Stock of that class or series for any period unless:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if that class or series of Preferred Stock has a cumulative
dividend, full cumulative dividends have been or contemporaneously
are authorized and paid or authorized and a sum sufficient for the
payment thereof set apart for that payment on the Preferred Stock of
that class or series for all past dividend periods and the then
current dividend period, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if that class or series of Preferred Stock does not have a
cumulative dividend, full dividends for the then current dividend
period have been or contemporaneously are authorized and paid or
authorized and a sum sufficient for the payment thereof set apart for
that payment on the Preferred Stock of that class or series.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in the applicable prospectus supplement, when
dividends are not paid in full (or a sum sufficient for their full payment is
not so set apart) upon the shares of Preferred Stock of any class or series and
the shares of any other class or series of Preferred Stock ranking on a parity
as to dividends with the Preferred Stock of that class or series, all dividends
declared upon shares of Preferred Stock of that class or series and any other
class or series of Preferred Stock ranking on a parity as to dividends with
that Preferred Stock shall be authorized pro rata so that the amount of
dividends authorized per share on the Preferred Stock of that class or series
and that other class or series of Preferred Stock shall in all cases bear to
each other the same ratio that accrued and unpaid dividends per share on the
shares of Preferred Stock of that class or series (which shall not include any
accumulation in respect of unpaid dividends for prior dividend periods if that
Preferred Stock does not have a cumulative dividend) and that other class or
series of Preferred Stock bear to each other. No interest, or sum of money in
lieu of interest, shall be payable in respect of any dividend payment or
payments on Preferred Stock of that series that may be in arrears.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in the immediately preceding paragraph or as otherwise
provided in the applicable prospectus supplement, unless: (1)&nbsp;if that class or
series of Preferred Stock has a cumulative dividend, full cumulative dividends
on the Preferred Stock of that class or series have been or contemporaneously
are authorized and paid or authorized and a sum sufficient for the payment
thereof set apart for payment for all past dividend periods and the then
current dividend period; and (2)&nbsp;if that class or series of Preferred Stock
does not have a cumulative dividend, full dividends on the Preferred Stock of
that class or series have been or contemporaneously are authorized and paid or
authorized and a sum sufficient for the payment thereof set aside for payment
for the then current dividend period, then no dividends (other than in our
Common Stock or other stock ranking junior to the Preferred Stock of that class
or series as to dividends and upon our liquidation, dissolution or winding up)
shall be authorized or paid or set aside for payment or other distribution
shall be authorized or made upon our Common Stock, excess stock or any of our
other stock ranking junior to or on a parity with the Preferred Stock of that
class or series as to dividends or upon liquidation, nor shall any Common
Stock, excess stock or any of our other stock ranking junior to or on a parity
with the Preferred Stock of such class or series as to dividends or upon our
liquidation, dissolution or winding up be redeemed, purchased or otherwise
acquired for any consideration (or any moneys be paid to or made available for
a sinking fund for the redemption of any shares of that stock) by us (except by
conversion into or exchange for other of
</FONT>
<P align="center"><FONT size="2">25</FONT>
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<P align="left"><FONT size="2">our stock ranking junior to the
Preferred Stock of that class or series as to dividends and upon our
liquidation, dissolution or winding up).
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any dividend payment made on shares of a class or series of Preferred
Stock shall first be credited against the earliest accrued but unpaid dividend
due with respect to shares of that class or series which remains payable.
</FONT>
<P align="left"><FONT size="2">REDEMPTION
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the applicable prospectus supplement so states, the shares of Preferred
Stock will be subject to mandatory redemption or redemption at our option, in
whole or in part, in each case on the terms, at the times and at the redemption
prices set forth in that prospectus supplement.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus supplement relating to a class or series of Preferred Stock
that is subject to mandatory redemption will specify the number of shares of
that Preferred Stock that shall be redeemed by us in each year commencing after
a date to be specified, at a redemption price per share to be specified,
together with an amount equal to all accrued and unpaid dividends thereon
(which shall not, if that Preferred Stock does not have a cumulative dividend,
include any accumulation in respect of unpaid dividends for prior dividend
periods) to the date of redemption. The redemption price may be payable in cash
or other property, as specified in the applicable prospectus supplement. If the
redemption price for Preferred Stock of any series is payable only from the net
proceeds of the issuance of our stock, the terms of that Preferred Stock may
provide that, if no such stock shall have been issued or to the extent the net
proceeds from any issuance are insufficient to pay in full the aggregate
redemption price then due, that Preferred Stock shall automatically and
mandatorily be converted into shares of our applicable stock pursuant to
conversion provisions specified in the applicable prospectus supplement.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing and except as otherwise specified in the
applicable prospectus supplement, unless:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if that class or series of Preferred Stock has a cumulative
dividend, full cumulative dividends on all shares of any class or
series of Preferred Stock shall have been or contemporaneously are
authorized and paid or authorized and a sum sufficient for the
payment thereof set apart for payment for all past dividend periods
and the then current dividend period; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if that class or series of Preferred Stock does not have a
cumulative dividend, full dividends on the Preferred Stock of any
class or series have been or contemporaneously are authorized and
paid or authorized and a sum sufficient for the payment thereof set
apart for payment for the then current dividend period;</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">no shares of any class or series of Preferred Stock shall be redeemed unless
all outstanding shares of Preferred Stock of that class or series are
simultaneously redeemed; provided, however, that the foregoing shall not
prevent the purchase or acquisition of shares of Preferred Stock of that class
or series pursuant to a purchase or exchange offer made on the same terms to
holders of all outstanding shares of Preferred Stock of that class or series.
</FONT>
<P align="center"><FONT size="2">26</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If fewer than all of the outstanding shares of Preferred Stock of any
class or series are to be redeemed, the number of shares to be redeemed will be
determined by us and those shares may be redeemed pro rata from the holders of
record of those shares in proportion to the number of those shares held by
those holders (with adjustments to avoid redemption of fractional shares) or
any other equitable method determined by us that will not result in the
issuance of any excess Preferred Stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice of redemption will be mailed at least 30&nbsp;days but not more than 60
days before the redemption date to each holder of record of a share of
Preferred Stock of any class or series to be redeemed at the address shown on
our stock transfer books. Each notice shall state:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the redemption date;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the number of shares and class or series of the Preferred Stock
to be redeemed;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the redemption price;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(4)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the place or places where certificates for that Preferred Stock
are to be surrendered for payment of the redemption price;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(5)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">that dividends on the shares to be redeemed will cease to
accrue on that redemption date; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(6)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the date upon which the holder&#146;s conversion rights, if any, as
to those shares shall terminate.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If fewer than all the shares of Preferred Stock of any class or series are
to be redeemed, the notice mailed to each holder thereof shall also specify the
number of shares of Preferred Stock to be redeemed from each holder. If notice
of redemption of any shares of Preferred Stock has been given and if the funds
necessary for that redemption have been set apart by us in trust for the
benefit of the holders of any shares of Preferred Stock so called for
redemption, then from and after the redemption date dividends will cease to
accrue on those shares of Preferred Stock, those shares of Preferred Stock
shall no longer be deemed outstanding and all rights of the holders of those
shares will terminate, except the right to receive the redemption price.
</FONT>
<P align="left"><FONT size="2">LIQUIDATION PREFERENCE
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon our voluntary or involuntary liquidation, dissolution or winding up,
then, before any distribution or payment shall be made to the holders of any
Common Stock, excess stock or any other class or series of our stock ranking
junior to that class or series of Preferred Stock in the distribution of assets
upon our liquidation, dissolution or winding up, the holders of each class or
series of Preferred Stock shall be entitled to receive out of our assets
legally available for distribution to stockholders liquidating distributions in
the amount of the liquidation preference per share (set forth in the applicable
prospectus supplement), plus an amount equal to all dividends accrued and
unpaid thereon (which shall not include any accumulation in respect of unpaid
dividends for prior dividend periods if that class or series of Preferred Stock
does not have a cumulative dividend). After payment of the full amount of the
liquidating distributions to which they are entitled, the holders of that class
or series of Preferred Stock will have no right or claim to any of our
remaining assets. If, upon our voluntary or involuntary liquidation,
dissolution or winding up, our legally available assets are insufficient to pay
the amount of the liquidating distributions on all outstanding shares of that
class or series of Preferred Stock and the corresponding amounts payable on all
shares of other classes or series of our stock ranking on a parity with that
class or series of Preferred Stock in the distribution of assets upon our
liquidation, dissolution or winding up, then the holders of that class or
series of Preferred Stock and all other classes or series of stock shall share
ratably in that distribution of assets in proportion to the full liquidating
distributions to which they would otherwise be respectively entitled.
</FONT>
<P align="center"><FONT size="2">27</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If liquidating distributions shall have been made in full to all holders
of shares of that class or series of Preferred Stock, our remaining assets
shall be distributed among the holders of any other classes or series of stock
ranking junior to that class or series of Preferred Stock upon our liquidation,
dissolution or winding up, according to their respective rights and preferences
and in each case according to their respective number of shares. For those
purposes, neither our consolidation or merger with or into any other
corporation, trust or other entity nor the sale, lease, transfer or conveyance
of all or substantially all of our property or business shall be deemed to
constitute our liquidation, dissolution or winding up.
