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<SEC-DOCUMENT>0000950129-04-004932.txt : 20040716
<SEC-HEADER>0000950129-04-004932.hdr.sgml : 20040716
<ACCEPTANCE-DATETIME>20040716164302
ACCESSION NUMBER:		0000950129-04-004932
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20040716

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:	333-113847
		FILM NUMBER:		04918435

	BUSINESS ADDRESS:	
		STREET 1:		22917 PACIFIC COAST HWY
		STREET 2:		SUITE 350
		CITY:			MALIBU
		STATE:			CA
		ZIP:			90265
		BUSINESS PHONE:		3104556010

	MAIL ADDRESS:	
		STREET 1:		22917 PACIFIC COAST HWY
		STREET 2:		SUITE 350
		CITY:			MALIBU
		STATE:			CA
		ZIP:			90265
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>v00307a1e424b5.htm
<DESCRIPTION>LTC PROPERTIES, INC.- REGISTRATION NO.333-113847
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<HR size="4" noshade color="#000000" style="margin-top: -5px">
<HR size="1" noshade color="#000000" style="margin-top: -10px">


<DIV align="left" style="margin-top:-15px">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

<TR valign="bottom">

<TD width="39%" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="58%" align="right" valign="bottom">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PROSPECTUS SUPPLEMENT
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><B>Filed Pursuant to Rule&nbsp;424 (b)(5) under the Securities Act of 1933</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(TO PROSPECTUS DATED APRIL 5, 2004)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom"><B>Registration No 333-113847</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>2,640,000 Shares</B>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="30%" align="center">


<P align="center" style="font-size: 24pt"><B>LTC Properties, Inc.</B>

<DIV align="center" style="font-size: 10pt"><B>8% Series&nbsp;F Cumulative Preferred Stock</B></DIV>


<DIV align="center" style="font-size: 10pt"><B>(Liquidation Preference $25.00 Per Share)</B></DIV>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="30%" align="center">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are offering 2,640,000 shares of our 8% Series&nbsp;F Cumulative Preferred
Stock, or Series&nbsp;F Preferred Stock at a price of $23.53&nbsp;per share, plus an
additional per share amount of $0.0056 per day for the number of days from and
including July&nbsp;2, 2004 through and including the day of sale (with any included
complete calendar month being deemed to have 30&nbsp;days), such additional per
share amount being equal to the accrued and unpaid distributions payable with
respect to each share of such Series&nbsp;F Preferred Stock through the date of any
such sale.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will pay quarterly cumulative dividends, in arrears, on the Series&nbsp;F
Preferred Stock offered hereby from and including July&nbsp;2, 2004. These dividends are payable
on January&nbsp;15, April&nbsp;15, July&nbsp;15 and October&nbsp;15 of each year, when and as
declared, at a yearly rate of 8% of the $25.00 liquidation preference, or $2.00
per Series&nbsp;F Preferred Stock per year. We may not redeem the Series&nbsp;F
Preferred Stock prior to February&nbsp;23, 2009, except as necessary to preserve our
status as a real estate investment trust. On or after February&nbsp;23, 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.


<P align="left" style="font-size: 10pt">&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 agent in obtaining indications of
interest on the securities for certain investors. After paying the placement
agent fee and other estimated expenses payable by us, we anticipate receiving
approximately $60.6&nbsp;million in net proceeds from this offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Series&nbsp;F Preferred Stock is traded on the New York Stock Exchange
under the symbol &#147;LTC PrF.&#148; On July&nbsp;15, 2004, the last reported sale price of
our Series&nbsp;F Preferred Stock was $23.85. We have applied to list the
additional shares of Series&nbsp;F Preferred Stock offered hereby on the New York
Stock Exchange.


<P align="center" style="font-size: 10pt"><HR size="1" noshade width="30%" align="center">



<P align="center" style="font-size: 10pt"><B>Investing in our securities involves certain risks. See &#147;Risk Factors&#148; on page S-9 of this prospectus supplement and<BR>
beginning on page 6 of the accompanying prospectus.</B>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="30%" align="center">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<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 style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Per share</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Public offering price(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">23.529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$62,117,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Placement
agent fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$1,119,220</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Proceeds, before expenses and certain other fees, to us</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>23.105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$60,998,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Plus accrued dividends, if any, from and including July 2 , 2004 to the
date of delivery.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect to deliver the Series&nbsp;F Preferred Stock offered hereby on or
about July&nbsp;20, 2004 in accordance with the terms of purchase agreements to
be entered into with purchasers.


<P>
<HR noshade width="26%" align="center" size="1">
<P>




<P align="center" style="font-size: 10pt">Placement Agent



<P align="center" style="font-size: 10pt"><B>Cohen &#038; Steers Capital Advisors, LLC</B>



<P>
<HR noshade width="26%" align="center" size="1">
<P>




<P align="center" style="font-size: 10pt">THE DATE OF THIS PROSPECTUS
SUPPLEMENT IS JULY&nbsp;15, 2004



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="left" style="font-size: 10pt">&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>


<P align="center" style="font-size: 10pt"><B>TABLE OF CONTENTS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="94%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B> Prospectus Supplement</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#101">FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#102">PROSPECTUS SUPPLEMENT SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#103">THE OFFERING</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#104">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#105">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#106">CAPITALIZATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#107">SELECTED CONSOLIDATED FINANCIAL DATA</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#108">LEGAL PROCEEDINGS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#109">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#110">DESCRIPTION OF OUR CAPITAL STOCK</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#111">ADDITIONAL FEDERAL INCOME TAX CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#112">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#113">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#114">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#115">WHERE YOU CAN FIND ADDITIONAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#116">DOCUMENTS INCORPORATED BY REFERENCE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">S-27</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<!-- /TOC -->
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="94%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B> Prospectus</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ABOUT THIS PROSPECTUS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>

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

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

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

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

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

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">RISK FACTORS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">GENERAL DESCRIPTION OF THE OFFERED SECURITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">DESCRIPTION OF DEBT SECURITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">DESCRIPTION OF OUR PREFERRED STOCK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">RESTRICTIONS ON OWNERSHIP AND TRANSFER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">PLAN OF DISTRIBUTION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">LEGAL MATTERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">EXPERTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">S-2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="101"></A>
</DIV>

<P align="left" style="font-size: 10pt">Forward-looking statements



<P align="left" style="font-size: 10pt">&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 10-K for the year ended December&nbsp;31, 2003 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.


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<DIV align="left">
<A name="102"></A>
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<P align="center" style="font-size: 10pt"><B>PROSPECTUS SUPPLEMENT SUMMARY</B>



<P align="left" style="font-size: 10pt"><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>



<P align="left" style="font-size: 10pt"><B>ABOUT OUR COMPANY</B>



<P align="left" style="font-size: 10pt">&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 March
31, 2004, 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&nbsp;1992.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2004, we had approximately $521&nbsp;million in carrying value
of net real estate investments. At that date, our portfolio included 96
assisted living properties, 84 skilled nursing properties and one charter
school in 30 states. We had approximately $383&nbsp;million (74%) invested in owned
and leased properties, approximately $75&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 $63&nbsp;million (12%).


<P align="left" style="font-size: 10pt"><B>Owned Properties</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At March&nbsp;31, 2004, we owned 53 skilled nursing properties with a total of
6,095 beds, 88 assisted living properties 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.


<P align="left" style="font-size: 10pt"><B>Mortgage Loans</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At March&nbsp;31, 2004, we had 38 mortgage loans secured by first mortgages on
31 skilled nursing properties with a total of 3,875 beds and eight assisted
living properties with a total of 369 units located in 19 states. At March&nbsp;31,
2004, the mortgage loans had interest rates ranging from 9.5% to 12.7% and
maturities ranging from 2004 to 2018. In addition, the loans contain certain
guarantees, provide for certain 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.


<P align="left" style="font-size: 10pt">&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


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<P align="left" style="font-size: 10pt">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.



<P align="left" style="font-size: 10pt"><B>REMIC Certificates</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;31, 2004, we had $63,084,000 of REMIC Certificates at net book
value, which includes the $3,873,000 of REMIC certificates we acquired during
the first quarter. Of the $63,084,000, $56,401,000 of our net book value
represents face value certificated interests in the principal balances of the
underlying mortgage pools which at March&nbsp;31, 2004 had total unpaid principal
balance of $201,265,000. Additionally, there are also $137,671,000 senior
certificates outstanding that have priority over the $56,401,000 of face value
certificates we retained.


