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  <p align=center style='text-align:center'><b>&nbsp;</b></p>
  
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  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>UNITED STATES</b></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>Washington, D.C. 20549</p>
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><b><u>__________________________</u></b></p>
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>FORM 8-K/A</b></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>Current Report</p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>Pursuant to Section 13 or 15(d) of the Securities
  Exchange Act of 1934</p>
  
  
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>Date of Report (date of earliest event reported):&nbsp; July
  11, 2006</p>
  
  
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><b><u>PARKWAY PROPERTIES, INC</u></b><u>.</u></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Exact Name of Registrant as Specified in its Charter)</p>
  
  
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Maryland</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1-11533</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>74-2123597</u></p>
  
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; (State or Other
  Jurisdiction &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Commission File Number) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (IRS
  Employer</p>
  
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of Incorporation)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Identification
  No.)</p>
  
  
  
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  
  
  
  <p align=center style='margin-left:4.5pt;text-align:center; margin-top:0; margin-bottom:0'><u>One Jackson Place, Suite 1000, 188 East Capitol
  Street, Jackson, MS 39225-4647</u></p>
  
  <p align=center style='margin-left:4.5pt;text-align:center; margin-top:0; margin-bottom:0'>(Address of Principal Executive Offices, including zip
  code)</p>
  
  
  
  <p align=center style='margin-left:4.5pt;text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><u>(601) 948-4091</u></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Registrant's telephone number, including area code)</p>
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <p align=center style='margin-left:4.5pt;text-align:center; margin-top:0; margin-bottom:0'><u>Not Applicable</u></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Former name or former address, if changed since last
  report)</p>
  
  
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <p style='text-indent:.5in; margin-top:0; margin-bottom:0'>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 (see General Instruction A.2. below):</p>
  
  
  
  <p style='text-indent:.5in; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <p style='margin-left:.5in;text-indent:-.5in; margin-top:0; margin-bottom:0'>&#61551;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</p>
  
  <p style='margin-left:.5in;text-indent:-.5in; margin-top:0; margin-bottom:0'>&#61551;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</p>
  
  <p style='margin-left:.5in;text-indent:-.5in; margin-top:0; margin-bottom:0'>&#61551;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))</p>
  
  <p style='margin-left:.5in;text-indent:-.5in; margin-top:0; margin-bottom:0'>&#61551;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))</p>
  
  
  
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  <p align=center style='text-align:center'><b>FORM 8-K/A<br>
  <br>
  PARKWAY PROPERTIES, INC.</b></p>
  
  <p><br>
  <b>Item 2.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Completion of Acquisition or Disposition of Assets.</b></p>
  
  
  
  <p>On July 11, 2006, Parkway Properties, Inc. purchased One Illinois
   Center, a 1,003,000 square-foot office building with an attached four-level
  structured parking garage, located at 111 East Wacker Drive in the East Loop
  sub-market of Chicago. The property was acquired from Lincoln-Carlyle Illinois
  Center LLC for $198 million plus closing costs and transfer taxes of
  approximately $1.6 million.&nbsp; </p>
  
  
  
  <p>The purchase was funded by a 10-year, $148.5 million
  non-recourse first mortgage.&nbsp; The loan bears interest at a fixed rate of 6.29%,
  with interest only payments for five years and principal payments based on a
  30-year amortization thereafter.&nbsp; Additional purchase funding was provided by a
  $33.7 million mezzanine loan with a six-month term at an interest rate of LIBOR
  plus 130 basis points (current rate set at 6.65%) and amounts drawn under
  existing lines of credit.&nbsp; </p>
  
  
  
  <p><b>Item 2.03.&nbsp; Creation of a Direct Financial Obligation
  or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</b></p>
  
  
  
  <p>See Item 2.01 above.</p>
  
  <p><b>Item 9.01.&nbsp; Financial Statements
  and Exhibits.</b></p>
  
  <div align="center">
    <center>
  
  
  
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    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Financial
    Statements</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'><b>&nbsp;</b></p>
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    <p align=right style='text-align:right'><b>&nbsp;</b></p>
    </td>
   </tr>
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    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    following audited financial statement of One Illinois Center for the year
    ended December 31, 2005 is attached hereto.&nbsp; Also included is the unaudited
    financial statement for the six months ended June 30, 2006:</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'><b>&nbsp;</b></p>
    </td>
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    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=55 valign=top style='width:41.35pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'><b>Page</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Report
    of Independent Registered Public Accounting Firm</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>3</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements
    of Rental Revenues and Direct Operating Expenses</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>4</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes
    to Statements of Rental Revenues and Direct Operating Expenses</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>5</p>
    </td>
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   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    following unaudited Pro Forma Consolidated Financial Statements of Parkway
    for the year ended December 31, 2005 and the six months ended June 30, 2006
    are attached hereto:</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=55 valign=top style='width:41.35pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'><b>Page</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Financial Statements (Unaudited)</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>7</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Balance Sheet (Unaudited) - As of June 30, 2006</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>8</p>
    </td>
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   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Statement of Income (Unaudited) - </p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
    the Year Ended December 31, 2005</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>9</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Statement of Income (Unaudited) -</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
    the Six Months Ended June 30, 2006</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>10</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes
    to Pro Forma Consolidated Financial Statements (Unaudited)</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right'>11</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1&nbsp;&nbsp;&nbsp;&nbsp;Consent
    of Ernst &amp; Young LLP</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
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  </table>
  
    </center>
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  &nbsp;<p>&nbsp;</p>
  
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    <p>2</p>
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  &nbsp;<p>
  
  <br clear=ALL>
  
  
  
  </p>
  
  
  
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  <p align=center style='text-align:center'><b>Report of Independent Registered Public Accounting
  Firm</b></p>
  
  <p style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  The Board of Directors</p>
  
  <p style='text-align:justify; margin-top:0; margin-bottom:0'>Parkway Properties, Inc.</p>
  
  <p style='text-align:justify'>We have audited the accompanying statement of rental revenues and direct
  operating expenses of One Illinois Center
  (the Property) for the year ended December 31, 2005.&nbsp; This statement is the
  responsibility of the Property's management.&nbsp; Our responsibility is to express
  an opinion on this statement based on our audit.</p>
  
  <p style='text-align:justify'>We conducted our audit in accordance with auditing standards of the Public
  Company Accounting Oversight Board (United States).&nbsp; Those standards require that we plan and perform the
  audit to obtain reasonable assurance about whether the statement of rental
  revenues and direct operating expenses is free of material misstatement.&nbsp; We were not engaged to perform an audit of the
  Property's internal control over financial reporting. Our audit included
  consideration of internal control over financial reporting as a basis for
  designing audit procedures that are appropriate in the circumstances, but not
  for the purpose of expressing an opinion on the effectiveness of the Property's
  internal control over financial reporting. Accordingly we express no such
  opinion. An audit also includes examining, on a test basis, evidence supporting
  the amounts and disclosures in the financial statement, assessing the
  accounting principles used and significant estimates made by management, and
  evaluating the overall financial statement presentation. We believe that our
  audit provides a reasonable basis for our opinion.</p>
  
  <p style='text-align:justify'>The accompanying statement was prepared for the purpose of complying with the
  rules and regulations of the Securities and Exchange Commission, as described
  in Note 2, for inclusion in a Form 8-K of Parkway Properties, Inc. and is not
  intended to be a complete presentation of One Illinois Center's revenues and
  expenses. </p>
  
  <p style='text-align:justify'>In our opinion, the statement of rental revenues and direct operating expenses
  referred to above presents fairly, in all material respects, the rental
  revenues and direct operating expenses described in Note 2 of One Illinois
  Center for the year ended December 31, 2005, in conformity with U.S.&nbsp; generally accepted accounting
  principles.</p>
  
  
  
  <p style='margin-left:3.25in;text-align:justify'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Ernst &amp; Young LLP</p>
  
  
  
  <p style='text-align:justify; margin-top:0; margin-bottom:0'>Chicago, Illinois</p>
  
  <p style="margin-top: 0; margin-bottom: 0">September
   8, 2006</p>
  
  <p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
  
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  <p align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>One Illinois Center<br>
  <br>
  Statements of Rental Revenues<br>
  and Direct Operating Expenses</b></p>
  
