content: <html>
  
  <head>
  
  
  <title>UNITED STATES</title>
  
  
  
  </head>
  
  <body lang=EN-US>
  
  <div class=Section1>
  
  <h5 align=center style='text-align:center; margin-top:0; margin-bottom:0'>UNITED STATES<br>
  <br>
  SECURITIES AND EXCHANGE COMMISSION<br>
  <br>
  WASHINGTON, DC&nbsp; 20549<br>
  <br>
  <br>
  </h5>
  
  <table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
   style='margin-left:108.9pt;border-collapse:collapse;border:none'>
   <tr>
    <td width=348 valign=top style='width:261.0pt;border:none;border-top:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
  </table>
  
  <h4 align=center style='text-align:center; margin-top:0; margin-bottom:0'>FORM
  8-K<br>
  <br>
  <br>
  CURRENT REPORT<br>
  <br>
  <br>
  </h4>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='margin-left:-8.1pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid;height:51.9pt'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;padding:0in 5.4pt 0in 5.4pt;
    height:51.9pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>Pursuant to Section 13 or
    15(d)<br>
    of the <br>
    Securities Exchange Act of 1934<br>
    <br>
    <br>
    </p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:16.65pt'>
    <td width=498 colspan=4 valign=top style='width:373.5pt;padding:0in 5.4pt 0in 5.4pt;
    height:16.65pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Date
    of Report (Date of earliest event reported):</p>
    </td>
    <td width=162 valign=top style='width:121.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt;height:16.65pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>N/A</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>PARKWAY PROPERTIES, INC.</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;border:none;
    border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Exact name of registrant as specified in its
    charter)<br>
    <br>
    <br>
    <br>
    </p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=210 valign=top style='width:157.5pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>Maryland</p>
    </td>
    <td width=192 valign=top style='width:2.0in;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>1-11533</p>
    </td>
    <td width=258 colspan=3 valign=top style='width:193.5pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>74-2123597</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:13.85pt'>
    <td width=210 valign=top style='width:157.5pt;padding:0in 5.4pt 0in 5.4pt;
    height:13.85pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">(State
    or other jurisdiction of<br>
    incorporation or organization)</p>
    </td>
    <td width=192 valign=top style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;
    height:13.85pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Commission File Number)</p>
    </td>
    <td width=258 colspan=3 valign=top style='width:193.5pt;padding:0in 5.4pt 0in 5.4pt;
    height:13.85pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">(IRS
    Employer Identification Number)</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:13.8pt'>
    <td width=210 valign=top style='width:157.5pt;padding:0in 5.4pt 0in 5.4pt;
    height:13.8pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=192 valign=top style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;
    height:13.8pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=258 colspan=3 valign=top style='width:193.5pt;padding:0in 5.4pt 0in 5.4pt;
    height:13.8pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:13.8pt'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.8pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>One Jackson Place Suite 1000<br>
    188 East Capitol Street<br>
    P. O. Box 24647<br>
    Jackson, Mississippi&nbsp; 39225-4647</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:20.5pt'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;padding:0in 5.4pt 0in 5.4pt;
    height:20.5pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Address of principal
    executive offices) (Zip Code)<br>
    <br>
    <br>
    <br>
    </p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:.2in'>
    <td width=444 colspan=3 valign=top style='width:333.0pt;padding:0in 5.4pt 0in 5.4pt;
    height:.2in'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant's
    telephone number, including area code </p>
    </td>
    <td width=216 colspan=2 valign=top style='width:2.25in;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'>
    <p class=DefaultText style="margin-top: 0; margin-bottom: 0">(601) 948-4091</p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:14.8pt'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.8pt'>
    <p class=DefaultText style="margin-top: 0; margin-bottom: 0"><br>
    <br>
    <br>
    </p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:12.6pt'>
    <td width=660 colspan=5 valign=top style='width:495.0pt;padding:0in 5.4pt 0in 5.4pt;
    height:12.6pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Former name, former address
    and former fiscal year, if changed since last report)</p>
    </td>
   </tr>
   <tr height=0>
    <td width=210 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=192 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=42 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=54 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=162 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
   </tr>
  </table>
  
  
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all
  style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>FORM 8-K<br>
  <br>
  PARKWAY PROPERTIES, INC.</b></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><br>
  Item 5. Other Events.</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><b><br>
  </b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  November 24, 2003, Parkway Properties, Inc. (&quot;Parkway&quot;) purchased Carmel
  Crossing, a 324,000 square foot, three-building office campus in Charlotte,
  North Carolina from an unrelated party.&nbsp; The property was acquired for $41
  million plus $1.5 million in closing costs and anticipated capital expenditures
  and leasing commissions during the first two years of ownership.&nbsp; The purchase
  was funded with proceeds from joint venture asset sales earlier in 2003.&nbsp; Carmel
  Crossing is situated on 26 acres with 1,458 surface parking spaces.&nbsp; The
  buildings were constructed in 1990, 1997 and 1998 and are currently 90% leased
  to 41 customers, with four customers, Travelers Insurance, the GSA, United
  Mortgage and Wells Fargo occupying approximately 55% of the properties.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 2, 2004, Parkway purchased Capital City Plaza,
  a 410,000 square foot office building in the Buckhead submarket of Atlanta,
  Georgia from an unrelated party.&nbsp; Parkway acquired Capital City Plaza for
  a purchase price of $76.3 million plus $2.3 million in closing costs and
  anticipated capital expenditures and leasing commissions during the first two
  years of ownership.&nbsp; The purchase was funded with Parkway's existing lines of
  credit, assumption of an existing first mortgage of approximately $44 million
  and the issuance of $15.5 million in preferred membership interests to the
  seller.&nbsp; The mortgage matures in August
  2008 and bears interest at 6.75%.&nbsp; In accordance with generally accepted
  accounting principles, the mortgage will be recorded at approximately $49
  million to reflect the fair value of the financial instrument based on the rate
  of 3.7% on the date of purchase.&nbsp; The preferred membership interests pay the
  seller a 7% coupon rate and were issued to accommodate their tax planning
  needs.&nbsp; The seller has the right to redeem $5.5 million of the membership
  interests within six months of closing and $10 million of the membership
  interests within nine months of closing.&nbsp; Parkway has the right to retire the
  preferred interest 40 months after closing.&nbsp; </p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Capital City Plaza also includes an adjoining
  five-story parking garage containing 726 spaces, a surface parking lot
  containing 81 parking spaces and rights to an adjacent lot containing 349
  parking spaces.&nbsp; The property is currently 92% leased to multiple customers,
  with three customers, Blue Cross Blue Shield of Georgia, Industrial Logic and
  Jefferson Pilot, occupying approximately 75% of the property.</p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><b>Item
  7.&nbsp; Financial Statements and Exhibits.</b></p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=660
   style='width:495.05pt;border-collapse:collapse'>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    following audited financial statement of Carmel Crossing for the year ended
    December 31, 2002 is attached hereto.&nbsp; Also included is the unaudited
    financial statement for the nine months ended September 30, 2003:</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><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="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>Page</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Report
    of Independent Auditors</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>4</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>5</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>6</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    following audited financial statement of the Capital City Plaza for the year
    ended December 31, 2003 is attached hereto.&nbsp; Also included is the unaudited
    financial statement for the three months ended March 31, 2004:</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><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="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>Page</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Report
    of Independent Auditors</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>8</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>9</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>10</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Financial Statements</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    following unaudited Pro Forma Consolidated Financial Statements of Parkway
    for the year ended December 31, 2002 and the nine months ended September 30,
    2003 are attached hereto:</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>Page</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>12</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Balance Sheet (Unaudited) - As of September 30, 2003</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>13</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
    the Year Ended December 31, 2002</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>14</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
    the Nine Months Ended September 30, 2003</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>15</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>16</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.9pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    following unaudited Pro Forma Consolidated Financial Statements of Parkway
    for the year ended December 31, 2003 and the three months ended March 31,
    2004 are attached hereto:</p>
    </td>
    <td width=55 valign=top style='width:41.15pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>Page</b></p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>19</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
    Forma Consolidated Balance Sheet (Unaudited) - As of March 31, 2004</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>20</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
    the Year Ended December 31, 2003</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>21</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
    the Three Months Ended March 31, 2004</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>22</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>23</p>
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</p>
    </td>
    <td width=55 valign=top style='width:41.35pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23.1)&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'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=605 valign=top style='width:453.7pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23.2)&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'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
  </table>
  