<P align="left" style="font-size: 10pt">&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 97 skilled nursing properties.
The mortgage loans underlying the REMIC certificates generally have 25-year
amortization schedules with final maturities due from 2004 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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt"><B>OUR STRATEGY</B>



<P align="left" style="font-size: 10pt">&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.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 $27,000 per bed while that of our
mortgages is approximately $16,300 per bed.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>Recent Developments</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since March&nbsp;31, 2004, we have repaid $10,500,000 of our bank borrowings
and will report an outstanding bank line of $1,500,000 as of June&nbsp;30, 2004,
when we file our Form 10-Q for the second quarter of 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April&nbsp;2004, holders of 798,000 shares of our 8.5% Series&nbsp;E Cumulative
Convertible Preferred Stock, or Series&nbsp;E Preferred Stock,
notified us of their election to convert such shares
into 1,596,000 shares of our Common Stock at the Series&nbsp;E Preferred Stock
conversion rate of $12.50 per share. On July&nbsp;14, 2004 holders of 10,800 shares of our Series&nbsp;E Preferred Stock
notified us of their election to convert such
shares into 21,600 shares of our Common Stock. Subsequent to this most recent



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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">conversion,
there will be 1,394,200 shares of our Series&nbsp;E
Preferred Stock outstanding and 19,651,947 shares of our Common Stock
outstanding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, subsequent to March&nbsp;31, 2004, our REMIC 94-1 pool was
dissolved. The result of this action was to increase our mortgage loans
receivable and decrease our REMIC Certificates by approximately $11,300,000
each.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At our Annual Meeting held on May&nbsp;18, 2004, our stockholders approved the
following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An amendment to our Charter to increase the number of
authorized shares of Common Stock from 35,000,000 to 45,000,000 shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The 2004 Stock Option Plan providing for the issuance of up to 500,000 shares of our Common Stock; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The 2004 Restricted Stock Plan providing for the issuance of up to 100,000 shares of our Common Stock.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;28, 2004, we filed a registration statement on Form S-3 with the
Securities and Exchange Commission which was declared effective on June&nbsp;9,
2004, with respect to the resale by certain Selling Stockholders of up to
865,387 shares of our Common Stock. The Selling Stockholders under certain
conditions are entitled to convert limited partnership interests into shares of
our Common Stock at conversion prices between $13.00 and $17.00 per share. In
the event a limited partner exercises this right to exchange partnership
interests for Common Stock, we have the election either to issue our Common
Stock or pay the limited partner the equivalent exchange for their limited
partnership interests. To date, 168,365 shares of our Common Stock has been
issued as a result of such conversions.


<P align="left" style="font-size: 10pt"><B>Recent Medicare and Medicaid Developments</B>



<P align="left" style="font-size: 10pt">&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 providing 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
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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, budget shortfalls at the state level continue to pressure
Medicaid programs. According to a September&nbsp;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.


<P align="left" style="font-size: 10pt">&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.



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="103"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>THE OFFERING</B>


<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Securities offered
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2,640,000 shares of Series&nbsp;F Preferred Stock</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Series&nbsp;F Preferred Stock
to be outstanding after this offer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6,640,000</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Price per share
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$23.53</TD>
</TR>

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

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

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

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

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

<TR valign="bottom">
    <TD align="left" valign="top">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px">&#149; 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;</div></TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px">&#149; on parity with our 8.5% Series&nbsp;C Preferred Stock,
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</div></TD>
</TR>

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

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

<TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px">&#149;
junior to all our existing and future indebtedness.</DIV>
<br>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.</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Dividends
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dividends on the Series&nbsp;F Preferred Stock offered
hereunder are cumulative from and including July
2, 2004 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, at the annual rate of 8% of
the $25.00 liquidation preference per share,
equivalent to a fixed annual amount of $2.00 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.</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Liquidation preference
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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.</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Optional redemption
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Series&nbsp;F Preferred Stock is not redeemable
prior to February&nbsp;23, 2009, except in limited
circumstances to preserve our status as a REIT.
On or after February&nbsp;23, 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;</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Voting rights
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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, 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.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">S-7
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Conversion
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Series&nbsp;F Preferred Stock is not convertible
into or exchangeable for any other property or
securities.</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Restrictions on</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left" valign="top">ownership and transfer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">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.</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Listing
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Our Series&nbsp;F Preferred Stock is traded on the NYSE
under the symbol &#147;LTC PrF.&#148; We have applied for
approval to list on the NYSE the additional shares
of Series&nbsp;F Preferred Stock offered hereby.</TD>
</TR>

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

<TR valign="bottom">
    <TD align="left" valign="top">Use of proceeds
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The net proceeds from the sale of the Series&nbsp;F
Preferred Stock offered hereby will be used for
general corporate purposes which may include
investments in and acquisitions of health care
properties, the funding of mortgage loans secured
by health care properties and payment of various
mortgage debt.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">S-8
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="104"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>RISK FACTORS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 10-K for the year ended December&nbsp;31, 2003, which
is 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.


<P align="left" style="font-size: 10pt"><B>We could incur more debt.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

<P align="left" style="font-size: 10pt"><B>The market value of our Series&nbsp;F Preferred Stock could be substantially
affected by various factors.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As with other publicly traded securities, the trading price of our Series
F Preferred Stock will depend on many factors, which may change from time to
time, including:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the market for similar securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the additional issuance of other classes or series of our preferred shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general economic and financial market conditions; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our financial condition, performance and prospects.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">S-9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>

<DIV align="left">
<A name="105"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>USE OF PROCEEDS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
net proceeds from the sale of the 2,640,000 shares of Series&nbsp;F
Preferred Stock offered hereby are estimated to be $60.6&nbsp;million at an assumed
public offering price of $23.53 per share not including an additional per share
amount of $0.0056 per day for the number of days from and including July&nbsp;2,
2004 through and including the day of sale, such additional amount being equal
to the accrued and unpaid distributions payable with respect to such 8% Series
F Preferred Stock of beneficial interest through the date of any such sale.
The net proceeds will be used for general corporate purposes which may include
investments in and acquisitions of health care properties, the funding of
mortgage loans secured by health care properties and payment of various
mortgage debt.

<DIV align="left">
<A name="106"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>CAPITALIZATION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth our capitalization (i)&nbsp;as of March&nbsp;31,
2004, and (ii)&nbsp;to give proforma effect of the sale 2,640,000 shares of our
Series&nbsp;F Preferred Stock offered hereby at an assumed offering price of $23.53
per share.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>As of March 31, 2004</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Actual</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>As adjusted</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(in thousands)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cash and cash equivalents:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">64,348</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Debt:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Bank borrowings(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Mortgage loans payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,998</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Bonds payable and capital lease obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,254</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Senior participation payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,046</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,046</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,298</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,298</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Preferred Stock, $0.01 par value; 15,000,000 shares authorized</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Series&nbsp;C Cumulative Convertible Preferred Stock,
2,000,000 shares issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,500</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Series&nbsp;E Cumulative Convertible Preferred Stock,
2,200,000 shares issued and outstanding(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Series&nbsp;F Cumulative Preferred Stock, 4,000,000
shares issued and outstanding and 6,640,000 shares
issued and outstanding as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Common Stock, $0.01 par value; 35,000,000 authorized;
18,018,314 shares issued and outstanding(2)(3)(4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Capital in excess of par value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250,115</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Cumulative net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,849</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,849</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">480</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Cumulative distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(358,402</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(358,402</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">376,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">436,722</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total capitalization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">537,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">598,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of June&nbsp;30, 2004, our bank borrowings were $1.5&nbsp;million.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In April&nbsp;2004, holders of 798,000 shares of Series&nbsp;E Preferred Stock
notified us of their election to convert such shares into 1,596,000 shares of Common Stock. On July&nbsp;14,
2004, holders of 10,800 shares of Series&nbsp;E Preferred
Stock notified us of their election to convert such shares into 21,800 shares of Common Stock.
After this conversion, we will have a balance of $34,780,000 of Series&nbsp;E
Preferred Stock.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At our Annual Meeting on May&nbsp;18, 2004, our stockholders approved an
amendment to our Charter increasing our authorized Common Stock to
45,000,000 shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Excludes: (i)&nbsp;303,176 shares reserved under our 1992 Stock Option Plan
and our 1998 Equity Participation Plan; (ii)&nbsp;500,000 shares reserved under
our 2004 Stock Option Plan; (iii)&nbsp;100,000 shares reserved under our 2004
Restricted Stock Plan; (iv)&nbsp;697,022 shares reserved for issuance upon
conversion of limited partnership interests by certain limited partners of
our partnership subsidiaries; (v)&nbsp;2,000,000 shares reserved for issuance
upon the conversion of our Series&nbsp;C Preferred Stock; and
(vi)&nbsp;4,400,000 shares (as of March&nbsp;31, 2004) reserved for issuance upon the conversion of
our Series&nbsp;E Preferred Stock.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">S-10
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="107"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>SELECTED CONSOLIDATED FINANCIAL DATA</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following selected consolidated financial data for the five years
ended December&nbsp;31, 2003 are derived from our audited consolidated financial
statements. The selected consolidated financial data for the three month
periods ended March&nbsp;31, 2004 and March&nbsp;31, 2003 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 three months ended March&nbsp;31, 2004 are not necessarily
indicative of the results that may be expected for the entire year ending
December&nbsp;31, 2004. The data should be read in conjunction with our consolidated
financial statements, related notes and other financial information
incorporated by reference herein.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Three months</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>Year ended December 31,</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>ended March 31,</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="27"><B>(in thousands, except per share amounts)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">84,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">84,364</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">68,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">69,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,960</TD>
    <TD>&nbsp;</TD>
</TR>

