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<SEC-DOCUMENT>0001181431-06-021067.txt : 20060403
<SEC-HEADER>0001181431-06-021067.hdr.sgml : 20060403
<ACCEPTANCE-DATETIME>20060331173601
ACCESSION NUMBER:		0001181431-06-021067
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060403
DATE AS OF CHANGE:		20060331

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN REALTY INVESTORS INC
		CENTRAL INDEX KEY:			0001102238
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE OPERATORS (NO DEVELOPERS) & LESSORS [6510]
		IRS NUMBER:				752847135
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15663
		FILM NUMBER:		06730296

	BUSINESS ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		4695224200

	MAIL ADDRESS:	
		STREET 1:		1800 VALLEY VIEW LANE
		STREET 2:		SUITE 300
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd113052.htm
<DESCRIPTION>8-K EARNINGS RELEASE FOR YEAR ENDING 12-31-2005
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
</head>
<body Bgcolor="white">

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<div><font Size="1">&nbsp;</font></div>

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<b>UNITED STATES </b></font></div>

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<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Washington, D.C. 20549 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Current Report </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;03/31/2006 </b></font></div>




<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>AMERICAN REALTY INVESTORS, INC. </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Exact name of registrant as specified in its charter)</b></font></div>

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<b>Commission File Number:&nbsp;&nbsp;001-15663</b></font></div>

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<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>Nevada</b></font>
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</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>75-2847135</b></font>
</div>
</td>
</tr>

<tr>
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<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(State or other jurisdiction of</b></font>
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</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
</div>
</td>
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<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>incorporation)</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Identification No.)</b></font>
</div>
</td>
</tr>

</table></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>1800 Valley View Lane, Suite 300</div><div Align="center">Dallas, Texas 75234</b></font></div>


<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Address of principal executive offices, including zip code)</b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>469-522-4200 </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Registrant&#146;s telephone number, including area code)</b></font>
</div>



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<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b> </b></font>
</div>

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<b>(Former name or former address, if changed since last report) </b></font>
</div>


<div><font Size="1">&nbsp;</font>
</div>




<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</b>

</font>
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</div>

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<p Style='page-break-before:always'>
<p Align="center"><font Size="2">
Information to be included in the report</b>
</font>





<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Section 2 B Financial Information<p>Item 2.02.  Results of Operations and Financial Condition<p>On March 31, 2006, American Realty Investors, Inc. ("ARL" or the "Company") announced its operational results for the year ended December 31, 2005.  A copy of the announcement is attached as Exhibit "99.1."<p>The information furnished pursuant to Item 2.02 in this Form 8-K, including Exhibit "99.1" attached hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, unless we specifically incorporate it by reference in a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934.  We undertake no duty or obligation to publicly-update or revise the information furnished pursuant to Item 2.02 of this Current Report on Form 8-K.</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Section 9 B Financial Statements and Exhibits<p>Item 9.01.  Financial Statements and Exhibits<p>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.<p>The following exhibit is furnished with this Report:<p></div><div align="left" style="text-indent:4%">Exhibit Designation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description of Exhibit<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</div><div align="left" style="text-indent:4%">Earnings Release dated March 31, 2006.<p>_____________________</div><div align="left" style="text-indent:4%">*Furnished herewith.</font>
</div>

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<hr  Size="3" Color="#cceeff" Width="100%" Align="center">
<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Signature(s) </b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </font>
</div>

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<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000"></font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	AMERICAN REALTY INVESTORS, INC.</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: March 31, 2006</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;Steven A. Abney</font>
	</div>
	<hr Noshade Align="left" Color="#000000">
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
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	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Steven A. Abney</font>
	</div>
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
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	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer and Acting Principal Executive Officer)</font>
	</div>
</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





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<hr  Size="3" Color="#cceeff" Width="100%" Align="center">

<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Exhibit Index </b></font>
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<tr>
	<td Valign="top" Align="left">
	<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
	<b>Exhibit&nbsp;No.</b></font>
	</div>
		<hr Size="2" Noshade Width="48" Color="#000000">
	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	<b>Description</b></font>
	</div>
	<hr Size="2" Noshade Width="73" Align="left" Color="#000000">
	</td>
</tr>




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	<td Valign="top" Align="left">
	<div Align="top"><font Face="times New Roman" Size="1" Color="#000000">
	EX-99.</font>
	</div>