</FONT>
<P align="left"><FONT size="2">VOTING RIGHTS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth below or as otherwise indicated in the applicable
prospectus supplement, holders of Preferred Stock will not have any voting
rights.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever dividends on any shares of that class or series of Preferred
Stock shall be in arrears for 18&nbsp;months or six or more quarterly periods, the
holders of those shares of that class or series of Preferred Stock (voting
separately as a class with all other classes or series of Preferred Stock upon
which like voting rights have been conferred and are exercisable) will be
entitled to vote for the election of two additional directors to our Board of
Directors (and our entire Board of Directors will be increased by two
directors) at a special meeting called by one of our officers at the request of
a holder of that class or series of Preferred Stock or, if that special meeting
is not called by that officer within 30&nbsp;days, at a special meeting called by a
holder of that class or series of Preferred Stock designated by the holders of
record of at least 10% of the shares of any of those classes or series of
Preferred Stock (unless that request is received less than 90&nbsp;days before the
date fixed for the next annual or special meeting of the stockholders), or at
the next annual meeting of stockholders, and at each subsequent annual meeting
until:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if that class or series of Preferred Stock has a cumulative
dividend, then all dividends accumulated on those shares of Preferred
Stock for the past dividend periods and the then current dividend
period shall have been fully paid or declared and a sum sufficient
for the payment thereof set apart for payment, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if that class or series of Preferred Stock does not have a
cumulative dividend, then four consecutive quarterly periods of
dividends shall have been fully paid or declared and a sum sufficient
for the payment thereof set apart for payment.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless provided otherwise for any series of Preferred Stock, so long as
any shares of Preferred Stock remain outstanding, we shall not, without the
affirmative vote or consent of the holders of at least two-thirds of the shares
of each class or series of Preferred Stock outstanding at the time, given in
person or by proxy, either in writing or at a meeting (that class or series
voting separately as a class),
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">authorize or create, or increase the authorized or issued
amount of, any class or series of stock ranking senior to that class
or series of Preferred Stock with respect to payment of dividends or
the distribution of assets upon our liquidation, dissolution or
winding up or reclassify any of our authorized stock into those
shares, or create, authorize or issue any obligation or security
convertible into or evidencing the right to purchase those shares; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">amend, alter or repeal the provisions of the charter in respect
of that class or series of Preferred Stock, whether by merger,
consolidation or otherwise, so as to materially and adversely affect
any right, preference, privilege or voting power of that class or
series of Preferred Stock; provided, however, that any increase in
the amount of the authorized Preferred Stock or the creation or
issuance of any other class or series of Preferred Stock, or any
increase in the number of authorized shares of that class or series,
in each case ranking on a parity with or junior to the Preferred
Stock of that class or series with respect to payment of dividends
and the distribution of assets upon liquidation, dissolution or
winding up, shall not be deemed to materially and adversely affect
those rights, preferences, privileges or voting powers.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">28</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing voting provisions will not apply if, at or prior to the time
when the act with respect to which that vote would otherwise be required shall
be effected, all outstanding shares of that class or series of Preferred Stock
shall have been redeemed or called for redemption upon proper notice and
sufficient funds shall have been irrevocably deposited in trust to effect that
redemption.
</FONT>
<P align="left"><FONT size="2">CONVERSION RIGHTS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions, if any, upon which shares of any class or series
of Preferred Stock are convertible into Common Stock, debt securities or
another series of Preferred Stock will be set forth in the applicable
prospectus supplement relating thereto. Such terms will include the number of
shares of Common Stock or those other series of Preferred Stock or the
principal amount of debt securities into which the Preferred Stock is
convertible, the conversion price (or manner of calculation thereof), the
conversion period, provisions as to whether conversion will be at our option or
at the option of the holders of that class or series of Preferred Stock, the
events requiring an adjustment of the conversion price and provisions affecting
conversion in the event of the redemption of that class or series of Preferred
Stock.
</FONT>
<!-- link1 "RESTRICTIONS ON OWNERSHIP AND TRANSFER" -->
<DIV align="left"><A NAME="028"></A></DIV>
<P align="center"><FONT size="2">RESTRICTIONS ON OWNERSHIP AND TRANSFER
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to other qualifications, for us to qualify as a REIT, (1)&nbsp;not
more than 50% in value of our outstanding capital stock may be owned, actually
or constructively, by five or fewer individuals during the last half of our
taxable year, and (2)&nbsp;such capital stock must be beneficially owned by 100 or
more persons during at least 335&nbsp;days of a taxable year of 12&nbsp;months or during
a proportionate part of a shorter taxable year.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To ensure that we continue to meet the requirements for qualification as a
REIT, our Charter, subject to some exceptions, provides that no holder may own,
or be deemed to own by virtue of the attribution provisions of the Code, shares
of our capital stock in excess of 9.8% (ownership limit) of the number of then
outstanding shares of capital stock. Our Board of Directors may waive the
ownership limit with respect to a stockholder if evidence satisfactory to the
Board of Directors and our tax counsel is presented that the changes in
ownership will not then or in the future jeopardize our status as a REIT. Any
transfer of capital stock or any security convertible into capital stock that
would result in actual or constructive ownership of capital stock by a
stockholder in excess of the ownership limit or that would result in our
failure to meet the requirements for qualification as a REIT, including any
transfer that results in the capital stock being owned by fewer than 100
persons or results in our company being &#147;closely held&#148; within the meaning of
section 856(h) of the Code, not withstanding any provisions of our Charter to
the contrary, will be null and void, and the intended transferee will acquire
no rights to the capital stock. The foregoing restrictions on transferability
and ownership will not apply if the Board of Directors determines that it is no
longer in our best interest to attempt to qualify, or to continue to qualify,
as a REIT.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any shares of our capital stock held by a stockholder in excess of the
applicable ownership limit become &#147;Excess Shares&#148;. Upon shares of any class or
series of capital stock becoming Excess Shares, such shares will be deemed
automatically to have been converted into a class separate and distinct from
their original class and from any other class of Excess Shares. Upon any
outstanding Excess Shares ceasing to be Excess Shares, such shares will be
automatically reconverted back into shares of their original class or series of
capital stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holder of Excess Shares will not be entitled to vote the Excess Shares
nor will such Excess Shares be considered issued and outstanding for purposes
of any stockholder vote or the determination of a quorum for such vote. The
Board of Directors, in its sole discretion, may choose to accumulate all
distributions and dividends payable upon the Excess Shares of any particular
holder in a non-interest bearing escrow account payable to the holder of the
Excess Shares upon such Excess Shares ceasing to be Excess Shares.
</FONT>
<P align="center"><FONT size="2">29</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we will have the right to redeem all or any portion of the
Excess Shares from the holder at the redemption price, which will be the
average market price (as determined in the manner set forth in the Charter) of
the capital stock for the prior 30&nbsp;days from the date we give notice of our
intent to redeem such Excess Shares, or as determined by the Board of Directors
in good faith. The redemption price will only be payable upon the liquidation
of our company and will not exceed the sum of the per share distributions
designated as liquidating distributions declared subsequent to the redemption
date with respect to unredeemed shares of record of the class from which such
Excess Shares were converted. We will rescind the redemption of the Excess
Shares in the event that within 30&nbsp;days of the redemption date, due to a sale
of shares by the holder, such holder would not be the holder of Excess Shares,
unless such rescission would jeopardize our tax status as a REIT or would be
unlawful in any regard.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each stockholder will upon demand be required to disclose to us in writing
any information with respect to the actual and constructive ownership of shares
of our capital stock as our Board of Directors deems necessary to comply with
the provisions of the Code applicable to REITs, to comply with the
requirements of any taxing authority or governmental agency or to determine any
such compliance.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ownership limit may have the effect of precluding the acquisition of
control of our company unless the Board of Directors determines that
maintenance of REIT status is no longer in our best interests.
</FONT>
<!-- link1 "CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS" -->
<DIV align="left"><A NAME="029"></A></DIV>
<P align="center"><FONT size="2">CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description of certain provisions of Maryland law and of our
Charter and bylaws is only a summary. For a complete description, we refer you
to Maryland law, our Charter and our bylaws. We have incorporated by reference
our Charter and bylaws as exhibits to the registration statement of which this
prospectus is a part.
</FONT>
<P align="left"><FONT size="2">BOARD OF DIRECTORS &#150; NUMBER AND VACANCIES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bylaws provide that the number of our directors shall be six unless a
majority of the members of our Board of Directors establishes some other number
not less than three and not more than nine. Our Board of Directors is
currently comprised of five directors. Our bylaws also provide, that
notwithstanding the preceding sentence, upon the occurrence of a default in the
payment of dividends on any class or series of our Preferred Stock, or any
other event, which would entitle the holders of any class or series of our
Preferred Stock to elect additional directors to our Board of Directors, the
number of our directors will thereupon be increased by the number of additional
directors to be elected by the holders of such class or series of our Preferred
Stock (even if the resulting number of directors is more than nine), and such
increase in the number of directors shall remain in effect for so long as the
holders of such class or series of our Preferred Stock are entitled to elect
such additional directors.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bylaws provide that a vacancy on our Board of Directors which arises
through the death, resignation or removal of a director or as a result of an
increase by our Board of Directors in the number of directors may be filled by
the vote of a majority of the remaining directors even if such majority is less
than a quorum, and a director so elected by our Board of Directors to fill a
vacancy shall serve until the next annual meeting of our stockholders and until
his successor shall be duly elected and qualified. Our stockholders may elect
a successor to fill a vacancy on our Board of Directors which results from the
removal of a director.
</FONT>
<P align="left"><FONT size="2">REMOVAL OF DIRECTORS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Maryland law, our stockholders may remove any director, with or
without cause, by the affirmative vote of a majority of all the votes entitled
to be cast generally for the election of our directors except in certain
circumstances specified in the statute which do not apply.
</FONT>
<P align="center"><FONT size="2">30</FONT>
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<P align="left"><FONT size="2">BUSINESS COMBINATIONS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Maryland law, &#147;business combinations&#148; between a Maryland corporation
and an interested stockholder or an affiliate of an interested stockholder are
prohibited for five years after the most recent date on which the interested
stockholder becomes an interested stockholder. These business combinations
include a merger, consolidation, share exchange, or, in circumstances specified
in the statute, an asset transfer or issuance or reclassification of equity
securities. An interested stockholder is defined as:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any person who beneficially owns ten percent or more of the
voting power of the corporation&#146;s shares; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">an affiliate or associate of the corporation who, at any time
within the two-year period prior to the date in question, was the
beneficial owner of ten percent or more of the voting power of the
then outstanding voting stock of the corporation.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person is not an interested stockholder under the statute if the board
of directors approved in advance the transaction by which such person otherwise
would have become an interested stockholder. In approving such a transaction,
however, the board of directors may provide that its approval is subject to
compliance, at or after the time of approval, with any terms and conditions
determined by the board.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After the five-year prohibition, any business combination between the
Maryland corporation and an interested stockholder generally must be
recommended by the board of directors of the corporation and approved by the
affirmative vote of at least:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">80% of the votes entitled to be cast by holders of outstanding
shares of voting stock of the corporation, voting together as a
single voting group; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">two-thirds of the votes entitled to be cast by holders of
voting stock of the corporation other than voting stock held by the
interested stockholder with whom or with whose affiliate the business
combination is to be effected or held by an affiliate or associate of
the interested stockholder.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These super-majority vote requirements do not apply if the corporation&#146;s
common stockholders receive a minimum price, as defined under Maryland law, for
their shares in the form of cash or other consideration in the same form as
previously paid by the interested stockholder for its shares.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The statute permits various exemptions from its provisions, including
business combinations that are exempted by the board of directors before the
time that the interested stockholder becomes an interested stockholder.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business combination statute may discourage others from trying to
acquire control of us and increase the difficulty of consummating any offer.