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

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,313</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,390</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,987</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,199</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,175</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Impairment charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Operating and other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,863</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,188</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,626</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,763</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Income before minority interest and other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,197</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,018</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(982</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(973</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,308</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(321</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(283</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,304</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Income from continuing operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,139</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,914</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Discontinued operations:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Gain (loss)&nbsp;from discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5,655</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(8,741</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(819</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Gain on sale of assets, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,990</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">975</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)&nbsp;from discontinued operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,181</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,664</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(29</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">987</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,827</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,637</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,908</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,803</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,901</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Preferred stock redemption charge</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,241</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,029</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Preferred stock dividends</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,087</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,087</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,077</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,042</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(16,596</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,761</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,946</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)&nbsp;available to common stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(17,985</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">926</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Per share information:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Basic net income (loss)&nbsp;available to common stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.75</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Diluted net income (loss)&nbsp;available to common stockholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(0.75</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Common stock distributions declared</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<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 style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>As of December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>As of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Consolidated balance sheet data</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23"><B>(in thousands)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Real estate investments, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">683,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">622,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">604,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">552,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">515,752</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">520,639</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">721,811</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">676,585</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">599,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">574,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">553,436</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">292,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">262,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">284,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">230,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">161,298</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">303,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">272,546</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">294,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239,113</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">166,483</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,831</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">394,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">340,379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">347,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">368,782</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">376,122</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<A name="108"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>LEGAL PROCEEDINGS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="center" style="font-size: 10pt">S-11
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<DIV align="left">
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<P align="left" style="font-size: 10pt"><B>RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS</B>



<P align="left" style="font-size: 10pt">&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.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<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>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Three months</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>Year ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>March 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
</TR>

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<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Consolidated ratio
of earnings to
fixed charges
(unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Consolidated ratio
of earnings to
combined fixed
charges and
preferred stock
dividends
(unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.46</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued 3,080,000 shares of 9.5% Series&nbsp;A Preferred Stock in March&nbsp;1997
and redeemed 1,241,480 shares as of December&nbsp;31, 2003 and redeemed the
remaining 1,838,520 shares as of March&nbsp;25, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued 2,000,000 shares of 9.0% Series&nbsp;B Preferred Stock in December
1997 and redeemed 7,000 shares as of December&nbsp;31, 2001, redeemed 5,000 shares
as of December&nbsp;31, 2003 and redeemed the remaining 1,988,000 shares as of March
31, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued 2,000,000 shares of 8.5% Series&nbsp;C Cumulative Convertible
Preferred Stock in September&nbsp;1998, 2,200,000 shares of 8.5% Series&nbsp;E Cumulative
Convertible Preferred Stock in September, 2003 and 4,000,000 shares of 8.0%
Series&nbsp;F Cumulative Preferred Stock in February&nbsp;2004. 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.

<DIV align="left">
<A name="110"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DESCRIPTION OF OUR CAPITAL STOCK</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>GENERAL</B>



<P align="left" style="font-size: 10pt">&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 supplement as our
&#147;Charter,&#148; we are authorized to issue 60,000,000 shares of all classes of
stock, each share having a par value of $0.01 of which 45,000,000 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 of stock 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Of our preferred stock:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>2,000,000 shares have been designated as 8.5% Series&nbsp;C Cumulative Convertible Preferred Stock;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>2,200,000 shares have been designated as 8.5% Series&nbsp;E Cumulative Convertible Preferred Stock; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>4,000,000 shares have been designated as 8.0% Series&nbsp;F Cumulative Preferred Stock;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June&nbsp;30, 2004, 2,000,000, 1,596,000 and 4,000,000 shares of Series
C, Series&nbsp;E and Series&nbsp;F, respectively were outstanding. We redeemed 1,241,480
shares of our 9.5% Series&nbsp;A Preferred Stock as of December&nbsp;31, 2003 and
redeemed the remaining 1,838,520 shares as of March&nbsp;25, 2004. We redeemed
7,000 shares of our 9.0% Series&nbsp;B Preferred



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<P align="left" style="font-size: 10pt">Stock as of December&nbsp;31, 2001, 5,000 shares as of December&nbsp;31, 2003 and
redeemed the remaining 1,988,000 shares as of March&nbsp;31, 2004. Our Board of
Directors has reclassified such redeemed shares of Preferred Stock as
authorized and unclassified shares of Preferred Stock.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July&nbsp;15, 2004, there were 19,651,947 shares of our Common Stock
outstanding.


<P align="left" style="font-size: 10pt"><B>SERIES C CONVERTIBLE PREFERRED STOCK</B>



<P align="left" style="font-size: 10pt"><B>Rank</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
with respect to dividend rights or rights on liquidation, dissolution or
winding up of our company; (ii)&nbsp;on parity with 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)
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.


<P align="left" style="font-size: 10pt"><B>Other terms</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 the Series&nbsp;E Preferred Stock, the Series&nbsp;F Preferred Stock or any
other class or series of preferred stock may be entitled.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, in the case of a preferred dividend default, the holders of
Series&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2004, 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.


<P align="center" style="font-size: 10pt">S-13
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>SERIES E PREFERRED STOCK</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. For a description of our Series&nbsp;E Preferred
Stock, we refer you to the description of our Series&nbsp;E Preferred Stock
contained in our registration statement on Form 8-A.


<P align="left" style="font-size: 10pt"><B>SERIES F PREFERRED STOCK</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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.


<P align="left" style="font-size: 10pt"><B>Maturity</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;F Preferred Stock has no stated maturity and is not subject to
any sinking fund or mandatory redemption.


<P align="left" style="font-size: 10pt"><B>Rank</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;F Preferred Stock , with respect to dividend rights and rights
upon liquidation, dissolution or winding up of our company, ranks (i)&nbsp;senior to
our Common Stock, and to all equity securities ranking junior to the Series&nbsp;F
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;C
Preferred Stock, 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)&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;F Preferred Stock prior to the
conversion of such convertible debt securities.


<P align="left" style="font-size: 10pt"><B>Dividends</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 8% per annum of the
liquidation preference per share, equivalent to a fixed annual amount of $2.00
per share.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on the Series&nbsp;F Preferred Stock offered hereby are cumulative
from and including July&nbsp;2, 2004 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. Such dividend and any dividend payable on the Series&nbsp;F
Preferred Stock for any partial dividend period is 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 is 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, dividends on the Series&nbsp;F Preferred Stock
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 do
not bear interest and holders of the Series&nbsp;F Preferred Stock are not 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


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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">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 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.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 are not 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.


<P align="left" style="font-size: 10pt"><B>Liquidation preferences</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 $25.00 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 are 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>Redemption</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On or after February&nbsp;23, 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.
The Series&nbsp;F Preferred Stock is not otherwise redeemable prior to February&nbsp;23,
2009. However, in order to ensure that we


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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">will continue to meet the requirements for qualification as a REIT, the
Series&nbsp;F Preferred Stock is 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;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each notice will state:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" nowrap align="right">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the redemption date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" nowrap align="right">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the redemption price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" nowrap align="right">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of shares of Series&nbsp;F Preferred Stock to be
redeemed;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" nowrap align="right">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the place or places where the Series&nbsp;F Preferred Stock is
to be surrendered for payment of the redemption price; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" nowrap align="right">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that dividends on the shares to be redeemed will cease to
accrue on such redemption date.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;F Preferred Stock has no stated maturity and are not 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, 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.


<P align="left" style="font-size: 10pt"><B>Voting rights</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of the Series&nbsp;F Preferred Stock do not have any voting rights,
except as set forth below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever dividends on the Series&nbsp;F Preferred Stock or the Series&nbsp;E
Preferred Stock are in arrears for six or more quarterly periods 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;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;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;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If and when all accumulated dividends and the dividend for the then
current dividend period on the Series&nbsp;F 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.


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<P align="left" style="font-size: 10pt">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.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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,


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any increase in the amount of the authorized preferred stock or
the creation or issuance of any other series of preferred stock, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any increase in the amount of authorized shares of such series,</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">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.



<P align="left" style="font-size: 10pt">&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 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly stated in the Articles Supplementary creating the
Series&nbsp;F Preferred Stock, the Series&nbsp;F Preferred Stock does 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.


<P align="left" style="font-size: 10pt"><B>Conversion</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Series&nbsp;F Preferred Stock is not convertible into or exchangeable for
any of our other property or securities.


<P align="left" style="font-size: 10pt"><B>Restrictions on ownership and transfer</B>



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="center" style="font-size: 10pt">S-18
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<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 Internal Revenue Code applicable to REITs, to comply with
the requirements of any taxing authority or governmental agency or to determine
any such compliance.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt"><B>Transfer and dividend paying agent</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computershare Investor Services, LLC acts as the transfer and dividend
payment agent for the Series&nbsp;F Preferred Stock and Common Stock and acts as
transfer agent, dividend paying agent and conversion agent for the Series&nbsp;E
Preferred Stock.

<DIV align="left">
<A name="111"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>ADDITIONAL FEDERAL INCOME TAX CONSIDERATIONS</B>



<P align="left" style="font-size: 10pt"><B>GENERAL</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2003 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 Internal Revenue
Code (or 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.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

<P align="left" style="font-size: 10pt"><B>CERTAIN FEDERAL INCOME TAX CONSIDERATIONS RELATING TO BUYING, OWNING AND
SELLING OUR SERIES F PREFERRED STOCK</B>



<P align="left" style="font-size: 10pt"><B>Basis</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>Holding periods</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>Taxation of disposition of our Series&nbsp;F Preferred Stock</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>Taxation of cash redemption of Series&nbsp;F Preferred Stock</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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



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<P align="left" style="font-size: 10pt">treated as a long term loss to the extent our distributions are required to
be treated by such stockholder as long term capital gain.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>Redemption premium</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Section 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.