  <b><hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all
  style='page-break-before:always'>
  </b>
  
  </p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;Report of Independent Auditors</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  The Board of Directors</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Parkway Properties, Inc.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  We have audited the accompanying statement of rental revenues and direct
  operating expenses of Carmel Crossing for the year ended December 31, 2002.&nbsp; This statement is the
  responsibility of management.&nbsp; Our responsibility is to express an opinion on
  this statement based on our audit.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  We conducted our audit in accordance with auditing standards generally accepted
  in the 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; An
  audit includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the statement.&nbsp; An audit also includes assessing the basis of
  accounting and accounting principles used and significant estimates made by
  management, as well as evaluating the overall statement presentation.&nbsp; We
  believe that our audit provides a reasonable basis for our opinion.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  The accompanying statements were 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 are not
  intended to be a complete presentation of Carmel Crossing's revenues and
  expenses. </p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  In our opinion, the statement of rental revenue 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 Carmel Crossing
  for the year ended December
   31, 2002, in
  conformity with accounting principles generally accepted in the United States.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  <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;&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;
  Ernst &amp; Young LLP</p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">New
  Orleans, Louisiana</p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">May 14,
  2004</p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=MsoEndnoteText align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>Carmel Crossing<br>
  <br>
  Statements of Rental Revenues<br>
  and Direct Operating Expenses</b></p>
  
  <p class=MsoEndnoteText align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>(in thousands)</p>
  
  <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b><br>
  <br>
  </b></p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='width:678;border-collapse:collapse'>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>Year Ended</b></p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>Nine Months
    Ended</b></p>
    </td>
   </tr>
   <tr>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:381;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:132;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>December 31,
    2002</b></p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>September 30,
     2003</b></p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>(unaudited)</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>Rental revenues:</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum
    rents </p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;4,905</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;4,045</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursed
    charges </p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>94</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>15</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:381;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
    income</p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:132;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>76</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>33</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>5,075</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>4,093</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>Direct operating expenses:</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative
    and miscellaneous expenses</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>81</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>24</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries
    and wages</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>107</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>101</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>392</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>310</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Janitorial
    services and supplies</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>226</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>166</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance
    services and supplies</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>230</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>181</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>41</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>27</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
    fees</p>
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>194</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>165</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:381;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real
    estate taxes</p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:132;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>444</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>350</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:381;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:132;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>1,715</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>1,324</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:381;border-bottom:
    1.5pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>Excess of rental revenues over
    direct operating expenses</p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:132;border-bottom:
    1.5pt double windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:31.85pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;3,360</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:38.15pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;2,769</p>
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td valign=top style='width:381;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:132;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><br>
  <br>
  <br>
  <i>See report of
  independent auditors and accompanying notes.</i></p>
  
  
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0" align="center"><br clear=all style='page-break-before:always'>
  <b>Carmel Crossing<br>
  <br>
  Notes to Statements of Rental Revenues<br>
  and Direct Operating Expenses<br>
  </b><br>
  <b>December
   31, 2002 and September 30, 2003</b></p>
  <p style="margin-top: 0; margin-bottom: 0"></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  <br>
  <b>1.&nbsp;&nbsp;&nbsp;&nbsp;Organization and Significant Accounting Policies</b></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  <b>Description of Property</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  On November 24, 2003, Parkway Properties, Inc. (&quot;Parkway&quot;) purchased the fee
  simple interest in Carmel Crossing, a three-building office campus located at
  the intersection of Carmel Road and Highway 51 in Charlotte, North Carolina
  from an unrelated party. Carmel Crossing contains approximately 324,000
  (unaudited) net rentable square feet of office space on 26 acres with 1,458
  surface parking spaces.</p>
  
  <p class=MsoNormal style='text-align:justify; 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;&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; <br>
  <b>Management's Use of Estimates</b></p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>The preparation of financial statements in conformity
  with accounting principles generally accepted in the United States 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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><b>Rental
  Revenue</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  Minimum rents from leases
  are accounted for 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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  The future minimum rents for Carmel Crossing's non-cancelable operating leases
  at December 31, 2002 are as follows (in thousands):<br>
  <br>
  </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:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Year</b></p>
    </td>
    <td width=77 valign=top style='width:57.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Amount</b></p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2003</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;2,638</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2004</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>4,630</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2005</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>3,678</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2006</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>2,817</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2007</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>2,643</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>Thereafter</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>2,892</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=77 valign=top style='width:57.8pt;border:none;border-bottom:double windowtext 2.25pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>$19,298</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  The above amounts do not include tenant reimbursements for utilities, taxes,
  insurance and common area maintenance.</p>
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><i>See report of independent auditors.</i></p>
  
  
  
  <hr color="#000080">
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  As of December 31,
   2002, Carmel
  Crossing had four tenants that occupied approximately 51% of the office space,
  Travelers Insurance, the GSA, United Mortgage and Wells Fargo.</p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of Accounting</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  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
  Carmel Crossing such as depreciation and mortgage interest expense.&nbsp; Management
  is not aware of any material factors relating to Carmel Crossing that would
  cause the reported financial information not to be necessarily indicative of
  future operating results.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Fees</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees of approximately 3%
  of revenues received from the operations of Carmel Crossing were paid to an
  unrelated management company.</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><i>See report of independent auditors.</i></p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  <hr color="#000080">
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Report of Independent Auditors</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  The Board of Directors</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Parkway Properties, Inc.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  We have audited the accompanying statement of rental revenues and direct
  operating expenses of Capital City Plaza for the year ended December 31, 2003.&nbsp;
  This statement is the responsibility of management.&nbsp; Our responsibility is to express
  an opinion on this statement based on our audit.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  We conducted our audit in accordance with auditing standards generally accepted
  in the 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; An
  audit includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the statement.&nbsp; An audit also includes assessing the basis of
  accounting and accounting principles used and significant estimates made by
  management, as well as evaluating the overall statement presentation.&nbsp; We
  believe that our audit provides a reasonable basis for our opinion.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  The accompanying statements were 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 are not
  intended to be a complete presentation of Capital City Plaza's revenues and
  expenses. </p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  In our opinion, the statement of rental revenue 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 Capital City
  Plaza for the year ended December 31, 2003, in conformity with accounting
  principles generally accepted in the United States.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  <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;&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;
  Ernst &amp; Young LLP</p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Philadelphia,
  Pennsylvania</p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">February
  2, 2004</p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=MsoEndnoteText align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>Capital City Plaza<br>
  <br>
  Statements of Rental Revenues<br>
  and Direct Operating Expenses</b></p>
  
  <p class=MsoEndnoteText align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>(in thousands)</p>
  
  <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b><br>
  <br>
  </b></p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=678
   style='width:508.3pt;border-collapse:collapse'>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>Year Ended</b></p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>Three Months
    Ended</b></p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>December 31,
     2003</b></p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>March 31, 2004</b></p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>(unaudited)</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>Rental revenues:</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum
    rents </p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;5,449</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;1,288</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursed
    charges </p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>2,754</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>607</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
    income</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>307</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>78</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>8,510</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>1,973</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>Direct operating expenses:</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative
    and miscellaneous expenses</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>510</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>112</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries
    and wages</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>158</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>46</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Utilities</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>692</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>173</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Janitorial
    services and supplies</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>390</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>100</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
    and maintenance costs</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>840</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>136</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>293</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>85</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
    fees</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>275</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>44</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real
    estate taxes</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>1,028</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>269</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;border-bottom:
    solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>4,186</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>965</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;border-bottom:
    double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>Excess of rental revenues over
    direct operating expenses</p>
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;border-bottom:
    double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:27.95pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;4,324</p>
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;border-bottom:double windowtext 1.5pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:34.25pt;text-align:right;
    line-height:-100%; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;1,008</p>
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=368 valign=top style='width:276.25pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=145 valign=top style='width:108.75pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=164 valign=top style='width:123.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><br>
  <br>
  <br>
  <br>
  <i>See report of
  independent auditors and accompanying notes.</i></p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0" align="center"><br clear=all style='page-break-before:always'>
  <b>Capital City Plaza<br>
  <br>
  Notes to Statements of Rental Revenues<br>
  and Direct Operating Expenses<br>
  </b><br>
  <b>December 31, 2003 and March 31, 2004</b></p>
  <p style="margin-top: 0; margin-bottom: 0"></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  <br>
  <b>1.&nbsp;&nbsp;&nbsp;&nbsp;Organization and Significant Accounting Policies</b></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  <b>Description of Property</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  On April 2, 2004, Parkway Properties, Inc. (&quot;Parkway&quot;)
  purchased the Capital City Plaza, a 17-story office building in the Buckhead
  submarket of Atlanta, Georgia from an unrelated party. Capital City Plaza
  contains approximately 410,000 (unaudited) net rentable square feet of office
  space.&nbsp; The acquisition also includes an adjoining five-story parking garage
  containing 726 spaces, a surface parking lot containing 81 parking spaces and
  rights to an adjacent lot containing 349 parking spaces.</p>
  