  <p align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>(in thousands)</p>
  
  <p style='line-height:-100%'>&nbsp;</p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=667
   style='width:500.1pt;border-collapse:collapse'>
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    <p style='line-height:-100%'><b>&nbsp;</b></p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:-100%'><b>Year Ended</b></p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:-100%'><b>Six Months
    Ended</b></p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'><b>&nbsp;</b></p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:-100%'><b>December 31,
     2005</b></p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:-100%'><b>June 30,
    2006</b></p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:-100%'>(unaudited)</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>Rental revenues:</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum
    rents </p>
    </td>
    <td width=19 valign=top style='width:14.25pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:-100%'>&nbsp;$</p>
    </td>
    <td width=129 valign=top style='width:96.85pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>8,693&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:-100%'>&nbsp;$</p>
    </td>
    <td width=126 valign=top style='width:94.75pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>5,141&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursed
    charges </p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>7,876&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>3,767&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parking income</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>1,453&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>701&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
    income</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>353&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>420&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>18,375&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>10,029&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>Direct operating expenses:</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real
    estate taxes</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>4,682&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>3,195&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance services and
    supplies</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>2,850&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>1,280&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>1,862&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>920&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries
    and wages</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>1,133&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>634&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>771&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>355&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative
    and miscellaneous</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>652&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>286&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance</p>
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>182&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>125&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>12,132&nbsp;</p>
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>6,795&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:-100%'>Excess of rental revenues over
    direct operating expenses</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:-100%'>&nbsp;$</p>
    </td>
    <td width=129 valign=top style='width:96.85pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>6,243&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:-100%'>&nbsp;$</p>
    </td>
    <td width=126 valign=top style='width:94.75pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:-100%'>3,234&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=373 valign=top style='width:280.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=148 colspan=2 valign=top style='width:111.1pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=145 colspan=2 valign=top style='width:109.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align=center style='text-align:center;line-height:-100%'><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <i>See accompanying
  notes.</i></p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>4</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:-100%'><b>One Illinois
  Center<br>
  Notes to Statements of Rental Revenues<br>
  and Direct Operating Expenses<br>
  </b></p>
  
  <p><br>
  <b>1.&nbsp;&nbsp;&nbsp;&nbsp;Organization and Significant Accounting Policies</b></p>
  
  <p>
  <b>Description of Property</b></p>
  
  <p style='text-align:justify;text-autospace:none'>On July 11, 2006,
  the Parkway Properties, Inc. (&quot;Parkway&quot;) purchased One Illinois Center, a 1,003,000 square foot office building with an
  attached four-level structured parking garage located at 111 East Wacker
    Drive in Chicago, Illinois, for
  $198 million plus closing costs.</p>
  
  <p style='text-align:justify;line-height:12.0pt'>
  <b>Management's Use of Estimates</b></p>
  
  
  
  <p style='text-align:justify'>The preparation of financial statements in conformity
  with U.S. generally accepted accounting
  principles requires management to make estimates and assumptions that affect
  the reported amounts of revenues and expenses during the reporting period.&nbsp;
  Actual results could differ from those estimates.</p>
  
  
  
  <p style='text-align:justify'><b>Rental
  Revenue</b></p>
  
  <p style='text-align:justify'>Minimum rents from leases
  are recognized as revenue ratably over the term of each lease.&nbsp; Tenant
  reimbursements are recognized as revenue as the applicable services are
  rendered or expenses incurred.</p>
  
  <p style='text-align:justify'>The future minimum rents for One Illinois Center's non-cancelable operating leases at December&nbsp;31, 2005 are as follows (in thousands):</p>
  
  
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse'>
   <tr>
    <td width=87 valign=top style='width:65.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Year</b></p>
    </td>
    <td width=86 colspan=2 valign=top style='width:64.5pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Amount</b></p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'>2006</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=70 valign=top style='width:52.5pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,068&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'>2007</p>
    </td>
    <td width=86 colspan=2 valign=top style='width:64.5pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,138&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'>2008</p>
    </td>
    <td width=86 colspan=2 valign=top style='width:64.5pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,344&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'>2009</p>
    </td>
    <td width=86 colspan=2 valign=top style='width:64.5pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,056&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'>2010</p>
    </td>
    <td width=86 colspan=2 valign=top style='width:64.5pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,163&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'>Thereafter</p>
    </td>
    <td width=86 colspan=2 valign=top style='width:64.5pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>22,615&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:double windowtext 2.25pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=70 valign=top style='width:52.5pt;border:none;border-bottom:double windowtext 2.25pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>68,384&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'><i>&nbsp;</i></p>
  
  <p style='text-align:justify; margin-top:0; margin-bottom:0'>The above amounts do not include tenant reimbursements
  for utilities, taxes, insurance and common area maintenance.</p>
  
  
  
  <p style='text-align:justify'><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of Accounting</b></p>
  
  <p style='text-align:justify'>The accompanying statements of rental revenues and direct operating expenses
  are presented on the accrual basis.&nbsp; The statements have been prepared in accordance
  with the applicable rules and regulations of the Securities and Exchange
  Commission for real estate properties acquired.&nbsp; Accordingly, the statements
  exclude certain expenses not comparable to the future operations of One Illinois Center
  such as depreciation and mortgage interest expense.</p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>5</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p style='text-align:justify'>The accompanying unaudited interim statement of rental
  revenues and direct operating expenses has been prepared pursuant to the rules
  and regulations of the Securities and Exchange Commission and was prepared on
  the same basis as the statement of rental revenues and direct operating
  expenses for the year ended December 31, 2005.&nbsp; In the opinion of management,
  all adjustments, consisting only of normal recurring adjustments necessary for
  a fair presentation of the information for this interim period have been made.&nbsp;
  The excess of rental revenues over direct operating expenses for such interim
  period is not necessarily indicative of the excess of revenue over certain
  expenses for the full year.</p>
  
  <p style='text-align:justify'>
  <b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Fees</b></p>
  
  <p style='text-align:justify'>Management fees of approximately 4% of revenues received from the operations of
  One Illinois Center
  were paid to an affiliate of a prior owner.&nbsp; Management fee expense for the
  year ended December
   31, 2005 and the
  six months ended June
   30, 2006 was $771,000
  and $355,000 (unaudited), respectively.</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <p align=center style='text-align:center'><i>&nbsp;</i></p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>6</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center'><b>PARKWAY PROPERTIES, INC.</b></p>
  
  <p align="center" style="margin-top: 0; margin-bottom: 0"><b>&nbsp;Pro Forma Consolidated Financial Statements</b></p>
  
  <p align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Unaudited)</p>
  
  <p style='text-align:justify'>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following pro forma consolidated
  balance sheet (unaudited) as of June 30, 2006 and pro forma consolidated
  statements of income (unaudited) of Parkway Properties, Inc.
  (&quot;Parkway&quot;) for the year ended December 31, 2005 and six months ended
  June 30, 2006 give effect to the purchase by Parkway of One Illinois Center for
  the periods stated.&nbsp; The pro forma consolidated financial statements have been
  prepared by management of Parkway based upon the historical financial
  statements of Parkway and the adjustments and assumptions in the accompanying
  notes to the pro forma consolidated financial statements.</p>
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated balance
  sheet sets forth the effect of Parkway's purchase of One Illinois Center as if the
  entire purchase had been consummated on June 30, 2006.</p>
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated statements
  of income set forth the effects of Parkway's purchase of One Illinois Center as
  if the entire purchase had been consummated on January 1, 2005.&nbsp; </p>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These pro
  forma consolidated financial statements may not be indicative of the results
  that actually would have occurred if the transaction had occurred on the dates
  indicated or which may be obtained in the future.&nbsp; The pro forma consolidated
  financial statements should be read in conjunction with the consolidated
  financial statements and notes of Parkway included in its annual report on Form
  10-K for the year ended December 31, 2005.</p>
  
  
  