<P align="left" style="font-size: 10pt"><B>CERTAIN INCOME TAX CONSIDERATIONS RELATING TO OUR REIT ELECTION</B>



<P align="left" style="font-size: 10pt"><B>Taxation of a REIT</B>



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 10-K
for the year ended December&nbsp;31, 2003 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 10-K for the year ended December&nbsp;31, 2003 and this
prospectus supplement may be changed, perhaps retroactively, by legislative or
administrative action at any time.


<P align="left" style="font-size: 10pt">&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. However, we will be subject to federal income tax as
follows:


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First, we will be taxed at regular corporate rates on any undistributed
taxable income, including undistributed net capital gains.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>Qualifying rents</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2003, 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


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<P align="left" style="font-size: 10pt">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.



<P align="left" style="font-size: 10pt"><B>LEGISLATIVE DEVELOPMENTS</B>



<P align="left" style="font-size: 10pt">&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 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%.


<P align="left" style="font-size: 10pt">&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 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%).


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These legislative changes affect the discussion in our annual report on
Form 10-K for the fiscal year ended December&nbsp;31, 2003 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.


<P align="left" style="font-size: 10pt"><B>TAXATION OF TAXABLE DOMESTIC STOCKHOLDERS</B>



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


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<P align="left" style="font-size: 10pt"><B>Backup withholding</B>



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt"><B>TAXATION OF TAX-EXEMPT STOCKHOLDERS</B>



<P align="left" style="font-size: 10pt">&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-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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt"><B>TAXATION OF FOREIGN STOCKHOLDERS</B>



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 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.


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<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt"><B>OTHER TAX CONSEQUENCES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="center" style="font-size: 10pt">S-25
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>STATEMENT OF SHARE OWNERSHIP</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

<DIV align="left">
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</DIV>

<P align="center" style="font-size: 10pt"><B>PLAN OF DISTRIBUTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 agent 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cohen &#038; Steers has no commitment to purchase any of our Series&nbsp;F Preferred
Stock and will act only as an agent in obtaining indications of interest in our
Series&nbsp;F Preferred Stock from certain investors. We agreed to pay the
placement agent a fee equal to the sum of (i)&nbsp;2% of the gross
proceeds that we receive from non-affiliates of the placement agent
and (ii)&nbsp;1% of the gross proceeds we receive from affiliates of
the placement agent. In
addition, we have agreed to reimburse the placement agent for up to $50,000 in
expenses incurred in connection with this offering. We and the placement agent
will each pay certain expenses relating to the offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In a placement agent 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with this offering, Cohen &#038; Steers may engage broker-dealers
as sub-placement agents to participate in the placement of the Series&nbsp;F
Preferred Stock. Such sub-placement agents may receive a portion of the
placement agent fee to be paid to Cohen &#038; Steers as well as other compensation
and fees.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business, Cohen &#038; Steers, and/or one or more of
the sub-placement agents 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of purchase agreements dated the date
hereof, with respect to which Cohen &#038; Steers acted as placement agent, certain
institutional investors and other purchasers have agreed to purchase, and we
have agreed to sell, 2,640,000 Series&nbsp;F Preferred Stock at a
price of&nbsp; $23.53&nbsp;per
share plus an additional amount of $0.0056 per day for the number of days from
and including July&nbsp;2, 2004 through and including the day of sale (with any
included completed calendar month being deemed to have 30&nbsp;days), such
additional amount being equal to the accrued and unpaid distributions with
respect to such 8% Series&nbsp;F Preferred Stock of beneficial interest through the
date of any such sale. The purchase agreement provides 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 additional shares
of Series&nbsp;F Preferred Stock on the New York Stock Exchange. The purchase
agreements provide that we are to use our reasonable best efforts to obtain
such approval within 30&nbsp;days of the issuance of the additional shares of Series
F Preferred Stock, or if not, as soon as practicable thereafter. However, no
assurance can be given that the application will be approved.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jefferies &#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 $26,400 from Cohen &#038; Steers.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February&nbsp;2004 we issued 4,000,000 shares of Series&nbsp;F Preferred Stock at
a public offering price of $25.00 per share. Cohen &#038; Steers acted as placement
advisor in connection with that offering and received a placement fee
of $1,000,000 and an additional fee of $104,600 for
arranging for the sale through a sub-placement advisor of our Series&nbsp;F
Preferred Stock to certain retail accounts. Jefferies &#038; Company, Inc. acted as
settlement agent in that offering and received a fee of $40,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After paying the fees to the placement agent and other estimated expenses,
we anticipate receiving approximately $60.6&nbsp;million in net proceeds from the
sale of 2,640,000 shares of our Series&nbsp;F Preferred Stock in this offering.


<P align="center" style="font-size: 10pt">S-26
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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="113"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>LEGAL MATTERS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

<DIV align="left">
<A name="114"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>EXPERTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements and schedules of LTC Properties,
Inc. appearing in our annual report on Form 10-K for the year ended December
31, 2003 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.

<DIV align="left">
<A name="115"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="116"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>DOCUMENTS INCORPORATED BY REFERENCE</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; the information we file
with the SEC, which means:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we consider incorporated documents to be part of the prospectus;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may disclose important information to you by referring you to those documents; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information we subsequently file with the SEC will
automatically update and supersede the information in this
prospectus.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus incorporates by reference the following documents:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Quarterly reports on Form 10-Q for the quarterly period ended March&nbsp;31, 2004.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Definitive proxy statement for the annual meeting of stockholders held on May&nbsp;18, 2004.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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:


<P align="center" style="font-size: 10pt">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




<P align="center" style="font-size: 10pt">S-27
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 12pt">PROSPECTUS



<P align="center" style="font-size: 12pt">$200,000,000
<DIV align="center" style="font-size: 10pt">LTC PROPERTIES, INC.<BR>
DEBT SECURITIES, PREFERRED STOCK<BR>
AND COMMON STOCK</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LTC Properties, Inc. may from time to time offer in one or more series (i)
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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of our Common Stock, any initial public offering
price.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our stock Common Stock is traded on the New York Stock Exchange (or NYSE)
under the symbol &#147;LTC.&#148; Our executive offices are located at 22917 Pacific
Coast Hwy, Suite&nbsp;350, Malibu, California 90265, telephone number:
310-455-6010, facsimile: 805-981-8663 and web site: www.ltcproperties.com.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing in our securities involve certain risks. See &#147;Risk Factors&#148;
beginning on page 6.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="center" style="font-size: 10pt">The date of this prospectus
is April&nbsp;5, 2004



<P align="center" style="font-size: 10pt">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
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</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="center" style="font-size: 10pt">TABLE OF CONTENTS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<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 style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#101">ABOUT THIS PROSPECTUS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#102">FORWARD-LOOKING STATEMENTS </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#103">WHERE YOU CAN FIND ADDITIONAL INFORMATION </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#104">DOCUMENTS INCORPORATED BY REFERENCE</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#105">ABOUT OUR COMPANY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#106">OUR STRATEGY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#107">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#108">USE OF PROCEEDS </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#109">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#110">GENERAL DESCRIPTION OF THE OFFERED SECURITIES </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#111">DESCRIPTION OF DEBT SECURITIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#112">DESCRIPTION OF OUR COMMON STOCK </A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#113">DESCRIPTION OF OUR PREFERRED STOCK</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#114">RESTRICTIONS ON OWNERSHIP AND TRANSFER</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#115">CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#116">CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#117">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#118">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#119">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="101"></A>
</DIV>

<P align="center" style="font-size: 10pt">ABOUT THIS PROSPECTUS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission (or 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;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should rely only on the information contained and incorporated by
reference in this prospectus. Neither we nor the underwriters have authorized
any other person to provide you with different or inconsistent information from
that contained in this prospectus and the applicable prospectus supplement. If
anyone provides you with different or inconsistent information, you should not
rely on it. You should assume that the information in this prospectus and the
applicable prospectus supplement, as well as the information we previously
filed with the SEC and incorporated by reference, is accurate only as of the
date on the front cover of this prospectus and the applicable prospectus
supplement. Our business, financial condition, results of operations and
prospects may have changed since those dates.


<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="102"></A>
</DIV>

<P align="center" style="font-size: 10pt">FORWARD-LOOKING STATEMENTS



<P align="left" style="font-size: 10pt">&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
health care industry, changes in financing terms, competition within the health
care 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 10-K for the year ended December&nbsp;31, 2003. 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.