</FONT>
<P align="left"><FONT size="2">CONTROL SHARE ACQUISITIONS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law provides that control shares of a Maryland corporation
acquired in a control share acquisition have no voting rights except to the
extent approved by a vote of two-thirds of the votes entitled to be cast on the
matter. Shares owned by the acquiror, by officers or by directors who are
employees of the corporation are excluded from shares entitled to vote on the
matter. Control shares are voting shares of stock which, if aggregated with
all other shares of stock owned by the acquiror or in respect of which the
acquiror is able to exercise or direct the exercise of voting power (except
solely by virtue of a revocable proxy), would entitle the acquiror to exercise
voting power in electing directors within one of the following ranges of voting
power:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">one-tenth or more but less than one-third,</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">31</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">one-third or more but less than a majority, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a majority or more of all voting power.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control shares do not include shares the acquiring person is then entitled
to vote as a result of having previously obtained stockholder approval. A
control share acquisition means the acquisition of control shares, subject to
certain exceptions.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person who has made or proposes to make a control share acquisition may
compel the board of directors of the corporation to call a special meeting of
stockholders to be held within 50&nbsp;days of demand to consider the voting rights
of the shares. The right to compel the calling of a special meeting is subject
to the satisfaction of certain conditions, including an undertaking to pay the
expenses of the meeting. If no request for a meeting is made, the corporation
may itself present the question at any stockholders meeting.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If voting rights are not approved at the meeting or if the acquiring
person does not deliver an acquiring person statement as required by the
statute, then the corporation may redeem for fair value any or all of the
control shares, except those for which voting rights have previously been
approved. The right of the corporation to redeem control shares is subject to
certain conditions and limitations. Fair value is determined, without regard
to the absence of voting rights for the control shares, as of the date of the
last control share acquisition by the acquiror or of any meeting of
stockholders at which the voting rights of the shares are considered and not
approved. If voting rights for control shares are approved at a stockholders
meeting and the acquiror becomes entitled to vote a majority of the shares
entitled to vote, all other stockholders may exercise appraisal rights. The
fair value of the shares as determined for purposes of appraisal rights may not
be less than the highest price per share paid by the acquiror in the control
share acquisition.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The control share acquisition statute does not apply (a)&nbsp;to shares
acquired in a merger, consolidation or share exchange if the corporation is a
party to the transaction, or (b)&nbsp;to acquisitions approved or exempted by the
charter or bylaws of the corporation.
</FONT>
<P align="left"><FONT size="2">AMENDMENT TO THE CHARTER
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of any class or series of our capital stock at
the time outstanding, any amendment to our Charter must be approved by our
stockholders by the affirmative vote of not less than two thirds of all of the
votes entitled to be cast on the matter.
</FONT>
<P align="left"><FONT size="2">DISSOLUTION OF LTC PROPERTIES, INC.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dissolution of our company must be approved by our stockholders by the
affirmative vote of not less than two thirds of all of the votes entitled to be
cast on the matter.
</FONT>
<P align="left"><FONT size="2">ADVANCE NOTICE OF DIRECTOR NOMINATIONS AND NEW BUSINESS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bylaws provide that with respect to an annual meeting of stockholders,
nominations of persons for election to the Board of Directors and the proposal
of business to be considered by stockholders may be made only (i)&nbsp;by, or at the
direction of, a majority of the Board of Directors or a duly authorized
committee thereof or (ii)&nbsp;by any holder of record (both as of the time notice
of such nomination or matter is given by the stockholder as set forth in our
bylaws and as of the record date for the annual meeting in question) of any
shares of our capital stock entitled to vote at such annual meeting who
complies with the notice procedures set forth in our bylaws. Any stockholder
who seeks to make such a nomination or to bring any matter before an annual
meeting, or his representative, must be present in person at the annual
meeting.
</FONT>
<P align="center"><FONT size="2">32</FONT>
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<P align="left"><FONT size="2">ANTI-TAKEOVER EFFECT OF CERTAIN PROVISIONS OF MARYLAND LAW AND OF THE CHARTER
AND BYLAWS
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The business combination provisions and the control share acquisition
provisions of Maryland law, the advance notice provisions of our bylaws, our
stockholder rights plan and certain other provisions of Maryland law and our
Charter and bylaws could delay, defer or prevent a transaction or a change in
control of our company that might involve a premium price for holders of our
Common Stock or otherwise be in their best interest. See &#147;Risk
Factors &#150; Certain Provisions of Maryland Law and our Charter and Bylaws as well as
Stockholder Rights Plan Could Hinder, Delay Or Prevent Changes in Control.&#148;
</FONT>
<!-- link1 "CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS" -->
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<P align="center"><FONT size="2">CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS
</FONT>

<P align="left"><FONT size="2">GENERAL
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of the federal income tax considerations to us
which are anticipated to be material to purchasers of the securities to which
any prospectus supplement may relate. In addition this summary does not
discuss any state or local income taxation or foreign income taxation or other
tax consequences. This summary is based on current law, is for general
information only and is not tax advice. Your tax treatment will vary depending
upon the terms of the specific securities that you acquire, as well as your
particular situation. The material federal income tax considerations relevant
to your ownership of the securities to which any prospectus supplement may
relate will be provided in the applicable prospectus supplement relating to the
particular securities being offered.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in this section is based on:
</FONT>
<P>
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    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the Internal Revenue Code (or the Code);</FONT></TD>
</TR>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">current, temporary and proposed Treasury regulations promulgated under the Code;</FONT></TD>
</TR>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the legislative history of the Code;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">current administrative interpretations and practices of the Internal Revenue Service; and</FONT></TD>
</TR>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">court decisions,</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">in each case, as of the date of this prospectus. Future legislation, Treasury
regulations, administrative interpretations and practices and/or court
decisions may adversely affect the tax considerations contained in this
discussion or the desirability of an investment in a REIT relative to other
investments. Any change could apply retroactively to transactions preceding
the date of the change. Except as described below, we have not requested, and
do not plan to request, any rulings from the Internal Revenue Service
concerning our tax treatment, and the statements in this prospectus are not
binding on the Internal Revenue Service or any court. Thus, we can provide no
assurance that the tax considerations contained in this discussion will not be
challenged by the Internal Revenue Service or if challenged, will not be
sustained by a court.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are advised to consult any applicable prospectus supplement, as well
as your own tax advisor, regarding the tax consequences to you of the
acquisition, ownership and sale of the securities to which any applicable
prospectus supplement may relate, including the federal, state, local, foreign
and other tax consequences.
</FONT>
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<P align="left"><FONT size="2">CERTAIN INCOME TAX CONSIDERATIONS RELATING TO OUR REIT ELECTION
</FONT>

<P align="left"><FONT size="2">Taxation of a REIT</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have elected to be taxed as a REIT under Sections&nbsp;856 through 860 of
the Code. We believe that we have been organized and have operated in such a
manner as to qualify for taxation as a REIT under the Code commencing with our
taxable year ending December&nbsp;31, 1992. We intend to continue to operate in
such a manner, but there is no assurance that we have operated or will continue
to operate in a manner so as to qualify or remain qualified.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a condition to the closing of each offering of any securities specified
in any prospectus supplement, our tax counsel will render an opinion to the
underwriters of that offering to the effect that, commencing with our taxable
year beginning January&nbsp;1, 1992, we have been organized in conformity with the
requirements for qualification as a REIT, and our method of operation will
enable us to meet the requirements for continued qualification and taxation as
a REIT under the Code. It must be emphasized that this opinion will be based
on various factual assumptions relating to our organization and operation, and
is conditioned upon certain representations which will be made by us as to
factual matters. Our tax counsel will have no obligation to update its opinion
subsequent to its date. In addition, this opinion will be based upon our
factual representations concerning our business and properties as set forth in
this prospectus and any applicable prospectus supplement. Moreover, our
qualification and taxation as a REIT depends upon our ability to meet, through
actual annual operating results, distribution levels, diversity of share
ownership and the various qualification tests imposed under the Code, the
results of which have not been and will not be reviewed by our tax counsel.
Accordingly, no assurance can be given that our actual results of operation for
any particular taxable year will satisfy such requirements. Further, the
anticipated income tax treatment as discussed in our annual report on Form&nbsp;10-K
for the year ended December&nbsp;31, 2002 and this prospectus may be changed,
perhaps retroactively, by legislative or administrative action at any time.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we continue to qualify for taxation as a REIT, we generally will not be
subject to federal corporate income taxes on our net income that is currently
distributed to our stockholders. This treatment substantially eliminates the
&#147;double taxation&#148; (once at the corporate level when earned and once at
stockholder level when distributed) that generally results from investment in a
non-REIT corporation.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;28, 2003, President Bush signed into law the Jobs and Growth Tax
Relief Reconciliation Act of 2003. The Jobs and Growth Tax Relief
Reconciliation Act of 2003 generally will reduce the maximum tax rate
applicable to you on capital gains recognized on the sale or other disposition
of shares of our stock from 20% to 15%.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Jobs and Growth Tax Relief Reconciliation Act of 2003 also generally
will reduce the maximum marginal rate of tax payable by individuals on
dividends received from corporations that are subject to a corporate level of
tax. Except in limited circumstances, this reduced tax rate will not apply to
dividends paid to you by us on shares of our stock, because generally we are
not subject to federal income tax on the portion of our REIT taxable income or
capital gains distributed to our stockholders. The reduced maximum federal
income tax rate will apply to that portion, if any, of dividends received by
you with respect to shares of our stock held by you that are attributable to
(1)&nbsp;dividends received by us from non-REIT corporations or other taxable REIT
subsidiaries, (2)&nbsp;income from the prior year with respect to which we were
required to pay federal corporate income tax during the prior year (if, for
example, we did not distribute 100% of our REIT taxable income for the prior
year) and (3)&nbsp;distributions by us that we designate as long-term capital gains
dividends (except for some distributions taxable to you at a maximum rate of
25%).
