EX-99.2 3 ex99-2.htm SUPPLEMENTAL OPERATING AND FINANCIAL DATA
Exhibit 99.2

|  | Supplemental Operating and Financial Data First Quarter 2010

Franklin Street Properties Corp. ● 401 Edgewater Place ● Wakefield, MA 01880 ● (781) 557-1300
www.franklinstreetproperties.com

Table of Contents

| Page |  |  | Page
Company Overview | 3-6 |  | Tenant Analysis |
|  |  | 20 Largest tenants with annualized rent and remaining term | 21
Key Financial Data |  |  | 20 Largest Tenants, Industry Profile | 22
Financial Highlights | 6 |  | Lease Expirations by Square Feet | 23
Management’s Key Operating Measures | 7 |  | Lease Expirations with annualized rent per square foot | 24
Income Statements | 8 |  |  |
EPS, FFO, GOS and FFO+GOS | 9 |  | Transactional Drivers |
Balance Sheets | 10 |  | Capital Recycling: Acquisitions and Dispositions | 25
Cash Flow Statements | 11 |  | Investment Banking Performance | 26
Segment Information | 12-13 |  |  |
Property Net Operating Income (NOI): Cash and GAAP Basis | 14 |  | FFO and FFO+GOS Reconciliations | 27
Capital Analysis | 15 |  | FFO and FFO+GOS Definitions | 28
|  |  | FAD Reconciliation and Definition | 29
Portfolio Overview |  |  | EBITDA Reconciliation and Definition | 30
Property by Form of FSP Participation | 16 |  | NOI Reconciliation | 31
Regional Analysis, Map | 17 |  |  |
Owned Property List | 18 |  |  |
Properties with annualized rent per square foot | 19 |  |  |
Capital Expenditures | 20 |  |  |

All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include general economic conditions, local real estate conditions, the performance of properties that FSP has acquired or may acquire, the timely lease-up of properties and other risks, detailed from time to time in FSP’s SEC reports. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
2

Company Overview
Overview
Franklin Street Properties Corp. (FSP) (NYSE Amex: FSP) is an investment firm focused on achieving current income and long-term growth through investments in commercial properties. FSP’s portfolio of real estate assets consists primarily of suburban office buildings and includes select investments in central business district (CBD) properties. FSP’s real estate operations include property acquisitions and dispositions, interim acquisition and short-term financing, leasing, development and asset management. FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and registered broker/dealer.
Our Business
FSP operates in two business segments and has two principal sources of revenue; real estate operations and investment banking/investment services. Real estate operations include rental income from real estate leasing, interest income from loans made for interim acquisition or other purposes, and fee income from asset management. Investment banking/investment services generate brokerage commissions, loan origination fees, development services and other fees related to the organization of single-purpose entities that own real estate and the private placement of equity in those entities.
Strategy
FSP’s investment strategy is to make selective acquisitions based on market and/or property specific criteria, actively manage the property to maximize its value and dispose of the property when the ideal time or situation arises. Proceeds from property sales are redeployed into other specific real estate assets, used for other corporate purposes and/or paid out to shareholders as special dividends. Unlike many real estate investment companies, which have utilized significant leverage in an attempt to enhance their real estate portfolio’s returns, FSP has used very moderate leverage. FSP’s historical growth has been achieved without the use of permanent mortgage debt on any of our properties. This model has significantly reduced FSP’s risk profile by reducing foreclosure, financing and refinancing risk. The Company’s strategy is to employ modest leverage to accelerate its growth and capitalize on market conditions and opportunities as they arise. In addition, FSP believes that it can lower investment risk while enhancing current income and long-term appreciation potential by owning properties in diversified geographic locations that have sound long-term economic growth potential.

Snapshot |
(as of March 31, 2010) |
Corporate Headquarters | Wakefield, MA
Fiscal Year-End | 31-Dec
Total Properties | 32
Total Square Feet | 5.9 Million
Common Shares Outstanding | 79,680,705
Quarterly Dividend | $0.19
Dividend Yield | 5.27%
Total Market Capitalization | $1,150 Million
Insider Holdings | 13.0%

3

Company Overview
Structure of the Company
FSP has elected to be taxed as a Real Estate Investment Trust (REIT) under the Internal Revenue Code. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted taxable income to our shareholders. Management intends to continue to adhere to these requirements and to maintain our REIT status. As a REIT we are entitled to a tax deduction for some or all of the dividends we pay to shareholders. Accordingly, we generally will not be subject to federal income taxes as long as we distribute an amount equal to or in excess of our taxable income to shareholders.
Dividend Philosophy
FSP has been able to offer shareholders high-quality, risk-adjusted returns. The ongoing and recurring rental revenue stream provides stability to our regular quarterly dividend. In addition, the possibility exists for the payment of annual special dividends resulting from the sale of properties in the portfolio and the income from FSP’s investment banking business.

Board of Directors and Management |  |  |  |
George J. Carter |  | Dennis J. McGillicuddy |  | Scott H. Carter
President, Chief Executive Officer |  | Director |  | Executive Vice President, General
Chairman of the Board |  | Member, Audit Committee |  | Counsel and Assistant Secretary
|  | Member, Compensation Committee |  |
Barbara J. Fournier |  |  |  | John G. Demeritt
Executive Vice President, Chief Operating Officer, |  | Georgia Murray |  | Executive Vice President and
Treasurer, Secretary and Director |  | Director |  | Chief Financial Officer
|  | Chair, Compensation Committee |  |
Janet Notopoulos |  | Member, Audit Committee |  | William W. Gribbell
Executive Vice President and Director |  |  |  | Executive Vice President
|  | Barry Silverstein |  |
John N. Burke |  | Director |  | R. Scott MacPhee
Director |  | Member, Audit Committee |  | Executive Vice President
Chair, Audit Committee |  | Member, Compensation Committee |  |
Member, Compensation Committee |  |  |  |

4

Company Overview

Corporate Headquarters |  | Trading Symbol |  | Inquiries
401 Edgewater Place, Suite 200 |  | NYSE Amex |  | Inquires should be directed to:
Wakefield, MA 01880 |  | Symbol: FSP |  | John Demeritt, CFO
(t) 781-557-1300 |  |  |  | 877-686-9496 or
(f) 781-246-2807 |  |  |  | InvestorRelations@franklinstreetproperties.com
www.franklinstreetproperties.com |  |  |  |

Common Stock Data (NYSE Amex: FSP) |  |  |  |  |
| For the Three Months Ended
| 31-Mar-10 | 31-Dec-09 | 30-Sep-09 | 30-Jun-09 | 31-Mar-09
High Price | 14.82 | 15.36 | 15.20 | 14.84 | 14.88
Low Price | 11.81 | 10.35 | 12.00 | 11.43 | 9.57
Closing Price, at the end of the quarter | 14.43 | 14.61 | 13.10 | 13.25 | 12.30
Dividends paid per share – quarterly | 0.19 | 0.19 | 0.19 | 0.19 | 0.19
Closing dividend yield – annualized | 5.27% | 5.20% | 5.80% | 5.74% | 6.18%
Common shares outstanding (millions) | 79.68 | 79.68 | 79.68 | 70.48 | 70.48

Timing |  |  |  |
Quarterly results are expected to be announced during the week ending on these dates:
First Quarter: | 6-May-11 |  | Third Quarter: | 5-Nov-10
Second Quarter: | 6-Aug-10 |  | Fourth Quarter: | 25-Feb-11

5

Financial Highlights
(in thousands, except per share data)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | For the Year |
|  |  |  |  |  | For the Three Months Ended |  |  | Ended |
|  | 31-Mar-10 |  |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 31-Dec-09 |
Income Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  | $ | 30,799 |  |  |  | $ | 29,818 |  |  | $ | 29,254 |  |  | $ | 31,702 |  |  | $ | 31,300 |  |  | $ | 122,074 |
Related party revenue |  |  | 800 |  |  |  |  | 583 |  |  |  | 860 |  |  |  | 371 |  |  |  | 4,434 |  |  |  | 6,248 |
Other |  |  | 9 |  |  |  |  | 18 |  |  |  | 18 |  |  |  | 19 |  |  |  | 6 |  |  |  | 61 |
Total revenue |  |  | 31,608 |  |  |  |  | 30,419 |  |  |  | 30,132 |  |  |  | 32,092 |  |  |  | 35,740 |  |  |  | 128,383 |
Total expenses |  |  | 26,375 |  |  |  |  | 23,738 |  |  |  | 25,821 |  |  |  | 25,912 |  |  |  | 28,134 |  |  |  | 103,605 |
Income before interest income, equity in earnings in non-consolidated REITs and taxes |  |  | 5,233 |  |  |  |  | 6,681 |  |  |  | 4,311 |  |  |  | 6,180 |  |  |  | 7,606 |  |  |  | 24,778 |
Interest income |  |  | 8 |  |  |  |  | 36 |  |  |  | 36 |  |  |  | 16 |  |  |  | 9 |  |  |  | 97 |
Equity in earnings in non-consolidated REITs |  |  | 253 |  |  |  |  | 792 |  |  |  | 443 |  |  |  | 475 |  |  |  | 284 |  |  |  | 1,994 |
Income before taxes |  |  | 5,494 |  |  |  |  | 7,509 |  |  |  | 4,790 |  |  |  | 6,671 |  |  |  | 7,899 |  |  |  | 26,869 |
Income tax expense (benefit) |  |  | (68 | ) |  |  |  | (299 | ) |  |  | (75 | ) |  |  | (270 | ) |  |  | 65 |  |  |  | (579 | )
Income from continuing operations |  |  | 5,562 |  |  |  |  | 7,808 |  |  |  | 4,865 |  |  |  | 6,941 |  |  |  | 7,834 |  |  |  | 27,448 |
Income from discontinued operations |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Gain on sale of assets |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 424 |  |  |  | 424 |
Net income |  | $ | 5,562 |  |  |  | $ | 7,808 |  |  | $ | 4,865 |  |  | $ | 6,941 |  |  | $ | 8,258 |  |  | $ | 27,872 |

FFO+GOS*: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFO |  | $ | 16,650 |  |  |  | $ | 17,338 |  |  | $ | 17,409 |  |  | $ | 17,537 |  |  | $ | 19,075 |  |  | $ | 71,359 |
GOS |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 424 |  |  |  | 424 |
FFO+GOS |  | $ | 16,650 |  |  |  | $ | 17,338 |  |  | $ | 17,409 |  |  | $ | 17,537 |  |  | $ | 19,499 |  |  | $ | 71,783 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.07 |  |  |  | $ | 0.11 |  |  | $ | 0.07 |  |  | $ | 0.10 |  |  | $ | 0.10 |  |  | $ | 0.38 |
FFO |  |  | 0.21 |  |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.24 |  |  |  | 0.98 |
GOS |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
FFO+GOS |  |  | 0.21 |  |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.24 |  |  |  | 0.98 |
Weighted Aveage Shares (diluted) |  |  | 79,681 |  |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 71,281 |  |  |  | 79,681 |  |  |  | 73,001 |
Balance Sheet Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate, net |  | $ | 916,955 |  |  |  | $ | 839,826 |  |  | $ | 869,557 |  |  | $ | 926,555 |  |  | $ | 921,833 |  |  | $ | 921,833 |
Other assets, net |  |  | 235,359 |  |  |  |  | 178,682 |  |  |  | 195,939 |  |  |  | 219,220 |  |  |  | 233,933 |  |  |  | 233,933 |
Total assets, net |  |  | 1,152,314 |  |  |  |  | 1,018,508 |  |  |  | 1,065,496 |  |  |  | 1,145,775 |  |  |  | 1,155,766 |  |  |  | 1,155,766 |
Total liabilities, net |  |  | 224,537 |  |  |  |  | 175,075 |  |  |  | 229,903 |  |  |  | 201,796 |  |  |  | 218,492 |  |  |  | 218,492 |
Shareholders' equity |  |  | 927,777 |  |  |  |  | 843,433 |  |  |  | 835,593 |  |  |  | 943,979 |  |  |  | 937,274 |  |  |  | 937,274 |