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="103"></A>
</DIV>

<P align="center" style="font-size: 10pt">WHERE YOU CAN FIND ADDITIONAL INFORMATION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement on Form 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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="104"></A>
</DIV>

<P align="center" style="font-size: 10pt">DOCUMENTS INCORPORATED BY REFERENCE



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC allows us to &#147;incorporate by reference&#148; the information we file
with the SEC, which means:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we consider incorporated documents to be part of the prospectus;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may disclose important information to you by referring you to those documents; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information we subsequently file with the SEC will
automatically update and supersede the information in this
prospectus.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus incorporates by reference the following documents:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Annual report on Form 10-K for the year ended December&nbsp;31, 2003.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Definitive proxy statement for the annual meeting of stockholders held on July&nbsp;28, 2003.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Current Report on Form 8-K dated March&nbsp;19, 2004, for Amendment
No.&nbsp;1 to Rights Agreement dated as of March&nbsp;19, 2004, between LTC
Properties, Inc. and Harris Trust &#038; Savings Bank (as Rights Agent).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our Common Stock contained in our
registration statement on Form 8-A, including any amendment or report
for the purpose of updating such description.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our Series&nbsp;A Cumulative Preferred Stock
contained in our registration statement on Form 8-A, including any
amendment or report for the purpose of updating such description.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our Series&nbsp;B Cumulative Preferred Stock
contained in our registration statement on Form 8-A, including any
amendment or report for the purpose of updating such description.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our Series&nbsp;D Junior Participating Preferred
Stock contained in our registration statement on Form 8-A, including
any amendment or report for the purpose of updating such description.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our Series&nbsp;E Cumulative Convertible
Preferred Stock contained in our registration statement on Form 8-A,
including any amendment or report for the purpose of updating such
description.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of our Series&nbsp;F Cumulative Preferred Stock
contained in our registration statement on Form 8-A, including any
amendment or report for the purpose of updating such description.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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:


<P align="center" style="font-size: 10pt">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



<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="105"></A>
</DIV>

<P align="center" style="font-size: 10pt">ABOUT OUR COMPANY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a self-administered real estate investment trust that invests
primarily in long-term care and other health care related properties through
mortgage loans, property lease transactions and other investments. As of
December&nbsp;31, 2003, long-term care properties, which include skilled nursing and
assisted living properties, comprised approximately 98% of our investment
portfolio. We have been operating since August&nbsp;1992.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our senior management team is comprised of four individuals with a
combined 51&nbsp;years of experience in health care and real estate finance.



<P align="left" style="font-size: 10pt">&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 properties, 83 skilled nursing properties 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%).


<P align="left" style="font-size: 10pt">Owned Properties



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2003, we owned 53 skilled nursing properties with a total
of 6,047 beds, 88 assisted living properties 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.


<P align="left" style="font-size: 10pt">Mortgage Loans



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2003, we had 37 mortgage loans secured by first mortgages
on 30 skilled nursing properties with a total of 3,681 beds and eight assisted
living properties 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 2004 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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">5
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">REMIC Certificates



<P align="left" style="font-size: 10pt">&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 $150&nbsp;million and 7.1%. As of December&nbsp;31,
2003, the carrying value of the subordinated REMIC certificates held by us was
$62&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 15.4% at
December&nbsp;31, 2003.


<P align="left" style="font-size: 10pt">&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 2004 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.


<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="106"></A>
</DIV>

<P align="center" style="font-size: 10pt">OUR STRATEGY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary objectives are to sustain and enhance stockholder equity value
and provide current income for distribution to stockholders through real estate
investments in long-term care properties and other health care related
properties managed by experienced operators. To meet these objectives, we
attempt to invest in 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.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For investments in skilled nursing properties, 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 properties is approximately $27,000 per bed while that of our
mortgages is approximately $16,000 per bed.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 properties tend to be both newer and less dependent, if at
all, on any government reimbursement.</TD>
</TR>

</TABLE>

<DIV align="left">
<A name="107"></A>
</DIV>

<P align="center" style="font-size: 10pt">RISK FACTORS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should carefully consider the risks described below and in the
applicable prospectus supplement before making an investment decision in our
company. The risks and uncertainties described below and therein 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 10-K for the year ended
December&nbsp;31, 2003, 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.


<P align="center" style="font-size: 10pt">6
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our expected results may not be achieved, and actual results may differ
materially from our expectations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our failure to achieve expected results may be a result of various
factors, including, but not limited to:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the status of the economy;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the status of capital markets, including prevailing interest rates;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>compliance with and changes to regulations and payment policies within the health care industry;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in financing terms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition within the health care and senior housing industries; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in federal, state and local legislation.</TD>
</TR>

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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Recently enacted tax legislation could have an adverse effect on the market
price of our equity securities.


<P align="left" style="font-size: 10pt">&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 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 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 or our
equity securities.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">A failure to maintain or increase our dividend could reduce the market price of
our stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During calendar 2002 we paid a quarterly dividend of $.10 per common share
of stock. During calendar 2003, we paid a $.10 dividend in the first quarter,
a $.15 dividend in the second and third quarter and a $.25 dividend in the
fourth quarter on our common stock. The ability to maintain or raise our
common dividend is dependent, to a large part, on growth of funds from
operations. This growth in turn depends upon increased revenues from
additional investments and loans, rental increases and mortgage rate increases.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">At times, we may have limited access to capital which will slow our growth.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A REIT is required to make dividend distributions and retains little
capital for growth. As a result, a REIT is required to grow through the steady
investment of new capital in real estate assets. Presently, we believe capital
is readily available to us. However, there will be times when we will have
limited access to capital from the equity and/or debt markets. During such
periods, virtually all of our available capital will be required to meet
existing commitments and to reduce existing debt. We may not be able to obtain
additional equity or debt capital or dispose of assets on favorable terms, if
at all, at the time we require additional capital to acquire health care
properties on a competitive basis or meet our obligations.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Income and returns from health care facilities can be volatile.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The possibility that the health care 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 health care
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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We depend on lease income and mortgage payments from real property.


<P align="left" style="font-size: 10pt">&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.


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We rely on a few major operators.


<P align="left" style="font-size: 10pt">&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
12.6%, or $72.5&nbsp;million, of our total assets. In October&nbsp;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. At
the request of our Board of Directors, we agreed to reduce total rents under
the 37 leases by $0.9&nbsp;million 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALC is a publicly traded company, and as such is subject to the filing
requirements of the Securities and Exchange Commission.


<P align="left" style="font-size: 10pt">&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
12.4%, or $71.3&nbsp;million, of our total assets at December&nbsp;31, 2003. Alterra
announced on January&nbsp;22, 2003 that it had filed a voluntary petition with the
U.S. Bankruptcy Court for the District of Delaware to reorganize under Chapter
11 of the U.S. Bankruptcy Code. Alterra&#146;s Plan of Reorganization was approved
in November&nbsp;2003 and Alterra emerged from bankruptcy in December&nbsp;2003 as a
non-publicly traded company. All of our leases with Alterra were assumed,
without change, by the reorganized Alterra.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our financial position and 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 borrowers when it expires.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our borrowers and lessees face competition in the health care industry.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">The health care industry is heavily regulated by the government.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our borrowers and lessees who operate health care facilities are subject
to extensive regulation by federal, state and local governments. This
includes, among others, state licensure, Medicare and Medicaid certification,
health care professional licensure requirements, building code and zoning laws,
requirements on the submission of claims to third party payers, patient privacy
requirements, and laws governing financial arrangements among health care
entities. Our borrowers and lessees are also required to comply with various
privacy, claims submission and security standards mandated by the Health
Insurance Portability and Accountability Act of 1996. 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
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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our borrowers and lessees rely on government and third party reimbursement.


<P align="left" style="font-size: 10pt">&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 include the federal Medicare program, state Medicaid
programs, private insurance carriers, health care service plans, health
maintenance organizations, preferred provider arrangements, self-insured
employers, as well as the patients themselves.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of the revenue of our borrowers and lessees is
derived from governmentally-funded reimbursement programs, such as Medicare and
Medicaid. Because of significant health care costs paid by such government
programs, both federal and state governments have adopted and continue to
consider various health care reform proposals to control health care 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 health care
services. In many instances, revenues from Medicaid


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">programs are already insufficient to cover the actual costs incurred in
providing care to those patients, and several states have reduced, or are
considering reducing, nursing facility payment rates. Moreover, health care
facilities have experienced increasing pressures from private payors attempting
to control health care costs, and reimbursement from private payors has in many
cases effectively been reduced to levels approaching those of government
payors.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governmental and public concern regarding health care costs may result in
significant reductions in payment to health care 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 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.


<P align="left" style="font-size: 10pt">&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,
(or PPS) rates for fiscal year 2004, which began October&nbsp;1, 2003. In addition,
the rule adjusted 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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Congress and the states have enacted health care reform measures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The health care industry is facing various challenges, including increased
government and private payor pressure on health care 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&nbsp;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&nbsp;2003, the U.S. 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For instance, the Balanced Budget Act of 1997 enacted significant changes
to the Medicare and Medicaid programs designed to modernize payment and health
care 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 certain long-term care operators and both
assisted living operators have emerged from bankruptcy, during their
reorganizations and in some instances subsequent thereto, they reduced their
operations by rejecting leases and/or defaulting on loans resulting in
properties being returned to lessors or lenders. There can be no assurances
given that the remainder of 2004 and future years will not include additional
bankruptcies of skilled nursing and assisted living operators.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;More recently, on December&nbsp;8, 2003, President Bush signed into law the
Medicare Prescription Drug, Improvement and Modernization Act of 2003 (P.L.
108-173). In addition to providing 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 Medicare PPS payment for skilled nursing
facility residents 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 temporary increases in Medicare
payment for certain high-cost skilled nursing facility patients now in effect
will continue through fiscal year 2005. Nevertheless, there can be no
assurances that future legislation or regulations will not reduce Medicare
reimbursement for skilled nursing facility services. In fact, 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&nbsp;2004 report that Congress provide no Medicare
reimbursement update for skilled nursing facilities in fiscal year 2005, and
that CMS develop a new patient classification system for the skilled nursing
facility prospective payment system. Until such a new classification system is
developed, MedPAC recommends certain reallocation of payments from
rehabilitation payment groups to other patient groups. While the MedPAC
recommendations are not binding on Congress, they may affect congressional
consideration of future Medicare reimbursement legislation.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, comprehensive reforms affecting the payment for and
availability of health care 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 health care 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.