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividend and capital gains tax rate reductions provided in the Jobs
and Growth Tax Relief Reconciliation Act of 2003 generally are effective for
taxable years ending on or after May&nbsp;6, 2003 through December&nbsp;31, 2008.
Without future legislative changes, the maximum long-term capital gains and
dividend rates discussed above will increase in 2009.
</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, we will be subject to federal income tax as follows:
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First, we will be taxed at regular corporate rates on any undistributed
taxable income, including undistributed net capital gains.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second, under certain circumstances, we may be subject to the alternative
minimum tax, if our dividend distributions are less than our alternative
minimum taxable income.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third, if we have (i)&nbsp;net income from the sale or other disposition of
foreclosure property which is held primarily for sale to customers in the
ordinary course of business or (ii)&nbsp;other non-qualifying income from
foreclosure property, we may elect to be subject to tax at the highest
corporate rate on such income, if necessary to maintain our REIT status.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fourth, if we have net income from prohibited transactions (which are, in
general, certain sales or other dispositions of property (other than
foreclosure property) held primarily for sale to customers in the ordinary
course of business), such income will be subject to a 100% tax.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fifth, if we fail to satisfy the 75% gross income test or the 95% gross
income test (as discussed below), but nonetheless maintain our qualification as
a REIT because certain other requirements have been met, we will be subject to
a 100% tax on an amount equal to (a)&nbsp;the gross income attributable to the
greater of the amount by which we fail the 75% or 95% test multiplied by (b)&nbsp;a
fraction intended to reflect our profitability.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sixth, if we fail to distribute during each calendar year at least the sum
of (i)&nbsp;85% of our ordinary income for such year, (ii)&nbsp;95% of our REIT capital
gain net income for such year, and (iii)&nbsp;any undistributed taxable income from
prior periods, we will be subject to a 4% excise tax on the excess of such
required distribution over the amounts actually distributed.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seventh, if we acquire an asset which meets the definition of a built-in
gain asset from a corporation which is or has been a C corporation (i.e.,
generally a corporation subject to full corporate-level tax) in certain
transactions in which the basis of the built-in gain asset in our hands is
determined by reference to the basis of the asset in the hands of the C
corporation, and if we subsequently recognize gain on the disposition of such
asset during the ten-year period, called the recognition period, beginning on
the date on which we acquired the asset, then, to the extent of the built-in
gain (i.e., the excess of (a)&nbsp;the fair market value of such asset over (b)&nbsp;our
adjusted basis in such asset, both determined as of the beginning of the
recognition period), such gain will be subject to tax at the highest regular
corporate tax rate, pursuant to IRS regulations.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eighth, if we have taxable REIT subsidiaries, we will also be subject to a
tax of 100% on the amount of any rents from real property, deductions or excess
interest paid to us by any of our taxable REIT subsidiaries that would be
reduced through reapportionment under certain federal income tax principles in
order to more clearly reflect income for the taxable REIT subsidiary.
</FONT>
<P align="left"><FONT size="2">Requirements for Qualification. The Code defines a REIT as a corporation,
trust or association:
</FONT>
<P>
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    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">which is managed by one or more trustees or directors;</FONT></TD>
</TR>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the beneficial ownership of which is evidenced by transferable
shares, or by transferable certificates of beneficial interest;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">which would be taxable, but for Sections&nbsp;856 through 860 of the Code,
as a domestic corporation;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="1%" align="left" nowrap><FONT size="2">(4)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">which is neither a financial institution; nor, an insurance company
subject to certain provisions of the Code;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">35</FONT>
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<P>
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    <TD width="1%" align="left" nowrap><FONT size="2">(5)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the beneficial ownership of which is held by 100 or more persons;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(6)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">during the last half of each taxable year not more than 50% in
value of the outstanding stock of which is owned, actually or
constructively, by five or fewer individuals (including specified
entities); and</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(7)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">which meets certain other tests, described below, regarding the
amount of its distributions and the nature of its income and assets.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Code provides that conditions (1)&nbsp;to (4), inclusive, must be met
during the entire taxable year and that condition (5)&nbsp;must be met during at
least 335&nbsp;days of a taxable year of 12&nbsp;months, or during a proportionate part
of a taxable year of less than 12&nbsp;months. For purposes of conditions (5)&nbsp;and
(6), pension funds and certain other tax-exempt entities are treated as
individuals, subject to a &#147;look-through&#148; exception in the case of condition
(6). Pursuant to applicable Treasury Regulations, in order to be able to elect
to be taxed as a REIT, we must maintain certain records and request certain
information from our stockholders designed to disclose the actual ownership of
our stock. Based on publicly available information, we believe we have
satisfied the share ownership requirements set forth in (5)&nbsp;and (6)&nbsp;above. In
addition, Sections&nbsp;9.2 and 9.3 of our Charter provides for restrictions
regarding transfer and ownership of shares. These restrictions are intended
to assist us in continuing to satisfy the share ownership requirements
described in (5)&nbsp;and (6)&nbsp;above. These restrictions, however, may not ensure
that we will, in all cases, be able to satisfy the share ownership requirements
described in (5)&nbsp;and (6)&nbsp;above.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have complied with, and will continue to comply with, regulatory rules
to send annual letters to certain of our stockholders requesting information
regarding the actual ownership of our stock. If despite sending the annual
letters, we no not know, or after exercising reasonable diligence would not
have known, whether we failed to meet the Five or Fewer Requirement, we will be
treated as having met the Five or Fewer Requirement. If we fail to comply with
these regulatory rules, we will be subject to a monetary penalty. If our
failure to comply was due to intentional disregard of the requirement, the
penalty would be increased. However, if our failure to comply was due to
reasonable cause and not willful neglect, no penalty would be imposed.
</FONT>
<P align="left"><FONT size="2">Income Tests. There presently are two gross income requirements that we must
satisfy to qualify as a REIT:
</FONT>
<P>
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    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">First, at least 75% of our gross income (excluding gross income
from &#147;prohibited transactions,&#148; as defined below) for each taxable
year must be derived directly or indirectly from investments relating
to real property or mortgages on real property, including rents from
real property, or from certain types of temporary investment income.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Second, at least 95% of our gross income for each taxable year
must be directly or indirectly derived from income that qualifies
under the 75% test or from dividends (including dividends from
taxable REIT subsidiaries), interest and gain from the sale or other
disposition of stock or securities and payments to us under an
interest rate swap, cap agreement, option, futures contract, forward
rate agreement or any similar financial instrument entered into by us
to hedge indebtedness incurred or to be incurred.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of indebtedness income generated by us is not taken into
account in applying the 75% and 95% income tests discussed above. A
&#147;prohibited transaction&#148; is a sale or other disposition of property (other than
foreclosure property) held for sale to customers in the ordinary course of
business. Any gain realized from a prohibited transaction is subject to a 100%
penalty tax.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rents received by us will qualify as &#147;rents from real property&#148; for
purposes of satisfying the gross income tests for a REIT only if several
conditions are met:
</FONT>
<P>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The amount of rent must not be based in whole or in part on the
income or profits of any person, although rents generally will not be
excluded merely because they are based on a fixed percentage or
percentages of receipts or sales.</FONT></TD>
</TR>
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<P>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Rents received from a tenant will not qualify as rents from
real property if the REIT, or an owner of 10% or more of the REIT,
also directly or constructively owns 10% or more of the tenant,
unless the tenant is our taxable REIT subsidiary and certain other
requirements are met with respect to the real property being rented.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">If rent attributable to personal property leased in connection
with a lease of real property is greater than 15% of the total rent
received under the lease, then the portion of rent attributable to
the personal property will not qualify as &#147;rents from real property.&#148;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">For rents to qualify as rents from real property, we generally
must not furnish or render services to tenants, other than through a
taxable REIT subsidiary or an &#147;independent contractor&#148; from whom we
derive no income, except that we may directly provide services that
are &#147;usually or customarily rendered&#148; in the geographic area in which
the property is located in connection with the rental of real
property for occupancy only, or are not otherwise &#147;rendered to the
occupant for his convenience.&#148;</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For taxable years beginning after August&nbsp;5, 1997, a REIT has been
permitted to render a de minimis amount of impermissible services to tenants
and still treat amounts received with respect to that property as rent from
real property. The amount received or accrued by the REIT during the taxable
year for the impermissible services with respect to a property may not exceed
1% of all amounts received or accrued by the REIT directly or indirectly from
the property. The amount received for any service or management operation for
this purpose shall be deemed to be not less than 150% of the direct cost of the
REIT in furnishing or rendering the service or providing the management or
operation. Furthermore, impermissible services may be furnished to tenants by
a taxable REIT subsidiary subject to certain conditions, and we may still treat
rents received with respect to the property as rent from real property.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;interest&#148; generally does not include any amount if the
determination of the amount depends in whole or in part on the income or
profits of any person, although an amount generally will not be excluded from
the term &#147;interest&#148; solely by reason of being based on a fixed percentage of
receipts or sales.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we fail to satisfy one or both of the 75% or 95% gross income tests for
any taxable year, we may nevertheless qualify as a REIT for the year if we are
eligible for relief. These relief provisions will be generally available if:
</FONT>
<P>
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<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Our failure to meet the tests was due to reasonable cause and not due to willful neglect,</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">We attach a schedule of the sources of our income to our return; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Any incorrect information on the schedule was not due to fraud with intent to evade tax.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is not now possible to determine the circumstances under which we may
be entitled to the benefit of these relief provisions. If these relief
provisions apply, a 100% tax is imposed on an amount equal to (a)&nbsp;the gross
income attributable to the greater of the amount by which we failed the 75% or
95% test, multiplied by (b)&nbsp;a fraction intended to reflect our profitability.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset Tests. At the close of each quarter of our taxable year, we must
also satisfy several tests relating to the nature and diversification of our
assets determined in accordance with generally accepted accounting principles.