* See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS
6

Management’s Key Operating Measures
* See page 27 for a reconciliation of Net Income to FFO and FFO+GOS (Total Profits) and page 28 for definitions of FFO and FFO+GOS
7

Condensed Consolidated Income Statements
($ in thousands, except per share amounts)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | For the |
|  |  |  |  |  |  |  |  | For the Three Months Ended |  |  |  |  |  | Year Ended |
|  | 31-Mar-10 |  |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 31-Dec-09 |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  | $ | 30,799 |  |  |  | $ | 29,818 |  |  | $ | 29,254 |  |  | $ | 31,702 |  |  | $ | 31,300 |  |  | $ | 122,074 |
Related party revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Syndication fees |  |  | 122 |  |  |  |  | 10 |  |  |  | 29 |  |  |  | - |  |  |  | 2,389 |  |  |  | 2,428 |
Transaction fees |  |  | 146 |  |  |  |  | 28 |  |  |  | 514 |  |  |  | 1 |  |  |  | 1,537 |  |  |  | 2,080 |
Management fees and interest income from loans |  |  | 532 |  |  |  |  | 545 |  |  |  | 317 |  |  |  | 370 |  |  |  | 508 |  |  |  | 1,740 |
Other |  |  | 9 |  |  |  |  | 18 |  |  |  | 18 |  |  |  | 19 |  |  |  | 6 |  |  |  | 61 |
Total revenue |  |  | 31,608 |  |  |  |  | 30,419 |  |  |  | 30,132 |  |  |  | 32,092 |  |  |  | 35,740 |  |  |  | 128,383 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate operating expenses |  |  | 7,973 |  |  |  |  | 7,280 |  |  |  | 7,144 |  |  |  | 7,752 |  |  |  | 8,646 |  |  |  | 30,822 |
Real estate taxes and insurance |  |  | 5,246 |  |  |  |  | 4,829 |  |  |  | 4,686 |  |  |  | 5,364 |  |  |  | 4,349 |  |  |  | 19,228 |
Depreciation and amortization |  |  | 9,219 |  |  |  |  | 7,914 |  |  |  | 10,225 |  |  |  | 8,801 |  |  |  | 9,353 |  |  |  | 36,293 |
Selling, general and administrative |  |  | 2,171 |  |  |  |  | 2,008 |  |  |  | 2,127 |  |  |  | 2,243 |  |  |  | 2,513 |  |  |  | 8,891 |
Commissions |  |  | 114 |  |  |  |  | 130 |  |  |  | 40 |  |  |  | 8 |  |  |  | 1,623 |  |  |  | 1,801 |
Interest |  |  | 1,652 |  |  |  |  | 1,577 |  |  |  | 1,599 |  |  |  | 1,744 |  |  |  | 1,650 |  |  |  | 6,570 |
Total expenses |  |  | 26,375 |  |  |  |  | 23,738 |  |  |  | 25,821 |  |  |  | 25,912 |  |  |  | 28,134 |  |  |  | 103,605 |
Income before interest income, equity in earnings of |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
non-consolidated REITs and taxes |  |  | 5,233 |  |  |  |  | 6,681 |  |  |  | 4,311 |  |  |  | 6,180 |  |  |  | 7,606 |  |  |  | 24,778 |
Interest income |  |  | 8 |  |  |  |  | 36 |  |  |  | 36 |  |  |  | 16 |  |  |  | 9 |  |  |  | 97 |
Equity in earnings of non-consolidated REITs |  |  | 253 |  |  |  |  | 792 |  |  |  | 443 |  |  |  | 475 |  |  |  | 284 |  |  |  | 1,994 |
|  |  | 5,494 |  |  |  |  | 7,509 |  |  |  | 4,790 |  |  |  | 6,671 |  |  |  | 7,899 |  |  |  | 26,869 |
Income tax expense (benefit) |  |  | (68 | ) |  |  |  | (299 | ) |  |  | (75 | ) |  |  | (270 | ) |  |  | 65 |  |  |  | (579 | )
Income from continuing operations |  |  | 5,562 |  |  |  |  | 7,808 |  |  |  | 4,865 |  |  |  | 6,941 |  |  |  | 7,834 |  |  |  | 27,448 |
Gain on sale of assets |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 424 |  |  |  | 424 |
Net income |  | $ | 5,562 |  |  |  | $ | 7,808 |  |  | $ | 4,865 |  |  | $ | 6,941 |  |  | $ | 8,258 |  |  | $ | 27,872 |
Weighted average number of shares outstanding, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
basic and diluted |  |  | 79,681 |  |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 71,281 |  |  |  | 79,681 |  |  |  | 73,001 |
Earnings per share, basic and diluted, attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | 0.07 |  |  |  | $ | 0.11 |  |  | $ | 0.07 |  |  | $ | 0.10 |  |  | $ | 0.10 |  |  | $ | 0.38 |
Gains on sales of assets |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Net income per share, basic and diluted |  | $ | 0.07 |  |  |  | $ | 0.11 |  |  | $ | 0.07 |  |  | $ | 0.10 |  |  | $ | 0.10 |  |  | $ | 0.38 |

8

EPS, FFO, GOS and FFO+GOS*
*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS
9

Condensed Consolidated Balance Sheets
(in thousands)

|  | March 31, |  |  |  | March 31, |  |  | June 30, |  |  | September 30, |  |  | December 31, |
|  | 2010 |  |  |  | 2009 |  |  | 2009 |  |  | 2009 |  |  | 2009 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  | $ | 126,447 |  |  |  | $ | 107,153 |  |  | $ | 114,677 |  |  | $ | 126,695 |  |  | $ | 126,447 |
Buildings and improvements |  |  | 895,671 |  |  |  |  | 812,470 |  |  |  | 840,605 |  |  |  | 891,918 |  |  |  | 894,012 |
Fixtures and equipment |  |  | 354 |  |  |  |  | 299 |  |  |  | 310 |  |  |  | 310 |  |  |  | 328 |
|  |  | 1,022,472 |  |  |  |  | 919,922 |  |  |  | 955,592 |  |  |  | 1,018,923 |  |  |  | 1,020,787 |
Less accumulated depreciation |  |  | 105,517 |  |  |  |  | 80,096 |  |  |  | 86,035 |  |  |  | 92,368 |  |  |  | 98,954 |
Real estate assets, net |  |  | 916,955 |  |  |  |  | 839,826 |  |  |  | 869,557 |  |  |  | 926,555 |  |  |  | 921,833 |
Acquired real estate leases, net |  |  | 41,783 |  |  |  |  | 26,042 |  |  |  | 38,996 |  |  |  | 48,003 |  |  |  | 44,757 |
Investment in non-consolidated REITs |  |  | 91,787 |  |  |  |  | 82,388 |  |  |  | 94,579 |  |  |  | 93,936 |  |  |  | 92,910 |
Assets held for syndication, net |  |  | 2,791 |  |  |  |  | 13,004 |  |  |  | - |  |  |  | - |  |  |  | 4,827 |
Cash and cash equivalents |  |  | 22,815 |  |  |  |  | 27,650 |  |  |  | 24,542 |  |  |  | 26,385 |  |  |  | 27,404 |
Restricted cash |  |  | 50 |  |  |  |  | 336 |  |  |  | 335 |  |  |  | 331 |  |  |  | 334 |
Tenant rent receivables, net |  |  | 1,385 |  |  |  |  | 1,084 |  |  |  | 720 |  |  |  | 1,400 |  |  |  | 1,782 |
Straight-line rent receivable, net |  |  | 14,215 |  |  |  |  | 9,190 |  |  |  | 9,219 |  |  |  | 9,724 |  |  |  | 10,754 |
Prepaid expenses |  |  | 2,236 |  |  |  |  | 2,253 |  |  |  | 2,267 |  |  |  | 3,430 |  |  |  | 2,594 |
Related party mortgage loan receivable |  |  | 41,325 |  |  |  |  | 4,725 |  |  |  | 12,115 |  |  |  | 23,264 |  |  |  | 36,535 |
Other assets |  |  | 1,220 |  |  |  |  | 1,517 |  |  |  | 2,271 |  |  |  | 1,860 |  |  |  | 1,228 |
Deferred leasing commissions, net |  |  | 15,752 |  |  |  |  | 10,493 |  |  |  | 10,895 |  |  |  | 10,887 |  |  |  | 10,808 |
Total assets |  | $ | 1,152,314 |  |  |  | $ | 1,018,508 |  |  | $ | 1,065,496 |  |  | $ | 1,145,775 |  |  | $ | 1,155,766 |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bank note payable |  | $ | 119,968 |  |  |  | $ | 72,468 |  |  | $ | 124,038 |  |  | $ | 91,008 |  |  | $ | 109,008 |
Term loan payable |  |  | 75,000 |  |  |  |  | 75,000 |  |  |  | 75,000 |  |  |  | 75,000 |  |  |  | 75,000 |
Accounts payable and accrued expenses |  |  | 20,467 |  |  |  |  | 17,687 |  |  |  | 21,252 |  |  |  | 25,351 |  |  |  | 23,787 |
Accrued compensation |  |  | 274 |  |  |  |  | 250 |  |  |  | 500 |  |  |  | 750 |  |  |  | 1,416 |
Tenant security deposits |  |  | 1,696 |  |  |  |  | 1,795 |  |  |  | 1,765 |  |  |  | 1,757 |  |  |  | 1,808 |
Other liabilities: derivative termination value |  |  | 1,995 |  |  |  |  | 3,080 |  |  |  | 2,394 |  |  |  | 2,269 |  |  |  | 2,076 |
Acquired unfavorable real estate leases, net |  |  | 5,137 |  |  |  |  | 4,795 |  |  |  | 4,954 |  |  |  | 5,661 |  |  |  | 5,397 |
Total liabilities |  |  | 224,537 |  |  |  |  | 175,075 |  |  |  | 229,903 |  |  |  | 201,796 |  |  |  | 218,492 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | - |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Common stock |  |  | 8 |  |  |  |  | 7 |  |  |  | 7 |  |  |  | 8 |  |  |  | 8 |
Additional paid-in capital |  |  | 1,003,712 |  |  |  |  | 889,019 |  |  |  | 889,019 |  |  |  | 1,003,729 |  |  |  | 1,003,713 |
Accumulated other comprehensive loss |  |  | (1,995 | ) |  |  |  | (3,080 | ) |  |  | (2,394 | ) |  |  | (2,269 | ) |  |  | (2,076 | )
Accumulated distributions in excess of accumulated earnings |  |  | (73,948 | ) |  |  |  | (42,513 | ) |  |  | (51,039 | ) |  |  | (57,489 | ) |  |  | (64,371 | )
Total stockholders’ equity |  |  | 927,777 |  |  |  |  | 843,433 |  |  |  | 835,593 |  |  |  | 943,979 |  |  |  | 937,274 |
Total liabilities and stockholders’ equity |  | $ | 1,152,314 |  |  |  | $ | 1,018,508 |  |  | $ | 1,065,496 |  |  | $ | 1,145,775 |  |  | $ | 1,155,766 |