<P align="left" style="font-size: 10pt">&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. According to a September&nbsp;2003 report by the Kaiser Commission on
Medicaid and the Uninsured, nursing home rates were cut or frozen in 17 states
in fiscal 2003 and in 19 states in fiscal 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 2003 and in 29 states in fiscal
2004; these increases often are mandated by state statutory funding formulas.
States may be further challenged in June&nbsp;2004 when temporary aid to states
enacted in the May&nbsp;2003 Jobs and Growth Reconciliation Tax Act expires; $10
billion of the $20&nbsp;billion in temporary assistance was earmarked for state
Medicaid programs. President Bush has advocated further restrictions in
federal funding for the Medicaid program as part of his proposed fiscal year
2005 budget. However, in light of forthcoming regulations and continuing state
and federal Medicaid program reform efforts and budget cuts, no assurance can
be given that future Medicaid policy developments or the implementation of such
regulations and reform will not have a material adverse effect on our financial
condition or results of operations.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We could incur more debt.


<P align="left" style="font-size: 10pt">&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 in a public offering 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.


<P align="left" style="font-size: 10pt">A failure to reinvest cash available to us could adversely affect our future
revenues and our ability to increase dividends to stockholders; there is
considerable competition in our market for attractive investments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, we will have cash available from (1)&nbsp;proceeds of sales
of shares of securities, (2)&nbsp;proceeds from new debt issuances, (3)&nbsp;principal
payments on our mortgages and other investments, (4)&nbsp;sale of properties, and
(5)&nbsp;funds from operations. We may reinvest this cash in health care
investments in accordance with our investment policies, repay outstanding debt
or invest in qualified short-term investments. We compete for real estate
investments with a broad variety of potential investors. The competition for
attractive investments negatively affects our ability to make timely
investments on acceptable terms. Delays in acquiring properties or making
loans will negatively impact revenues and perhaps our ability to increase
distributions to our stockholders.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our failure to qualify as a REIT would have serious adverse consequences to our
stockholders.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our properties are subject to licensing, certification and accreditation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the requirements to be met by skilled nursing facilities
for participation in the Medicare and Medicaid programs, skilled nursing
facilities are subject to regulatory and licensing requirements of federal,
state and local authorities. We have no direct control over our borrowers&#146; or
tenants&#146; ability to meet the numerous state and federal regulatory
requirements. If a borrower or tenant does not continue to meet all regulatory
requirements, such borrower or tenant may lose its ability to provide or bill
for health care services. If we cannot attract another health care provider on
a timely basis or on acceptable terms, our revenues would be adversely
impacted. In addition, our properties are special purpose properties that may
not be easily adaptable to uses unrelated to health care. Transfers of
operations of health care facilities are subject to regulatory approvals not
required for transfers of other types of commercial operations and real estate.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Our remedies may be limited when mortgage loans default.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent we invest in mortgage loans, such mortgage loans may or may
not be recourse obligations of the borrower and generally will not be insured
or guaranteed by governmental agencies or otherwise. In the event of a default
under such obligations, we may have to foreclose on the property underlying the
mortgage or protect our interest by acquiring title to a property and
thereafter make substantial improvements or repairs in order to maximize the
property&#146;s investment potential. Borrowers may contest enforcement of
foreclosure or other remedies, seek bankruptcy protection against such
enforcement and/or bring claims for lender liability in response to actions to
enforce mortgage obligations. If a borrower seeks bankruptcy protection, the
Bankruptcy Court may impose an automatic stay that would preclude us from
enforcing foreclosure or other remedies against the borrower. Relatively high
&#147;loan to value&#148; ratios and declines in the value of the property may prevent us
from realizing an amount equal to our mortgage loan upon foreclosure.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Investments in commercial mortgage backed securities are subject to real estate
risks relating to the underlying properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We retain subordinated portions of the REMIC Certificates issued in our
securitizations. These REMIC Certificates are a form of mortgage backed
securities and as such, we are subject to the same risks associated with
investing directly in the underlying mortgage loans. This is especially true
in our case due to the nature of the collateral properties securing the
underlying mortgages in our securitizations. All of these properties are
special purpose properties used for the delivery of long-term care services.
Any risks associated with investing in these types of properties could impact
the value of our investment in the REMIC Certificates we retain.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Investments in commercial mortgage-backed securities are subject to risks
associated with prepayment of the underlying mortgages.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As with many interest bearing mortgage-backed instruments, prepayments of
the underlying mortgages may expose us to the risk that an equivalent rate of
return is not available in the current market and that new investment of
equivalent risk will have lower rates of return. Certain types of investments
in commercial mortgage-backed securities may be interest only securities which
expose the holder to the risk that the underlying mortgages may prepay at a
faster rate than anticipated at acquisition. Faster than anticipated
prepayments may cause the investment in interest only commercial
mortgage-backed securities to have a lower than anticipated rate of return and
could result in a loss of the initial investment under extreme prepayment
scenarios.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Subordinated securities may not be repaid upon default.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We invest in subordinated tranches of commercial mortgage backed
securities (our retained REMIC Certificates). In general, subordinated
tranches of commercial mortgage backed securities are entitled to receive
repayment of principal only after all principal payments have been made on more
senior tranches and also have subordinated rights as to receipt of interest
distributions. In addition, an active secondary market for such subordinated
securities is not as well developed as the market for other mortgage backed
securities. Accordingly, such subordinated commercial mortgage backed
securities may have limited marketability and there can be no assurance that a
more efficient secondary market will develop.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">We are subject to risks and liabilities in connection with properties owned
through limited liability companies and partnerships.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have ownership interests in limited liability companies and/or
partnerships. We may make additional investments through these ventures in the
future. Partnership or limited liability company investments may involve risks
such as the following:


<P align="center" style="font-size: 10pt">11
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our partners or co-members might become bankrupt (in which
event we and any other remaining general partners or members would
generally remain liable for the liabilities of the partnership or
limited liability company);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our partners or co-members might at any time have economic or
other business interests or goals which are inconsistent with our
business interests or goals;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our partners or co-members may be in a position to take action
contrary to our instructions, requests, policies or objectives,
including our policy with respect to maintaining our qualification as
a REIT; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agreements governing limited liability companies and
partnerships often contain restrictions on the transfer of a member&#146;s
or partner&#146;s interest or &#147;buy-sell&#148; or other provisions which may
result in a purchase or sale of the interest at a disadvantageous
time or on disadvantageous terms.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will, however, generally seek to maintain sufficient control of our
partnerships and limited liability companies to permit us to achieve our
business objectives. Our organizational documents do not limit the amount of
available funds that we may invest in partnerships or limited liability
companies. The occurrence of one or more of the events described above could
have a direct and adverse impact on us.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Certain provisions of Maryland law and our Charter and Bylaws could hinder,
delay or prevent changes in control.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain provisions of Maryland law, our Charter and our bylaws, as well as
our stockholder rights plan, until its expiration on April&nbsp;1, 2004, have the
effect of discouraging, delaying or preventing transactions that involve an
actual or threatened change in control. These provisions include the
following:


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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;


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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


<P align="center" style="font-size: 10pt">12
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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, certain 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;


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholder Rights Plan<I>. </I>In May&nbsp;2000, we adopted a Stockholder Rights
Plan (or Rights Plan) designed to discourage any potential acquirer 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 would have the right to purchase a specified amount of Common
Stock at a substantial discount from market price. On March&nbsp;18, 2004, our
Board of Directors approved an amendment to our Rights Plan whereby the Rights
Plan will expire on April&nbsp;1, 2004 and be of no further effect from such date.
Our Rights Plan is an exhibit to the registration statement for our Series&nbsp;D
Junior Participating Preferred Stock (or Series&nbsp;D Preferred Stock), and
therefore is incorporated by reference as an exhibit to the registration
statement of which this prospectus is a part.

<DIV align="left">
<A name="108"></A>
</DIV>

<P align="center" style="font-size: 10pt">USE OF PROCEEDS



<P align="left" style="font-size: 10pt">&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 development and acquisition of additional properties and
other acquisition transactions, the expansion and improvement of certain
properties in our portfolio and the redemption of our Series&nbsp;C Preferred
Convertible Stock.


<P align="center" style="font-size: 10pt">13
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="109"></A>
</DIV>

<P align="center" style="font-size: 10pt">RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO<BR>
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS



<P align="left" style="font-size: 10pt">&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.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19"><B>Year ended December 31,</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1999</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2000</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2001</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Consolidated ratio
of earnings to
fixed charges
(unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Consolidated ratio
of earnings to
combined fixed
charges and
Preferred Stock
dividends
(unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.08</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We issued 3,080,000 shares of 9.5% Series&nbsp;A Cumulative Preferred Stock in
March&nbsp;1997, 2,000,000 shares of 9.0% Series&nbsp;B Cumulative Preferred Stock in
December&nbsp;1997, 2,000,000 shares of 8.5% Series&nbsp;C Cumulative Convertible
Preferred Stock in September&nbsp;1998 and 2,200,000 shares of 8.5% Series&nbsp;E
Cumulative Convertible Preferred Stock in September&nbsp;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 $10.8&nbsp;million.