  <p style='text-align:justify'>&nbsp;</p>
  
  
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>7</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:12.0pt'><b>PARKWAY
  PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO
  FORMA CONSOLIDATED BALANCE SHEET<br>
  JUNE 30, 2006<br>
  </b>(Unaudited)<b><br>
  <br>
  </b></p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=705
   style='width:529.1pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:12.0pt; margin-top:0; margin-bottom:0'><b>Parkway</b></p>
    <p align=center style='text-align:center;line-height:12.0pt; margin-top:0; margin-bottom:0'><b>Historical</b></p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:12.0pt; margin-top:0; margin-bottom:0'><b>Pro Forma</b></p>
    <p align=center style='text-align:center;line-height:12.0pt; margin-top:0; margin-bottom:0'><b>Adjustments (1)</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:12.0pt; margin-top:0; margin-bottom:0'><b>Parkway</b></p>
    <p align=center style='text-align:center;line-height:12.0pt; margin-top:0; margin-bottom:0'><b>Pro Forma</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:12.0pt'>(In thousands)</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>Assets</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right;line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right;line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Real estate related investments:</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right;line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office and
    parking properties</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,252,980&nbsp;&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=101 valign=top style='width:76.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>171,136&nbsp;&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,424,116&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
    depreciation</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:12.0pt'>(200,481)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:12.0pt'>(200,481)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,052,499&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>171,136&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,223,635&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land held
    for sale</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,467&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,467&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
    in unconsolidated joint ventures</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>11,280&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>11,280&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,065,246&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>171,136&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,236,382&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Rents receivable and other assets</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>88,546&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>27,721&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>116,267&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Intangible assets, net</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>56,659&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>21,052&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>77,711&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Cash and cash equivalents</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>3,762&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>3,762&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=18 valign=top style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,214,213&nbsp;&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=101 valign=top style='width:76.05pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>219,909&nbsp;&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,434,122&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>Liabilities</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Notes payable to banks</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>167,369&nbsp;&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=101 valign=top style='width:76.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>55,508&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>222,877&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Mortgage notes payable without recourse</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>490,295&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>148,500&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>638,795&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Accounts payable and other liabilities</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>56,012&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>15,901&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>71,913&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Subsidiary redeemable preferred membership interests</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>10,741&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>10,741&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>724,417&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>219,909&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>944,326&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>Minority Interest</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Minority interest - unit holders</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>36&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>36&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Minority interest - real estate partnerships</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>16,163&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>16,163&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>16,199&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>16,199&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'><b>Stockholders' Equity</b></p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>8.34% Series B Cumulative Convertible Preferred stock</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$.001 par
    value, 2,142,857 shares authorized, </p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;803,499
    shares issued and outstanding</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>28,122&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>28,122&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>8.00% Series D Preferred stock, $.001 par value,
    2,400,000</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, issued and outstanding</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>57,976&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>57,976&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Common stock, $.001 par value, 65,457,143 shares
    authorized,</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,148,016
    shares issued and outstanding</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>14&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>14&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Excess stock, $.001 par value, 30,000,000 shares
    authorized,</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no shares
    issued</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Common stock held in trust, at cost, 115,000 shares</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:12.0pt'>(3,894)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:12.0pt'>(3,894)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Additional paid-in capital</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>385,898&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>385,898&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Accumulated other comprehensive income</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,631&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,631&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:12.0pt'>Retained earnings</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>3,850&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>3,850&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>473,597&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>-&nbsp;</p>
    </td>
    <td width=103 colspan=2 valign=top style='width:77.25pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>473,597&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=380 valign=top style='width:285.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=18 valign=top style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,214,213&nbsp;&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=101 valign=top style='width:76.05pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>219,909&nbsp;</p>
    </td>
    <td width=18 valign=top style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:12.0pt'>&nbsp;$</p>
    </td>
    <td width=85 valign=top style='width:63.75pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:12.0pt'>1,434,122&nbsp;&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align=center style='text-align:center;line-height:-100%'><br>
  <br>
  </p>
  
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:-100%'>See accompanying notes.</p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>8</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:10.0pt'><b>PARKWAY PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME<br>
  FOR THE YEAR ENDED DECEMBER 31, 2005<br>
  </b>(Unaudited)</p>
  
  <p align=center style='text-align:center;line-height:10.0pt'><br>
  <br>
  </p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=721
   style='width:540.4pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Parkway </b></p>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Historical</b></p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Pro Forma</b></p>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Adjustments (2)</b></p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Parkway</b></p>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Pro Forma</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=296 colspan=6 valign=top style='width:222.0pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'>(In thousands, except per
    share data)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Revenues</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='margin-right:12.9pt;line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Income from office and parking&nbsp; properties</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>192,645&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=103 valign=top style='width:77.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>18,022&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>210,667&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Management company income</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>2,997&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>2,997&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Total revenues</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>195,642&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>18,022&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>213,664&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Expenses</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Operating expense</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>90,121&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>12,132&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>102,253&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Depreciation and amortization</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>51,753&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>10,645&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>62,398&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Operating expense for other real estate properties</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>5&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>5&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Management company expenses</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>607&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>607&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>General and administrative</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,468&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,468&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Total expenses</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>146,954&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>22,777&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>169,731&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Operating income (loss)</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>48,688&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(4,755)</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>43,933&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Other income and expenses</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Interest and other income</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>255&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>494&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>749&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Equity in earnings of unconsolidated joint ventures</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1,496&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1,496&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Gain on sale of joint venture interests and real
    estate</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1,039&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1,039&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Interest expense</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(35,444)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(13,049)</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(48,493)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Income (loss) before minority interest and
    discontinued operations</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>16,034&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(17,310)</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(1,276)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Minority interest - unit holders</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Minority interest - real estate partnerships</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(187)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(187)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Income (loss) from continuing operations</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>15,845&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(17,310)</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(1,465)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Discontinued operations:</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Income from discontinued operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>781&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>781&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Gain on sale of real estate from discontinued
    operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,181&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,181&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-top:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss)</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>20,807&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-top:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(17,310)</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>3,497&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Change in unrealized loss on equity securities</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(79)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(79)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Change in market value of interest rate swaps</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1,131&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1,131&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Comprehensive income (loss)</b></p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>21,859&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=103 valign=top style='width:77.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(17,310)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:solid windowtext 1.0pt;
    border-right:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,549&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss) available to common stockholders:</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Net income (loss)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>20,807&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=103 valign=top style='width:77.55pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(17,310)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-left:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>3,497&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Dividends on preferred stock</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(4,800)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(4,800)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Dividends on convertible preferred stock</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2,346)</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2,346)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss) available to common stockholders</b></p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>13,661&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=103 valign=top style='width:77.55pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(17,310)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:none;border-left:solid windowtext 1.0pt;
    border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border-top:none;border-left:none;
    border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(3,649)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss) per common share:</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Basic</b>:</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from continuing operations</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.62&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-left:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(0.61)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discontinued operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.35&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.35&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.97&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:none;border-left:solid windowtext 1.0pt;
    border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border-top:none;border-left:none;
    border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(0.26)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Diluted</b>:</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from continuing operations</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.61&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-left:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(0.61)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discontinued operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.35&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.35&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.96&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:none;border-left:solid windowtext 1.0pt;
    border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border-top:none;border-left:none;
    border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(0.26)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Dividends per common share</b></p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>2.60&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:none;border-left:solid windowtext 1.0pt;
    border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=73 valign=top style='width:54.6pt;border-top:none;border-left:none;
    border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>2.60&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Weighted average shares outstanding:</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,065&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,065&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=425 valign=top style='width:318.4pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,233&nbsp;</p>
    </td>
    <td width=119 colspan=2 valign=top style='width:89.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=89 colspan=2 valign=top style='width:66.6pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,233&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align=center style='text-align:center;line-height:10.0pt'><br>
  <br>
  </p>
  
  
  
  <p align=center style='text-align:center;line-height:10.0pt'>See accompanying notes.</p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>9</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:11.0pt'><b>PARKWAY PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME<br>
  FOR THE SIX  MONTHS ENDED JUNE 30, 2006<br>
  </b>(Unaudited)</p>
  
  
  