10

Condensed Consolidated Statements of Cash Flows
(in thousands)

|  | Three Months ended March 31 |  |  |  |  | Twelve Months ended December 31 |
|  | 2010 |  |  | 2009 |  |  |  |  | 2009 |  |  | 2008 |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 5,562 |  |  | $ | 7,808 |  |  |  |  | $ | 27,872 |  |  | $ | 31,959 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains on assets sold |  |  | - |  |  |  | - |  |  |  |  |  | (424 | ) |  |  | - |
Depreciation and amortization expense |  |  | 9,284 |  |  |  | 7,981 |  |  |  |  |  | 36,561 |  |  |  | 30,444 |
Amortization of above market lease |  |  | 716 |  |  |  | 793 |  |  |  |  |  | 3,359 |  |  |  | 4,283 |
Equity in earnings (losses) from non-consolidated REITs |  |  | (253 | ) |  |  | (792 | ) |  |  |  |  | (2,012 | ) |  |  | (2,747 | )
Distributions from non-consolidated REITs |  |  | 1,407 |  |  |  | 1,615 |  |  |  |  |  | 5,628 |  |  |  | 5,348 |
Increase in bad debt reserve |  |  | 380 |  |  |  | 86 |  |  |  |  |  | 111 |  |  |  | 79 |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Restricted cash |  |  | 284 |  |  |  | - |  |  |  |  |  | 2 |  |  |  | - |
Tenant rent receivables |  |  | 17 |  |  |  | 159 |  |  |  |  |  | (564 | ) |  |  | 64 |
Straight-line rents |  |  | (1,020 | ) |  |  | (374 | ) |  |  |  |  | (1,879 | ) |  |  | (1,406 | )
Prepaid expenses and other assets |  |  | 265 |  |  |  | (171 | ) |  |  |  |  | 907 |  |  |  | (901 | )
Accounts payable and accrued expenses |  |  | (3,917 | ) |  |  | (3,154 | ) |  |  |  |  | 2,760 |  |  |  | 448 |
Accrued compensation |  |  | (1,142 | ) |  |  | (1,404 | ) |  |  |  |  | (238 | ) |  |  | 90 |
Tenant security deposits |  |  | (112 | ) |  |  | (79 | ) |  |  |  |  | (66 | ) |  |  | - |
Payment of deferred leasing commissions |  |  | (5,566 | ) |  |  | (162 | ) |  |  |  |  | (2,659 | ) |  |  | (3,353 | )
Net cash provided by operating activities |  |  | 5,905 |  |  |  | 12,306 |  |  |  |  |  | 69,358 |  |  |  | 64,308 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases |  |  | (3,529 | ) |  |  | (3,295 | ) |  |  |  |  | (132,323 | ) |  |  | (78,396 | )
Investment in non-consolidated REITs |  |  | - |  |  |  | - |  |  |  |  |  | (13,218 | ) |  |  | (10 | )
Investment in related party mortgage loan receivable |  |  | (4,790 | ) |  |  | (3,600 | ) |  |  |  |  | (35,410 | ) |  |  | (1,125 | )
Redemption of certificate of deposit |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  | - |
Changes in deposits on real estate assets |  |  | - |  |  |  | 1,300 |  |  |  |  |  | - |  |  |  | (1,300 | )
Investment in assets held for syndication, net |  |  | 2,005 |  |  |  | 86 |  |  |  |  |  | 8,159 |  |  |  | 12,236 |
Proceeds received on sales of real estate assets |  |  | - |  |  |  | - |  |  |  |  |  | 672 |  |  |  | - |
Net cash used in investing activities |  |  | (6,314 | ) |  |  | (5,509 | ) |  |  |  |  | (172,120 | ) |  |  | (68,595 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Distributions to stockholders |  |  | (15,139 | ) |  |  | (13,391 | ) |  |  |  |  | (55,313 | ) |  |  | (70,481 | )
Proceeds from equity offering, net |  |  | (1 | ) |  |  | - |  |  |  |  |  | 114,695 |  |  |  | - |
Purchase of treasury shares |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  | - |
Borrowings (repayments) under bank note payable, net |  |  | 10,960 |  |  |  | 5,000 |  |  |  |  |  | 41,540 |  |  |  | (17,282 | )
Borrowings under term note payable |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  | 75,000 |
Deferred financing costs |  |  | - |  |  |  | - |  |  |  |  |  | - |  |  |  | (694 | )
Net cash (used in) provided by financing activities |  |  | (4,180 | ) |  |  | (8,391 | ) |  |  |  |  | 100,922 |  |  |  | (13,457 | )
Net decreases in cash and cash equivalents |  |  | (4,589 | ) |  |  | (1,594 | ) |  |  |  |  | (1,840 | ) |  |  | (17,744 | )
Cash and cash equivalents, beginning of period |  |  | 27,404 |  |  |  | 29,244 |  |  |  |  |  | 29,244 |  |  |  | 46,988 |
Cash and cash equivalents, end of period |  | $ | 22,815 |  |  | $ | 27,650 |  |  |  |  | $ | 27,404 |  |  | $ | 29,244 |

11

Segment Information*
($ in thousands except per share amounts)

Three Months Ended March 31, 2010
Three Months Ended March 31, 2009
Real
Investment
Real
Investment
Estate
Banking
Total
Estate
Banking
Total
Revenue:
Rental Income
$ 30,799 $ - $ 30,799 $ 29,818 $ - $ 29,818
Syndication Fees
- 121 121 - 10 10
Transaction Fees
- 146 146 - 28 28
Management Fees & Interest Income
533 - 533 545 - 545
Other Income
9 - 9 18 - 18
Total Revenue
31,341 267 31,608 30,381 38 30,419
Expenses
Rental Operating Expenses
7,973 - 7,973 7,280 - 7,280
Real Estate Taxes and Insurance
5,246 - 5,246 4,829 - 4,829
Depreciaton and Amortization
9,186 33 9,219 7,887 27 7,914
Selling, general and administrative
1,447 724 2,171 983 1,025 2,008
Commissions and Broker Expenses
- 114 114 - 130 130
Interest & Commitment Fees
1,652 - 1,652 1,577 - 1,577
Total Expenses
25,504 871 26,375 22,556 1,182 23,738
Income before Equity, Interest and Taxes
5,837 (604 ) 5,233 7,825 (1,144 ) 6,681
Interest Income
8 - 8 34 2 36
Equity Income SARs
253 - 253 792 - 792
Income before Taxes
6,098 (604 ) 5,494 8,651 (1,142 ) 7,509
Income Taxes
57 (125 ) (68 ) 65 (364 ) (299 )
Income from continuing operations
6,041 (479 ) 5,562 8,586 (778 ) 7,808
Income from discontinued operations
- - - - - -
Gain on sale of assets
- - - - - -
Net Income (loss)
$ 6,041 $ (479 ) $ 5,562 $ 8,586 $ (778 ) $ 7,808
Funds From Operations (FFO)*
Net Income
$ 6,041 $ (479 ) $ 5,562 $ 8,586 $ (778 ) $ 7,808
Gain on sale of assets, net
- - - - - -
Equity in income of SARs
(253 ) - (253 ) (792 ) - (792 )
Cash received from SARs
1,407 - 1,407 1,615 - 1,615
Acquisition costs
- - - - - -
Depreciation and amortization
9,901 33 9,934 8,680 27 8,707
Funds From Operations (FFO)*
17,096 (446 ) 16,650 18,089 (751 ) 17,338
EPS
$ 0.08 $ (0.01 ) $ 0.07 $ 0.12 $ (0.01 ) $ 0.11
FFO per Share*
$ 0.21 $ - $ 0.21 $ 0.26 $ (0.01 ) $ 0.25
Weighted Average Shares
79,681 70,481
*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS
12

Segment Information*
($ in thousands except per share amounts)