At least 75% of the value of our total assets must be represented by real
estate assets, cash, cash items (including receivables arising in the ordinary
course of our operations), government securities and qualified temporary
investments. Although the remaining 25% of our assets generally may be
invested without restriction, we are prohibited from owning securities
representing more than 10% or either the vote or value of the outstanding
securities of any issuer other than a qualified REIT subsidiary, another REIT
or a taxable REIT subsidiary (the 10% vote and value test&#148;). Further, no more
than 20% of our total assets may be represented by securities of one or more
taxable REIT subsidiaries and no more than 5% of the value of our total assets
may be represented by securities of any non-governmental issuer other than a
qualified REIT subsidiary, another REIT or a taxable REIT subsidiary. Each of
the 10% vote and value test and the 20% and 5% asset tests must be satisfied at
the end of any quarter. There are special rules which provide relief if the
value related tests are not satisfied due to changes in the value of the assets
of a REIT.
</FONT>
<P align="center"><FONT size="2">37</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in Taxable REIT Subsidiaries. For taxable years beginning
after December&nbsp;1, 2000, REITs may own more than 10% or the voting power and
value of securities in taxable REIT subsidiaries. At this time, we do not have
any taxable REIT subsidiaries.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership of a Partnership Interest or Stock in a Corporation. We own
interests in various partnerships. In the case of a REIT that is a partner in
a partnership, Treasury regulations provide that for purposes of the REIT
income and asset tests the REIT will be deemed to own its proportionate share
of the assets of the partnership, and will be deemed to be entitled to the
income of the partnership attributable to such share. The ownership of an
interest in a partnership by a REIT may involve special tax risks, including
the challenge by the Internal Revenue Service of the allocations of income and
expense items of the partnership, which would affect the computation of taxable
income of the REIT, and the status of the partnership as a partnership (as
opposed to an association taxable as a corporation) for federal income tax
purposes.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also own interests in a number of subsidiaries which are intended to be
treated as qualified real estate investment trust subsidiaries. The Code
provides that such subsidiaries will be ignored for federal income tax purposes
and all assets, liabilities and items of income, deduction and credit of such
subsidiaries will be treated as assets, liabilities and such items of our
company. If any partnership or qualified real estate investment trust
subsidiary in which we own an interest were treated as a regular corporation
(and not as a partnership or qualified real estate investment trust subsidiary)
for federal income tax purposes, we would likely fail to satisfy the REIT asset
test prohibiting a REIT from owning greater than 10% of the voting power of the
stock or value of securities of any issuer, as described above, and would
therefore fail to qualify as a REIT. We believe that each of the partnerships
and subsidiaries in which we own an interest will be treated for tax purposes
as a partnership or qualified real estate investment trust subsidiary,
respectively, although no assurance can be given that the Internal Revenue
Service will not successfully challenge the status of any such entity.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real Estate Mortgage Investment Conduits (or REMIC). A regular or
residual interest in a REMIC will be treated as a real estate asset for
purposes of the REIT asset tests, and income derived with respect to such
interest will be treated as interest on an obligation secured by a mortgage on
real property, assuming that at least 95% of the assets of the REMIC are real
estate assets. If less than 95% of the assets of the REMIC are real estate
assets, only a proportionate share of the assets of and income derived from the
REMIC will be treated as qualifying under the REIT asset and income tests. All
of our REMIC Certificates are secured by real estate assets, therefore we
believe that our REMIC interests fully qualify for purposes of the REIT income
and asset tests.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual Distribution Requirements. In order to qualify as a REIT, we are
required to distribute dividends (other than capital gain dividends) to our
stockholders annually in an amount at least equal to:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the sum of:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(A)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="89%"><FONT size="2">90% of our &#147;real estate investment trust taxable income&#148;
(computed without regard to the dividends paid deduction and our net
capital gain); and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(B)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">90% of the net income, if any (after tax), from foreclosure
property; minus</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">38</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the excess of certain items of non-cash income over 5% of our real
estate investment trust taxable income.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We must pay these annual distributions in the taxable year to which they
relate or in the following year if (1)&nbsp;we pay during January to stockholders of
record in either October, November, or December of the prior year or (2)&nbsp;if we
elect, declare the dividend before the due date of the tax return (including
extensions) and pay on or before the first regular dividend payment date after
such declaration.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts distributed must not be preferential; that is, every stockholder
of the class of stock with respect to which a distribution is made must be
treated the same as every other stockholder of that class, and no class of
stock may be treated otherwise than in accordance with its dividend rights as a
class.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that we do not distribute all of our net long-term capital
gain or distribute at least 90% but less than 100%, of our &#147;real estate
investment trust taxable income,&#148; as adjusted, it will be subject to tax on
such amounts at regular corporate tax rates. Furthermore, if we should fail to
distribute during each calendar year (or, in the case of distributions with
declaration and record dates in the last three months of the calendar year, by
the end of the following January) at least the sum of:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">85% of our real estate investment trust ordinary income for such year;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">95% of our real estate investment trust capital gain net income for
such year; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any undistributed taxable income from prior periods;</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">we would be subject to a 4% excise tax on the excess of such required
distributions over the amounts actually distributed. Any real estate
investment trust taxable income and net capital gain on which this excise tax
is imposed for any year is treated as an amount distributed during that year
for purposes of calculating such tax.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to make timely distributions sufficient to satisfy these annual
distribution requirements.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure to Qualify. If we fail to qualify for taxation as a REIT in any
taxable year, and certain relief provisions do not apply, we will be subject to
tax (including any applicable alternative minimum tax) on our taxable income at
regular corporate rates. Distributions to stockholders in any year in which we
fail to qualify as a REIT will not be deductible by us, nor will any
distributions be required to be made. Unless entitled to relief under specific
statutory provisions, we will also be disqualified from taxation as a REIT for
the four taxable years following the year during which qualification was lost.
It is not possible to state whether in all circumstances we would be entitled
to the statutory relief. Failure to qualify for even one year could
substantially reduce distributions to stockholders and could result in our
incurring substantial indebtedness (to the extent borrowings are feasible) or
liquidating substantial investments in order to pay the resulting taxes.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local taxation. We may be subject to state or local taxation in
various state or local jurisdictions, including those in which we transact
business or reside. The state and local tax treatment of our Company may not
conform to the federal income tax consequences discussed above.
</FONT>
<P align="left"><FONT size="2">TAXATION OF TAXABLE DOMESTIC STOCKHOLDERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary applies to you only if you are a &#147;US stockholder.&#148;
A US stockholder is a stockholder of our shares of stock who, for United State
federal income tax purposes, is:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a citizen or resident alien of the United States;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a corporation or partnership or other entity classified as a
corporation or partnership for these purposes, created or organized
in or under laws of the United States or of any state or in the
District of Columbia, unless, in the case of a partnership, Treasury
Regulations provide otherwise;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">39</FONT>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">an estate the income of which is subject to United States
federal income taxation regardless of its source; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a trust whose administration is subject to the primary
supervision of a United States court and which has one or more United
States persons, within the meaning of the Code who have the authority
to control all substantial decisions of the trust.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As long as we qualify as a REIT, distributions made to our taxable US
stockholders out of current or accumulated earnings and profits (and not
designated as capital gain dividends) will be taken into account by such US
stockholders as ordinary income and will not be eligible for the dividends
received deduction for corporations. Distributions that are designated as
capital gain dividends will be taxed as long-term capital gains (to the extent
they do not exceed our actual net capital gain for the taxable year or are
designated as unrecaptured &#167;1250 gain distributions, which are taxable at a 25%
rate) without regard to the period for which the stockholder has held its
stock. However, corporate stockholders may be required to treat up to 20% of
certain capital gain dividends as ordinary income.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions in excess of our current and accumulated earnings and
profits will not be currently taxable to you to the extent that they do not
exceed the adjusted basis of your stock, but rather will reduce the adjusted
basis of such stock. To the extent that distributions in excess of current and
accumulated earnings and profits exceed the adjusted basis of your stock, such
distributions will be included in income as long-term capital gain (or
short-term capital gain if the stock has been held for one year or less)
assuming you hold the stock as a capital asset. In addition, any distribution
declared in October, November or December of any year and payable to you as a
stockholder of record on a specified date in any such month, will be treated as
both paid by us and received by you on December&nbsp;31 of the applicable year,
provided that we actually pay the distribution during January of the following
calendar year. Stockholders may not include in their individual income tax
returns any of our net operating losses or capital losses.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we elect to retain and pay income tax on any net long-term capital
gain, you would include in income, as long-term capital gain, your
proportionate share of this net long-term capital gain. You would also receive
a refundable tax credit for your proportionate share of the tax paid by us on
these retained capital gains and you would have an increase in the basis of
your shares of our stock in an amount equal to your includable capital gains
less your share of the tax deemed paid.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will be treated as having sufficient earnings and profits to treat as a
dividend any distribution up to the amount required to be distributed in order
to avoid imposition of the 4% excise tax discussed under &#147;-General&#148; and
&#147;&#151;Annual Distribution Requirements&#148; above. As a result, you may be required to
treat as taxable dividends certain distributions that would otherwise result in
a tax-free return of capital. Moreover, any &#147;deficiency dividend&#148; will be
treated as a dividend (an ordinary dividend or a capital gain dividend, as the
case may be), regardless of our earnings and profits. Any other distributions
in excess of current or accumulated earnings and profits will not be taxable to
you to the extent these distributions do not exceed the adjusted tax basis of
your shares of our stock. You will be required to reduce the tax basis of your
shares of our stock by the amount of these distributions until the basis has
been reduced to zero, after which these distributions will be taxable as
capital gain, if the shares of our stock are held as a capital asset. The tax
basis as so reduced will be used in computing the capital gain or loss, if any,
realized upon sale of the shares of our stock. Any loss upon a sale or exchange
of shares of our stock which were held for six months or less (after
application of certain holding period rules) will generally be treated as a
long-term capital loss to the extent you previously received capital gain
distributions with respect to these shares of our stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the sale or exchange of any shares of our stock to or with a person
other than us or a sale or exchange of all shares of our stock (whether
actually or constructively owned) with us, you will generally recognize capital
gain or loss equal to the difference between the amount realized on the sale or
exchange and your adjusted tax basis in these shares of our stock. This gain
will be capital gain if you held these shares of our stock as a capital asset.