  <p class=MsoNormal style='text-align:justify; 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;&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; <br>
  <b>Management's Use of Estimates</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  The preparation of financial statements in conformity with accounting
  principles generally accepted in the United States 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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <b>Rental Revenue</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  Minimum rents from leases
  are accounted for 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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  The future minimum rents for Capital City Plaza's non-cancelable operating
  leases at December 31, 2003 are as follows (in thousands):<br>
  <br>
  </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:65.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Year</b></p>
    </td>
    <td width=77 valign=top style='width:57.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Amount</b></p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2004</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;6,560</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2005</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>7,597</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2006</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>6,935</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2007</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>6,813</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>2008</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>6,686</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>Thereafter</p>
    </td>
    <td width=77 valign=top style='width:57.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>39,218</p>
    </td>
   </tr>
   <tr>
    <td width=87 valign=top style='width:65.2pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=77 valign=top style='width:57.8pt;border:none;border-bottom:double windowtext 2.25pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>$73,809</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  The above amounts do not include tenant reimbursements for utilities, taxes,
  insurance and common area maintenance.</p>
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><i>See report of independent auditors.</i></p>
  
  
  
  <hr color="#000080">
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  As of December 31, 2003, Capital City Plaza had three tenants that occupied
  approximately 75% of the office space, Blue Cross Blue Shield of Georgia,
  Industrial Logic and Jefferson Pilot.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of Accounting</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  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 Capital
  City Plaza such as depreciation and mortgage interest expense.&nbsp; Management is
  not aware of any material factors relating to Capital City Plaza that would
  cause the reported financial information not to be necessarily indicative of
  future operating results.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Fees</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management fees of approximately 3%
  of revenues received from the operations of Capital City Plaza were paid to an
  unrelated management company.</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><i>See report of independent auditors.</i></p>
  
  
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>PARKWAY PROPERTIES, INC.</b></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Pro Forma Consolidated Financial Statements</b></p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Unaudited)</p>
  
  <p class=MsoEndnoteText style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following unaudited pro forma
  consolidated balance sheet as of September 30, 2003 and pro forma consolidated
  statements of income of Parkway Properties, Inc. (&quot;Parkway&quot;) for the
  year ended December 31, 2002 and nine months ended September 30, 2003 give
  effect to the purchases by Parkway of certain properties listed below 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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated balance
  sheet sets forth the effect of Parkway's purchase of the Carmel Crossing office
  campus as if it had been consummated on September 30, 2003.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated statements
  of income set forth the effects of Parkway's purchases of the buildings listed
  below as if each had been consummated on January 1, 2002.&nbsp; </p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse'>
   <tr>
    <td width=211 valign=top style='width:158.6pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Building</b></p>
    </td>
    <td width=128 valign=top style='width:96.25pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><b>Date of Purchase</b></p>
    </td>
   </tr>
   <tr>
    <td width=211 valign=top style='width:158.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Citrus Center</p>
    </td>
    <td width=128 valign=top style='width:96.25pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>02/11/03</p>
    </td>
   </tr>
   <tr>
    <td width=211 valign=top style='width:158.6pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Peachtree Dunwoody Pavilion</p>
    </td>
    <td width=128 valign=top style='width:96.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>08/28/03</p>
    </td>
   </tr>
   <tr>
    <td width=211 valign=top style='width:158.6pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Wells Fargo Building</p>
    </td>
    <td width=128 valign=top style='width:96.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>09/12/03</p>
    </td>
   </tr>
   <tr>
    <td width=211 valign=top style='width:158.6pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Carmel Crossing</p>
    </td>
    <td width=128 valign=top style='width:96.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>11/24/03</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the purchases listed
  above, the pro forma consolidated statement of income sets forth the effect of
  the sale of 690,000 shares of common stock on March 24, 2003 and the sale of
  the BB&amp;T Financial Center on August 1, 2003 as if these transactions had
  occurred on January 1, 2002.</p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 transactions 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, 2003.</p>
  
  
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0">
  
  
  
  <br
  clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <h1 align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
  <font size="3">PARKWAY PROPERTIES, INC.
  AND SUBSIDIARIES<br>
  PRO
  FORMA CONSOLIDATED BALANCE SHEET<br>
  September
   30, 2003<br>
  </font>
  </b><font size="3">(Unaudited)</font><b><font size="3"><br>
  &nbsp;</font></b></h1>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=707
   style='width:500.1pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Historical</font></b></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Adjustments (1)</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>
    <font size="2">(In thousands)</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Assets</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Real
    estate related investments:</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office
    and parking properties</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;807,295&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;848,245&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
    depreciation</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(109,199)</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;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 class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(109,199)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">698,096&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">739,046&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land
    held for sale</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">3,528&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">3,528&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note
    receivable from Moore Building Associates LP</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">5,996&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">5,996&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage
    loans</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">863&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">863&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
    in unconsolidated joint ventures</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">20,267&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;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 class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">20,267&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">728,750&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">769,700&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Interest,
    rents receivable and other assets</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">32,338&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">32,338&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Cash
    and cash equivalents</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">2,924&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;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 class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">2,924&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;764,012&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;804,962&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Liabilities</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Notes
    payable to banks</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;93,372&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;134,322&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Mortgage
    notes payable without recourse</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">225,934&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">225,934&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Accounts
    payable and other liabilities</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">35,411&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">35,411&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">354,717&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">395,667&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Stockholders'
    Equity</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">8.34%
    Series B Cumulative Convertible Preferred</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock,
    $.001 par value, 2,142,857 shares authorized, </font> </p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,942,857
    shares issued and outstanding</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">68,000&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">68,000&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Series
    C Preferred stock, $.001 par value, 400,000 shares</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized,
    no shares issued</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">8.00%
    Series D Preferred stock, $.001 par value,</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,400,000
    shares authorized, issued and outstanding</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">57,976&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">57,976&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Common
    stock, $.001 par value, 65,057,143 shares</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized,
    10,783,908 shares issued &nbsp;and outstanding</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Excess
    stock, $.001 par value, 30,000,000 shares authorized,</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
    shares issued</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Common
    stock held in trust, at cost, 128,000 shares </font> </p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,321)</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,321)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Additional
    paid-in capital</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">251,716&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">251,716&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Unearned
    compensation</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,592)</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,592)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Accumulated
    other comprehensive loss</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(51)</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(51)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Retained
    earnings</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">40,557&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;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 class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">40,557&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">409,295&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;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 class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">409,295&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;764,012&nbsp;</font></p>
    </td>
    <td width=125 valign=top style='width:93.9pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:16.95pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;40,950&nbsp;</font></p>
    </td>
    <td width=90 valign=top style='width:67.2pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;804,962&nbsp;</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>See accompanying notes </p>
  