  
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=728
   style='width:546.35pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Parkway </b></p>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Historical</b></p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Pro Forma</b></p>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Adjustments (2)</b></p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Parkway</b></p>
    <p align=center style='text-align:center;line-height:11.0pt'><b>Pro Forma</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=308 colspan=6 valign=top style='width:231.35pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center;line-height:11.0pt'>(In thousands, except per
    share data)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Revenues</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right;line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right;line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=right style='text-align:right;line-height:11.0pt'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Income from office and parking properties</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>99,594&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=109 valign=top style='width:81.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>9,853&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>109,447&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Management company income</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,798&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>4,798&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Total revenues</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>104,392&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>9,853&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>114,245&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Expenses</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Operating expense</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>47,407&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>6,795&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>54,202&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Depreciation and amortization</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>28,021&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>5,324&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>33,345&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Operating expense for other real estate properties</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>3&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>3&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Management company expenses</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>675&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>675&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>General and administrative</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>2,123&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>2,123&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Total expenses</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>78,229&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>12,119&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>90,348&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Operating income (loss) </b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>26,163&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2,266)</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>23,897&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Other income and expenses</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Interest and other income</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>26&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>247&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>273&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Equity in earnings of unconsolidated joint ventures</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>326&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>326&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Gain on sale of joint venture interests and other
    assets</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>13,465&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>13,465&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Interest expense</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(19,222)</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(6,525)</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(25,747)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Income (loss) before minority interest and
    discontinued operations </b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>20,758&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(8,544)</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>12,214&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Minority interest - real estate partnerships</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>144&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>144&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Income (loss) from continuing operations</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>20,902&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(8,544)</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>12,358&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Discontinued operations:</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Loss from discontinued operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2)</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss)</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>20,900&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(8,544)</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>12,356&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Change in unrealized loss on equity securities</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>79&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>79&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Change in market value of interest rate swaps</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>726&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>726&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Comprehensive income (loss)</b></p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>21,705&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=109 valign=top style='width:81.85pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(8,544)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:none;border-left:solid windowtext 1.0pt;
    border-bottom:solid windowtext 1.0pt;border-right:none;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>13,161&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss) available to common stockholders:</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Net income (loss)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>20,900&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=109 valign=top style='width:81.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(8,544)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>12,356&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:7.45pt'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt;
    height:7.45pt'>
    <p style='line-height:11.0pt'>Dividends on preferred stock</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;height:7.45pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2,400)</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;height:7.45pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;height:7.45pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(2,400)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>Dividends on convertible preferred stock</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(1,173)</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(1,173)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income (loss) available to common stockholders</b></p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>17,327&nbsp;&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=109 valign=top style='width:81.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right;line-height:11.0pt'>(8,544)</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>8,783&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-top:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Net income per common share:</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Basic</b>:</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1.23&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.63&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discontinued operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1.23&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.63&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Diluted</b>:</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1.22&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.62&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Discontinued operations</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1.22&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>0.62&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Dividends per common share</b></p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=72 valign=top style='width:53.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1.30&nbsp;</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=16 valign=top style='width:12.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p style='line-height:11.0pt'>&nbsp;$</p>
    </td>
    <td width=80 valign=top style='width:59.65pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>1.30&nbsp;</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>Weighted average shares outstanding:</b></p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>&nbsp;14,042</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,042</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=420 valign=top style='width:315.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='line-height:11.0pt'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Diluted</p>
    </td>
    <td width=88 colspan=2 valign=top style='width:65.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,214</p>
    </td>
    <td width=125 colspan=2 valign=top style='width:93.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>-&nbsp;</p>
    </td>
    <td width=96 colspan=2 valign=top style='width:71.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right;
    line-height:11.0pt'>14,214</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:-100%'>See
  accompanying notes.</p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>10</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:-100%'><br>
  <b>PARKWAY
  PROPERTIES, INC.<br>
  Notes to Pro Forma Consolidated Financial Statements<br>
  </b>(Unaudited)<b><br>
  <br>
  </b></p>
  
  
  
  <p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  July 11, 2006, Parkway Properties, Inc. purchased One Illinois Center, a
  1,003,000 square-foot office building with an attached four-level structured
  parking garage, located at 111 East Wacker Drive in the East Loop sub-market of
    Chicago. The property was acquired from Lincoln-Carlyle Illinois Center LLC
  for $198 million plus closing costs and transfer taxes of approximately $1.6
  million. The purchase was funded by a 10-year, $148.5 million non-recourse
  first mortgage.&nbsp; The loan bears interest at a fixed rate of 6.29%, with interest
  only payments for five years and principal payments based on a 30-year
  amortization thereafter.&nbsp; The remaining purchase funding was provided by notes
  payable to banks, including a $33.7 million recourse mezzanine loan with a
  six-month term at an interest rate of LIBOR plus 130 basis points (current rate
  set at 6.65%) and amounts drawn under existing lines of credit.&nbsp; </p>
  
  <p><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  allocation of the purchase price is preliminary pending completion of the
  valuation of tangible and intangible assets. The preliminary allocation of
  purchase price to assets acquired and liabilities assumed with the One Illinois
   Center purchase is as follows (in thousands):</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=1 cellspacing=0 cellpadding=0
   style='border-collapse:collapse;border:none'>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Real estate investments:</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=63 valign=top style='width:47.55pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>26,385&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building and garage</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>120,125&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tenant improvements</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>24,626&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total real estate investments acquired</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>171,136&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Lease costs</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>8,499&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Intangible assets:</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Above-market leases</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>4,712&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease in place value</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>16,340&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Total assets acquired</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=63 valign=top style='width:47.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>200,687&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Liabilities assumed:</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;padding:
    0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below market leases</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=63 valign=top style='width:47.55pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>5,042&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other liabilities</p>
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>4,714&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Total liabilities assumed</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=63 valign=top style='width:47.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,756&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=82 colspan=2 valign=top style='width:61.8pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=312 valign=top style='width:234.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Net assets acquired</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=63 valign=top style='width:47.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>190,931&nbsp;&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  <div>
  
  &nbsp;<p>&nbsp;</p>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>11</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  &nbsp;<div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional
  amounts paid by Parkway or received from the seller in connection with the
  purchase and related financing of One Illinois Center are as follows (in
  thousands):</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=1 cellspacing=0 cellpadding=0
   style='border-collapse:collapse;border:none'>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Rents receivable and other assets:</p>
    </td>
    <td width=74 colspan=2 valign=top style='width:55.8pt;border:none;padding:
    0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Escrow deposits required by lender</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=55 valign=top style='width:41.55pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>18,995&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease costs</p>
    </td>
    <td width=74 colspan=2 valign=top style='width:55.8pt;border:none;padding:
    0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>54&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalized loan costs</p>
    </td>
    <td width=74 colspan=2 valign=top style='width:55.8pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>173&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=55 valign=top style='width:41.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>19,222&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>Accounts payable and other liabilities:</p>
    </td>
    <td width=74 colspan=2 valign=top style='width:55.8pt;border:none;padding:
    0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid rent</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=55 valign=top style='width:41.55pt;border:none;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>5,861&nbsp;&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security deposits payable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
    </td>
    <td width=74 colspan=2 valign=top style='width:55.8pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>284&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=296 valign=top style='width:222.1pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p align=left style='text-align:left'>&nbsp;$</p>
    </td>
    <td width=55 valign=top style='width:41.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>6,145&nbsp;&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  <p style='text-align:justify'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro
  forma adjustments to the Consolidated Statement of Income for the year ended December 31, 2005 and six months ended June 30, 2006 set forth the effects of Parkway's
  purchase of One Illinois Center as
  if the purchase had been consummated on January 1, 2005.&nbsp; </p>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  pro forma adjustments are detailed below for the year ended December 31, 2005 and six months ended June 30, 2006.</p>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  effect of the purchase of One Illinois Center on income and expenses from real
  estate properties is as follows:</p>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp; For the year ended December 31, 2005
  (in thousands):</p>
  
  
  
  <div align=center>
  
  <table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
   style='border-collapse:collapse;border:none'>
   <tr style='page-break-inside:avoid'>
    <td width=208 valign=top style='width:156.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p><b>&nbsp;</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.8pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Revenue</b></p>
    </td>
    <td width=208 colspan=4 valign=top style='width:156.05pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Expenses</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=208 valign=top style='width:156.2pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.8pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Income From</b></p>
    </td>
    <td width=208 colspan=4 valign=top style='width:156.05pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Real Estate Owned</b></p>
    </td>
   </tr>
   <tr>
    <td width=208 valign=top style='width:156.2pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.8pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Real Estate</b></p>
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Operating</b></p>
    </td>
    <td width=108 colspan=2 valign=top style='width:81.0pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Depreciation</b></p>
    </td>
   </tr>
   <tr>
    <td width=208 valign=top style='width:156.2pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>One Illinois Center</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.8pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Properties</b></p>
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Expense</b></p>
    </td>
    <td width=108 colspan=2 valign=top style='width:81.0pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Expense</b></p>
    </td>
   </tr>
   <tr>
    <td width=208 valign=top style='width:156.2pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p>Historical
    results</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=94 valign=top style='width:70.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>18,375&nbsp;&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=81 valign=top style='width:60.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>12,132&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=89 valign=top style='width:66.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>10,645&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=208 valign=top style='width:156.2pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p>Amortization
    of above/below</p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.8pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=108 colspan=2 valign=top style='width:81.0pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=208 valign=top style='width:156.2pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;market
    leases </p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.8pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right'>(353)</p>
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>-&nbsp;</p>
    </td>
    <td width=108 colspan=2 valign=top style='width:81.0pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>-&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=208 valign=top style='width:156.2pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:double windowtext 1.5pt;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Total
    pro forma amounts</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=94 valign=top style='width:70.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>18,022&nbsp;&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=81 valign=top style='width:60.8pt;border-top:none;border-left:none;
    border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>12,132&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=89 valign=top style='width:66.75pt;border-top:none;border-left:
    none;border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>10,645&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
  amortization is provided by the straight-line method over the estimated useful
  life of the asset as defined below:</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse'>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p><u>Estimated
    Useful Life</u></p>
    </td>
   </tr>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Building
    and garage</p>
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>40
    years</p>
    </td>
   </tr>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Building
    improvements</p>
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>15
    years</p>
    </td>
   </tr>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Tenant
    improvements&nbsp;&nbsp;&nbsp; </p>
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Remaining
    term of lease</p>
    </td>
   </tr>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Lease
    in place value</p>
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Remaining
    term of lease including expected renewals</p>
    </td>
   </tr>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Lease
    costs</p>
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Remaining
    term of lease</p>
    </td>
   </tr>
   <tr>
    <td width=220 valign=top style='width:164.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Above
    and below market leases</p>
    </td>
    <td width=355 valign=top style='width:266.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Remaining
    term of lease</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style='text-align:justify'><br>
  <br>
  </p>
  