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	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	Exhibit 99.1</font>
	</div>
		</td>
</tr>





</div></table>



</body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.
<SEQUENCE>2
<FILENAME>rrd113052_12780.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>



<HTML>


<HEAD>








<TITLE>PRESS RELEASE</TITLE>


</HEAD>


<BODY LINK="#0000ff">





<B><FONT FACE="Arial" SIZE=4><P>&#9;EXHIBIT 99.1</P></B></FONT>


<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=715>


<TR><TD WIDTH="50%" VALIGN="TOP">


<B><FONT FACE="Arial" SIZE=4><P>NEWS RELEASE</P>





</FONT><I><FONT FACE="Arial" SIZE=3><P>FOR IMMEDIATE RELEASE</P>


</I></FONT><FONT FACE="Arial" SIZE=4></B></FONT></TD>


<TD WIDTH="50%" VALIGN="TOP">


<FONT FACE="Arial" SIZE=3><P>&nbsp;</P>


<P>&nbsp;</P>


<B><P>Contact: </P>


<P>American Realty Investors, Inc.</P>


<P>Investor Relations</P>


<P>(800) 400-6407</P>


<P>investor.relations@primeasset.com</P>


</FONT><FONT FACE="Arial" SIZE=4></B></FONT></TD>


</TR>


</TABLE>





<I><FONT FACE="Arial" SIZE=3><P>&nbsp;</P>


</I></FONT><B><FONT FACE="Arial"><P ALIGN="CENTER">American Realty Investors, Inc. Reports 2005 Results</P>


</B></FONT><FONT FACE="Arial" SIZE=3>


</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">DALLAS  (March 31, 2006) -- American Realty Investors, Inc. (NYSE: ARL), a Dallas-based real estate investment company, announced today that the Company reported net income applicable to common shares of $12.8 million and $44.8 million, or $1.26 and $4.42 per share, for the three and twelve months ended December 31, 2005, compared to net income of $47.6 million and $30.6 million, or $4.56 and $2.90 per share, in the same periods in 2004.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Income, sales, and related expenses and costs for the three and twelve months of 2005 resulted in increased operating income of $3.9 million and $12.5 million, compared to operating losses of $(7.4) million and $(8.7) million in the 2004 comparable periods, and included:</P>


<P ALIGN="JUSTIFY"></P>





<UL>


<P ALIGN="JUSTIFY"><LI>Increases in income from rents to $44.4 million and $165.8 million in 2005, from $39.4 million and $146.6 million in 2004.  The increase was primarily attributable to completed apartment construction and the August 2005 acquisition of the 600 Las Colinas office building in Dallas, Texas.</LI></P></UL>





<P ALIGN="JUSTIFY"></P>





<UL>


<P ALIGN="JUSTIFY"><LI>A decline in property operations expense in the comparable quarters, from $31.8 million in 2004 to $29.1 million in 2005.  For the year, property operations expense increased to $112.3 million compared to $110.0 million in 2004.  The year-over-year increase was primarily attributable to completed apartment construction.  </LI></P></UL>





<P ALIGN="JUSTIFY"></P>





<UL>


<P ALIGN="JUSTIFY"><LI>Increases in restaurant sales to $9.5 million and $36.8 million in 2005, from $8.9 million and $34.5 million in 2004.  Cost of sales increased to $7.0 million and $27.9 million in 2005, from $6.8 million and $26.7 million in 2004.  The increases were primarily attributable to same-store sales increases during 2005.  Also, two new concepts were not open during the 2004 periods.</LI></P></UL>





<P ALIGN="JUSTIFY"></P>





<UL>


<P ALIGN="JUSTIFY"><LI>Other operating expenses - consisting of depreciation and amortization, general and administrative expenses, and advisory fees to affiliate - were $13.9 million and $50.0 million in 2005, compared to $17.1 million and $53.1 million in 2004.  Depreciation and amortization, general and administrative expenses and advisory fees all declined for the quarter as well as for the year.</LI></P></UL>