</FONT>

<P align="center"><FONT size="2">40</FONT>




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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we redeem any of your shares in us, the treatment can only be
determined on the basis of particular facts at the time of redemption. In
general, you will recognize gain or loss (as opposed to dividend income) equal
to the difference between the amount received by you in the redemption and your
adjusted tax basis in your shares redeemed if such redemption results in a
&#147;complete termination&#148; of your interest in all classes of our equity
securities, is a &#147;substantially disproportionate redemption&#148; or is &#147;not
essentially equivalent to a dividend&#148; with respect to you. In applying these
tests, there must be taken into account your ownership of all classes of our
equity securities (e.g., Common Stock or Preferred Stock). You also must take
into account any equity securities that are considered to be constructively
owned by you.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, as a result of a redemption by us of your shares, you no longer own
(either actually or constructively) any of our equity securities or only own
(actually and constructively) an insubstantial percentage of our equity
securities, then it is probable that the redemption of your shares would be
considered &#147;not essentially equivalent to a dividend&#148; and, thus, would result
in gain or loss to you. However, whether a distribution is &#147;not essentially
equivalent to a dividend&#148; depends on all of the facts and circumstances, and if
you rely on any of these tests at the time of redemption, you should consult
your tax advisor to determine their application to the particular situation.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, if the redemption does not meet the tests described above, then
the proceeds received by you from the redemption of your shares will be treated
as a distribution taxable as a dividend to the extent of the allocable portion
of current or accumulated earnings and profits. If the redemption is taxed as a
dividend, your adjusted tax basis in the redeemed shares will be transferred to
any other shareholdings in us that you own. If you own no other shareholdings
in us, under certain circumstances, such basis may be transferred to a related
person, or it may be lost entirely.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain from the sale or exchange of our shares held for more than one year
is taxed at a maximum long-term capital gain rate, which is currently 15%
(prior to the effective date of the Jobs and Growth Tax Relief Reconciliation
Act of 2003, described below, the maximum long-term capital gain rate was 20%).
Pursuant to Internal Revenue Service guidance, we may classify portions of our
capital gain dividends as gains eligible for the long-term capital gains rate
or as gain taxable to individual stockholders at a maximum rate of 25%.
</FONT>
<P align="left"><FONT size="2">Backup withholding
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will report to our US stockholders and the IRS the amount of
distributions paid during each calendar year, and the amount of tax withheld,
if any. Under the backup withholding rules, a stockholder may be subject to
backup withholding with respect to distributions paid unless such holder (a)&nbsp;is
a corporation or comes within certain other exempt categories and, when
required, demonstrates this fact, or (b)&nbsp;provides a taxpayer identification
number, certifies as to no loss of exemption from backup withholding, and
otherwise complies with applicable requirements of the backup withholding
rules. The amount of such withholding will be equal to the product of the
fourth lowest rate applicable to single filers and the amount of the
distribution. This rate is 28% for tax years beginning in 2003. Any amount
paid to the IRS as backup withholding will be creditable against the
stockholder&#146;s income tax liability. In addition, we may be required to
withhold a portion of capital gain distributions to any stockholders who fail
to certify their non-foreign status to us. See &#147;&#151;Taxation of Foreign
Stockholders.&#148; A stockholder that does not provide us with his correct taxpayer
identification number may also be subject to penalties imposed by the IRS.
</FONT>
<P align="left"><FONT size="2">TAXATION OF TAX-EXEMPT STOCKHOLDERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, a stockholder that is a tax-exempt entity not subject to tax
on its investment income will not be subject to tax on our distributions. In
Revenue Ruling 66-106, 1966-1 C.B. 151, the IRS ruled that amounts distributed
as dividends by a REIT do not constitute unrelated business taxable income as
defined in the Code when received by a qualified plan. Based on that ruling,
regardless of whether we incur indebtedness in connection with the acquisition
of properties, our distributions paid to a stockholder that is a tax-exempt
entity will not be treated as unrelated business taxable income, provided that
(i)&nbsp;the tax-exempt entity has not financed the acquisition of its stock with
acquisition indebtedness within the meaning of the Code and the stock otherwise
is not used in an unrelated trade or business of the tax-exempt entity and (ii)
we are not a pension-held REIT. This ruling applies to a stockholder that is
an organization that qualifies under Code Section&nbsp;401(a), an IRA or any other
tax-exempt organization that would compute unrelated business taxable income,
if any, in accordance with Code Section&nbsp;512(a)(1). However, if we are a
pension-held REIT and a qualified plan owns more than 10% of the value of all
of our stock, such stockholder will be required to recognize as unrelated
business taxable income that percentage of the dividends that it receives from
us as is equal to the percentage of our gross income that would be unrelated
business taxable income to us if we were a tax-exempt entity required to
recognize unrelated business taxable income. A REIT is a pension-
</FONT>
<P align="center"><FONT size="2">41</FONT>
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<P align="left"><FONT size="2">held REIT if at least one qualified trust holds more than 25% of the value
of all of our stock or one or more qualified trusts, each of whom own more than
10% of the value of all of our stock, hold more than 50% of the value of all of
our stock.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For social clubs, voluntary employee benefit associations, supplemental
unemployment benefit trusts and qualified group legal services plans exempt
from federal income taxation under Code Sections&nbsp;501(c)(7), (c)(9), (c)(17) and
(c)(20), respectively, income from an investment in us will constitute
unrelated business taxable income unless the organization is able to deduct
amounts set aside or placed in reserve for certain purposes so as to offset the
unrelated business taxable income generated by its investment in us. Such
prospective stockholders should consult their own tax advisors concerning these
&#147;set aside&#148; and reserve requirements.
</FONT>
<P align="left"><FONT size="2">TAXATION OF FOREIGN STOCKHOLDERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rules governing US federal income taxation of nonresident alien
individuals, foreign corporations, foreign partnerships and other foreign
stockholders are complex. We have not attempted to provide more than a summary
of these rules. Prospective non-US stockholders should consult with their own
tax advisors to determine the impact of federal, state and local income tax
laws with regard to an investment in stock, including any reporting
requirements.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions that are not attributable to gain from our sales or
exchanges of US real property interests and not designated by us as capital
gains dividends will be treated as dividends of ordinary income to the extent
that they are made out of our current or accumulated earnings and profits.
Such distributions will ordinarily be subject to a withholding tax equal to 30%
of the gross amount of the distribution unless an applicable tax treaty reduces
or eliminates that tax. However, if income from the investment in the stock is
treated as effectively connected with the non-US stockholder&#146;s conduct of a US
trade or business, the non-US stockholder generally will be subject to a tax at
graduated rates, in the same manner as US stockholders are taxed with respect
to such distributions and may also be subject to the 30% branch profits tax in
the case of a stockholder that is a foreign corporation. We expect to withhold
US income tax at the rate of 30% on the gross amount of any such distributions
made to a non-US stockholder unless (i)&nbsp;a lower treaty rate applies and the
holder provides us with a properly executed IRS Form&nbsp;W-8BEN (or successor form)
or (ii)&nbsp;the non-US stockholder provides us with a properly executed IRS Form
W-8ECI (or successor form) claiming that the distribution is effectively
connected income.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions in excess of our current and accumulated earnings and
profits will not be taxable to a stockholder to the extent that such
distributions do not exceed the adjusted basis of the stockholder&#146;s stock, but
rather will reduce the adjusted basis of such stock. To the extent that
distributions in excess of current accumulated earnings and profits exceed the
adjusted basis of a non-US stockholder&#146;s stock, such distributions will give
rise to tax liability if the non-US stockholder would otherwise be subject to
tax on any gain from the sale or disposition of our stock, as described below.
If it cannot be determined at the time a distribution is made whether or not
distributions will be in excess of current and accumulated earnings and profit,
the distributions will be subject to withholding at the same rate as dividends.
However, amounts thus withheld are refundable if it is subsequently determined
that such distribution was, in fact, in excess of our current and accumulated
earnings and profits.
</FONT>
<P align="center"><FONT size="2">42</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For any year in which we qualify as a REIT, distributions that are
attributable to gain from our sales or exchanges of US real property interests
will be taxed to a non-US stockholder under the provisions of the Foreign
Investment in Real Property Tax Act of 1980 or FIRPTA. Under FIRPTA,
distributions attributable to gain from sales of US real property interests are
taxed to a non-US stockholder as if such gain were effectively connected with a
US business. Non-US stockholders would thus be taxed at the normal capital
gain rates applicable to US stockholders (subject to applicable alternative
minimum tax and a special alternative minimum tax in the case of nonresident
alien individuals). Also, distributions subject to FIRPTA may be subject to a
30% branch profits tax if a foreign corporate stockholder is not entitled to
treaty exemption. We are required by applicable Treasury Regulations to
withhold 35% for foreign individuals and 35% for foreign corporations of any
distribution that we could designate as a capital gains dividend. This amount
is creditable against the non-US stockholder FIRPTA tax liability. If we
designate prior distributions as capital gains dividends, then subsequent
distributions up to the amount of such prior distributions will be treated as
capital gains dividends for purposes of withholding.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain recognized by a non-US stockholder upon a sale of our equity
securities generally will not be taxed under FIRPTA if we are a &#147;domestically
controlled real estate investment trust,&#148; defined generally as a real estate
investment trust in which at all times during a specified testing period less
than 50% in value of the stock were held directly or indirectly by foreign
persons. We currently anticipate that we will be a &#147;domestically controlled
real estate investment trust,&#148; and therefore the sale of equity securities will
not be subject to taxation under FIRPTA. Additionally, the sale of our equity
securities will not be taxed under FIRPTA if the class of stock is regularly
traded on an established securities market and the selling non-US stockholder
has not held more than 5% of the class of stock at any time during the
preceding five-year period. However, gain not subject to FIRPTA will be
taxable to a non-US stockholder if the investment in the stock is effectively
connected with the non-US stockholder&#146;s US trade or business, in which case the
non-US stockholder will be subject to the same treatment as US stockholders
with respect to such gain. Also, if the non-US stockholder is a nonresident
alien individual who was present in the United States for 183&nbsp;days or more
during the taxable year and has a &#147;tax home&#148; in the United States, the
nonresident alien individual will be subject to a 30% tax (unless reduced by
treaty) on the individual&#146;s capital gains. A non-resident alien individual
could, however, elect to treat such gain as effectively connected income and
pay tax as a US stockholder would. If the gain on the sale of stock were to be
subject to taxation under FIRPTA, the non-US stockholder will be subject to the
same treatment as US stockholders with respect to such gain.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the proceeds of a disposition of our equity securities are paid by or
through a US office of a broker, the payment is subject to information
reporting and to backup withholding unless the disposing non-US stockholder
certifies as to his name, address and non-US status or otherwise establishes an
exemption. Generally, US information reporting and backup withholding will not
apply to a payment of disposition proceeds if the payment is made outside the
United States through a non-US office of a non-US broker. US information
reporting requirements (but not backup withholding) will apply, however, to a
payment of disposition proceeds outside the United States if (i)&nbsp;the payment is
made through an office outside the United States of a broker that is either (a)
a US person, (b)&nbsp;a foreign person that derives 50% or more of its gross income
for certain periods from the conduct of a trade or business in the United
States, (c)&nbsp;a controlled foreign corporation for US federal income tax
purposes, or (d)&nbsp;a foreign partnership more than 50% of the capital or profits
of which is owned by one or more US persons or which engages in a US trade or
business and (ii)&nbsp;the broker fails to initiate documentary evidence that the
stockholder is a non-US stockholder and that certain conditions are met or that
the non-US stockholder otherwise is entitled to an exemption.