  <b><hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  </b>
  
  </p>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>PARKWAY PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME<br>
  FOR THE YEAR ENDED DECEMBER
   31, 2002<br>
  </b>(Unaudited)<br>
  <br>
  </p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='width:674;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='width:55;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway </font> </b></p>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Historical</font></b></p>
    </td>
    <td width=104 colspan=2 valign=top style='width:78.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Adjustments (2)</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:91;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td colspan=5 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:250;border-bottom:1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'>
    <font size="2">(In thousands, except per share data)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">
    Revenues</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Income
    from office and parking&nbsp; properties</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$152,442&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;15,966&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(a)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$168,402&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">
    Management company income</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,197&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">327&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(e)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,524&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">
    Interest on note receivable from Moore Building Associates LP</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">895&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">895&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">
    Incentive management fee from Moore Building Associates LP</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">325&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">325&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Other
    income and deferred gains</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">401&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">401&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Total
    Revenues</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:55;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">155,260&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">16,287&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">171,547&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">
    Expenses</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Office
    and parking properties:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating expense</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">65,942&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">7,264&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(a)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">73,206&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
    expense:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">18,766&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">389&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(c)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">19,155&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayment
    expenses</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">833&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">833&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">240&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(6)</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(c)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">234&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
    and amortization</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">27,412&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">3,228</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(d)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">30,640&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Operating expense for other real estate properties</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">34&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">34&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Interest expense on bank notes:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">6,055&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,270&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(d)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">7,325&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">592&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">592&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Management company expenses</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">416&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">416&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">General and administrative</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">5,029&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">141&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(e)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">5,170&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Total Expenses</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:55;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">125,319&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;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 class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">12,286&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">137,605&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=422 colspan=2 valign=top style='width:316.75pt;border:none;
    border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Income before equity in earnings,&nbsp; gain (loss) , minority
    interest&nbsp; </font> </b></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
    discontinued&nbsp; operations </font> </b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">29,941&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">4,001&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">33,942&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Equity in earnings of unconsolidated joint ventures</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">824&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">824&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Gain (loss) on sale of joint venture interest and real
    estate </font> </p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(474)</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">4,195&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(e)</font></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">3,721&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Impairment loss on office property</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(1,594)</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(1,594)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Minority interest - unit holders</font></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(2)</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(2)</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Income before discontinued operations
    </font> </b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">28,695&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">8,196&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">36,891&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Discontinued operations:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from
    discontinued operations</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">47&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">47&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale
    of real estate from discontinued operations</font></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">770&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">770&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">29,512&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">8,196&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">37,708&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Change in market value of interest rate swap</font></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,524&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,524&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Comprehensive income</font></b></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;31,036&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;8,196&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;39,232&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income available to common stockholders:</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Net income</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;29,512&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;8,196&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;37,708&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Dividends on preferred stock</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(5,797)</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(5,797)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Dividends on convertible preferred stock</font></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(6,257)</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(6,257)</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income available to common stockholders</font></b></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;17,458&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;8,196&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;25,654&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income per common share:</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Basic:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Income before discontinued operations
    </font> </p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.78&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.48&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Discontinued operations</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">.09&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">.08&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Net income</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:55;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;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 class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.56&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Diluted:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Income before discontinued operations
    </font> </p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.75&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.44&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Discontinued operations</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">.09&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">.08&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Net income</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:55;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.84&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;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 class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.52&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:416;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Dividends per common share</font></b></p>
    </td>
    <td valign=top style='width:55;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.56&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.56&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Weighted average shares outstanding:</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=35 valign=top style='width:26.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:85;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:17;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Basic</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:55;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">9,312&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">690&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">10,002&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:416;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Diluted</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:55;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">9,480&nbsp;</font></p>
    </td>
    <td width=69 valign=top style='width:51.95pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">690&nbsp;</font></p>
    </td>
    <td width=35 valign=top style='width:26.05pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">10,170&nbsp;</font></p>
    </td>
    <td valign=top style='width:17;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><br>
  </p>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'>See accompanying notes.<hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0" align="center"><br clear=all style='page-break-before:
  always'>
  <b>PARKWAY PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME<br>
  FOR THE NINE MONTHS ENDED SEPTEMBER 30,
  2003<br>
  </b>(Unaudited)</p>
  <p style="margin-top: 0; margin-bottom: 0"></p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse' width="684">
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:73;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway </font> </b></p>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Historical</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:134;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Adjustments (2)</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:89;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td colspan=6 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(In thousands, except per share data)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Revenues</font></b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Income from office and parking&nbsp; properties</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;107,107&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;8,075&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(b)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$115,182&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Management company income</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">1,688&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(115)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(e)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">1,573&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="1">Interest on note receivable from Moore Building Associates LP</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">613&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">613&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="1">Incentive management fee from Moore Building Associates LP</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">221&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">221&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Other income and deferred gains</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">551&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">551&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Total Revenues</font></p>
    </td>
    <td colspan=2 valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:72;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">110,180&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">7,960&nbsp;</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:26;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">118,140&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Expenses</font></b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Office and parking properties:</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating expense</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">47,608&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">3,487&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(b)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">51,095&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense:</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">12,063&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(348)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(c)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">11,715&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">209&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(3)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(c)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">206&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
    amortization</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">20,674&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">1,854&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(b)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">22,528&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Operating expense for other real estate properties</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">31&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">31&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Interest expense on bank notes:</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">2,138&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">764&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(d)</font></p>
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">2,902&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">428&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">428&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Management company expenses</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">302&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">302&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">General and administrative</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">3,184&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">71&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(e)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">3,255&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Total Expenses</font></p>
    </td>
    <td colspan=2 valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:72;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">86,637&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">5,825&nbsp;</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:26;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">92,462&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Income before equity in earnings, gain and </font> </b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">minority interest
    </font> </b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">23,543&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">2,135&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">25,678&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Equity in earnings of unconsolidated joint ventures</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">1,644&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">1,644&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Gain&nbsp; on sale of joint venture interest and real estate</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10,661&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(5,020)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(e)</font></p>
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">5,641&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Minority interest - unit holders</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(2)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:93;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:26;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(2)</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Net Income</font></b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">35,846&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(2,885)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">32,961&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Change in market value of interest rate swap</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">119&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:93;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">119&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Comprehensive income</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;35,965&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:93;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;(2,885)</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:26;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;33,080&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Net income available to common stockholders:</font></b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Net income</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;35,846&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;(2,885)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;32,961&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:13.05pt'>
    <td colspan=2 valign=top style='width:320;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Original issue costs associated with redemption of preferred stock</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:76;border-right:1.0pt solid windowtext;
    height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(2,619)</font></p>
    </td>
    <td valign=top style='width:93;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(2,6191)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:13.05pt'>
    <td valign=top style='width:324;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Dividends on preferred stock</font></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,152)</font></p>
    </td>
    <td valign=top style='width:93;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(4,152)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    height:13.05pt; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">Dividends on convertible preferred stock</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,673)</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(4,673)</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Net income available to common stockholders</font></b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;24,402&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;(2,885)</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:26;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;21,517&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-bottom:medium none; width:324;border-top:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Net income per common share:</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.43&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">Diluted</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.35&nbsp;</font></p>
    </td>
    <td valign=top style='width:93;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:26;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.06&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Dividends per common share</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.95&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:93;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:26;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.95&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:324;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">Weighted average shares outstanding:</font></b></p>
    </td>
    <td colspan=2 valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:72;border-right:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:93;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:26;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:68;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:14;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10,031&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:93;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">208&nbsp;</font></p>
    </td>
    <td valign=top style='width:26;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">10,239</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:324;border-bottom:
    1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">Diluted</font></p>
    </td>
    <td colspan=2 valign=top style='width:72;border-top:medium none;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">12,390&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:93;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(1,925)</font></p>
    </td>
    <td valign=top style='width:26;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:68;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">10,465&nbsp;</font></p>
    </td>
    <td valign=top style='width:14;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'>
    <font size="2">(4)</font></p>
    </td>
   </tr>
   <tr height=0>
    <td width=338 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=1 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=91 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=107 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=41 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=82 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
    <td width=29 style='border:none'>
    <p style="margin-top: 0; margin-bottom: 0"></td>
   </tr>
  </table>
  
  </div>
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>See accompanying notes<br>
  </p>
  
  <hr color="#000080">
  
  
  
  
  
  
  