  
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>12</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp; For the six months ended June 30, 2006
  (in thousands):</p>
  
  
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=205 valign=top style='width:154.05pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p><b>&nbsp;</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.65pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Revenue</b></p>
    </td>
    <td width=208 colspan=4 valign=top style='width:155.9pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Expenses</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=205 valign=top style='width:154.05pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Income From</b></p>
    </td>
    <td width=208 colspan=4 valign=top style='width:155.9pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Real Estate Owned</b></p>
    </td>
   </tr>
   <tr>
    <td width=205 valign=top style='width:154.05pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Real Estate</b></p>
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Operating</b></p>
    </td>
    <td width=108 colspan=2 valign=top style='width:80.85pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Depreciation</b></p>
    </td>
   </tr>
   <tr>
    <td width=205 valign=top style='width:154.05pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>One Illinois Center</b></p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Properties</b></p>
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Expense</b></p>
    </td>
    <td width=108 colspan=2 valign=top style='width:80.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Expense</b></p>
    </td>
   </tr>
   <tr>
    <td width=205 valign=top style='width:154.05pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p>Historical
    results</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=94 valign=top style='width:70.4pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>10,029&nbsp;&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=81 valign=top style='width:60.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>6,795</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=89 valign=top style='width:66.6pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>5,324</p>
    </td>
   </tr>
   <tr>
    <td width=205 valign=top style='width:154.05pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p>Amortization
    of above/below</p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.65pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=108 colspan=2 valign=top style='width:80.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=205 valign=top style='width:154.05pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;market
    leases </p>
    </td>
    <td width=113 colspan=2 valign=top style='width:84.65pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='text-align:right'>(176)</p>
    </td>
    <td width=100 colspan=2 valign=top style='width:75.05pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>-&nbsp;</p>
    </td>
    <td width=108 colspan=2 valign=top style='width:80.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>-&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=205 valign=top style='width:154.05pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:double windowtext 1.5pt;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p>Total
    pro forma amounts</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=94 valign=top style='width:70.4pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,853&nbsp;&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=81 valign=top style='width:60.8pt;border-top:none;border-left:none;
    border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>6,795</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=89 valign=top style='width:66.6pt;border-top:none;border-left:none;
    border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>5,324</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  is provided by the straight-line method over the estimated useful life of the
  asset as defined in (a) above.</p>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Pro
  forma interest expense on real estate owned reflects interest on non-recourse
  debt placed upon purchase as if in place January 1, 2005 and is detailed below
  (in thousands).</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0 width=619
   style='width:463.95pt;border-collapse:collapse'>
   <tr>
    <td width=310 valign=top style='width:232.85pt;border:solid windowtext 1.0pt;
    border-bottom:none;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=85 colspan=2 valign=top style='width:63.7pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=102 colspan=2 valign=top style='width:76.85pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=121 colspan=2 valign=top style='width:90.55pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Six</b></p>
    </td>
   </tr>
   <tr>
    <td width=310 valign=top style='width:232.85pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Property/Placement</b></p>
    </td>
    <td width=85 colspan=2 valign=top style='width:63.7pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>&nbsp;</b></p>
    </td>
    <td width=102 colspan=2 valign=top style='width:76.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Year Ended</b></p>
    </td>
    <td width=121 colspan=2 valign=top style='width:90.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Months Ended</b></p>
    </td>
   </tr>
   <tr>
    <td width=310 valign=top style='width:232.85pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Date/Rate</b></p>
    </td>
    <td width=85 colspan=2 valign=top style='width:63.7pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>Debt</b></p>
    </td>
    <td width=102 colspan=2 valign=top style='width:76.85pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>12/31/05</b></p>
    </td>
    <td width=121 colspan=2 valign=top style='width:90.55pt;border-top:none;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p align=center style='text-align:center'><b>06/30/06</b></p>
    </td>
   </tr>
   <tr>
    <td width=310 valign=top style='width:232.85pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>Debt placed in One Illinois Center purchase</p>
    </td>
    <td width=85 colspan=2 valign=top style='width:63.7pt;border:none;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=102 colspan=2 valign=top style='width:76.85pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
    <td width=121 colspan=2 valign=top style='width:90.55pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    </td>
   </tr>
   <tr>
    <td width=310 valign=top style='width:232.85pt;border-top:none;border-left:
    solid windowtext 1.0pt;border-bottom:double windowtext 1.5pt;border-right:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;07/06&nbsp;&nbsp;&nbsp;&nbsp;6.29%</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=66 valign=top style='width:49.45pt;border-top:none;border-left:
    none;border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>148,500&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=83 valign=top style='width:62.6pt;border-top:none;border-left:none;
    border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>9,341&nbsp;</p>
    </td>
    <td width=19 valign=top style='width:14.25pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in .7pt 0in .7pt'>
    <p>&nbsp;$</p>
    </td>
    <td width=102 valign=top style='width:76.3pt;border-top:none;border-left:
    none;border-bottom:double windowtext 1.5pt;border-right:solid windowtext 1.0pt;
    padding:0in .7pt 0in .7pt'>
    <p align=right style='margin-right:.7pt;text-align:right'>4,670&nbsp;</p>
    </td>
   </tr>
   <tr height=0>
    <td width=310 style='border:none'></td>
    <td width=19 style='border:none'></td>
    <td width=66 style='border:none'></td>
    <td width=19 style='border:none'></td>
    <td width=83 style='border:none'></td>
    <td width=19 style='border:none'></td>
    <td width=102 style='border:none'></td>
   </tr>
  </table>
  
  </div>
  
  
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The pro forma effect of the placement of
  non-recourse debt on loan cost amortization was $17,000 for the year ended
  December 31, 2005 and $9,000 for the six months ended June 30, 2006.</p>
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma
  effect of the purchase on interest expense on notes payable to banks was $3,691,000
  for the year ended December 31, 2005 and $1,846,000 for the six months ended June
  30, 2006.</p>
  
  <p style='text-align:justify'>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No additional income tax expenses
  were provided because of the Company's net operating loss carryover and status
  as a REIT.</p>
  
  <p style='margin-left:0in;text-align:justify;text-indent:0in'>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted net income per share for
  the year ended December 31, 2005 and six months
  ended June 30, 2006 was $0.96 and $1.22,
  respectively, based on diluted weighted average shares outstanding of 14,233,000
  and 14,214,000, respectively.</p>
  
  <p style='text-align:justify'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
  forma diluted net income (loss) per share for the year ended December 31, 2005
  and the six months ended June 30, 2006 was $(0.26) and $0.62 respectively,
  based on diluted weighted average shares outstanding of 14,233,000 and 14,214,000,
  respectively.</p>
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>13</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  <br clear=all
  style='page-break-before:always'>
  
  
  
  
  
  
  
  
  
  
  <p align=center style='text-align:center;line-height:-100%'><b>SIGNATURES</b></p>
  
  <p style='text-align:justify'><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the
  Securities Exchange Act of 1934, the Registrant has duly caused this amended report
  to be signed on its behalf by the undersigned hereunto duly authorized.</p>
  
  <p style='text-align:justify'><br>
  <br>
  </p>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse' width="863">
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p>DATE:&nbsp;&nbsp;&nbsp;September
    25, 2006</p>
    </td>
    <td colspan=2 valign=top style='width:337;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p>PARKWAY
    PROPERTIES, INC.</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:42;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:281;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:42;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:281;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:42;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:281;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:42;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p>BY:</p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:281;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p>/s/&nbsp;Mandy
    M. Pope</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:42;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:281;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p>Mandy
    M. Pope, CPA</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:498;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:42;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    </td>
    <td valign=top style='width:281;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p>Chief
    Accounting Officer</p>
    </td>
   </tr>
  </table>
  
  <p><br>
  <br>
  </p>
  
  
  