</FONT>
<P align="left"><FONT size="2">US FEDERAL INCOME AND ESTATE TAXATION OF HOLDERS OF OUR DEBT SECURITIES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general summary of the United States federal income tax
consequences and, in the case that you are a holder that is a non-US holder, as
defined below, the United States federal estate tax consequences, of
purchasing, owning and disposing of debt securities periodically offered under
one or more indentures, (the &#147;notes&#148;) and offered pursuant to an applicable
prospectus supplement. This summary assumes that you hold the notes as capital
assets. This summary applies to you only if you are the initial holder of the
notes and you acquire the notes for a price equal to the issue price of the
notes. The issue price of the notes is the first price at which a substantial
amount of the notes is sold other than to bond houses, brokers or similar
persons or organizations acting in the capacity of underwriters, placement
agents or wholesalers. In addition, this summary does not consider any foreign,
state, local or other tax laws that may be applicable to us or a purchaser of
the notes.
</FONT>
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<P align="left"><FONT size="2">US HOLDERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary applies to you only if you are a US holder, as
defined below.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definition of a US Holder. A &#147;US holder&#148; is a beneficial owner of a note
or notes that is for United States federal income tax purposes:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">an individual citizen or resident alien of the United States;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a corporation or partnership, or other entity classified as a
corporation or partnership for these purposes, created or organized
in or under the laws of the United States or of any political
subdivision of the United States, including any state;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">an estate, the income of which is subject to United States
federal income taxation regardless of the source of that income; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a trust, if, in general, a US court is able to exercise primary
supervision over the trust&#146;s administration and one or more US
persons, within the meaning of the Internal Revenue Code, has the
authority to control all of the trust&#146;s substantial decisions.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of Interest. Stated interest on the notes generally will be taxed
as ordinary interest income from domestic sources at the time it is paid or
accrues in accordance with your method of accounting for tax purposes.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale, Exchange or Other Disposition of Notes. The adjusted tax basis in
your note acquired at a premium will generally be your cost. You generally will
recognize taxable gain or loss when you sell or otherwise dispose of your notes
equal to the difference, if any, between:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the amount realized on the sale or other disposition, less any
amount attributable to any accrued interest, which will be taxable in
the manner described under &#147;-Payments of Interest&#148; above; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">your adjusted tax basis in the notes.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your gain or loss generally will be capital gain or loss. This capital
gain or loss will be long-term capital gain or loss if at the time of the sale
or other disposition you have held the notes for more than one year. Subject to
limited exceptions, your capital losses cannot be used to offset your ordinary
income.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup Withholding and Information Reporting. In general, &#147;backup
withholding&#148; may apply:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">to any payments made to you of principal and interest on your note, and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">to payment of the proceeds of a sale or other disposition of your note before maturity,</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if you are a non-corporate US holder and (1)&nbsp;fail to provide a
correct taxpayer identification number, which if you are an
individual, is ordinarily your social security number; (2)&nbsp;furnish an
incorrect taxpayer identification number; (3)&nbsp;are notified by the
Internal Revenue Service that you have failed to properly report
payments of interest or dividends; or (4)&nbsp;fail to certify, under
penalties of perjury, that you have furnished a correct taxpayer
identification number and that the Internal Revenue Service has not
notified you that you are subject to backup withholding.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">44</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of any reportable payments, including interest, made to you
(unless you are an exempt recipient) and the amount of tax withheld, if any,
with respect to such payments will be reported to you and to the Internal
Revenue Service for each calendar year. You should consult your tax advisor
regarding your qualification for an exemption from backup withholding and the
procedures for obtaining such an exemption, if applicable. The backup
withholding tax is not an additional tax and will be credited against your US
federal income tax liability, provided that correct information is provided to
the Internal Revenue Service.
</FONT>
<P align="left"><FONT size="2">NON-US HOLDERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary applies to you if you are a beneficial owner of a
note and are not a US holder, as defined above (a &#147;non-US holder&#148;).
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special rules may apply to certain non-US holders such as &#147;controlled
foreign corporations,&#148; &#147;passive foreign investment companies&#148; and &#147;foreign
personal holding companies.&#148; Such entities are encouraged to consult their tax
advisors to determine the United States federal, state, local and other tax
consequences that may be relevant to them.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;US Federal Withholding Tax. Subject to the discussion below, US federal
withholding tax will not apply to payments by us or our paying agent, in its
capacity as such, of principal and interest on your notes under the &#147;portfolio
interest&#148; exception of the Internal Revenue Code, provided that:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">you do not, directly or indirectly, actually or constructively,
own ten percent or more of the total combined voting power of all
classes of our stock entitled to vote;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">you are not (1)&nbsp;a controlled foreign corporation for US federal
income tax purposes that is related, directly or indirectly, to us
through sufficient stock ownership, as provided in the Internal
Revenue Code, or (2)&nbsp;a bank receiving interest described in Section
881(c)(3)(A) of the Internal Revenue Code;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">such interest is not effectively connected with your conduct of
a US trade or business; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">you provide a signed written statement, under penalties of
perjury, which can reliably be related to you, certifying that you
are not a US person within the meaning of the Internal Revenue Code
and providing your name and address to:</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">us or our paying agent; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">a securities clearing organization, bank or other financial
institution that holds customers&#146; securities in the ordinary course
of its trade or business and holds your notes on your behalf and that
certifies to us or our paying agent under penalties of perjury that
it, or the bank or financial institution between it and you, has
received from you your signed, written statement and provides us or
our paying agent with a copy of such statement.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury regulations provide that:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if you are a foreign partnership, the certification requirement
will generally apply to your partners, and you will be required to
provide certain information;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if you are a foreign trust, the certification requirement will
generally be applied to you or your beneficial owners depending on
whether you are a &#147;foreign complex trust,&#148; &#147;foreign simple trust,&#148; or
&#147;foreign grantor trust&#148; as defined in the Treasury regulations; and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">look-through rules will apply for tiered partnerships, foreign
simple trusts and foreign grantor trusts.</FONT></TD>
</TR>
</TABLE>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a foreign partnership or a foreign trust, you should consult
your own tax advisor regarding your status under these Treasury regulations and
the certification requirements applicable to you.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you cannot satisfy the portfolio interest requirements described above,
payments of interest will be subject to the 30% United States withholding tax,
unless you provide us with a properly executed (1)&nbsp;Internal Revenue Service
Form&nbsp;W-8BEN claiming an exemption from or reduction in withholding under the
benefit of an applicable treaty or (2)&nbsp;Internal Revenue Service Form&nbsp;W-8ECI
stating that interest paid on the note is not subject to withholding tax
because it is effectively connected with your conduct of a trade or business in
the United States. Alternative documentation may be applicable in certain
circumstances.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are engaged in a trade or business in the United States and
interest on a note is effectively connected with the conduct of that trade or
business, you will be required to pay United States federal income tax on that
interest on a net income basis (although you will be exempt from the 30%
withholding tax provided the certification requirement described above is met)
in the same manner as if you were a US person, except as otherwise provided by
an applicable tax treaty. If you are a foreign corporation, you may be required
to pay a branch profits tax on the earnings and profits that are effectively
connected to the conduct of your trade or business in the United States.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale, Exchange or other Disposition of Notes. You generally will not have
to pay US federal income tax on any gain or income realized from the sale,
redemption, retirement at maturity or other disposition of your notes, unless:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">in the case of gain, you are an individual who is present in
the United States for 183&nbsp;days or more during the taxable year of the
sale or other disposition of your notes, and specific other
conditions are met;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">you are subject to tax provisions applicable to certain United States expatriates; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the gain is effectively connected with your conduct of a US trade or business.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are engaged in a trade or business in the United States and gain
with respect to your notes is effectively connected with the conduct of that
trade or business, you generally will be subject to US income tax on a net
basis on the gain. In addition, if you are a foreign corporation, you may be
subject to a branch profits tax on your effectively connected earnings and
profits for the taxable year, as adjusted for certain items.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;US Federal Estate Tax. If you are an individual and are not a US citizen
or a resident of the United States, as specially defined for US federal estate
tax purposes, at the time of your death, your notes will generally not be
subject to the US federal estate tax, unless, at the time of your death (1)&nbsp;you
owned actually or constructively ten percent or more of the total combined
voting power of all our classes of stock entitled to vote or (2)&nbsp;interest on
the notes is effectively connected with your conduct of a US trade or business.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup Withholding and Information Reporting. Backup withholding will not
apply to payments of principal or interest made by us or our paying agent, in
its capacity as such, to you if you have provided the required certification
that you are a non-US holder as described in &#147;-US Federal Withholding Tax&#148;
above, and provided that neither we nor our paying agent have actual knowledge
that you are a US holder, as described in &#147;-US Holders&#148; above. We or our paying
agent may, however, report payments of interest on the notes.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The gross proceeds from the disposition of your notes may be subject to
information reporting and backup withholding tax. If you sell your notes
outside the United States through a non-US office of a non-US broker and the
sales proceeds are paid to you outside the United States, then the US backup
withholding and information reporting requirements generally will not apply to
that payment. However, US information reporting, but not backup withholding,
will apply to a payment of sales proceeds, even if that payment is made outside
the United States, if you sell your notes though a non-US office of a broker
that:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">is a US person, as defined in the Internal Revenue Code,</FONT></TD>
</TR>
</TABLE>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">derives 50% or more of its gross income in specific periods
from the conduct of a trade or business in the United States,</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">is a &#147;controlled foreign corporation&#148; for US federal income tax purposes, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">is a foreign partnership, if at any time during its tax year,</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">one or more of its partners are US persons who in the aggregate
hold more than 50% of the income or capital interests in the
partnership, or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the foreign partnership is engaged in a US trade or business,</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">unless the broker has documentary evidence in its files that you are a non-US
person and certain other conditions are met or you otherwise establish an
exemption. If you receive payments of the proceeds of a sale of your notes to
or through a US office of a broker, the payment is subject to both US backup
withholding and information reporting unless you provide a Form&nbsp;W-8BEN
certifying that you are a non-US person or you otherwise establish an
exemption.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should consult your own tax advisor regarding application of backup
withholding in your particular circumstance and the availability of and
procedure for obtaining an exemption from backup withholding. Any amounts
withheld under the backup withholding rules from a payment to you will be
allowed as a refund or credit against your US federal income tax liability,
provided the required information is furnished to the Internal Revenue Service.