|  | Year Ended December 31, 2009 |  |  | Year Ended December 31, 2008 |  |  | Year Ended December 31, 2007 |
|  | Real |  |  | Investment |  |  |  |  |  | Real |  |  | Investment |  |  |  |  |  | Real |  |  | Investment |  |  |  |
|  | Estate |  |  | Banking |  |  | Total |  |  | Estate |  |  | Banking |  |  | Total |  |  | Estate |  |  | Banking |  |  | Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental Income |  | $ | 122,074 |  |  | $ | - |  |  | $ | 122,074 |  |  | $ | 111,198 |  |  | $ | - |  |  | $ | 111,198 |  |  | $ | 100,961 |  |  | $ | - |  |  | $ | 100,961 |
Syndication Fees |  |  | - |  |  |  | 2,428 |  |  |  | 2,428 |  |  |  | - |  |  |  | 3,766 |  |  |  | 3,766 |  |  |  | - |  |  |  | 8,986 |  |  |  | 8,986 |
Transaction Fees |  |  | - |  |  |  | 2,080 |  |  |  | 2,080 |  |  |  | - |  |  |  | 3,641 |  |  |  | 3,641 |  |  |  | - |  |  |  | 9,898 |  |  |  | 9,898 |
Management Fees & Interest Income |  |  | 1,740 |  |  |  | - |  |  |  | 1,740 |  |  |  | 1,739 |  |  |  | - |  |  |  | 1,739 |  |  |  | 7,026 |  |  |  | 4 |  |  |  | 7,030 |
Other Income |  |  | 61 |  |  |  | - |  |  |  | 61 |  |  |  | 72 |  |  |  | - |  |  |  | 72 |  |  |  | 83 |  |  |  | 35 |  |  |  | 118 |
Total Revenue |  |  | 123,875 |  |  |  | 4,508 |  |  |  | 128,383 |  |  |  | 113,009 |  |  |  | 7,407 |  |  |  | 120,416 |  |  |  | 108,070 |  |  |  | 18,923 |  |  |  | 126,993 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental Operating Expenses |  |  | 30,822 |  |  |  | - |  |  |  | 30,822 |  |  |  | 28,999 |  |  |  | - |  |  |  | 28,999 |  |  |  | 26,171 |  |  |  | - |  |  |  | 26,171 |
Real Estate Taxes and Insurance |  |  | 19,228 |  |  |  | - |  |  |  | 19,228 |  |  |  | 17,740 |  |  |  | - |  |  |  | 17,740 |  |  |  | 16,535 |  |  |  | - |  |  |  | 16,535 |
Depreciation and Amortization |  |  | 36,170 |  |  |  | 123 |  |  |  | 36,293 |  |  |  | 30,222 |  |  |  | 138 |  |  |  | 30,360 |  |  |  | 29,200 |  |  |  | 134 |  |  |  | 29,334 |
Selling, general and administrative |  |  | 4,828 |  |  |  | 4,063 |  |  |  | 8,891 |  |  |  | 4,229 |  |  |  | 4,039 |  |  |  | 8,268 |  |  |  | 3,440 |  |  |  | 4,026 |  |  |  | 7,466 |
Commissions and Broker Expenses |  |  | - |  |  |  | 1,801 |  |  |  | 1,801 |  |  |  | 100 |  |  |  | 2,051 |  |  |  | 2,151 |  |  |  | - |  |  |  | 4,737 |  |  |  | 4,737 |
Interest & Commitment Fees |  |  | 6,570 |  |  |  | - |  |  |  | 6,570 |  |  |  | 4,921 |  |  |  | - |  |  |  | 4,921 |  |  |  | 7,684 |  |  |  | - |  |  |  | 7,684 |
Total Expenses |  |  | 97,618 |  |  |  | 5,987 |  |  |  | 103,605 |  |  |  | 86,211 |  |  |  | 6,228 |  |  |  | 92,439 |  |  |  | 83,030 |  |  |  | 8,897 |  |  |  | 91,927 |
Income before Equity, Interest and Taxes |  |  | 26,257 |  |  |  | (1,479 | ) |  |  | 24,778 |  |  |  | 26,798 |  |  |  | 1,179 |  |  |  | 27,977 |  |  |  | 25,040 |  |  |  | 10,026 |  |  |  | 35,066 |
Interest Income |  |  | 93 |  |  |  | 4 |  |  |  | 97 |  |  |  | 709 |  |  |  | 36 |  |  |  | 745 |  |  |  | 2,317 |  |  |  | 60 |  |  |  | 2,377 |
Equity Income SARs |  |  | 1,994 |  |  |  | - |  |  |  | 1,994 |  |  |  | 2,747 |  |  |  | - |  |  |  | 2,747 |  |  |  | (464 | ) |  |  | - |  |  |  | (464 | )
Income before Taxes |  |  | 28,344 |  |  |  | (1,475 | ) |  |  | 26,869 |  |  |  | 30,254 |  |  |  | 1,215 |  |  |  | 31,469 |  |  |  | 26,893 |  |  |  | 10,086 |  |  |  | 36,979 |
Income Taxes |  |  | 249 |  |  |  | (828 | ) |  |  | (579 | ) |  |  | 246 |  |  |  | (736 | ) |  |  | (490 | ) |  |  | 226 |  |  |  | 647 |  |  |  | 873 |
Income from continuing operations |  |  | 28,095 |  |  |  | (647 | ) |  |  | 27,448 |  |  |  | 30,008 |  |  |  | 1,951 |  |  |  | 31,959 |  |  |  | 26,667 |  |  |  | 9,439 |  |  |  | 36,106 |
Income from discontinued operations |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,190 |  |  |  | - |  |  |  | 1,190 |
Gain on sale of assets |  |  | 424 |  |  |  | - |  |  |  | 424 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 23,789 |  |  |  | - |  |  |  | 23,789 |
Net Income |  | $ | 28,519 |  |  | $ | (647 | ) |  | $ | 27,872 |  |  | $ | 30,008 |  |  | $ | 1,951 |  |  | $ | 31,959 |  |  | $ | 51,646 |  |  | $ | 9,439 |  |  | $ | 61,085 |
Funds From Operations (FFO)* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 28,519 |  |  | $ | (647 | ) |  | $ | 27,872 |  |  | $ | 30,008 |  |  | $ | 1,951 |  |  | $ | 31,959 |  |  | $ | 51,646 |  |  | $ | 9,439 |  |  | $ | 61,085 |
Gain on sale of assets, net |  |  | (424 | ) |  |  | - |  |  |  | (424 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (23,789 | ) |  |  | - |  |  |  | (23,789 | )
Equity in income of SARs |  |  | (2,012 | ) |  |  | - |  |  |  | (2,012 | ) |  |  | (2,747 | ) |  |  | - |  |  |  | (2,747 | ) |  |  | 472 |  |  |  | - |  |  |  | 472 |
Cash received from SARs |  |  | 5,628 |  |  |  | - |  |  |  | 5,628 |  |  |  | 5,348 |  |  |  | - |  |  |  | 5,348 |  |  |  | 1,806 |  |  |  | - |  |  |  | 1,806 |
Acquisition costs |  |  | 643 |  |  |  | - |  |  |  | 643 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Depreciation and amortization |  |  | 39,529 |  |  |  | 123 |  |  |  | 39,652 |  |  |  | 34,505 |  |  |  | 138 |  |  |  | 34,643 |  |  |  | 35,340 |  |  |  | 135 |  |  |  | 35,475 |
Funds From Operations (FFO)* |  |  | 71,883 |  |  |  | (524 | ) |  |  | 71,359 |  |  |  | 67,114 |  |  |  | 2,089 |  |  |  | 69,203 |  |  |  | 65,475 |  |  |  | 9,574 |  |  |  | 75,049 |
EPS |  | $ | 0.39 |  |  | $ | (0.01 | ) |  | $ | 0.38 |  |  | $ | 0.43 |  |  | $ | 0.03 |  |  | $ | 0.45 |  |  | $ | 0.73 |  |  | $ | 0.13 |  |  | $ | 0.86 |
FFO per Share* |  | $ | 0.98 |  |  | $ | - |  |  | $ | 0.98 |  |  | $ | 0.95 |  |  | $ | 0.03 |  |  | $ | 0.98 |  |  | $ | 0.93 |  |  | $ | 0.14 |  |  | $ | 1.06 |
Weighted Average Shares |  |  |  |  |  |  |  |  |  |  | 73,001 |  |  |  |  |  |  |  |  |  |  |  | 70,481 |  |  |  |  |  |  |  |  |  |  |  | 70,651 |

*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS
13

Property Net Operating Income (NOI): Cash and GAAP Basis
(in thousands)

Property NOI Cash* |  |  |  |  | Three Months |  |  | Year to date |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Ended |  |  | 2010 |  |  | Three Months Ended |  |  | Year Ended |
|  |  | 31-Mar-10 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Region | Division |  | Sq Feet |  |  | 31-Mar-10 |  |  | 2010 Total |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 2009 Total |
Eastern | Mideast |  | 1,535 |  |  | $ | 4,031 |  |  | $ | 4,031 |  |  | $ | 3,740 |  |  | $ | 3,803 |  |  | $ | 4,401 |  |  | $ | 4,839 |  |  | $ | 16,783 |
Midwest | East North Central |  | 597 |  |  |  | 1,103 |  |  |  | 1,103 |  |  |  | 1,524 |  |  |  | 1,578 |  |  |  | 1,108 |  |  |  | 1,129 |  |  |  | 5,339 |
| West North Central |  | 630 |  |  |  | 2,034 |  |  |  | 2,034 |  |  |  | 1,689 |  |  |  | 1,758 |  |  |  | 2,653 |  |  |  | 1,867 |  |  |  | 7,967 |
|  |  | 1,227 |  |  |  | 3,137 |  |  |  | 3,137 |  |  |  | 3,213 |  |  |  | 3,336 |  |  |  | 3,761 |  |  |  | 2,996 |  |  |  | 13,306 |
South | Southeast |  | 600 |  |  |  | 2,307 |  |  |  | 2,307 |  |  |  | 2,220 |  |  |  | 2,213 |  |  |  | 2,353 |  |  |  | 2,138 |  |  |  | 8,924 |
| Southwest |  | 1,489 |  |  |  | 4,234 |  |  |  | 4,234 |  |  |  | 5,203 |  |  |  | 4,953 |  |  |  | 4,718 |  |  |  | 4,370 |  |  |  | 19,244 |
|  |  | 2,089 |  |  |  | 6,541 |  |  |  | 6,541 |  |  |  | 7,423 |  |  |  | 7,166 |  |  |  | 7,071 |  |  |  | 6,508 |  |  |  | 28,168 |
West | Mountain |  | 792 |  |  |  | 3,254 |  |  |  | 3,254 |  |  |  | 3,194 |  |  |  | 3,519 |  |  |  | 3,003 |  |  |  | 3,126 |  |  |  | 12,842 |
| Pacific |  | 299 |  |  |  | 443 |  |  |  | 443 |  |  |  | 375 |  |  |  | 311 |  |  |  | 460 |  |  |  | 364 |  |  |  | 1,510 |
|  |  | 1,091 |  |  |  | 3,697 |  |  |  | 3,697 |  |  |  | 3,569 |  |  |  | 3,830 |  |  |  | 3,463 |  |  |  | 3,490 |  |  |  | 14,352 |
Total |  |  | 5,942 |  |  | $ | 17,406 |  |  | $ | 17,406 |  |  | $ | 17,945 |  |  | $ | 18,135 |  |  | $ | 18,696 |  |  | $ | 17,833 |  |  | $ | 72,609 |
Property NOI GAAP* |  |  |  |  | Three Months |  |  | Year to date |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  | Ended |  |  |  | 2010 |  |  | Three Months Ended |  |  | Year Ended |
|  |  | 31-Mar-10 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Region | Division |  | Sq Feet |  |  | 31-Mar-10 |  |  | 2010 Total |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 2009 Total |
Eastern | Mideast |  | 1,535 |  |  | $ | 4,666 |  |  | $ | 4,666 |  |  | $ | 3,749 |  |  | $ | 3,726 |  |  | $ | 4,483 |  |  | $ | 5,232 |  |  | $ | 17,190 |
Midwest | East North Central |  | 597 |  |  |  | 1,110 |  |  |  | 1,110 |  |  |  | 1,570 |  |  |  | 1,592 |  |  |  | 1,161 |  |  |  | 1,191 |  |  |  | 5,514 |
| West North Central |  | 630 |  |  |  | 2,164 |  |  |  | 2,164 |  |  |  | 1,606 |  |  |  | 1,667 |  |  |  | 2,626 |  |  |  | 2,016 |  |  |  | 7,915 |
|  |  | 1,227 |  |  |  | 3,274 |  |  |  | 3,274 |  |  |  | 3,176 |  |  |  | 3,259 |  |  |  | 3,787 |  |  |  | 3,207 |  |  |  | 13,429 |
South | Southeast |  | 600 |  |  |  | 2,356 |  |  |  | 2,356 |  |  |  | 2,391 |  |  |  | 2,343 |  |  |  | 2,477 |  |  |  | 2,245 |  |  |  | 9,456 |
| Southwest |  | 1,489 |  |  |  | 4,404 |  |  |  | 4,404 |  |  |  | 5,265 |  |  |  | 4,828 |  |  |  | 4,820 |  |  |  | 4,643 |  |  |  | 19,556 |
|  |  | 2,089 |  |  |  | 6,760 |  |  |  | 6,760 |  |  |  | 7,656 |  |  |  | 7,171 |  |  |  | 7,297 |  |  |  | 6,888 |  |  |  | 29,012 |
West | Mountain |  | 792 |  |  |  | 3,229 |  |  |  | 3,229 |  |  |  | 3,334 |  |  |  | 3,548 |  |  |  | 3,019 |  |  |  | 3,114 |  |  |  | 13,015 |
| Pacific |  | 299 |  |  |  | 497 |  |  |  | 497 |  |  |  | 404 |  |  |  | 339 |  |  |  | 515 |  |  |  | 425 |  |  |  | 1,683 |
|  |  | 1,091 |  |  |  | 3,726 |  |  |  | 3,726 |  |  |  | 3,738 |  |  |  | 3,887 |  |  |  | 3,534 |  |  |  | 3,539 |  |  |  | 14,698 |
Total |  |  | 5,942 |  |  | $ | 18,426 |  |  | $ | 18,426 |  |  | $ | 18,319 |  |  | $ | 18,043 |  |  | $ | 19,101 |  |  | $ | 18,866 |  |  | $ | 74,329 |

*See page 31 for a reconciliation of Net Income to Property NOI cash and Property NOI GAAP.
14