  <div>
  
  <table cellspacing=0 cellpadding=0 hspace=0 vspace=0 align=center>
   <tr>
    <td valign=top align=left style='padding-top:0in;padding-right:0in;
    padding-bottom:0in;padding-left:0in'>
    <p>14</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <br clear=ALL>
  
  
  
  <div class=MsoNormal align=center style='text-align:center'>
  
  <hr size=2 width="100%" noshade color=navy align=center>
  
  </div>
  
  
  
  
  
  
  
  </body>
  
  </html>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "f8k111eastwacker.htm", "description": "8-K HTML FORMAT", "secsgml_size_bytes": 226311}, {"type": "8-K", "sequence": "3", "filename": "f8k111eastwacker.pdf", "description": "8-K PDF FORMAT", "secsgml_size_bytes": 88163}]
metadata_filer: {"company-data": {"conformed-name": "PARKWAY PROPERTIES INC", "cik": "0000729237", "assigned-sic": "6798", "irs-number": "742123597", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-11533", "film-number": "061106726"}, "business-address": {"street1": "ONE JACKSON PL", "street2": "188 E CAPITOL ST STE 1000", "city": "JACKSON", "state": "MS", "zip": "39225-4647", "phone": "6019484091"}, "mail-address": {"street1": "ONE JACKSON PL P O BOX 24647", "street2": "188 E CAPITOL ST STE 1000", "city": "JACKSON", "state": "MS", "zip": "39225"}, "former-company": {"former-conformed-name": "PARKWAY CO", "date-changed": "19951018"}}
text: UNITED STATES
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  Washington, D.C. 20549
  __________________________
  FORM 8-K/A
  Current Report
  Pursuant to Section 13 or 15(d) of the Securities
  Exchange Act of 1934
  Date of Report (date of earliest event reported):  July
  11, 2006
  PARKWAY PROPERTIES, INC
  .
  (Exact Name of Registrant as Specified in its Charter)
  Maryland
  1-11533
  74-2123597
  (State or Other
  Jurisdiction             (Commission File Number)                      (IRS
  Employer
  of Incorporation)                                                                                  Identification
  No.)
  One Jackson Place, Suite 1000, 188 East Capitol
  Street, Jackson, MS 39225-4647
  (Address of Principal Executive Offices, including zip
  code)
  (601) 948-4091
  (Registrant's telephone number, including area code)
  Not Applicable
  (Former name or former address, if changed since last
  report)
  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 (see General Instruction A.2. below):
         Written
  communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
         Soliciting
  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
         Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))
         Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))
  1
  FORM 8-K/A
  PARKWAY PROPERTIES, INC.
  Item 2.01.       Completion of Acquisition or Disposition of Assets.
  On July 11, 2006, Parkway Properties, Inc. purchased One Illinois
   Center, a 1,003,000 square-foot office building with an attached four-level
  structured parking garage, located at 111 East Wacker Drive in the East Loop
  sub-market of Chicago. The property was acquired from Lincoln-Carlyle Illinois
  Center LLC for $198 million plus closing costs and transfer taxes of
  approximately $1.6 million.
  The purchase was funded by a 10-year, $148.5 million
  non-recourse first mortgage.  The loan bears interest at a fixed rate of 6.29%,
  with interest only payments for five years and principal payments based on a
  30-year amortization thereafter.  Additional purchase funding was provided by a
  $33.7 million mezzanine loan with a six-month term at an interest rate of LIBOR
  plus 130 basis points (current rate set at 6.65%) and amounts drawn under
  existing lines of credit.
  Item 2.03.  Creation of a Direct Financial Obligation
  or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
  See Item 2.01 above.
  Item 9.01.  Financial Statements
  and Exhibits.
  (a)    Financial
    Statements
  The
    following audited financial statement of One Illinois Center for the year
    ended December 31, 2005 is attached hereto.  Also included is the unaudited
    financial statement for the six months ended June 30, 2006:
  Page
  Report
    of Independent Registered Public Accounting Firm
  3
  Statements
    of Rental Revenues and Direct Operating Expenses
  4
  Notes
    to Statements of Rental Revenues and Direct Operating Expenses
  5
  The
    following unaudited Pro Forma Consolidated Financial Statements of Parkway
    for the year ended December 31, 2005 and the six months ended June 30, 2006
    are attached hereto:
  Page
  Pro
    Forma Consolidated Financial Statements (Unaudited)
  7
  Pro
    Forma Consolidated Balance Sheet (Unaudited) - As of June 30, 2006
  8
  Pro
    Forma Consolidated Statement of Income (Unaudited) -
  For
    the Year Ended December 31, 2005
  9
  Pro
    Forma Consolidated Statement of Income (Unaudited) -
  For
    the Six Months Ended June 30, 2006
  10
  Notes
    to Pro Forma Consolidated Financial Statements (Unaudited)
  11
  (b)      Exhibits
  23.1    Consent
    of Ernst & Young LLP
  2
  Report of Independent Registered Public Accounting
  Firm
  The Board of Directors
  Parkway Properties, Inc.
  We have audited the accompanying statement of rental revenues and direct
  operating expenses of One Illinois Center
  (the Property) for the year ended December 31, 2005.  This statement is the
  responsibility of the Property's management.  Our responsibility is to express
  an opinion on this statement based on our audit.
  We conducted our audit in accordance with auditing standards of the Public
  Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the
  audit to obtain reasonable assurance about whether the statement of rental
  revenues and direct operating expenses is free of material misstatement.  We were not engaged to perform an audit of the
  Property's internal control over financial reporting. Our audit included
  consideration of internal control over financial reporting as a basis for
  designing audit procedures that are appropriate in the circumstances, but not
  for the purpose of expressing an opinion on the effectiveness of the Property's
  internal control over financial reporting. Accordingly we express no such
  opinion. An audit also includes examining, on a test basis, evidence supporting
  the amounts and disclosures in the financial statement, assessing the
  accounting principles used and significant estimates made by management, and
  evaluating the overall financial statement presentation. We believe that our
  audit provides a reasonable basis for our opinion.
  The accompanying statement was prepared for the purpose of complying with the
  rules and regulations of the Securities and Exchange Commission, as described
  in Note 2, for inclusion in a Form 8-K of Parkway Properties, Inc. and is not
  intended to be a complete presentation of One Illinois Center's revenues and
  expenses.
  In our opinion, the statement of rental revenues and direct operating expenses
  referred to above presents fairly, in all material respects, the rental
  revenues and direct operating expenses described in Note 2 of One Illinois
  Center for the year ended December 31, 2005, in conformity with U.S.  generally accepted accounting
  principles.
  Ernst & Young LLP
  Chicago, Illinois
  September
   8, 2006
  3
  One Illinois Center
  Statements of Rental Revenues
  and Direct Operating Expenses
  (in thousands)
  Year Ended
  Six Months
    Ended
  December 31,
     2005
  June 30,
    2006
  (unaudited)
  Rental revenues:
  Minimum
    rents
  $
  8,693
  $
  5,141
  Reimbursed
    charges
  7,876
  3,767
  Parking income
  1,453
  701
  Other
    income
  353
  420
  18,375
  10,029
  Direct operating expenses:
  Real
    estate taxes
  4,682
  3,195
  Maintenance services and
    supplies
  2,850
  1,280
  Utilities
  1,862
  920
  Salaries
    and wages
  1,133
  634
  Management fees
  771
  355
  Administrative
    and miscellaneous
  652
  286
  Insurance
  182
  125
  12,132
  6,795
  Excess of rental revenues over
    direct operating expenses
  $
  6,243
  $
  3,234
  See accompanying
  notes.
  4
  One Illinois
  Center
  Notes to Statements of Rental Revenues
  and Direct Operating Expenses
  1.    Organization and Significant Accounting Policies
  Description of Property
  On July 11, 2006,
  the Parkway Properties, Inc. ("Parkway") purchased One Illinois Center, a 1,003,000 square foot office building with an
  attached four-level structured parking garage located at 111 East Wacker
    Drive in Chicago, Illinois, for
  $198 million plus closing costs.
  Management's Use of Estimates
  The preparation of financial statements in conformity