  
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>
  <br>
  </p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>PARKWAY PROPERTIES, INC.<br>
  Notes to Pro Forma Consolidated Financial Statements<br>
  </b>(Unaudited)<b><br>
  <br>
  </b></p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 24, 2003, Parkway Properties, Inc.
  (&quot;Parkway&quot;) purchased Carmel Crossing, a 324,000 square foot, three-building
  office campus in Charlotte, North Carolina.&nbsp; The property was acquired for $41
  million plus $1.5 million in closing costs and anticipated capital expenditures
  and leasing commissions during the first two years of ownership.&nbsp; The purchase
  was funded with our line of credit.&nbsp; Carmel Crossing is situated on 26 acres
  with 1,458 surface parking spaces.&nbsp; The buildings were constructed in 1990,
  1997 and 1998 and are currently 90% leased to 41 customers, with four
  customers, Travelers Insurance, the GSA, United Mortgage and Wells Fargo
  occupying approximately 55% of the properties.&nbsp; </p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma adjustments to the
  Consolidated Statement of Income for the year ended December 31, 2002 and nine
  months ended September 30, 2003 set forth the effects of Parkway's purchase of
  the following buildings as if they had been consummated on January 1, 2002.&nbsp; </p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=1 cellspacing=0 cellpadding=0
   style='border-collapse:collapse;border:none'>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Date of</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Building</b></p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Purchase</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Citrus Center</p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>02/11/03</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Peachtree
    Dunwoody Pavilion</p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>08/28/03</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Wells Fargo Building</p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>09/12/03</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Carmel
    Crossing</p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>11/24/03</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
  pro forma adjustments are detailed below for the year ended December 31, 2002
  and nine months ended September 30, 2003.</p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  effect on income and expenses from real estate properties is as follows (in
  thousands):</p>
  
  
  
  <p class=MsoNormal style='margin-left:.5in;text-indent:-.5in; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;For
  the year ended December
   31, 2002:</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=219 valign=top style='width:164.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Revenue</b></p>
    </td>
    <td width=208 colspan=2 valign=top style='width:156.05pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expenses</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Income From</b></p>
    </td>
    <td width=208 colspan=2 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate Owned</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate</b></p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Operating</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Depreciation</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Properties</b></p>
    </td>
    <td width=100 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Citrus Center</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;6,033&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;2,841&nbsp;</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;1,038&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Sale of BB&amp;T Financial Center</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>(4,670)</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>(1,586)</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>(739)</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Peachtree
    Dunwoody Pavilion</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>7,273&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>3,198&nbsp;</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>1,284&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Wells Fargo Building</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>2,249&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>1,096&nbsp;</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>368&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Carmel
    Crossing</p>
    </td>
    <td width=113 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 class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>5,075&nbsp;</p>
    </td>
    <td width=100 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 class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>1,715&nbsp;</p>
    </td>
    <td width=108 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 class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>1,277&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=113 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 class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;15,960&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;7,264&nbsp;</p>
    </td>
    <td width=108 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 class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;3,228&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation is provided by the
  straight-line method over the estimated useful life (40 years for buildings and
  5 - 15 years for building improvements).</p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;For the nine
  months ended September 30, 2003:<br>
  <br>
  </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=219 valign=top style='width:164.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Revenue</b></p>
    </td>
    <td width=208 colspan=2 valign=top style='width:156.05pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expenses</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Income From</b></p>
    </td>
    <td width=208 colspan=2 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate Owned</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate</b></p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Operating</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Depreciation</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Properties</b></p>
    </td>
    <td width=100 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Citrus Center</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;626&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159&nbsp;</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Sale of BB&amp;T Financial Center</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>(2,643)</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>(921)</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>(436)</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Peachtree
    Dunwoody Pavilion</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>4,504&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>2,130&nbsp;</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>878&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Wells Fargo Building</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>1,495&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>795&nbsp;</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>262&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Carmel
    Crossing</p>
    </td>
    <td width=113 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 class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>4,093&nbsp;</p>
    </td>
    <td width=100 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 class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>1,324&nbsp;</p>
    </td>
    <td width=108 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 class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>957&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:solid windowtext 1.0pt;
    border-top:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=113 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 class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;8,075&nbsp;</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;3,487&nbsp;</p>
    </td>
    <td width=108 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 class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;1,854&nbsp;</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  is provided by the straight-line method over the estimated useful life (40
  years for buildings and 5 - 15 years for building improvements).</p>
  
  
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;Pro
  forma interest expense on real estate owned reflects interest and loan cost
  amortization on non-recourse debt assumed upon purchase and the extinguishment
  of debt from the sale proceeds of the BB&amp;T Financial Center as if in place
  January 1, 2002 and is detailed below (in thousands).</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=1 cellspacing=0 cellpadding=0
   style='border-collapse:collapse;border:none'>
   <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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=85 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=102 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=121 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Nine</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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Property/</b></p>
    </td>
    <td width=85 valign=top style='width:63.7pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=102 valign=top style='width:76.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Year Ended</b></p>
    </td>
    <td width=121 valign=top style='width:90.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Placement Date/Rate</b></p>
    </td>
    <td width=85 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Debt</b></p>
    </td>
    <td width=102 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>12/31/02</b></p>
    </td>
    <td width=121 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>09/30/03</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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Debt assumed in Citrus Center
    purchase</p>
    </td>
    <td width=85 valign=top style='width:63.7pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=102 valign=top style='width:76.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=121 valign=top style='width:90.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;02/03&nbsp;&nbsp;&nbsp; 6.00%</p>
    </td>
    <td width=85 valign=top style='width:63.7pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:.65pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;21,153&nbsp;</p>
    </td>
    <td width=102 valign=top style='width:76.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:9.05pt;text-align:right; margin-top:0; margin-bottom:0'>$1,269&nbsp;</p>
    </td>
    <td width=121 valign=top style='width:90.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:19.85pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;143&nbsp;</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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Proceeds from sale of BB&amp;T Financial
     Center</p>
    </td>
    <td width=85 valign=top style='width:63.7pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=102 valign=top style='width:76.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=121 valign=top style='width:90.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;08/03&nbsp;&nbsp;&nbsp;&nbsp;7.30%</p>
    </td>
    <td width=85 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 class=MsoNormal align=right style='margin-right:.65pt;text-align:right; margin-top:0; margin-bottom:0'>(11,201)</p>
    </td>
    <td width=102 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 class=MsoNormal align=right style='margin-right:9.05pt;text-align:right; margin-top:0; margin-bottom:0'>(886)</p>
    </td>
    <td width=121 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 class=MsoNormal align=right style='margin-right:19.85pt;text-align:right; margin-top:0; margin-bottom:0'>(494)</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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=85 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 class=MsoNormal align=right style='margin-right:.65pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,952&nbsp;</p>
    </td>
    <td width=102 valign=top style='width:76.85pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:9.05pt;text-align:right; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;383&nbsp;</p>
    </td>
    <td width=121 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 class=MsoNormal align=right style='margin-right:19.85pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;(351)</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;The
  pro forma effect of the Citrus Center Purchase, the Wells Fargo Building
  Purchase and the Carmel Crossing Purchase on interest expense on notes payable
  to banks was $1,270,000 for the year ended December 31, 2002 and $764,000 for
  the nine months ended September 30, 2003.</p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;The
  pro forma effect of the sale of the BB&amp;T Financial Center on gain on sale
  of real estate is an increase of $4,195,000 for the year ended December 31,
  2002 and a decrease of $5,020,000 for the nine months ended September 30, 2003.&nbsp;
  The pro forma effect of the acquisition fee earned on the sale of the BB&amp;T Financial
  Center on management company income is an increase of $186,000 for the year
  ended December 31, 2002 and a decrease of $186,000 for the nine months ended
  September 30, 2003.</p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>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 class=Legal6 style='margin-left:0in;text-align:justify;text-indent:0in; margin-top:0; margin-bottom:0'><br>
  4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted net income per share for
  the year ended December 31, 2002 and nine months ended September 30, 2003 was
  $1.84 and $2.35, respectively, based on diluted weighted average shares
  outstanding of 9,480,000 and 12,390,000, respectively. </p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro Forma diluted
  net income per share for the year ended December 31, 2002 and the nine months
  ended September 30, 2003 reflect the sale of 690,000 shares of common stock on
  March 24, 2003 as if the shares had been sold on January 1, 2002 and was $2.52
  and $2.06 respectively, based on pro forma diluted weighted average shares
  outstanding of 10,170,000 and 10,465,000 respectively.</p>
  
  <b><hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  </b>
  
  </p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>PARKWAY PROPERTIES, INC.</b></p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Pro Forma Consolidated Financial Statements</b></p>
  