Capital Analysis
(in thousands, except per share amounts)

|  | 31-Mar-10 |  |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |
Market Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shares Outstanding |  |  | 79,681 |  |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 79,681 |  |  |  | 79,681 |
Closing market price per share |  | $ | 14.43 |  |  |  | $ | 12.30 |  |  | $ | 13.25 |  |  | $ | 13.10 |  |  | $ | 14.61 |
Market capitalization |  | $ | 1,149,793 |  |  |  | $ | 866,913 |  |  | $ | 933,869 |  |  | $ | 1,043,817 |  |  | $ | 1,164,135 |
Dividend Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total dividends paid |  | $ | 15,139 |  |  |  | $ | 13,391 |  |  | $ | 13,391 |  |  | $ | 13,391 |  |  | $ | 15,140 |
Common dividend per share |  | $ | 0.19 |  |  |  | $ | 0.19 |  |  | $ | 0.19 |  |  | $ | 0.19 |  |  | $ | 0.19 |
Quarterly dividend as a % of FFO* |  |  | 91 | % |  |  |  | 76 | % |  |  | 76 | % |  |  | 76 | % |  |  | 79 | %
Liquidity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 22,815 |  |  |  | $ | 27,650 |  |  | $ | 24,542 |  |  | $ | 26,385 |  |  | $ | 27,404 |
Revolving credit facilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross potential available under current credit facilities |  |  | 250,000 |  |  |  |  | 250,000 |  |  |  | 250,000 |  |  |  | 250,000 |  |  |  | 250,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding balance |  |  | (119,968 | ) |  |  |  | (72,468 | ) |  |  | (124,038 | ) |  |  | (91,008 | ) |  |  | (109,008 | )
Total Liquidity |  | $ | 152,847 |  |  |  | $ | 205,182 |  |  | $ | 150,504 |  |  | $ | 185,377 |  |  | $ | 168,396 |

*See page 27 for a reconciliation of Net Income to FFO and FFO+GOS and page 28 for definitions of FFO and FFO+GOS
15

Portfolio Overview

| 31-Mar-10 | 31-Dec-09 | 30-Sep-09 | 30-Jun-09 | 31-Mar-09
Owned portfolio of commercial real estate: |  |  |  |  |
Number of properties | 32 | 32 | 32 | 31 | 29
Square feet | 5,942,299 | 5,942,414 | 5,934,624 | 5,682,011 | 5,417,515
Leased percentage | 85% | 84% | 90% | 92% | 93%
Investments in non-consolidated commercial real estate: |  |  |  |  |
Number of properties | 3 | 3 | 3 | 3 | 2
Square feet | 1,995,041 | 1,995,041 | 1,995,041 | 1,994,686 | 1,461,224
Leased percentage | 78% | 78% | 78% | 78% | 79%
Single Asset REITs (SARs) managed: |  |  |  |  |
Number of properties | 11 | 11 | 9 | 9 | 10
Square feet * | 2,406,370 | 2,406,370 | 2,155,201 | 2,154,079 | 2,684,561
Leased percentage* | 76% | 91% | 90% | 87% | 88%
Total owned, investments and managed properties: |  |  |  |  |
Number of properties | 46 | 46 | 44 | 43 | 41
Square feet * | 10,343,710 | 10,343,825 | 10,084,866 | 9,830,776 | 9,563,300
Leased percentage* | 82% | 85% | 88% | 88% | 90%

*Excludes a property to be constructed with approximately 285,000 square feet |

16

Regional Analysis and Map
(as of March 31, 2010)

Owned: |  |  |  |
Name | City | State | Region | Square Feet
Park Seneca | Charlotte | NC | East | 109,550
Forest Park | Charlotte | NC | East | 62,212
Meadow Point | Chantilly | VA | East | 136,683
Stonecroft | Chantilly | VA | East | 111,469
Fairview | Falls Church | VA | East | 252,613
Innsbrook | Glen Allen | VA | East | 303,745
East Baltimore | Baltimore | MD | East | 325,410
Loudoun Tech Center | Dulles | VA | East | 135,888
Bollman Place (1) | Savage | MD | East | 98,745
Southfield Centre | Southfield | MI | MidWest | 214,697
Northwest Point | Elk Grove Village | IL | MidWest | 176,848
River Crossing | Indianapolis | IN | MidWest | 205,059
Timberlake | Chesterfield | MO | MidWest | 232,766
Timberlake East | Chesterfield | MO | MidWest | 116,197
Lakeside Crossing | Maryland Heights | MO | MidWest | 127,778
Eden Bluff | Eden Prairie | MN | MidWest | 153,028
Blue Lagoon Drive | Miami | FL | South | 212,619
One Overton Place | Atlanta | GA | South | 387,267
Willow Bend Office Center | Plano | TX | South | 116,622
Park Ten | Houston | TX | South | 155,715
Addison Circle | Addison | TX | South | 293,787
Collins Crossing | Richardson | TX | South | 298,766
Eldridge Green | Houston | TX | South | 248,399
Park Ten Phase II | Houston | TX | South | 156,746
Liberty Plaza | Addison | TX | South | 218,934
Centennial Technology Center | Colorado Springs | CO | West | 110,730
380 Interlocken | Broomfield | CO | West | 240,184
Greenwood Plaza | Englewood | CO | West | 199,077
390 Interlocken | Broomfield | CO | West | 241,516
Hillview Center | Milpitas | CA | West | 36,288
Federal Way | Federal Way | WA | West | 117,010
Montague Business Center | San Jose | CA | West | 145,951
Total |  |  |  | 5,942,299
Managed: |  |  |  |
Name | City | State | Region | Square Feet
1441 Main Street | Columbia | SC | East | 267,956
303 East Wacker Drive | Chicago | IL | MidWest | 844,081
505 Waterford | Plymouth | MN | MidWest | 256,348
50 South Tenth Street | Minneapolis | MN | MidWest | 498,768
Grand Boulevard | Kansas City | MO | MidWest | 532,453
Lakeside Crossing II | Maryland Heights | MO | MidWest | 116,000
Centre Pointe V | West Chester | OH | MidWest | 135,936
Satellite Place | Duluth | GA | South | 134,785
5601 Executive Drive | Irving | TX | South | 152,121
Galleria North | Dallas | TX | South | 379,518
Energy Tower I | Houston | TX | South | 325,796
Phoenix Tower | Houston | TX | South | 618,507
Highland Place I | Centennial | CO | West | 139,142
Total (2) |  |  |  | 4,401,411

(1) Industrial property, all others are office properties
(2) Excludes property under construction in Broomfield, Co of approximately 285,000 square feet

Properties by Division/Region
($ in thousands)
|  |  |  |  |  |  | NBV (a) |  | % Leased
| # of Properties |  | Square Feet |  | % of Portfolio |  | 31-Mar-10 |  | 31-Mar-10
East Region Total | 9 |  | 1,536,315 |  | 25.9 |  | $ 236,341 |  | 80.54%
East North Central Division | 3 |  | 596,604 |  | 10.0 |  | 80,947 |  | 82.24%
West North Central | 4 |  | 629,769 |  | 10.6 |  | 86,286 |  | 99.62%
Midwest Region Total | 7 |  | 1,226,373 |  | 20.6 |  | 167,233 |  | 91.16%
Southeast | 2 |  | 599,886 |  | 10.1 |  | 122,915 |  | 93.74%
Southwest | 7 |  | 1,488,969 |  | 25.1 |  | 227,269 |  | 81.39%
South Region Total | 9 |  | 2,088,855 |  | 35.2 |  | 350,184 |  | 84.93%
Mountain | 4 |  | 791,507 |  | 13.3 |  | 127,199 |  | 92.57%
Pacific | 3 |  | 299,249 |  | 5.0 |  | 35,998 |  | 71.12%
West Region Total | 7 |  | 1,090,756 |  | 18.3 |  | 163,197 |  | 86.68%
Grand Total | 32 |  | 5,942,299 |  | 100.0 |  | $ 916,955 |  | 85.40%

(a) NBV is for real estate assets, excluding intangibles
17

Owned Property List
(in thousands)

|  |  |  |  |  | NBV (1) | % Leased
Region | Division | Name | City | State | S.F. | 31-Mar-10 | 31-Mar-10
West | Pacific | Hillview Center | Milpitas | CA | 36 | 4,228 | 100.0%
West | Pacific | Montague Business Center | San Jose | CA | 146 | 17,109 | 100.0%
West | Mountain | 380 Interlocken | Broomfield | CO | 240 | 42,972 | 87.0%
West | Mountain | 390 Interlocken | Broomfield | CO | 242 | 43,034 | 98.5%
West | Mountain | Centennial Technology Center | Colorado Springs | CO | 111 | 11,804 | 78.5%
West | Mountain | Greenwood Plaza | Englewood | CO | 199 | 29,390 | 100.0%
South | Southeast | Blue Lagoon Drive | Miami | FL | 213 | 47,881 | 100.0%
South | Southeast | One Overton Place | Atlanta | GA | 387 | 75,034 | 90.3%
MidWest | East North Central | Northwest Point | Elk Grove Village | IL | 177 | 29,772 | 100.0%
MidWest | East North Central | River Crossing | Indianapolis | IN | 205 | 36,405 | 94.7%
East | Mideast | East Baltimore | Baltimore | MD | 325 | 56,226 | 94.4%
East | Mideast | Bollman Place | Savage | MD | 99 | 4,998 | 100.0%
MidWest | East North Central | Southfield Centre | Southfield | MI | 215 | 14,771 | 55.7%
MidWest | West North Central | Eden Bluff - Eden Prairie | Eden Prairie | MN | 153 | 14,537 | 100.0%
MidWest | West North Central | Timberlake | Chesterfield | MO | 233 | 36,018 | 99.0%
MidWest | West North Central | Timberlake East | Chesterfield | MO | 116 | 18,189 | 100.0%
MidWest | West North Central | Lakeside Crossing | Maryland Heights | MO | 128 | 17,541 | 100.0%
East | Mideast | Park Seneca | Charlotte | NC | 110 | 7,638 | 85.1%
East | Mideast | Forest Park | Charlotte | NC | 62 | 6,366 | 100.0%
South | Southwest | Addison Circle | Addison | TX | 294 | 47,907 | 61.3%
South | Southwest | Liberty Plaza | Addison | TX | 219 | 25,207 | 77.8%
South | Southwest | Park Ten | Houston | TX | 156 | 18,772 | 66.0%
South | Southwest | Eldridge Green | Houston | TX | 248 | 43,342 | 100.0%
South | Southwest | Park Ten Phase II | Houston | TX | 157 | 31,515 | 97.8%
South | Southwest | Willow Bend Office Center | Plano | TX | 117 | 17,990 | 49.8%
South | Southwest | Collins Crossing | Richardson | TX | 299 | 42,537 | 100.0%
East | Mideast | Meadow Point | Chantilly | VA | 137 | 20,423 | 51.5%
East | Mideast | Stonecroft | Chantilly | VA | 111 | 19,758 | 100.0%
East | Mideast | Loudoun Tech Center | Dulles | VA | 136 | 17,673 | 100.0%
East | Mideast | Fairview | Falls Church | VA | 253 | 61,293 | 100.0%
East | Mideast | Innsbrook | Glen Allen | VA | 304 | 41,966 | 34.7%
West | Pacific | Federal Way | Federal Way | WA | 117 | 14,661 | 26.1%
|  |  |  |  | 5,942 | $ 916,955 | 85.4%