  with U.S. generally accepted accounting
  principles requires management to make estimates and assumptions that affect
  the reported amounts of revenues and expenses during the reporting period. 
  Actual results could differ from those estimates.
  Rental
  Revenue
  Minimum rents from leases
  are recognized as revenue ratably over the term of each lease.  Tenant
  reimbursements are recognized as revenue as the applicable services are
  rendered or expenses incurred.
  The future minimum rents for One Illinois Center's non-cancelable operating leases at December 31, 2005 are as follows (in thousands):
  Year
  Amount
  2006
  $
  9,068
  2007
  9,138
  2008
  9,344
  2009
  9,056
  2010
  9,163
  Thereafter
  22,615
  $
  68,384
  The above amounts do not include tenant reimbursements
  for utilities, taxes, insurance and common area maintenance.
  2.     Basis of Accounting
  The accompanying statements of rental revenues and direct operating expenses
  are presented on the accrual basis.  The statements have been prepared in accordance
  with the applicable rules and regulations of the Securities and Exchange
  Commission for real estate properties acquired.  Accordingly, the statements
  exclude certain expenses not comparable to the future operations of One Illinois Center
  such as depreciation and mortgage interest expense.
  5
  The accompanying unaudited interim statement of rental
  revenues and direct operating expenses has been prepared pursuant to the rules
  and regulations of the Securities and Exchange Commission and was prepared on
  the same basis as the statement of rental revenues and direct operating
  expenses for the year ended December 31, 2005.  In the opinion of management,
  all adjustments, consisting only of normal recurring adjustments necessary for
  a fair presentation of the information for this interim period have been made. 
  The excess of rental revenues over direct operating expenses for such interim
  period is not necessarily indicative of the excess of revenue over certain
  expenses for the full year.
  3.     Management Fees
  Management fees of approximately 4% of revenues received from the operations of
  One Illinois Center
  were paid to an affiliate of a prior owner.  Management fee expense for the
  year ended December
   31, 2005 and the
  six months ended June
   30, 2006 was $771,000
  and $355,000 (unaudited), respectively.
  6
  PARKWAY PROPERTIES, INC.
  Pro Forma Consolidated Financial Statements
  (Unaudited)
  The following pro forma consolidated
  balance sheet (unaudited) as of June 30, 2006 and pro forma consolidated
  statements of income (unaudited) of Parkway Properties, Inc.
  ("Parkway") for the year ended December 31, 2005 and six months ended
  June 30, 2006 give effect to the purchase by Parkway of One Illinois Center for
  the periods stated.  The pro forma consolidated financial statements have been
  prepared by management of Parkway based upon the historical financial
  statements of Parkway and the adjustments and assumptions in the accompanying
  notes to the pro forma consolidated financial statements.
  The pro forma consolidated balance
  sheet sets forth the effect of Parkway's purchase of One Illinois Center as if the
  entire purchase had been consummated on June 30, 2006.
  The pro forma consolidated statements
  of income set forth the effects of Parkway's purchase of One Illinois Center as
  if the entire purchase had been consummated on January 1, 2005.
  These pro
  forma consolidated financial statements may not be indicative of the results
  that actually would have occurred if the transaction had occurred on the dates
  indicated or which may be obtained in the future.  The pro forma consolidated
  financial statements should be read in conjunction with the consolidated
  financial statements and notes of Parkway included in its annual report on Form
  10-K for the year ended December 31, 2005.
  7
  PARKWAY
  PROPERTIES, INC. AND SUBSIDIARIES
  PRO
  FORMA CONSOLIDATED BALANCE SHEET
  JUNE 30, 2006
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (1)
  Parkway
  Pro Forma
  (In thousands)
  Assets
  Real estate related investments:
  Office and
    parking properties
  $
  1,252,980
  $
  171,136
  $
  1,424,116
  Accumulated
    depreciation
  (200,481)
  -
  (200,481)
  1,052,499
  171,136
  1,223,635
  Land held
    for sale
  1,467
  -
  1,467
  Investment
    in unconsolidated joint ventures
  11,280
  -
  11,280
  1,065,246
  171,136
  1,236,382
  Rents receivable and other assets
  88,546
  27,721
  116,267
  Intangible assets, net
  56,659
  21,052
  77,711
  Cash and cash equivalents
  3,762
  -
  3,762
  $
  1,214,213
  $
  219,909
  $
  1,434,122
  Liabilities
  Notes payable to banks
  $
  167,369
  $
  55,508
  $
  222,877
  Mortgage notes payable without recourse
  490,295
  148,500
  638,795
  Accounts payable and other liabilities
  56,012
  15,901
  71,913
  Subsidiary redeemable preferred membership interests
  10,741
  -
  10,741
  724,417
  219,909
  944,326
  Minority Interest
  Minority interest - unit holders
  36
  -
  36
  Minority interest - real estate partnerships
  16,163
  -
  16,163
  16,199
  -
  16,199
  Stockholders' Equity
  8.34% Series B Cumulative Convertible Preferred stock
  $.001 par
    value, 2,142,857 shares authorized,
  803,499
    shares issued and outstanding
  28,122
  -
  28,122
  8.00% Series D Preferred stock, $.001 par value,
    2,400,000
  shares
    authorized, issued and outstanding
  57,976
  -
  57,976
  Common stock, $.001 par value, 65,457,143 shares
    authorized,
  14,148,016
    shares issued and outstanding
  14
  -
  14
  Excess stock, $.001 par value, 30,000,000 shares
    authorized,
  no shares
    issued
  -
  -
  -
  Common stock held in trust, at cost, 115,000 shares
  (3,894)
  -
  (3,894)
  Additional paid-in capital
  385,898
  -
  385,898
  Accumulated other comprehensive income
  1,631
  -
  1,631
  Retained earnings
  3,850
  -
  3,850
  473,597
  -
  473,597
  $
  1,214,213
  $
  219,909
  $
  1,434,122
  See accompanying notes.
  8
  PARKWAY PROPERTIES, INC. AND SUBSIDIARIES
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME
  FOR THE YEAR ENDED DECEMBER 31, 2005
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (2)
  Parkway
  Pro Forma
  (In thousands, except per
    share data)
  Revenues
  Income from office and parking  properties
  $
  192,645
  $
  18,022
  $
  210,667
  Management company income
  2,997
  -
  2,997
  Total revenues
  195,642
  18,022
  213,664
  Expenses
  Operating expense
  90,121
  12,132
  102,253
  Depreciation and amortization
  51,753
  10,645
  62,398
  Operating expense for other real estate properties
  5
  -
  5
  Management company expenses
  607
  -
  607
  General and administrative
  4,468
  -
  4,468
  Total expenses
  146,954
  22,777
  169,731
  Operating income (loss)
  48,688
  (4,755)
  43,933
  Other income and expenses
  Interest and other income
  255
  494
  749
  Equity in earnings of unconsolidated joint ventures
  1,496
  -
  1,496
  Gain on sale of joint venture interests and real
    estate
  1,039
  -
  1,039
  Interest expense
  (35,444)
  (13,049)
  (48,493)
  Income (loss) before minority interest and
    discontinued operations
  16,034
  (17,310)
  (1,276)
  Minority interest - unit holders
  (2)
  -
  (2)
  Minority interest - real estate partnerships
  (187)
  -
  (187)
  Income (loss) from continuing operations
  15,845
  (17,310)
  (1,465)
  Discontinued operations:
  Income from discontinued operations
  781
  -
  781
  Gain on sale of real estate from discontinued
    operations
  4,181
  -
  4,181
  Net income (loss)
  20,807
  (17,310)
  3,497
  Change in unrealized loss on equity securities
  (79)
  -
  (79)
  Change in market value of interest rate swaps
  1,131
  -
  1,131
  Comprehensive income (loss)
  $
  21,859
  $
  (17,310)
  $
  4,549
  Net income (loss) available to common stockholders:
  Net income (loss)
  $
  20,807
  $
  (17,310)
  $
  3,497
  Dividends on preferred stock
  (4,800)
  -
  (4,800)
  Dividends on convertible preferred stock
  (2,346)
  -
  (2,346)
  Net income (loss) available to common stockholders
  $
  13,661
  $
  (17,310)
  $
  (3,649)
  Net income (loss) per common share:
  Basic
  :
  Income (loss) from continuing operations
  $
  0.62
  -
  $
  (0.61)
  Discontinued operations
  0.35
  -
  0.35
  Net income (loss)
  $
  0.97
  -
  $
  (0.26)
  Diluted
  :
  Income (loss) from continuing operations
  $
  0.61
  -
  $
  (0.61)
  Discontinued operations
  0.35
  -
  0.35
  Net income (loss)
  $
  0.96
  -
  $
  (0.26)
  Dividends per common share
  $
  2.60