  <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Unaudited)</p>
  
  <p class=MsoEndnoteText style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following unaudited pro forma
  consolidated balance sheet as of March 31, 2004 and pro forma consolidated
  statements of income of Parkway Properties, Inc. (&quot;Parkway&quot;) for the
  year ended December 31, 2003 and three months ended March 31, 2004 give effect
  to the purchases by Parkway of certain properties listed below 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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated balance
  sheet sets forth the effect of Parkway's purchase of the Capital City Plaza as
  if it had been consummated on March 31, 2004.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pro forma consolidated statements
  of income set forth the effects of Parkway's purchases of the buildings listed
  below as if each had been consummated on January 1, 2003.&nbsp; </p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse'>
   <tr>
    <td width=135 valign=top style='width:101.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Building</b></p>
    </td>
    <td width=135 valign=top style='width:101.6pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><b>Date of Purchase</b></p>
    </td>
   </tr>
   <tr>
    <td width=135 valign=top style='width:101.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Maitland 200</p>
    </td>
    <td width=135 valign=top style='width:101.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>01/29/04</p>
    </td>
   </tr>
   <tr>
    <td width=135 valign=top style='width:101.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Capital City Plaza</p>
    </td>
    <td width=135 valign=top style='width:101.6pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>04/02/04</p>
    </td>
   </tr>
   <tr>
    <td width=135 valign=top style='width:101.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=135 valign=top style='width:101.6pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&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 transactions 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, 2003.</p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0">
  
  <br
  clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <h1 align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
  <font size="3">PARKWAY PROPERTIES, INC.
  AND SUBSIDIARIES<br>
  PRO
  FORMA CONSOLIDATED BALANCE SHEET<br>
  March 31, 2004<br>
  </font>
  </b><font size="3">(Unaudited)</font><b><font size="3"><br>
  <br>
  </font>
  </b></h1>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='width:679;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Historical</font></b></p>
    </td>
    <td valign=top style='width:102;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Adjustments (1)</font></b></p>
    </td>
    <td valign=top style='width:85;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:102;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>
    <font size="2">(In thousands)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:85;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Assets</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Real
    estate related investments:</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office
    and parking properties</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;900,928&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;81,711&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;982,639&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
    depreciation</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(124,418)</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(124,418)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">776,510&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">81,711&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">858,221&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land
    available for sale</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">3,528&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">3,528&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
    in unconsolidated joint ventures</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">20,011&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">20,011&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">800,049&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">81,711&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">881,760&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Interest,
    rents receivable and other assets</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">40,508&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">40,508&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Cash
    and cash equivalents</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">1,681&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">1,681&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;842,238&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;81,711&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;923,949&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Liabilities</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Notes
    payable to banks</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;150,889&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;17,147&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;168,036&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Mortgage
    notes payable without recourse</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">251,384&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">49,073&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">300,457&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Accounts
    payable and other liabilities</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">28,407&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">28,407&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">430,680&nbsp;</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:102;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">66,220&nbsp;</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:85;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">496,900&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Minority
    Interest</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Minority
    Interest - unit holders</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">40&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">40&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Minority
    Interest - real estate partnerships</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">4,015&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">4,015&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">4,055&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">4,055&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Stockholders'
    Equity</font></b></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">8.34%
    Series B Cumulative Convertible Preferred stock, </font> </p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$.001
    par&nbsp;value, 2,142,857 shares authorized,</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,867,857
    shares issued and outstanding </font> </p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">65,375&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">65,375&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Series
    C Preferred stock, $.001 par value, 400,000 shares authorized,</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
    shares issued</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">8.00%
    Series D Preferred stock, $.001 par value, 2,400,000 shares</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized,
    issued and outstanding</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">57,976&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">57,976&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">7.00%
    Preferred membership interests</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">15,491&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">15,491&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Common
    stock, $.001 par value, 65,057,143 shares authorized,</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,974,187
    shares issued and outstanding </font> </p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">11&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">11&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Excess
    stock, $.001 par value, 30,000,000 shares authorized,</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no
    shares issued</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Common
    stock held in trust, at cost, 128,000 shares </font> </p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,321)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,321)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Additional
    paid-in capital</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">257,672&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">257,672&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Unearned
    compensation</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,437)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(4,437)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Accumulated
    other comprehensive loss</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(40)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:102;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:85;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(40)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Retained
    earnings</font></p>
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">35,267&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">35,267&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">407,503&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">15,491&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">422,994&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=402 valign=top style='width:301.2pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=90 valign=top style='width:67.8pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;842,238&nbsp;</font></p>
    </td>
    <td valign=top style='width:102;border-top:medium none;border-left:
    medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='margin-right:20.85pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;81,711&nbsp;</font></p>
    </td>
    <td valign=top style='width:85;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;923,949&nbsp;</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>
  <font size="2"><br>
  </font>
  <br>
  <br>
  <br>
  See accompanying notes </p>
  
  <b><hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  </b>
  
  </p>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>PARKWAY PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME<br>
  FOR THE YEAR ENDED DECEMBER 31, 2003<br>
  </b>(Unaudited)<br>
  <br>
  </p>
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='width:644;margin-left:-15.45pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='width:70;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway </font> </b></p>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Historical</font></b></p>
    </td>
    <td colspan=2 valign=top style='width:88;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Adjustments (2)</font></b></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td colspan=4 valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:242;border-bottom:1.0pt solid windowtext;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'>
    <font size="2">(In thousands, except per share
    data)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Revenues</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Income from office and parking&nbsp; properties</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$142,196&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;12,334&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(a)</font></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$154,530&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Management company income</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">2,136&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">2,136&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Interest on note receivable from Moore Building
    Associates LP</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">819&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">819&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Incentive management fee from Moore Building
    Associates LP</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">300&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">300&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Other income and deferred gains</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">599&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">599&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Total Revenues</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:70;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">146,050&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">12,334&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">158,384&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Expenses</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Office and parking properties:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
    expense</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">63,362&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">5,747&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(a)</font></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">69,109&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
    expense:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">16,026&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,801&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(c)</font></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">17,827&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">293&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">293&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
    and amortization</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">28,030&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">2,444&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(a)</font></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">30,474&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Operating expense for other real estate properties</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">37&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">37&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Interest expense on bank notes:</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">2,834&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,024&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(d)</font></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">3,858&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">565&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">565&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Management company expenses</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">391&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">391&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">General and administrative</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">4,201&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">4,201&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Total Expenses</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:70;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">115,739&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">11,016&nbsp;</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:22;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">126,755&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Income before equity in earnings, gain and minority
    interest&nbsp; </font> </b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">30,311&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,318&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">31,629&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Equity in earnings of unconsolidated joint ventures</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">2,212&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">2,212&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Gain on sale of joint venture interests and real
    estate</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">10,661&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">10,661&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Minority interest - unit holders</font></p>
    </td>
    <td valign=top style='width:70;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(3)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">(3)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">43,181&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">1,318&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">44,499&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Change in market value of interest rate swap</font></p>
    </td>
    <td valign=top style='width:70;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">170&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">170&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Comprehensive income</font></b></p>
    </td>
    <td valign=top style='width:70;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;43,351&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;1,318&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$&nbsp;&nbsp;44,669&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income available to common stockholders:</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Net income</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;43,181&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;1,318&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$&nbsp;&nbsp;44,499&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Original issue costs associated with redemption or
    preferred stock</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(2,619)</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">(2,619)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Dividends on preferred stock</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(5,352)</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">(5,352)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Dividends on preferred membership interests</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(1,084)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">(e)</font></p>
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">(1,084)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Dividends on convertible preferred stock</font></p>
    </td>
    <td valign=top style='width:70;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">(6,091)</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">(6,091)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income available to common stockholders</font></b></p>
    </td>
    <td valign=top style='width:70;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;29,119&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;234&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$&nbsp;&nbsp;29,353&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Net income per common share:</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:402;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Basic</font></p>
    </td>
    <td valign=top style='width:70;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.85&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.87&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Diluted</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.79&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.81&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Dividends per common share</font></b></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:70;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.60&nbsp;</font></p>
    </td>
    <td valign=top style='width:66;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:22;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.60&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><b><font size="2">Weighted average shares outstanding:</font></b></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='width:66;border:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:22;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Basic</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-top:medium none; border-bottom:medium none; width:70;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">10,224&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">10,224&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td valign=top style='width:402;border-top:1.0pt solid windowtext;
    border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal style='margin-top:0; margin-bottom:0'><font size="2">Diluted</font></p>
    </td>
    <td valign=top style='border-right:1.0pt solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; width:70;border-left:medium none;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">10,453&nbsp;</font></p>
    </td>
    <td valign=top style='border-left:medium none; border-right:medium none; border-top:medium none; width:66;border-bottom:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
    <p class=MsoNormal align=right style='text-align:right;margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td valign=top style='width:22;border-top:medium none;border-left:medium none;
    border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
    padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=84 valign=top style='width:62.8pt;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 class=MsoNormal align=right style='margin-right:6.7pt;text-align:right;
    margin-top:0; margin-bottom:0'><font size="2">10,453&nbsp;</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal align=center style='text-align:center;margin-top:0; margin-bottom:0'>
  <font size="2"><br>
  </font>
  <br>
  <br>
  See accompanying notes.<hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0" align="center"><br clear=all style='page-break-before:always'>
  <b>PARKWAY PROPERTIES, INC. AND SUBSIDIARIES<br>
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME<br>
  FOR THE THREE MONTHS ENDED MARCH 31, 2004<br>
  </b>(Unaudited)</p>
  <p style="margin-top: 0; margin-bottom: 0"></p>
  