</FONT>
<P align="left"><FONT size="2">OTHER TAX CONSEQUENCES
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should recognize that the present federal income tax treatment of an
investment in us may be modified by legislative, judicial or administrative
action at any time and that any action may affect investments and commitments
previously made. The rules dealing with federal income taxation are constantly
under review by persons involved in the legislative process and by the Internal
Revenue Service and the Treasury Department, resulting in revisions of
regulations and revised interpretations of established concepts as well as
statutory changes. Revisions in federal tax laws and interpretations of these
laws could adversely affect the tax consequences of an investment in us.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and you may be subject to state or local taxation in various state or
local jurisdictions, including those in which we or you transact business or
reside. Our state and local tax treatment and your state and local tax
treatment may not conform to the federal income tax consequences discussed
above. Consequently, you should consult your own tax advisors regarding the
effect of state and local tax laws on an investment in us.
</FONT>
<P align="left"><FONT size="2">PLAN OF DISTRIBUTION
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell the securities registered by this prospectus to one or more
underwriters for public offering and sale by them or may sell the securities
registered by this prospectus to investors directly or through agents. Any
underwriter or agent involved in the offer and sale of the securities
registered by this prospectus will be named in the applicable prospectus
supplement. We have reserved the right to sell or exchange securities directly
to investors on our or their own behalf in those jurisdictions where we are
authorized to do so.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell the securities:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">through underwriters or dealers;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">through agents;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">directly to purchasers; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">through a combination of any of these methods of sale.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">47</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any underwriter or agent involved in the offer and sale of the securities
will be named in the applicable prospectus supplement. Direct sales to
investors or our stockholders may be accomplished through subscription
offerings or through stockholder purchase rights distributed to stockholders.
In connection with subscription offerings or the distribution of stockholder
purchase rights to stockholders, if all of the underlying securities are not
subscribed for, we may sell any unsubscribed securities to third parties
directly or through underwriters or agents. In addition, whether or not all of
the underlying securities are subscribed for, we may concurrently offer
additional securities to third parties directly or through underwriters or
agents. If securities are to be sold through stockholder purchase rights, the
stockholder purchase rights will be distributed as a dividend to the
stockholders for which they will pay no separate consideration. The prospectus
supplement with respect to the offer of securities under stockholder purchase
rights will set forth the relevant terms of the stockholder purchase rights,
including:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">whether Common Stock or Preferred Stock will be offered under the stockholder purchase rights;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the number of those securities that will be offered under the stockholder purchase rights;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the period during which and the price at which the stockholder purchase rights will be exercisable;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the number of stockholder purchase rights then outstanding;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any provisions for changes to or adjustments in the exercise price of the stockholder purchase rights, and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any other material terms of the stockholder purchase rights.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriters may offer and sell the securities at:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">fixed prices, which may be changed;</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">prices related to the prevailing market prices at the time of sale; or</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">negotiated prices.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also may, from time to time, authorize underwriters acting as our
agents to offer and sell the securities upon the terms and conditions as are
set forth in the applicable prospectus supplement. In connection with the sale
of securities, underwriters may be deemed to have received compensation from us
in the form of underwriting discounts or commissions and may also receive
commissions from purchasers of securities for whom they may act as agent.
Underwriters may sell securities to or through dealers, and these dealers may
receive compensation in the form of discounts, concessions or commissions from
the underwriters or commissions from the purchasers for whom they may act as
agent, or both. The applicable prospectus supplement will disclose:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any underwriting compensation we pay to underwriters or agents
in connection with the offering of securities, and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">any discounts, concessions or commissions allowed by
underwriters to participating dealers.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Securities Act, underwriters, dealers and agents participating
in the distribution of the securities may be deemed to be underwriters and any
discounts and commissions received by them and any profit realized by them on
resale of the securities may be deemed to be underwriting discounts and
commissions. We may agree to indemnify underwriters, dealers and agents against
civil liabilities, including liabilities under the Securities Act and to make
contribution to them in connection with those liabilities.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If indicated in the applicable prospectus supplement, we may also offer
and sell securities through a firm that will remarket the securities. These
firms may act as principals for their own account or as our agents. These firms
may be deemed to be underwriters in connection with the securities being
remarketed. We may agree to indemnify these firms against liabilities,
including liabilities under the Securities Act.
</FONT>
<P align="center"><FONT size="2">48</FONT>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If indicated in the applicable prospectus supplement, we will authorize
dealers acting as our agents to solicit offers by institutions to purchase
securities at the offering price set forth in that prospectus supplement under
delayed delivery contracts providing for payment and delivery on the dates
stated in the prospectus supplement. Each contract will be for an amount not
less than, and the aggregate principal amount of securities sold under
contracts will be not less nor more than, the respective amounts stated in the
applicable prospectus supplement. Institutions with whom contracts, when
authorized, may be made include commercial and savings banks, insurance
companies, pension funds, investment companies, educational and charitable
institutions, and other institutions but will in all cases be subject to our
approval. Contracts will not be subject to any conditions except:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">the purchase by an institution of the securities covered by its
contracts will not at the time of delivery be prohibited under the
laws of any jurisdiction in the United States to which the
institution is subject, and</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">if the securities are being sold to underwriters, we will have
sold to them the total principal amount of the securities less the
principal amount of the securities covered by contracts.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agents and underwriters will have no responsibility in respect of the
delivery or performance of contracts.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To facilitate the offering of securities, certain persons participating in
the offering may engage in transactions that stabilize, maintain, or otherwise
affect the price of the securities. This may include over-allotments or short
sales of the securities, which involve the sale by persons participating in the
offering of more securities than we sold to them. In these circumstances, these
persons would cover such over-allotments or short positions by making purchases
in the open market or by exercising their over-allotment option, if any. In
addition, these persons may stabilize or maintain the price of the securities
by bidding for or purchasing securities in the open market or by imposing
penalty bids, whereby selling concessions allowed to dealers participating in
the offering may be reclaimed if securities sold by them are repurchased in
connection with stabilization transactions. The effect of these transactions
may be to stabilize or maintain the market price of the securities at a level
above that which might otherwise prevail in the open market. These transactions
may be discontinued at any time.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of the underwriters and their affiliates may engage in transactions
with or perform services for us in the ordinary course of business.
</FONT>
<!-- link1 "LEGAL MATTERS" -->
<DIV align="left"><A NAME="031"></A></DIV>
<P align="center"><FONT size="2">LEGAL MATTERS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the securities offered will be passed upon by Ballard
Spahr Andrews &#038; Ingersoll, LLP, Baltimore, Maryland. Certain tax matters will
be passed upon for us by Reed Smith, LLP, New York, New York. Certain legal
matters will be passed upon for us by Reed Smith, LLP, New York, New York. Any
underwriters will be advised about the other issues relating to any offering by
their own legal counsel.
</FONT>
<!-- link1 "EXPERTS" -->
<DIV align="left"><A NAME="032"></A></DIV>
<P align="center"><FONT size="2">EXPERTS
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements and schedules of LTC Properties,
Inc. appearing in our annual report on Form&nbsp;10-K for the year ended December
31, 2002 have been audited by Ernst &#038; Young LLP, independent auditors, as set
forth in their report thereon included therein and which is incorporated herein
by reference. Such consolidated financial statements and schedules are
incorporated herein by reference in reliance on such report given on the
authority of such firm as experts in accounting and auditing.
</FONT>

<P align="center"><FONT size="2">49</FONT>




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<P align="center"><FONT size="2"><IMG src="v96609v9660901.gif" alt="(LTC PROPERTIES, INC. LOGO)">
</FONT>

<P align="center"><FONT size="2"><B>LTC Properties, Inc.</B>
</FONT>

<P align="center"><FONT size="2"><B>TABLE OF CONTENTS</B>
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="91%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><FONT size="1"><B>Prospectus Supplement</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Forward-looking statements</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Prospectus supplement summary</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Risk factors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Use of proceeds</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Capitalization</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Selected consolidated financial data</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Legal proceedings</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Ratios of earnings to fixed charges and
earnings to combined fixed charges and
preferred stock dividends</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of our capital stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Additional federal income tax considerations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Plan of distribution</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Legal matters</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Experts</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Where you can find additional information</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Documents incorporated by reference</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">S-30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="92%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><FONT size="1"><B>Prospectus</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Page</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">About this prospectus</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Forward-looking statements</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Where you can find additional information</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Documents incorporated by reference</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">About our company</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Our strategy</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Risk factors</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Use of proceeds</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Ratios of earnings to fixed charges and
earnings to combined fixed charges and
preferred stock dividends</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">General description of the offered securities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of debt securities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of common stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Description of preferred stock</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Restrictions on ownership and transfer</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Certain provisions of Maryland law and of our charter and bylaws</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Certain us federal income tax considerations</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Legal matters</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Experts</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
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`
end

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