  -
  $
  2.60
  Weighted average shares outstanding:
  Basic
  14,065
  -
  14,065
  Diluted
  14,233
  -
  14,233
  See accompanying notes.
  9
  PARKWAY PROPERTIES, INC. AND SUBSIDIARIES
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME
  FOR THE SIX  MONTHS ENDED JUNE 30, 2006
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (2)
  Parkway
  Pro Forma
  (In thousands, except per
    share data)
  Revenues
  Income from office and parking properties
  $
  99,594
  $
  9,853
  $
  109,447
  Management company income
  4,798
  -
  4,798
  Total revenues
  104,392
  9,853
  114,245
  Expenses
  Operating expense
  47,407
  6,795
  54,202
  Depreciation and amortization
  28,021
  5,324
  33,345
  Operating expense for other real estate properties
  3
  -
  3
  Management company expenses
  675
  -
  675
  General and administrative
  2,123
  -
  2,123
  Total expenses
  78,229
  12,119
  90,348
  Operating income (loss)
  26,163
  (2,266)
  23,897
  Other income and expenses
  Interest and other income
  26
  247
  273
  Equity in earnings of unconsolidated joint ventures
  326
  -
  326
  Gain on sale of joint venture interests and other
    assets
  13,465
  -
  13,465
  Interest expense
  (19,222)
  (6,525)
  (25,747)
  Income (loss) before minority interest and
    discontinued operations
  20,758
  (8,544)
  12,214
  Minority interest - real estate partnerships
  144
  -
  144
  Income (loss) from continuing operations
  20,902
  (8,544)
  12,358
  Discontinued operations:
  Loss from discontinued operations
  (2)
  -
  (2)
  Net income (loss)
  20,900
  (8,544)
  12,356
  Change in unrealized loss on equity securities
  79
  -
  79
  Change in market value of interest rate swaps
  726
  -
  726
  Comprehensive income (loss)
  $
  21,705
  $
  (8,544)
  $
  13,161
  Net income (loss) available to common stockholders:
  Net income (loss)
  $
  20,900
  $
  (8,544)
  $
  12,356
  Dividends on preferred stock
  (2,400)
  -
  (2,400)
  Dividends on convertible preferred stock
  (1,173)
  -
  (1,173)
  Net income (loss) available to common stockholders
  $
  17,327
  $
  (8,544)
  $
  8,783
  Net income per common share:
  Basic
  :
  Income from continuing operations
  $
  1.23
  -
  $
  0.63
  Discontinued operations
  -
  -
  -
  Net income
  $
  1.23
  -
  $
  0.63
  Diluted
  :
  Income from continuing operations
  $
  1.22
  -
  $
  0.62
  Discontinued operations
  -
  -
  -
  Net income
  $
  1.22
  -
  $
  0.62
  Dividends per common share
  $
  1.30
  -
  $
  1.30
  Weighted average shares outstanding:
  Basic
  14,042
  -
  14,042
  Diluted
  14,214
  -
  14,214
  See
  accompanying notes.
  10
  PARKWAY
  PROPERTIES, INC.
  Notes to Pro Forma Consolidated Financial Statements
  (Unaudited)
  1.       On
  July 11, 2006, Parkway Properties, Inc. purchased One Illinois Center, a
  1,003,000 square-foot office building with an attached four-level structured
  parking garage, located at 111 East Wacker Drive in the East Loop sub-market of
    Chicago. The property was acquired from Lincoln-Carlyle Illinois Center LLC
  for $198 million plus closing costs and transfer taxes of approximately $1.6
  million. The purchase was funded by a 10-year, $148.5 million non-recourse
  first mortgage.  The loan bears interest at a fixed rate of 6.29%, with interest
  only payments for five years and principal payments based on a 30-year
  amortization thereafter.  The remaining purchase funding was provided by notes
  payable to banks, including a $33.7 million recourse mezzanine loan with a
  six-month term at an interest rate of LIBOR plus 130 basis points (current rate
  set at 6.65%) and amounts drawn under existing lines of credit.
  The
  allocation of the purchase price is preliminary pending completion of the
  valuation of tangible and intangible assets. The preliminary allocation of
  purchase price to assets acquired and liabilities assumed with the One Illinois
   Center purchase is as follows (in thousands):
  Real estate investments:
  Land
  $
  26,385
  Building and garage
  120,125
  Tenant improvements
  24,626
  Total real estate investments acquired
  171,136
  Lease costs
  8,499
  Intangible assets:
  Above-market leases
  4,712
  Lease in place value
  16,340
  Total assets acquired
  $
  200,687
  Liabilities assumed:
  Below market leases
  $
  5,042
  Accounts payable and other liabilities
  4,714
  Total liabilities assumed
  $
  9,756
  Net assets acquired
  $
  190,931
  11
  Additional
  amounts paid by Parkway or received from the seller in connection with the
  purchase and related financing of One Illinois Center are as follows (in
  thousands):
  Rents receivable and other assets:
  Escrow deposits required by lender
  $
  18,995
  Lease costs
  54
  Capitalized loan costs
  173
  $
  19,222
  Accounts payable and other liabilities:
  Prepaid rent
  $
  5,861
  Security deposits payable
  284
  $
  6,145
  2.       The pro
  forma adjustments to the Consolidated Statement of Income for the year ended December 31, 2005 and six months ended June 30, 2006 set forth the effects of Parkway's
  purchase of One Illinois Center as
  if the purchase had been consummated on January 1, 2005.
  The
  pro forma adjustments are detailed below for the year ended December 31, 2005 and six months ended June 30, 2006.
  The
  effect of the purchase of One Illinois Center on income and expenses from real
  estate properties is as follows:
  (a)   For the year ended December 31, 2005
  (in thousands):
  Revenue
  Expenses
  Income From
  Real Estate Owned
  Real Estate
  Operating
  Depreciation
  One Illinois Center
  Properties
  Expense
  Expense
  Historical
    results
  $
  18,375
  $
  12,132
  $
  10,645
  Amortization
    of above/below
  market
    leases
  (353)
  -
  -
  Total
    pro forma amounts
  $
  18,022
  $
  12,132
  $
  10,645
  Depreciation and
  amortization is provided by the straight-line method over the estimated useful
  life of the asset as defined below:
  Estimated
    Useful Life
  Building
    and garage
  40
    years
  Building
    improvements
  15
    years
  Tenant
    improvements
  Remaining
    term of lease
  Lease
    in place value
  Remaining
    term of lease including expected renewals
  Lease
    costs
  Remaining
    term of lease
  Above
    and below market leases
  Remaining
    term of lease
  12
  (b)   For the six months ended June 30, 2006
  (in thousands):
  Revenue
  Expenses
  Income From
  Real Estate Owned
  Real Estate
  Operating
  Depreciation
  One Illinois Center
  Properties
  Expense
  Expense
  Historical
    results
  $
  10,029
  $
  6,795
  $
  5,324
  Amortization
    of above/below
  market
    leases
  (176)
  -
  -
  Total
    pro forma amounts
  $
  9,853
  $
  6,795
  $
  5,324
  Depreciation
  is provided by the straight-line method over the estimated useful life of the
  asset as defined in (a) above.
  (c)   Pro
  forma interest expense on real estate owned reflects interest on non-recourse
  debt placed upon purchase as if in place January 1, 2005 and is detailed below
  (in thousands).
  Six
  Property/Placement
  Year Ended
  Months Ended
  Date/Rate
  Debt
  12/31/05
  06/30/06
  Debt placed in One Illinois Center purchase
  07/06    6.29%
  $
  148,500
  $
  9,341
  $
  4,670
  The pro forma effect of the placement of
  non-recourse debt on loan cost amortization was $17,000 for the year ended
  December 31, 2005 and $9,000 for the six months ended June 30, 2006.
  The pro forma
  effect of the purchase on interest expense on notes payable to banks was $3,691,000
  for the year ended December 31, 2005 and $1,846,000 for the six months ended June
  30, 2006.
  3.       No additional income tax expenses
  were provided because of the Company's net operating loss carryover and status
  as a REIT.
  4.       Diluted net income per share for
  the year ended December 31, 2005 and six months
  ended June 30, 2006 was $0.96 and $1.22,
  respectively, based on diluted weighted average shares outstanding of 14,233,000
  and 14,214,000, respectively.
  Pro
  forma diluted net income (loss) per share for the year ended December 31, 2005
  and the six months ended June 30, 2006 was $(0.26) and $0.62 respectively,
  based on diluted weighted average shares outstanding of 14,233,000 and 14,214,000,
  respectively.
  13
  SIGNATURES
  Pursuant to the requirements of the
  Securities Exchange Act of 1934, the Registrant has duly caused this amended report
  to be signed on its behalf by the undersigned hereunto duly authorized.
  DATE:   September
    25, 2006
  PARKWAY
    PROPERTIES, INC.
  BY:
  /s/ Mandy
    M. Pope
  Mandy
    M. Pope, CPA
  Chief
    Accounting Officer
  14