(1) NBV is for real estate assets, excluding intangibles
18

Properties with Annualized Rent per Square Foot

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Average |
|  |  | Year Built |  |  |  |  |  |  |  | Percentage Leased |  |  | Annualized Rent as of |  |  | Annualized |
|  |  | or |  | Net Rentable |  |  | Leased |  |  | as of March 31, |  |  | as of March 31, |  |  | Rent per Leased |
Property Name | City | State | Renovated |  | Square Feet |  |  | Sq. Ft. (a) |  |  | 2010 (a) |  |  | 2010 (b) |  |  | Square Feet (c) |
Park Seneca | Charlotte | NC | 1969 |  |  | 109,550 |  |  |  | 93,272 |  |  |  | 85.14 | % |  |  | 1,412,601 |  |  | $ | 15.14 |
Forest Park | Charlotte | NC | 1999 |  |  | 62,212 |  |  |  | 62,212 |  |  |  | 100.00 | % |  |  | 987,940 |  |  |  | 15.88 |
Meadow Point | Chantilly | VA | 1999 |  |  | 136,683 |  |  |  | 70,357 |  |  |  | 51.47 | % |  |  | 186,732 |  |  |  | 2.65 |
Innsbrook | Glen Allen | VA | 1999 |  |  | 303,745 |  |  |  | 105,497 |  |  |  | 34.73 | % |  |  | 1,022,846 |  |  |  | 9.70 |
East Baltimore | Baltimore | MD | 1989 |  |  | 325,410 |  |  |  | 307,252 |  |  |  | 94.42 | % |  |  | 8,218,852 |  |  |  | 26.75 |
Loudoun Tech Center | Dulles | VA | 1999 |  |  | 135,888 |  |  |  | 135,888 |  |  |  | 100.00 | % |  |  | 1,736,340 |  |  |  | 12.78 |
Bollman Place | Savage | MD | 1984 |  |  | 98,745 |  |  |  | 98,745 |  |  |  | 100.00 | % |  |  | 611,232 |  |  |  | 6.19 |
Stonecroft | Chantilly | VA | 2008 |  |  | 111,469 |  |  |  | 111,469 |  |  |  | 100.00 | % |  |  | 3,981,177 |  |  |  | 35.72 |
Fairview Park | Falls Church | VA | 2001 |  |  | 252,613 |  |  |  | 252,613 |  |  |  | 100.00 | % |  |  | 6,644,676 |  |  |  | 26.30 |
East total |  |  |  |  |  | 1,536,315 |  |  |  | 1,237,305 |  |  |  | 80.54 | % |  |  | 24,802,396 |  |  |  | 20.05 |
Southfield Centre | Southfield | MI | 1977 |  |  | 214,697 |  |  |  | 119,566 |  |  |  | 55.69 | % |  |  | 1,310,319 |  |  |  | 10.96 |
Northwest Point | Elk Grove Village | IL | 1999 |  |  | 176,848 |  |  |  | 176,848 |  |  |  | 100.00 | % |  |  | 3,334,487 |  |  |  | 18.86 |
River Crossing | Indianapolis | IN | 1998 |  |  | 205,059 |  |  |  | 194,246 |  |  |  | 94.73 | % |  |  | 4,888,569 |  |  |  | 25.17 |
Timberlake | Chesterfield | MO | 1999 |  |  | 232,766 |  |  |  | 230,347 |  |  |  | 98.96 | % |  |  | 4,685,165 |  |  |  | 20.34 |
Timberlake East | Chesterfield | MO | 2000 |  |  | 116,197 |  |  |  | 116,197 |  |  |  | 100.00 | % |  |  | 2,692,054 |  |  |  | 23.17 |
Lakeside Crossing | Sl. Louis | MO | 2008 |  |  | 127,778 |  |  |  | 127,778 |  |  |  | 100.00 | % |  |  | 2,947,839 |  |  |  | 23.07 |
Eden Bluff | Eden Praire | MN | 2006 |  |  | 153,028 |  |  |  | 153,028 |  |  |  | 100.00 | % |  |  | 3,977,266 |  |  |  | 25.99 |
Midwest total |  |  |  |  |  | 1,226,373 |  |  |  | 1,118,010 |  |  |  | 91.16 | % |  |  | 23,835,698 |  |  |  | 21.32 |
Blue Lagoon Drive | Miami | FL | 2002 |  |  | 212,619 |  |  |  | 212,619 |  |  |  | 100.00 | % |  |  | 4,505,691 |  |  |  | 21.19 |
One Overton Place | Atlanta | GA | 2002 |  |  | 387,267 |  |  |  | 349,728 |  |  |  | 90.31 | % |  |  | 8,998,529 |  |  |  | 25.73 |
Willow Bend Office Center | Plano | TX | 1999 |  |  | 116,622 |  |  |  | 58,071 |  |  |  | 49.79 | % |  |  | 1,228,912 |  |  |  | 21.16 |
Park Ten | Houston | TX | 1999 |  |  | 155,715 |  |  |  | 102,821 |  |  |  | 66.03 | % |  |  | 2,680,348 |  |  |  | 26.07 |
Addison Circle | Addison | TX | 1999 |  |  | 293,787 |  |  |  | 180,006 |  |  |  | 61.27 | % |  |  | 4,335,336 |  |  |  | 24.08 |
Collins Crossing | Richardson | TX | 1999 |  |  | 298,766 |  |  |  | 298,766 |  |  |  | 100.00 | % |  |  | 7,603,669 |  |  |  | 25.45 |
Eldridge Green | Houston | TX | 1999 |  |  | 248,399 |  |  |  | 248,399 |  |  |  | 100.00 | % |  |  | 7,075,482 |  |  |  | 28.48 |
Park Ten Phase II | Houston | TX | 2006 |  |  | 156,746 |  |  |  | 153,326 |  |  |  | 97.82 | % |  |  | 3,992,631 |  |  |  | 26.04 |
Liberty Plaza | Addison | TX | 1985 |  |  | 218,934 |  |  |  | 170,424 |  |  |  | 77.84 | % |  |  | 3,370,903 |  |  |  | 19.78 |
South Total |  |  |  |  |  | 2,088,855 |  |  |  | 1,774,160 |  |  |  | 84.93 | % |  |  | 43,791,500 |  |  |  | 24.68 |
Centennial Technology Center | Colorado Springs | CO | 1999 |  |  | 110,730 |  |  |  | 86,910 |  |  |  | 78.49 | % |  |  | 1,382,703 |  |  |  | 15.91 |
380 Interlocken | Broomfield | CO | 2000 |  |  | 240,184 |  |  |  | 208,844 |  |  |  | 86.95 | % |  |  | 6,511,207 |  |  |  | 31.18 |
Greenwood Plaza | Englewood | CO | 2000 |  |  | 199,077 |  |  |  | 199,077 |  |  |  | 100.00 | % |  |  | 7,868,486 |  |  |  | 39.52 |
390 Interlocken | Broomfield | CO | 2002 |  |  | 241,516 |  |  |  | 237,837 |  |  |  | 98.48 | % |  |  | 6,217,339 |  |  |  | 26.14 |
Hillview Center | Milpitas | CA | 1984 |  |  | 36,288 |  |  |  | 36,288 |  |  |  | 100.00 | % |  |  | 532,421 |  |  |  | 14.67 |
Federal Way | Federal Way | WA | 1982 |  |  | 117,010 |  |  |  | 30,592 |  |  |  | 26.14 | % |  |  | 550,275 |  |  |  | 17.99 |
Montague Business Center | San Jose | CA | 1982 |  |  | 145,951 |  |  |  | 145,951 |  |  |  | 100.00 | % |  |  | 2,118,489 |  |  |  | 14.52 |
West Total |  |  |  |  |  | 1,090,756 |  |  |  | 945,499 |  |  |  | 86.68 | % |  |  | 25,180,921 |  |  |  | 26.63 |
Grand Total |  |  |  |  |  | 5,942,299 |  |  |  | 5,074,974 |  |  |  | 85.40 | % |  | $ | 117,610,515 |  |  | $ | 23.17 |

(a) Based on all leases in effect, including month-to-month tenants, divided by the Property's net rentable square footage.
(b) Represents gross rental charges for the month of March 2010 (including month-to-month leases) multiplied by 12.
(c) Represents the annualized rent as of March 2010 divided by leased square feet.

19

Owned Property Capital Expenditures
(in thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Year |
|  |  |  |  |  |  |  | For the Three Months Ended |  |  |  |  |  | Ended |
|  | 31-Mar-10 |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 31-Dec-09 |
Tenant improvements |  | $ | 1,305 |  |  | $ | 1,373 |  |  | $ | 912 |  |  | $ | 931 |  |  | $ | 1,528 |  |  | $ | 4,744 |
Deferred leasing costs |  |  | 5,566 |  |  |  | 162 |  |  |  | 1,395 |  |  |  | 645 |  |  |  | 457 |  |  |  | 2,659 |
Building improvements |  |  | 380 |  |  |  | 466 |  |  |  | 116 |  |  |  | 265 |  |  |  | 619 |  |  |  | 1,466 |
Total |  | $ | 7,251 |  |  | $ | 2,001 |  |  | $ | 2,423 |  |  | $ | 1,841 |  |  | $ | 2,604 |  |  | $ | 8,869 |

20

20 Largest Tenants with Annualized Rent and Remaining Term

As of March 31, 2010 |  |  |  |  |  |
|  |  | Remaining | Aggregate | % of Aggregate | Annualized | % of
| Tenant | Number of | Lease Term | Leased | Leased | Rent (a) | Aggregate
| Name | Leases | in Months | Square Feet | Square Feet | (in 000's) | Annualized Rent
1 | Noblis, Inc. | 1 | 82 | 252,613 | 4.25% | 6,645 | 5.65%
2 | CITGO Petroleum Corporation | 1 | 143 | 248,399 | 4.18% | 7,075 | 6.02%
3 | Tektronix Texas, LLC | 1 | 3 | 241,372 | 4.06% | 6,277 | 5.34%
4 | Burger King Corporation | 1 | 102 | 212,619 | 3.58% | 4,506 | 3.83%
5 | New Era of Networks, Inc. | 1 | 1 | 199,077 | 3.35% | 7,868 | 6.69%
6 | Citicorp Credit Services, Inc (b) | 1 | 81 | 176,848 | 2.98% | 3,334 | 2.84%
7 | RGA Reinsurance Company | 1 | 57 | 185,501 | 3.12% | 3,645 | 3.10%
8 | C.H. Robinson Worldwide, Inc. | 1 | 135 | 153,028 | 2.58% | 3,977 | 3.38%
9 | Geisecke & Devrient America, Inc. | 1 | 59 | 135,888 | 2.29% | 1,736 | 1.48%
10 | Murphy Exploration & Production Company | 1 | 85 | 133,786 | 2.25% | 3,515 | 2.99%
11 | Monsanto Company | 1 | 58 | 127,778 | 2.15% | 2,948 | 2.51%
12 | Vail Holdings, Inc. (c) | 1 | 156 | 121,913 | 2.05% | 3,209 | 2.73%
13 | Northrop Grumman Information Technology, Inc. | 1 | 97 | 111,469 | 1.88% | 3,981 | 3.39%
14 | Maines Paper & Food Service, Inc. | 1 | 44 | 98,745 | 1.66% | 611 | 0.52%
15 | Amdocs, Inc. | 1 | 14 | 91,928 | 1.55% | 2,139 | 1.82%
16 | County of Santa Clara | 1 | 93 | 90,467 | 1.52% | 1,347 | 1.15%
17 | Ober, Kaler, Grimes & Shriver | 1 | 12 | 89,885 | 1.51% | 2,470 | 2.10%
18 | International Business Machines Corp. | 1 | 28 | 83,209 | 1.40% | 978 | 0.83%
19 | Corporate Holdings, LLC | 1 | 48 | 81,818 | 1.38% | 2,161 | 1.84%
20 | Noble Royalties, Inc. | 1 | 56 | 78,344 | 1.32% | 2,045 | 1.74%
|  |  |  | 2,914,687 | 49.05% | $ 70,468 | 59.92%

(a) | Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at March 31, 2010 multiplied by 12.Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b) | The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup.