  
  
  <div align=center>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='margin-left:0pt;border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway </font> </b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Historical</font></b></p>
    </td>
    <td width=109 colspan=2 valign=top style='width:82.05pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Adjustments (2)</font></b></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Parkway</font></b></p>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>
    <font size="2">Pro Forma</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;</font></b></p>
    </td>
    <td width=269 colspan=4 valign=top style='width:201.85pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>
    <font size="2">(In thousands, except per share data)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Revenues</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'><b>
    <font size="2">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Income from office and
    parking&nbsp; properties</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;36,907&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;2,258&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">(b)</font></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;39,165&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Management company
    income</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">406&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">406&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Other income and
    deferred gains</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">14&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">14&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Total Revenues</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">37,327&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">2,258&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">39,585&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Expenses</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Office and parking
    properties:</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
    expense</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">17,569&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">1,082&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">(b)</font></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">18,651&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
    expense:</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">4,512&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">450&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">(c)</font></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">4,962&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayment
    expenses</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">271&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">271&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">89&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">89&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
    and amortization</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">7,629&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">508&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">(b)</font></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">8,137&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Operating expense for
    other real estate properties</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Interest expense on
    bank notes:</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">834&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">149&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">(d)</font></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">983&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
    of loan costs</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">112&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">112&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Management company
    expenses</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">76&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">76&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">General and
    administrative</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">1,034&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">1,034&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Total Expenses</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">32,136&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">2,189&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">34,325&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Income before
    equity in earnings, gain and minority interest</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">5,191&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">69&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">5,260&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Equity in earnings of
    unconsolidated joint ventures</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">743&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">743&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Gain on note
    receivable </font> </p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">774&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">774&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Minority interest -
    real estate partnerships</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">22&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">22&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Net Income</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">6,730&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">69&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">6,799&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Change in market value
    of interest rate swap</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(40)</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(40)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Comprehensive
    income</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;6,690&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;6,759&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Net income
    available to common stockholders:</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Net income</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;6,730&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;6,799&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid;height:7.65pt'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt;
    height:7.65pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Dividends on preferred
    stock</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(1,200)</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt;
    height:7.65pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt;height:7.65pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(1,471)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Dividends on preferred
    membership interests</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(271)</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">(e)</font></p>
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(271)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">Dividends on
    convertible preferred stock</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(1,409)</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">(1,409)</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Net income
    available to common stockholders</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;4,121&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border-top:solid windowtext 1.0pt;
    border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(202)</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;3,919&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-top:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Net income per
    common share:</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.38&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;0.36&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">Diluted</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.37&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;0.35&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Dividends per
    common share</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border-top:none;border-left:
    none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.65&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;0.65&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">Weighted average
    shares outstanding:</font></b></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=76 valign=top style='width:57.3pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=33 valign=top style='width:24.75pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10,864&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">10,864&nbsp;</font></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=363 valign=top style='width:272.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">Diluted</font></p>
    </td>
    <td width=78 valign=top style='width:58.55pt;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 class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">11,095&nbsp;</font></p>
    </td>
    <td width=76 valign=top style='width:57.3pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">-&nbsp;</font></p>
    </td>
    <td width=33 valign=top style='width:24.75pt;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="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=82 valign=top style='width:61.25pt;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 class=MsoNormal align=right style='margin-right:5.45pt;text-align:right; margin-top:0; margin-bottom:0'>
    <font size="2">11,095&nbsp;</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><br>
  <br>
  <br>
  <br>
  <br>
  See accompanying notes</p>
  
  <hr color="#000080">
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  <p class=MsoNormal align=center style='text-align:center;line-height:-100%; margin-top:0; margin-bottom:0'><b>PARKWAY PROPERTIES, INC.<br>
  Notes to Pro Forma Consolidated Financial Statements<br>
  </b>(Unaudited)<b><br>
  <br>
  </b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 2, 2004, Parkway Properties, Inc. (&quot;Parkway&quot;) purchased Capital City Plaza, a 410,000
  square foot office building in the Buckhead submarket of Atlanta, Georgia from an unrelated party.&nbsp;
  Parkway acquired Capital City Plaza for
  a purchase price of $76.3 million plus $2.3 million in closing costs and anticipated
  capital expenditures and leasing commissions during the first two years of
  ownership.&nbsp; The purchase was funded with Parkway's existing lines of credit,
  assumption of an existing first mortgage of approximately $44 million and the
  issuance of $15.5 million in preferred membership interests to the seller.&nbsp; The mortgage matures in August 2008 and bears interest
  at 6.75%.&nbsp; In accordance with generally accepted accounting principles, the
  mortgage will be recorded at approximately $49 million to reflect the fair
  value of the financial instrument based on the rate of 3.7% on the date of
  purchase.&nbsp; The preferred membership interests pay the seller a 7% coupon rate
  and were issued to accommodate their tax planning needs.&nbsp; The seller has the
  right to redeem $5.5 million of the membership interests within six months of
  closing and $10 million of the membership interests within nine months of
  closing.&nbsp; Parkway has the right to retire the preferred interest 40 months
  after closing.&nbsp; </p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Capital City Plaza also
  includes an adjoining five-story parking garage containing 726 spaces, a
  surface parking lot containing 81 parking spaces and rights to an adjacent lot
  containing 349 parking spaces.&nbsp; The property is currently 92% leased to
  multiple customers, with three customers, Blue Cross Blue Shield of Georgia,
  Industrial Logic and Jefferson Pilot, occupying approximately 75% of the
  property.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  pro forma adjustments to the Consolidated Statement of Income for the year
  ended December 31, 2003 and three months ended March 31, 2004 set forth the
  effects of Parkway's purchase of the following buildings as if they had been
  consummated on January 1, 2003.&nbsp; </p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=1 cellspacing=0 cellpadding=0
   style='border-collapse:collapse;border:none'>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Date of</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Building</b></p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Purchase</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Maitland
    200</p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>01/29/04</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.6pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Capital
    City Plaza</p>
    </td>
    <td width=95 valign=top style='width:71.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>04/02/04</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These pro forma
  adjustments are detailed below for the year ended December 31, 2003 and three
  months ended March 31, 2004</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The effect on
  income and expenses from real estate properties is as follows (in thousands):</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;For
  the year ended December 31, 2003:</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=219 valign=top style='width:164.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Revenue</b></p>
    </td>
    <td width=208 colspan=2 valign=top style='width:156.05pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expenses</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Income From</b></p>
    </td>
    <td width=208 colspan=2 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate Owned</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate</b></p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Operating</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Depreciation</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Properties</b></p>
    </td>
    <td width=100 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Maitland
    200</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;3,824</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;1,561</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;592</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Capital
    City Plaza</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>8,510</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>4,186</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>1,852</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=113 valign=top style='width:84.8pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.05pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;12,334</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;5,747</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:15.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;2,444</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class="MsoNormal" align="right" style="margin-right: 15.1pt; margin-top: 0; margin-bottom: 0">&nbsp;</p>
  <hr color="#000080">
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  is provided by the straight-line method over the estimated useful life (40
  years for buildings and 5 - 15 years for building improvements).</p>
  