<DIV align="left">
<A name="110"></A>
</DIV>

<P align="center" style="font-size: 10pt">GENERAL DESCRIPTION OF THE OFFERED SECURITIES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer under this prospectus one or more of the following categories
of our securities:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>debt securities, in one or more series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shares of our Preferred Stock, par value $0.01 per share, in one or more series;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shares of our Common Stock, par value $0.01 per share; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>units consisting of any combination of the foregoing securities.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 as of December
31, 2003, we had 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
B Cumulative Preferred Stock (or Series&nbsp;B Preferred Stock), 2,000,000 shares as
8.5% Series&nbsp;C Cumulative Convertible Preferred Stock, 40,000 shares as Series&nbsp;D
Preferred Stock and 2,200,000 shares as of 8.5% Series&nbsp;E Cumulative Convertible
Preferred Stock (or Series&nbsp;E Preferred Stock) and as of February&nbsp;27, 2004, we
had designated and issued 4,000,000 shares of 8% Series&nbsp;F Cumulative Preferred
Stock (or Series&nbsp;F Preferred Stock).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December&nbsp;31, 2003, 17,807,051 shares of Common Stock and 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. There were no shares
of Series&nbsp;D Preferred Stock outstanding. On December&nbsp;31, 2003, and February
24, 2004, we announced the redemption of 1,225,680 shares and 1,838,520 shares,
respectively of our Series&nbsp;A Preferred Stock. On March&nbsp;1, 2004, we announced
the redemption of 1,988,000 shares of our Series&nbsp;B Preferred Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The redemption dates of the Series&nbsp;A Preferred Stock was January&nbsp;30, 2004
for the 1,225,680 shares and is March&nbsp;25, 2004 for the 1,838,520 shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The redemption date of the Series&nbsp;B Preferred Stock is March&nbsp;31, 2004.


<P align="center" style="font-size: 10pt">14
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to March&nbsp;31, 2004, we intend to file Articles Supplementary to
effect the reclassification and re-designation of 3,080,000 shares of Series&nbsp;A
Preferred Stock and 2,000,000 shares of Series&nbsp;B Preferred Stock to authorized
but unclassified and unissued preferred stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;18, 2004, our Board of Directors amended the Rights Plan, whereby
the Rights Plan will expire on April&nbsp;1, 2004, and be of no further effect from
such date. In connection therewith, our Board of Directors also authorized the
filing of Articles Supplementary on or after April&nbsp;1, 2004, to effect the
reclassification and re-designation of our Series&nbsp;D Preferred Stock to
authorized but unclassified and unissued preferred stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following such actions, we currently expect that on or about April&nbsp;1,
2004, pursuant to our Charter, of our total authorized Preferred Stock, we will
have classified and designated 2,000,000 shares as Series&nbsp;C Preferred Stock,
2,200,000 as Series&nbsp;E Preferred Stock and 4,000,000 shares as Series&nbsp;F
Preferred Stock, leaving 6,800,000 shares of authorized but unclassified and
unissued preferred stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Common Stock is listed on the New York Stock Exchange under the symbol
&#147;LTC.&#148; Until redeemed, 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; We will
terminate the listing of the Series&nbsp;A Preferred Stock and Series&nbsp;B Preferred
Stock on the New York Stock Exchange following redemption. Our Series&nbsp;E
Preferred Stock and Series&nbsp;F Preferred Stock are listed on the New York Stock
Exchange under the symbols &#147;LTC PrE&#148; and &#147;LTC PrF,&#148; respectively. 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.

<DIV align="left">
<A name="111"></A>
</DIV>

<P align="center" style="font-size: 10pt">DESCRIPTION OF DEBT SECURITIES



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">GENERAL



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the title and series designation and whether they are senior
securities, senior subordinated securities or subordinated
securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate principal amount of the securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">15
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if convertible, the securities into which they are convertible,
the initial conversion price, the conversion period and any other
terms governing such conversion;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the stated maturity date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any fixed or variable interest rate or rates per annum;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date from which interest may accrue and any interest payment dates;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any sinking fund requirements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any provisions for redemption, including the redemption price and any remarketing arrangements;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the securities are denominated or payable in United
States dollars or a foreign currency or units of two or more foreign
currencies;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the events of default and covenants of such securities, to the
extent different from or in addition to those described in this
prospectus;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether we will issue the debt securities in certificated or
book-entry form;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the applicability, if any, of the defeasance and covenant
defeasance provisions described in this prospectus or any prospectus
supplement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the subordination provisions, if any, relating to the debt
securities;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether any of our subsidiaries will be bound by the terms of
the indenture, in particular any restrictive covenants;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the provisions relating to any security provided for the debt securities; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the provisions relating to any guarantee of the debt securities.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">16
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">DENOMINATIONS, INTEREST, REGISTRATION AND TRANSFER



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in any other lawful manner, all as the applicable indenture
describes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">MERGER, CONSOLIDATION OR SALE OF ASSETS



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">CERTAIN COVENANTS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">17
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">EVENTS OF DEFAULT AND RELATED MATTERS



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We do not pay the principal or any premium on a debt security
of that series within 30&nbsp;days after its maturity date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We do not pay interest on a debt security of that series within 30&nbsp;days after its due date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We do not deposit any sinking fund payment for that series within 30&nbsp;days after its due date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other event of default described in the applicable
prospectus supplement occurs.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you must give the trustee written notice that an event of
default has occurred and remains uncured;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the trustee must have not taken action for 60&nbsp;days after
receipt of the notice and offer of indemnity.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">18
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">MODIFICATION OF AN INDENTURE



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are three types of changes we may be able to make to the indentures
and the debt securities:


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the stated maturity of the principal or interest on a debt security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce any amounts due on a debt security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the amount of principal payable upon acceleration of the
maturity of a debt security following a default;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the currency of payment on a debt security;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair your right to sue for payment;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>modify the subordination provisions, if any, in a manner that is adverse to you;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waive a default or event of default in the payment of principal
of or premium, if any, or interest on the debt securities; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>modify any of the foregoing provisions.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">DISCHARGE, DEFEASANCE AND COVENANT DEFEASANCE



<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">19
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full Defeasance. We may, under particular circumstances, affect 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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we must deliver to the trustee a legal opinion confirming the
tax law change described above.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we accomplish covenant defeasance, the following provisions of an
indenture and the debt securities would no longer apply:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any covenants applicable to the series of debt securities and
described in the applicable prospectus supplement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any subordination provisions; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain events of default relating to breach of covenants and
acceleration of the maturity of other debt set forth in any
prospectus supplement.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">SUBORDINATION



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the indebtedness ranking senior to the debt securities being
offered;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the restrictions, if any, on payments to the holders of the
debt securities being offered following an event of default; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provisions requiring holders of the debt securities being
offered to remit some payments to holders of senior indebtedness.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">20
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt">GUARANTEES



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">GLOBAL SECURITIES



<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="112"></A>
</DIV>

<P align="center" style="font-size: 10pt">DESCRIPTION OF OUR COMMON STOCK



<P align="left" style="font-size: 10pt">GENERAL



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 mean 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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Up until April&nbsp;1, 2004, when our Rights Plan expires, 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 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 Preferred Stock for issuance
upon exercise of the rights. On or about April&nbsp;1, 2004, we will file Articles
Supplemental to effect the reclassification and re-designation of our Series&nbsp;D
Preferred Stock to authorized but unclassified and unissued preferred stock.
While they exist 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
bylaws 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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">21
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">SHARE PURCHASE RIGHTS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;2, 2000, our Board of Directors adopted the 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 Preferred Stock, for $16, subject to
certain antidilution adjustments. The number of rights outstanding and Series
D Preferred Stock issuable upon exercise, as well as the Series&nbsp;D Preferred
Stock purchase price, is subject to customary antidilution adjustments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights were to expire on May&nbsp;24, 2010. However, on March&nbsp;18, 2004,
our Board of Directors approved an amendment to the Rights Plan whereby the
Rights Plan will expire on April&nbsp;1, 2004 and be of no further effect as of such
date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before expiration, 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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will have the same voting power as one share of our Common
Stock; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In furtherance of the amendment and elimination of the Rights Plan, On
March&nbsp;18, 2004, our Board of Directors also authorized the filing of Articles
Supplementary on or after April&nbsp;1, 2004, to effect the reclassification and
designation of our Series&nbsp;D Preferred Stock to authorized but unissued
preferred stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While outstanding, 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.

<DIV align="left">
<A name="113"></A>
</DIV>

<P align="center" style="font-size: 10pt">DESCRIPTION OF OUR PREFERRED STOCK



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">subject to and qualified in their entirety by reference to the applicable
provisions of our Charter (including the applicable articles supplementary) and
bylaws.