(c) | On March 22, 2010, the Company signed a lease for an additional 38,000 square feet of space with one of its tenants, Vail Holdings, Inc.

21

Tenant Analysis – 20 Largest Tenants, Industry Profile
(as a % of square feet at March 31, 2010)
22

Lease Expirations by Square Feet
(as of March 31, 2010)

| Year |  |  | Total Square Feet |  | % of Square Feet Commercial
| 2010 |  |  | 732,934 |  | 12.3%
| 2011 |  |  | 460,349 |  | 7.8%
| 2012 |  |  | 439,496 |  | 7.4%
| 2013 |  |  | 361,867 |  | 6.1%
| 2014 |  |  | 585,420 |  | 9.9%
| 2015 |  |  | 482,830 |  | 8.1%
| 2016 |  |  | 489,481 |  | 8.2%
| 2017 |  |  | 523,658 |  | 8.8%
| 2018 |  |  | 394,913 |  | 6.6%
| 2019 |  |  | 43,392 |  | 0.7%
| 2020 |  |  | 75,587 |  | 1.3%
| 2021 |  |  | 153,028 |  | 2.6%
| 2022 |  |  | 248,399 |  | 4.2%
| 2023 |  |  | 83,620 |  | 1.4%
| Vacant |  |  | 867,325 |  | 14.6%
| Total |  |  | 5,942,299 |  | 100.0%

23

Lease Expirations
with Annualized Rent per Square Foot

|  |  | Rentable |  |  |  | Annualized |  | Percentage |  |
| Number of |  | Square |  |  |  | Rent |  | of Total Final |  |
Year of | Leases |  | Footage |  | Annualized |  | Per Square |  | Annualized |  |
Lease | Expiring |  | Subject to |  | Rent Under |  | Foot Under |  | Rent Under |  |
Expiration | Within the |  | Expiring |  | Expiring |  | Expiring |  | Expiring |  | Cumulative
December 31, | Year |  | Leases |  | Leases (a) |  | Leases |  | Leases |  | Total
2010 | 80 | (b) | 732,934 |  | 20,738,900 |  | 28.30 |  | 17.63% |  | 17.63%
2011 | 38 |  | 460,349 |  | 10,163,857 |  | 22.08 |  | 8.64% |  | 26.28%
2012 | 43 |  | 439,496 |  | 9,335,526 |  | 21.24 |  | 7.94% |  | 34.21%
2013 | 31 |  | 361,867 |  | 6,154,653 |  | 17.01 |  | 5.23% |  | 39.45%
2014 | 22 |  | 585,420 |  | 12,812,624 |  | 21.89 |  | 10.89% |  | 50.34%
2015 | 18 |  | 482,830 |  | 9,487,251 |  | 19.65 |  | 8.07% |  | 58.41%
2016 | 8 |  | 489,481 |  | 11,418,722 |  | 23.33 |  | 9.71% |  | 68.12%
2017 | 6 |  | 523,658 |  | 12,302,877 |  | 23.49 |  | 10.46% |  | 78.58%
2018 | 5 |  | 394,913 |  | 10,342,340 |  | 26.19 |  | 8.79% |  | 87.37%
2019 | 2 |  | 43,392 |  | 1,224,355 |  | 28.22 |  | 1.04% |  | 88.41%
2020 and thereafter | 5 |  | 560,634 |  | 13,629,410 |  | 24.31 |  | 11.59% |  | 100.00%
| 258 |  | 5,074,974 |  | 117,610,515 |  | 23.17 |  | 100.00% |  |
Vacancies as of 3/31/10 |  | 867,325 |  |  |  |  |  |  |  |
Total Portfolio Square Footage |  | 5,942,299 |  |  |  |  |  |  |  |

(a) | Annualized rent represents the monthly rent, including tenant reimbursements, for each lease in effect at March 31, 2010 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b) | 31 Leases are Month to Month

24

Capital Recycling
($ in thousands)

Acquisitions: |  |  |  |  |  |  |  |  |  |  |  |
|  | State/Region |  | Property Type |  | Square Feet |  | Date Acquired |  | Purchase Price |  |
2009 |  |  |  |  |  |  |  |  |  |  |  |
Stonecroft-Chantilly |  | VA/East |  | Office |  | 111,469 |  | 6/26/09 |  | $ 29,000 |  |
Eden Bluff - Eden Prairie |  | MN/Midwest |  | Office |  | 153,028 |  | 6/30/09 |  | 22,784 |  |
Fairview |  | VA/East |  | Office |  | 252,613 |  | 9/30/09 |  | 73,000 |  |
2008 |  |  |  |  |  |  |  |  |  |  |  |
Park Ten Phase II |  | TX/South |  | Office |  | 156,746 |  | 5/15/08 |  | 35,079 |  |
Lakeside Crossing |  | MO/Midwest |  | Office |  | 127,778 |  | 12/11/08 |  | 20,003 |  |
Loudoun Tech Center |  | VA/East |  | Office |  | 135,888 |  | 12/23/08 |  | 18,628 |  |
2007 |  |  |  |  |  |  |  |  |  |  |  |
East Baltimore |  | MD/East |  | Office |  | 325,298 |  | 6/13/07 |  | 63,592 |  |
2006 |  |  |  |  |  |  |  |  |  |  |  |
Liberty Plaza |  | TX/South |  | Office |  | 218,934 |  | 2/24/06 |  | 26,472 |  |
Innsbrook |  | VA/East |  | Office |  | 297,789 |  | 5/1/06 |  | 48,240 |  |
380 Interlocken |  | CO/West |  | Office |  | 240,184 |  | 5/1/06 |  | 47,587 |  |
Blue Lagoon Drive |  | FL/South |  | Office |  | 212,619 |  | 5/1/06 |  | 56,051 |  |
Eldridge Green |  | TX/South |  | Office |  | 248,399 |  | 5/1/06 |  | 53,435 |  |
Willow Bend Office Center |  | TX/South |  | Office |  | 116,622 |  | 5/1/06 |  | 19,713 |  |
One Overton Place |  | GA/South |  | Office |  | 387,267 |  | 6/27/06 |  | 85,284 |  |
390 Interlocken |  | CO/West |  | Office |  | 241,516 |  | 12/21/06 |  | 46,459 |  |
2005 |  |  |  |  |  |  |  |  |  |  |  |
Greenwood Plaza |  | CO/West |  | Office |  | 199,077 |  | 2/24/05 |  | 44,116 |  |
Addison Circle |  | TX/South |  | Office |  | 293,787 |  | 5/1/05 |  | 56,295 |  |
Royal Ridge |  | GA/South |  | Office |  | 161,366 |  | 5/1/05 |  | 27,391 |  |
Collins Crossing |  | TX/South |  | Office |  | 298,766 |  | 5/1/05 |  | 53,667 |  |
Montague Business Center |  | CA/West |  | Office |  | 145,951 |  | 5/1/05 |  | 20,147 |  |
River Crossing |  | IN/Midwest |  | Office |  | 205,059 |  | 7/6/05 |  | 42,016 |  |
Dispositions: |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Net Sales |  | Gain (Loss)
2007 |  | State/Region |  | Property Type |  | Square Feet |  | Date Sold |  | Proceeds |  | on Sale
Piedmont Center |  | SC/East |  | Office |  | 144,029 |  | 1/31/07 |  | $ 5,830 |  | $ (4,849)
Royal Ridge |  | GA/South |  | Office |  | 161,366 |  | 6/21/07 |  | 32,535 |  | 6,601
Goldentop Technology Center |  | CA/West |  | Office |  | 141,405 |  | 6/27/07 |  | 36,199 |  | 14,741
Lyberty Way |  | MA/East |  | Office |  | 104,711 |  | 7/16/07 |  | 10,861 |  | 1,942
Austin N.W. (Canyon Hills) |  | TX/South |  | Office |  | 68,533 |  | 12/20/07 |  | 10,429 |  | 257
2006 |  |  |  |  |  |  |  |  |  |  |  |
Merrywood Apartments |  | TX/South |  | Apt |  | 231,363 |  | 5/24/06 |  | 18,204 |  | 2,373
Santa Clara |  | CA/West |  | Office |  | 40,280 |  | 5/31/06 |  | 8,188 |  | 1,557
Fair Lakes |  | VA/East |  | Office |  | 210,613 |  | 5/31/06 |  | 61,412 |  | 24,240
One Technology Drive |  | MA/East |  | Industrial |  | 188,000 |  | 8/10/06 |  | 15,995 |  | 6,366
Plaza Ridge |  | VA/East |  | Office |  | 158,016 |  | 11/16/06 |  | 58,022 |  | 27,941
North Andover Office Park |  | MA/East |  | Office |  | 92,913 |  | 11/21/06 |  | 11,362 |  | 3,810
2005 |  |  |  |  |  |  |  |  |  |  |  |
Blue Ravine |  | CA/West |  | Office |  | 47,058 |  | 7/13/05 |  | 4,764 |  | (1,124)
Silverside Plantation |  | LA/South |  | Apt |  | 223,812 |  | 9/19/05 |  | 22,280 |  | 7,265
Gateway Crossing |  | MD/East |  | Office |  | 188,819 |  | 9/20/05 |  | 25,949 |  | 6,807
Essex Lane Associates |  | TX/South |  | Apt |  | 118,798 |  | 10/5/05 |  | 13,752 |  | 5,112
Gael Apartments |  | TX/South |  | Apt |  | 187,338 |  | 10/5/05 |  | 22,715 |  | 5,151
Telecom Business Center |  | CA/West |  | Office |  | 101,726 |  | 12/8/05 |  | 22,570 |  | 6,943