<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Other income items - consisting of interest from notes receivable, gain on foreign currency transaction, gain on settlement of debt, and other income - decreased to $2.2 million and $8.7 million in the three and twelve months of 2005, compared to $19.1 million and $25.3 million in 2004.  The decrease was primarily attributable to decreases in gain on foreign currency transaction and gain on settlement of debt.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Other expense items - consisting of mortgage and loan interest expense, discount on sale of notes receivable, net income fee to affiliate, incentive fee to affiliate, litigation settlement and charges for asset impairment -- decreased to $18.3 million and $68.3 million in the three and twelve months of 2005 from $36.3 million and $79.3 million in 2004.  The decrease was primarily attributable to decreases in litigation settlement and provision for asset impairment.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Gain on land sales declined for the quarter, from $8.2 million in 2004 to $5.4 million in 2005.  For the year however, gain on land sales increased to $39.9 million compared to $11.8 million in 2004, primarily due to the 2005 sale of 149 acres of land in Palm Desert, California.  </P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Income from discontinued operations decreased to $22.6 million and $57.3 million in 2005, compared to $70.3 and $91.4 million in 2004, representing 25 properties sold or held-for-sale in 2005 and 27 properties sold in 2004. </P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">&nbsp;</P>


<B><I><P ALIGN="JUSTIFY">About American Realty Investors, Inc.</P>


</B></I><P ALIGN="JUSTIFY">American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers and developed and undeveloped land. For more information, go to ARI's web site at www.amrealtytrust.com</P>


</FONT><FONT FACE="Arial" SIZE=3><P ALIGN="JUSTIFY"></P>


<P>&nbsp;</P>


</FONT><B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">AMERICAN REALTY INVESTORS, INC.</P>


<P ALIGN="CENTER">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</P>


</FONT><FONT SIZE=1><P ALIGN="CENTER"></P>


</FONT><FONT SIZE=1><P ALIGN="CENTER">&nbsp;</P></B></FONT>


<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=673>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="22%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">For the Three Months<BR>


<U>Ended December 31,</B></U></FONT></TD>


<TD WIDTH="21%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">For the Twelve Months<BR>


<U>Ended December 31,</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><U><FONT SIZE=2><P ALIGN="CENTER">2005</B></U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<B><U><FONT SIZE=2><P ALIGN="CENTER">2004</B></U></FONT></TD>


<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><U><FONT SIZE=2><P ALIGN="CENTER">2005</B></U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<B><U><FONT SIZE=2><P ALIGN="CENTER">2004</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">(dollars in thousands)</B></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Rental and other property revenues</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>$44,423</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>$39,429</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>$165,821</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>$146,599</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Restaurant sales&#9;</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>9,487</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>8,866</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>36,818</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>34,525</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Total operating revenues</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>53,910</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>48,295</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>202,639</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>181,124</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Property operating expenses</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>29,144</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>31,805</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>112,297</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>109,996</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Restaurant cost of sales</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>6,998</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>6,788</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>27,906</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>26,713</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Other operating expenses</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>13,852</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>17,129</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>49,963</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>53,093</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Total operating expenses</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>49,994</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>55,722</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>190,166</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>189,802</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Operating income (loss)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>3,916</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(7,427)</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>12,473</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(8,678)</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Other income</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>2,245</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>19,115</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>8,738</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>25,294</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Other expenses</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(18,286)</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(36,303)</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(68,336)</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(79,287)</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Loss before gain on land sales, minority interest, and equity in earnings of investees</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>(12,125)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(24,615)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>(47,125)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(62,671)</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Gain on land sales</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>5,401</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>8,198</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>39,926</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>11,781</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Minority interest</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>(2,647)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(8,111)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>(3,056)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(7,270)</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Equity in income (loss) of investees</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>114</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>2,465</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>397</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(41)</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Loss from continuing operations</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>(9,257)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(22,063)</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>(9,858)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(58,201)</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Income from discontinued operations</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>22,640</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>70,313</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>57,275</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>91,395</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Net income </FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>13,383</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>48,250</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>47,417</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>33,194</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Preferred dividend requirement</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(623)</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(650)</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(2,572)</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>(2,601)</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Net income applicable to common shares</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$12,760</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$47,600</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$44,845</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$30,593</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Basic and diluted earnings per share:</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Net income (loss) from continuing operations</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>$(0.97)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>$(2.17)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>$(1.22)</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>$(5.76)</FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Discontinued operations</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>2.23</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>6.73</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>5.64</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>8.66</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Net income (loss) applicable to common shares</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$1.26</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$4.56</U></FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$4.42</U></FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<U><FONT SIZE=2><P>$2.90</U></FONT></TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="68%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>Weighted average Common shares used to compute earnings per share:</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Basic and diluted</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<FONT SIZE=2><P>10,149,000</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>10,448,389</FONT></TD>


<TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#ffffff">


<FONT SIZE=2><P>10,149,000</FONT></TD>


<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>10,559,571</FONT></TD>


</TR>


</TABLE>


</CENTER></P>





<FONT SIZE=2><P ALIGN="CENTER"></P>


</FONT><FONT SIZE=3><P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<B><P ALIGN="CENTER">AMERICAN REALTY INVESTORS, INC.</P>


<P ALIGN="CENTER">CONSOLIDATED BALANCE SHEETS</P>


</B><P ALIGN="CENTER"></P></FONT>


<TABLE CELLSPACING=0 BORDER=0 WIDTH=720>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</P>


<U><P ALIGN="CENTER">2005</B></U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</P>


<U><P ALIGN="CENTER">2004</B></U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">(dollars in thousands)</B></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">Assets</B></FONT></TD>


<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Real estate held for investment&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;$&#9;1,025,661</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;$&#9;877,677</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Less--accumulated depreciation&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(153,597)</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(157,138)</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>872,064</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>720,539</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Real estate held for sale, net of depreciation&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>172,303</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>192,533</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Real estate subject to sales contract&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>68,738</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>70,350</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Notes and interest receivable</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Performing ($44,500 in 2005 and $43,605 in 2004 from affiliates)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>70,894</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>67,894</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Non-performing&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;11,546</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;6,632</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>82,440</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>74,526</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Less--allowance for estimated losses&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(1,000)</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(1,865)</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>81,440</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>72,661</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Restaurant equipment&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>13,911</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>13,747</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Less--accumulated depreciation&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(7,528)</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(6,608)</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>6,383</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>7,139</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Marketable securities, at market value&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>7,446</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>6,670</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Cash and cash equivalents&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>13,904</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>22,401</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Investments in equity investees&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>13,521</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>8,212</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Goodwill, net of accumulated amortization ($1,763 in 2005 and 2004)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>11,858</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>11,858</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Other intangibles, net of accumulated amortization ($926 in 2005 and $871 in 2004)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>1,449</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>1,480</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Other assets ($30,441 in 2005 and $27,704 in 2004 from affiliates)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;96,689</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;77,000</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>$&#9;1,345,795</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>$&#9;1,190,843</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<B><FONT SIZE=2><P ALIGN="CENTER">Liabilities and Stockholders' Equity</B></FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Liabilities</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Notes and interest payable ($45,530 in 2005 and $36,298 in 2004 to affiliate)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;$&#9;817,944</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;$&#9;722,985</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Liabilities related to assets held-for-sale&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>144,555</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>156,959</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Liabilities subject to sales contract&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>59,323</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>59,977</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Stock-secured notes payable&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>22,549</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>18,663</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Accounts payable and other liabilities ($4,667 in 2005 and $2,557 in 2004 to affiliates)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;93,842</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;71,357</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>1,138,213</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>1,029,941</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Commitments and contingencies</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Minority interest&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>59,185</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>57,893</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Stockholders' equity</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Preferred Stock, $2.00 par value, authorized 50,000,000 shares, issued and outstanding</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;Series A, 3,390,913 shares in 2005 and 3,469,350 shares in 2004 (liquidation preference </P>


<P>&#9;&#9;$33,909), including 900,000 shares in 2005 and 2004 held by subsidiaries&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>4,982</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>5,139</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Series E, 50,000 shares in 2004&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>--</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>100</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Common Stock, $.01 par value, authorized 100,000,000 shares; issued 11,592,272 shares in 2005</P>


<P>&#9;and 2004&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>114</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>114</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Treasury stock, at cost, 1,443,272 shares in 2005 and 2004&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(15,146)</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>(15,146)</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Paid-in capital&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>93,389</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>94,416</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Retained earnings&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>64,805</FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>19,934</FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>Accumulated other comprehensive income (loss)&#9;</FONT></TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;253</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;(1,548)</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;148,397</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>&#9;103,009</U></FONT></TD>


</TR>


<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#ffffff">&nbsp;</TD>


<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>$&#9;1,345,795</U></FONT></TD>


<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#ffffff">


<FONT SIZE=2><P>&#9;<U>$&#9;1,190,843</U></FONT></TD>


</TR>


</TABLE>





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