<P align="left" style="font-size: 10pt">GENERAL



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The class or series, title and stated value of that Preferred
Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of shares of that Preferred Stock offered, the
liquidation preference per share and the offering price of that
Preferred Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The dividend rate(s), period(s) and/or payment date(s) or
method(s) of calculation thereof applicable to that Preferred Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The procedures for any auction and remarketing, if any, for
that Preferred Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provisions for a sinking fund, if any, for that Preferred
Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provisions for redemption, if applicable, of that Preferred
Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any listing of that Preferred Stock on any securities exchange;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any voting rights;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A discussion of certain federal income tax considerations
applicable to that Preferred Stock;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other material terms, preferences, rights, limitations or
restrictions of that Preferred Stock.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">RANK



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">23
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On a parity with all of our equity securities other than those
referred to in clauses (1)&nbsp;and (3); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Junior to all of our equity securities the terms of which
provide that those equity securities will rank senior to it.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For these purposes, the term &#147;equity securities&#148; does not include
convertible debt securities.


<P align="left" style="font-size: 10pt">DIVIDENDS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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


<P align="center" style="font-size: 10pt">24
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">our stock ranking junior to the Preferred Stock of that class or series as
to dividends and upon our liquidation, dissolution or winding up).


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">REDEMPTION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the applicable prospectus supplements 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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing and except as otherwise specified in the
applicable prospectus supplement, unless:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The redemption date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of shares and class or series of the Preferred Stock
to be redeemed;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the redemption price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the place or places where certificates for that Preferred Stock
are to be surrendered for payment of the redemption price;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that dividends on the shares to be redeemed will cease to
accrue on that redemption date; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date upon which the holder&#146;s conversion rights, if any, as
to those shares shall terminate.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">25
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">LIQUIDATION PREFERENCE



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 nor 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.


<P align="left" style="font-size: 10pt">VOTING RIGHTS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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),


<P align="center" style="font-size: 10pt">26
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">CONVERSION RIGHTS



<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
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<P align="center" style="font-size: 10pt">RESTRICTIONS ON OWNERSHIP AND TRANSFER



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 any class or series of our capital stock in excess of 9.8% (ownership limit)
of the number of then outstanding shares of any class or series of our 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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">27
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<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="115"></A>
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<P align="center" style="font-size: 10pt">CERTAIN PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">BOARD OF DIRECTORS &#150; NUMBER AND VACANCIES



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">REMOVAL OF DIRECTORS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">BUSINESS COMBINATIONS



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any person who beneficially owns ten percent or more of the
voting power of the corporation&#146;s shares; or</TD>
</TR>

</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">CONTROL SHARE ACQUISITIONS



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one-tenth or more but less than one-third,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one-third or more but less than a majority, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a majority or more of all voting power.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">AMENDMENT TO THE CHARTER



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">DISSOLUTION OF LTC PROPERTIES, INC.



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">ADVANCE NOTICE OF DIRECTOR NOMINATIONS AND NEW BUSINESS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">ANTI-TAKEOVER EFFECT OF CERTAIN PROVISIONS OF MARYLAND LAW AND OF THE CHARTER
AND BYLAWS


<P align="left" style="font-size: 10pt">&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, until
expiration, our 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;

<DIV align="left">
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<P align="center" style="font-size: 10pt">CERTAIN US FEDERAL INCOME TAX CONSIDERATIONS



<P align="left" style="font-size: 10pt">GENERAL



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in this section is based on:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Internal Revenue Code (or the Code);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>current, temporary and proposed Treasury regulations promulgated under the Code;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the legislative history of the Code;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>current administrative interpretations and practices of the Internal Revenue Service; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>court decisions,</TD>
</TR>

</TABLE>

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</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">CERTAIN INCOME TAX CONSIDERATIONS RELATING TO OUR REIT ELECTION



<P align="left" style="font-size: 10pt">Taxation of a REIT



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 10-K
for the year ended December&nbsp;31, 2003 and this prospectus may be changed,
perhaps retroactively, by legislative or administrative action at any time.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, we will be subject to federal income tax as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First, we will be taxed at regular corporate rates on any undistributed
taxable income, including undistributed net capital gains.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">31
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<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Requirements for Qualification. The Code defines a REIT as a corporation,
trust or association:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which is managed by one or more trustees or directors;</TD>
</TR>


<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the beneficial ownership of which is evidenced by transferable shares, or by transferable certificates of beneficial interest;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which would be taxable, but for Sections&nbsp;856 through 860 of the Code,
as a domestic corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which is neither a financial institution; nor, an insurance company
subject to certain provisions of the Code;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the beneficial ownership of which is held by 100 or more persons;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>which meets certain other tests, described below, regarding the
amount of its distributions and the nature of its income and assets.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">Income Tests. There presently are two gross income requirements that we must
satisfy to qualify as a REIT:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our failure to meet the tests was due to reasonable cause and not due to willful neglect,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We attach a schedule of the sources of our income to our return; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any incorrect information on the schedule was not due to fraud with intent to evade tax.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sum of:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>90% of the net income, if any (after tax), from foreclosure
property; minus</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the excess of certain items of non-cash income over 5% of our real
estate investment trust taxable income.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


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<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>85% of our real estate investment trust ordinary income for such year;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>95% of our real estate investment trust capital gain net income for
such year; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any undistributed taxable income from prior periods;</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to make timely distributions sufficient to satisfy these annual
distribution requirements.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">TAXATION OF TAXABLE DOMESTIC STOCKHOLDERS



<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a citizen or resident alien of the United States;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate the income of which is subject to United States
federal income taxation regardless of its source; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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%.


<P align="left" style="font-size: 10pt">&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


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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)
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%).


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


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<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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%.


<P align="left" style="font-size: 10pt">Backup withholding



<P align="left" style="font-size: 10pt">&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 currently 28% for tax years beginning after 2002.
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.


<P align="left" style="font-size: 10pt">TAXATION OF TAX-EXEMPT STOCKHOLDERS



<P align="left" style="font-size: 10pt">&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-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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">TAXATION OF FOREIGN STOCKHOLDERS



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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,


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<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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 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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="center" style="font-size: 10pt">38
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">US FEDERAL INCOME AND ESTATE TAXATION OF HOLDERS OF OUR DEBT SECURITIES



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">US HOLDERS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary applies to you only if you are a US holder, as
defined below.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an individual citizen or resident alien of the United States;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an estate, the income of which is subject to United States
federal income taxation regardless of the source of that income; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>your adjusted tax basis in the notes.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup Withholding and Information Reporting. In general, &#147;backup
withholding&#148; may apply:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to any payments made to you of principal and interest on your note, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to payment of the proceeds of a sale or other disposition of your note before maturity,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">39
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">NON-US HOLDERS



<P align="left" style="font-size: 10pt">&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;).


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such interest is not effectively connected with your conduct of
a US trade or business; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>us or our paying agent; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury regulations provide that:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if you are a foreign partnership, the certification requirement
will generally apply to your partners, and you will be required to
provide certain information;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>look-through rules will apply for tiered partnerships, foreign
simple trusts and foreign grantor trusts.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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 W-8BEN claiming an exemption from or reduction in withholding under the
benefit of an applicable treaty or (2)&nbsp;Internal Revenue Service Form 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.


<P align="center" style="font-size: 10pt">40
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you are subject to tax provisions applicable to certain United States expatriates; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the gain is effectively connected with your conduct of a US trade or business.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is a US person, as defined in the Internal Revenue Code,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>derives 50% or more of its gross income in specific periods
from the conduct of a trade or business in the United States,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is a &#147;controlled foreign corporation&#148; for US federal income tax purposes, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is a foreign partnership, if at any time during its tax year,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the foreign partnership is engaged in a US trade or business,</TD>
</TR>

</TABLE>


<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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 W-8BEN
certifying that you are a non-US person or you otherwise establish an
exemption.


<P align="left" style="font-size: 10pt">&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


<P align="center" style="font-size: 10pt">41
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt">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.


<P align="left" style="font-size: 10pt">OTHER TAX CONSEQUENCES



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="117"></A>
</DIV>

<P align="center" style="font-size: 10pt">PLAN OF DISTRIBUTION



<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may sell the securities:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through underwriters or dealers;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through agents;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>directly to purchasers; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>through a combination of any of these methods of sale.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether Common Stock or Preferred Stock will be offered under the stockholder purchase rights;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of those securities that will be offered under the stockholder purchase rights;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the period during which and the price at which the stockholder purchase rights will be exercisable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of stockholder purchase rights then outstanding;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any provisions for changes to or adjustments in the exercise price of the stockholder purchase rights, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other material terms of the stockholder purchase rights.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriters may offer and sell the securities at:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>fixed prices, which may be changed;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prices related to the prevailing market prices at the time of sale; or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">42
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>negotiated prices.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any underwriting compensation we pay to underwriters or agents
in connection with the offering of securities, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any discounts, concessions or commissions allowed by
underwriters to participating dealers.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&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:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agents and underwriters will have no responsibility in respect of the
delivery or performance of contracts.


<P align="left" style="font-size: 10pt">&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.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of the underwriters, dealers, agents and/or their affiliates may
engage in transactions with or perform services for us in the ordinary course
of business.


<P align="center" style="font-size: 10pt">43
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="118"></A>
</DIV>

<P align="center" style="font-size: 10pt">LEGAL MATTERS



<P align="left" style="font-size: 10pt">&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.

<DIV align="left">
<A name="119"></A>
</DIV>

<P align="center" style="font-size: 10pt">EXPERTS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements and schedules of LTC Properties,
Inc. appearing in our annual report on Form 10-K for the year ended December
31, 2003 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.


<P align="center" style="font-size: 10pt">44
</DIV>

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