25

Investment Banking Performance
26

FFO and FFO+GOS Reconciliations
(in thousands, except per share amounts)

|  | For the three months ended |  |  | For the year ended |
|  | 31-Mar-10 |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 2009 |  |  | 2008 |  |  | 2007 |
Net income |  | $ | 5,562 |  |  | $ | 7,808 |  |  | $ | 4,865 |  |  | $ | 6,941 |  |  | $ | 8,258 |  |  | $ | 27,872 |  |  | $ | 31,958 |  |  | $ | 61,085 |
(Gain) Loss on sale of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (424 | ) |  |  | (424 | ) |  |  | - |  |  |  | (23,789 | )
GAAP income from non-consolidated REITs |  |  | (253 | ) |  |  | (792 | ) |  |  | (443 | ) |  |  | (475 | ) |  |  | (301 | ) |  |  | (2,011 | ) |  |  | (2,746 | ) |  |  | 472 |
Distributions from non-consolidated REITs |  |  | 1,407 |  |  |  | 1,615 |  |  |  | 1,523 |  |  |  | 1,119 |  |  |  | 1,371 |  |  |  | 5,628 |  |  |  | 5,348 |  |  |  | 1,806 |
Acquisition costs |  |  | - |  |  |  | - |  |  |  | 248 |  |  |  | 391 |  |  |  | 4 |  |  |  | 643 |  |  |  | - |  |  |  | - |
Depreciation & amortization |  |  | 9,934 |  |  |  | 8,707 |  |  |  | 11,216 |  |  |  | 9,561 |  |  |  | 10,167 |  |  |  | 39,651 |  |  |  | 34,644 |  |  |  | 35,475 |
Funds From Operations (FFO) |  |  | 16,650 |  |  |  | 17,338 |  |  |  | 17,409 |  |  |  | 17,537 |  |  |  | 19,075 |  |  |  | 71,359 |  |  |  | 69,204 |  |  |  | 75,049 |
Plus gains on sales of assets (GOS) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 424 |  |  |  | 424 |  |  |  | - |  |  |  | 23,789 |
FFO+GOS (Total Profits) |  | $ | 16,650 |  |  | $ | 17,338 |  |  | $ | 17,409 |  |  | $ | 17,537 |  |  | $ | 19,499 |  |  | $ | 71,783 |  |  | $ | 69,204 |  |  | $ | 98,838 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.07 |  |  | $ | 0.11 |  |  | $ | 0.07 |  |  | $ | 0.10 |  |  | $ | 0.10 |  |  | $ | 0.38 |  |  | $ | 0.45 |  |  | $ | 0.86 |
FFO |  |  | 0.21 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.24 |  |  |  | 0.98 |  |  |  | 0.98 |  |  |  | 1.06 |
GOS |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.34 |
FFO+GOS |  |  | 0.21 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.24 |  |  |  | 0.98 |  |  |  | 0.98 |  |  |  | 1.40 |
Weighted Average Shares (basic and diluted) |  |  | 79,681 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 71,281 |  |  |  | 79,681 |  |  |  | 73,001 |  |  |  | 70,481 |  |  |  | 70,651 |

27

FFO and FFO+GOS Definitions
Definition of Funds From Operations (“FFO”), and FFO plus Gains on Sales (“FFO+GOS”)
The Company evaluates the performance of its reportable segments based on several measures including, Funds From Operations (“FFO”) and FFO plus Gains on Sales (“FFO+GOS” or “Total Profits”) as management believes they represent important measures of activity and are an important consideration in determining distributions paid to equity holders. The Company defines FFO as net income (computed in accordance with generally accepted accounting principles, or GAAP), excluding gains (or losses) from sales of property, and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, and after adjustments to exclude non-cash income (or losses) from non-consolidated or Sponsored REITs, plus distributions received from non-consolidated or Sponsored REITs. The Company defines FFO+GOS as FFO as defined above, plus gains (or losses) from sales of properties and provisions for assets held for sale, if applicable.
FFO and FFO+GOS should not be considered as alternatives to net income (determined in accordance with GAAP), as indicators of the Company’s financial performance, nor as alternatives to cash flows from operating activities (determined in accordance with GAAP), nor as measures of the Company’s liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define these terms in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FFO and FFO+GOS should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.
28

Funds Available for Distribution (FAD)
Reconciliation and Definition
(in thousands, except per share amounts)

|  | For the three months ended: |
|  | 31-Mar-10 |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |
Net income |  | $ | 5,562 |  |  | $ | 7,808 |  |  | $ | 4,865 |  |  | $ | 6,941 |  |  | $ | 8,258 |
(Gain) Loss on sale of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (424 | )
GAAP income from non-consolidated REITs |  |  | (253 | ) |  |  | (792 | ) |  |  | (443 | ) |  |  | (475 | ) |  |  | (301 | )
Distributions from non-consolidated REITs |  |  | 1,407 |  |  |  | 1,615 |  |  |  | 1,522 |  |  |  | 1,119 |  |  |  | 1,371 |
Acquisition costs |  |  | - |  |  |  | - |  |  |  | 248 |  |  |  | 391 |  |  |  | 4 |
Depreciation & amortization |  |  | 9,934 |  |  |  | 8,707 |  |  |  | 11,217 |  |  |  | 9,561 |  |  |  | 10,167 |
Funds From Operations (FFO) |  |  | 16,650 |  |  |  | 17,338 |  |  |  | 17,409 |  |  |  | 17,537 |  |  |  | 19,075 |
Plus gains on sales of assets (GOS) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 424 |
FFO+GOS (Total Profits) |  | $ | 16,650 |  |  | $ | 17,338 |  |  | $ | 17,409 |  |  | $ | 17,537 |  |  | $ | 19,499 |
Funds Available for Distribution: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Funds From Operations (FFO) |  |  | 16,650 |  |  |  | 17,338 |  |  |  | 17,409 |  |  |  | 17,537 |  |  |  | 19,075 |
Straight-line rent |  |  | (1,619 | ) |  |  | (374 | ) |  |  | (69 | ) |  |  | (405 | ) |  |  | (1,030 | )
Capital expenditures |  |  | (380 | ) |  |  | (466 | ) |  |  | (115 | ) |  |  | (265 | ) |  |  | (619 | )
Funds Available for Distribution (FAD) |  | $ | 14,651 |  |  | $ | 16,498 |  |  | $ | 17,225 |  |  | $ | 16,867 |  |  | $ | 17,426 |
Per Share Data: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.07 |  |  | $ | 0.11 |  |  | $ | 0.07 |  |  | $ | 0.10 |  |  | $ | 0.10 |
FFO |  |  | 0.21 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.24 |
GOS |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0 |
FFO+GOS |  |  | 0.21 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.25 |  |  |  | 0.24 |
FAD |  |  | 0.18 |  |  |  | 0.23 |  |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.22 |
Weighted Average Shares (basic and diluted) |  |  | 79,681 |  |  |  | 70,481 |  |  |  | 70,481 |  |  |  | 71,281 |  |  |  | 79,681 |

The Company defines FAD as the sum of (1) FFO, (2) less the effect of straight-line rent, (3) less recurring capital expenditures that are generally for maintenance of properties and are not recovered through rental income from tenants, and (4) plus non-cash compensation expenses, if any. FAD should not be considered as an alternative to net income (determined in accordance with GAAP), as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, FAD should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.
29

EBITDA Reconciliation and Definition
(in thousands, except ratio amounts)

|  | For the three months ended: |  |  | Year Ended |
|  | 31-Mar-10 |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | 31-Dec-09 |
Net income |  | $ | 5,562 |  |  | $ | 7,808 |  |  | $ | 4,865 |  |  | $ | 6,941 |  |  | $ | 8,258 |  |  | $ | 27,872 |
Interest expense |  |  | 1,652 |  |  |  | 1,577 |  |  |  | 1,599 |  |  |  | 1,744 |  |  |  | 1,650 |  |  |  | 6,570 |
Depreciation and amortization |  |  | 9,934 |  |  |  | 8,707 |  |  |  | 11,216 |  |  |  | 9,561 |  |  |  | 10,167 |  |  |  | 39,651 |
Income taxes |  |  | (68 | ) |  |  | (299 | ) |  |  | (75 | ) |  |  | (270 | ) |  |  | 65 |  |  |  | (579 | )
EBITDA |  |  | 17,080 |  |  |  | 17,793 |  |  |  | 17,605 |  |  |  | 17,976 |  |  |  | 20,140 |  |  |  | 73,514 |
Interest expense |  | $ | 1,652 |  |  | $ | 1,577 |  |  | $ | 1,599 |  |  | $ | 1,744 |  |  | $ | 1,650 |  |  | $ | 6,570 |
Scheduled principal payments (1) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Interest and scheduled principal payments |  | $ | 1,652 |  |  | $ | 1,577 |  |  | $ | 1,599 |  |  | $ | 1,744 |  |  | $ | 1,650 |  |  | $ | 6,570 |
Interest coverage ratio |  |  | 10.34 |  |  |  | 11.28 |  |  |  | 11.01 |  |  |  | 10.31 |  |  |  | 12.21 |  |  |  | 11.19 |
Debt service coverage ratio |  |  | 10.34 |  |  |  | 11.28 |  |  |  | 11.01 |  |  |  | 10.31 |  |  |  | 12.21 |  |  |  | 11.19 |

(1) | Scheduled principal payments include required principal payments on our unsecured term debt, which are scheduled to commence in November 2011 using a 30 year amortization schedule.

EBITDA, a non-GAAP financial measure, is defined as net income, plus interest expense, income tax expense and depreciation and amortization expense. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, this presentation of EBITDA may not be comparable to similarly titled measures of other companies. The Company believes that net income is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to EBITDA.
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Reconciliation of Net Income to Property NOI:
Cash and GAAP Basis
(in thousands)

|  | Three months ended: |  |  | 2009 |
|  | 31-Mar-10 |  |  | 31-Mar-09 |  |  | 30-Jun-09 |  |  | 30-Sep-09 |  |  | 31-Dec-09 |  |  | Total |
Net Income |  | $ | 5,562 |  |  | $ | 7,808 |  |  | $ | 4,865 |  |  | $ | 6,941 |  |  | $ | 8,258 |  |  | $ | 27,872 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment banking segment net loss (income) |  |  | 479 |  |  |  | 778 |  |  |  | 346 |  |  |  | 625 |  |  |  | (1,103 | ) |  |  | 646 |
Gain on sale of assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (424 | ) |  |  | (424 | )
Management fees (before elimination) |  |  | (484 | ) |  |  | (425 | ) |  |  | (398 | ) |  |  | (402 | ) |  |  | (408 | ) |  |  | (1,633 | )
Depreciation and Amortization |  |  | 9,184 |  |  |  | 7,887 |  |  |  | 10,200 |  |  |  | 8,768 |  |  |  | 9,314 |  |  |  | 36,169 |
Amortization of favorable leases |  |  | 716 |  |  |  | 793 |  |  |  | 992 |  |  |  | 759 |  |  |  | 815 |  |  |  | 3,359 |
Selling, general and administrative |  |  | 1,447 |  |  |  | 983 |  |  |  | 1,163 |  |  |  | 1,324 |  |  |  | 1,359 |  |  |  | 4,829 |
Interest expense |  |  | 1,652 |  |  |  | 1,577 |  |  |  | 1,599 |  |  |  | 1,744 |  |  |  | 1,650 |  |  |  | 6,570 |
Interest income |  |  | (338 | ) |  |  | (347 | ) |  |  | (136 | ) |  |  | (170 | ) |  |  | (278 | ) |  |  | (931 | )
Equity in earnings of nonconsolidated REITs |  |  | (253 | ) |  |  | (792 | ) |  |  | (443 | ) |  |  | (475 | ) |  |  | (283 | ) |  |  | (1,993 | )
Non-property specific income and expenses, net |  |  | 461 |  |  |  | 57 |  |  |  | (145 | ) |  |  | (13 | ) |  |  | (34 | ) |  |  | (135 | )
GAAP Property NOI |  |  | 18,426 |  |  |  | 18,319 |  |  |  | 18,043 |  |  |  | 19,101 |  |  |  | 18,866 |  |  |  | 74,329 |
Straight-line rent |  |  | (1,020 | ) |  |  | (374 | ) |  |  | 92 |  |  |  | (405 | ) |  |  | (1,033 | ) |  |  | (1,720 | )
Cash Property NOI |  | $ | 17,406 |  |  | $ | 17,945 |  |  | $ | 18,135 |  |  | $ | 18,696 |  |  | $ | 17,833 |  |  | $ | 72,609 |

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