  <p class=MsoNormal style='line-height:-100%; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;For
  the three months ended March 31, 2004:<br>
  <br>
  </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=219 valign=top style='width:164.3pt;border:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Revenue</b></p>
    </td>
    <td width=208 colspan=2 valign=top style='width:156.05pt;border:none;
    border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expenses</b></p>
    </td>
   </tr>
   <tr style='page-break-inside:avoid'>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Income From</b></p>
    </td>
    <td width=208 colspan=2 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate Owned</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Real Estate</b></p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Operating</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Depreciation</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0"><b>&nbsp;</b></p>
    </td>
    <td width=113 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Properties</b></p>
    </td>
    <td width=100 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
    <td width=108 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Expense</b></p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Maitland
    200</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:21.65pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;&nbsp;&nbsp;45</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;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 class=MsoNormal style="margin-top: 0; margin-bottom: 0">Capital
    City Plaza</p>
    </td>
    <td width=113 valign=top style='width:84.8pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>1,973</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>966</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:21.65pt;text-align:right; margin-top:0; margin-bottom:0'>463</p>
    </td>
   </tr>
   <tr>
    <td width=219 valign=top style='width:164.3pt;border:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=113 valign=top style='width:84.8pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:18.95pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;2,258</p>
    </td>
    <td width=100 valign=top style='width:75.05pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:12.1pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;1,082</p>
    </td>
    <td width=108 valign=top style='width:81.0pt;border:solid windowtext 1.0pt;
    border-left:none;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=right style='margin-right:21.65pt;text-align:right; margin-top:0; margin-bottom:0'>$&nbsp;&nbsp;508</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  is provided by the straight-line method over the estimated useful life (40
  years for buildings and 5 - 15 years for building improvements).</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &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 assumed upon purchase as if in place January 1, 2003 and is detailed below
  (in thousands).</p>
  
  
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;</p>
  
  
  
  <div align=center>
  
  <table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
   style='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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=85 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=102 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=121 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Three</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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Property/Placement</b></p>
    </td>
    <td width=85 valign=top style='width:63.7pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>&nbsp;</b></p>
    </td>
    <td width=102 valign=top style='width:76.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Year Ended</b></p>
    </td>
    <td width=121 valign=top style='width:90.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Date/Rate</b></p>
    </td>
    <td width=85 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>Debt</b></p>
    </td>
    <td width=102 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>12/31/03</b></p>
    </td>
    <td width=121 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'><b>03/31/04</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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>Debt assumed in Capital City Plaza purchase</p>
    </td>
    <td width=85 valign=top style='width:63.7pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=102 valign=top style='width:76.85pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=121 valign=top style='width:90.55pt;border:none;border-right:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </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 class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;04/04&nbsp;&nbsp;&nbsp; 3.67%</p>
    </td>
    <td width=85 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>$49,073</p>
    </td>
    <td width=102 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>$1,801</p>
    </td>
    <td width=121 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 class=MsoNormal align=center style='text-align:center; margin-top:0; margin-bottom:0'>$450</p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;The
  pro forma effect of the Maitland 200 Purchase and the Capital City Plaza
  Purchase on interest expense on notes payable to banks was $1,024,000 for the
  year ended December 31, 2003 and $149,000 for the three months ended March 31,
  2004.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;The
  pro forma effect of the Capital City Plaza Purchase on dividends on preferred membership
  interests was $1,084,000 for the year ended December 31, 2003 and $271,000 for
  the three months ended March 31, 2004.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  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 class=Legal6 style='margin-left:0in;text-align:justify;text-indent:0in; margin-top:0; margin-bottom:0'><br>
  4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted net income per share for
  the year ended December 31, 2003 and three months ended March 31, 2004 was $2.79
  and $.37 respectively, based on diluted weighted average shares outstanding of 10,453,000
  and 11,095,000, respectively.</p>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro
  forma diluted net income per share for the year ended December 31, 2003 and the
  three months ended March 31, 2004 was $2.81 and $.35, respectively, based on
  diluted weighted average shares outstanding of 10,453,000 and 11,095,000,
  respectively.</p>
  
  <hr color="#000080">
  <p style="margin-top: 0; margin-bottom: 0"><br clear=all style='page-break-before:always'>
  
  
  </p>
  
  
  <p class=Legal6 align=center style='margin-left:0in;text-align:center;
  text-indent:0in; margin-top:0; margin-bottom:0'><b>FORM 8-K<br>
  <br>
  PARKWAY PROPERTIES, INC.<br>
  <br>
  SIGNATURES</b></p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><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 report to
  be signed on its behalf by the undersigned hereunto duly authorized.</p>
  
  <p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'><br>
  <br>
  </p>
  
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
   style='border-collapse:collapse'>
   <tr style='page-break-inside:avoid'>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">DATE:&nbsp;&nbsp;&nbsp;June
    14, 2004</p>
    </td>
    <td width=312 colspan=2 valign=top style='width:3.25in;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">PARKWAY
    PROPERTIES, INC.</p>
    </td>
   </tr>
   <tr>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
   </tr>
   <tr>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">BY:</p>
    </td>
    <td width=264 valign=top style='width:2.75in;border:none;border-bottom:solid windowtext 1.0pt;
    padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">/s/&nbsp;Mandy
    M. Pope</p>
    </td>
   </tr>
   <tr>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Mandy
    M. Pope, CPA</p>
    </td>
   </tr>
   <tr>
    <td width=319 valign=top style='width:239.4pt;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=48 valign=top style='width:.5in;padding:0in 5.4pt 0in 5.4pt'>
  
    <p style="margin-top: 0; margin-bottom: 0">
  
    </td>
    <td width=264 valign=top style='width:2.75in;padding:0in 5.4pt 0in 5.4pt'>
    <p class=MsoNormal style="margin-top: 0; margin-bottom: 0">Chief
    Accounting Officer</p>
    </td>
   </tr>
  </table>
  
  <p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><br>
  <br>
  </p>
  
  
  
  
  
  </div>
  
  </body>
  
  </html>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "f8k061404ccpcarmelpurchases.htm", "description": "8-K HTML FORMAT", "secsgml_size_bytes": 560439}, {"type": "8-K", "sequence": "4", "filename": "f8k061404ccpcarmelpurchases.pdf", "description": "8-K PDF FORMAT", "secsgml_size_bytes": 177000}]
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": "04861451"}, "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, DC  20549
  FORM
  8-K
  CURRENT REPORT
  Pursuant to Section 13 or
    15(d)
  of the
  Securities Exchange Act of 1934
  Date
    of Report (Date of earliest event reported):
  N/A
  PARKWAY PROPERTIES, INC.
  (Exact name of registrant as specified in its
    charter)
  Maryland
  1-11533
  74-2123597
  (State
    or other jurisdiction of
  incorporation or organization)
  (Commission File Number)
  (IRS
    Employer Identification Number)
  One Jackson Place Suite 1000
  188 East Capitol Street
  P. O. Box 24647
  Jackson, Mississippi  39225-4647
  (Address of principal
    executive offices) (Zip Code)
  Registrant's
    telephone number, including area code
  (601) 948-4091
  (Former name, former address
    and former fiscal year, if changed since last report)
  FORM 8-K
  PARKWAY PROPERTIES, INC.
  Item 5. Other Events.
  On
  November 24, 2003, Parkway Properties, Inc. ("Parkway") purchased Carmel
  Crossing, a 324,000 square foot, three-building office campus in Charlotte,
  North Carolina from an unrelated party.  The property was acquired for $41
  million plus $1.5 million in closing costs and anticipated capital expenditures
  and leasing commissions during the first two years of ownership.  The purchase
  was funded with proceeds from joint venture asset sales earlier in 2003.  Carmel
  Crossing is situated on 26 acres with 1,458 surface parking spaces.  The
  buildings were constructed in 1990, 1997 and 1998 and are currently 90% leased
  to 41 customers, with four customers, Travelers Insurance, the GSA, United
  Mortgage and Wells Fargo occupying approximately 55% of the properties.
  On April 2, 2004, Parkway purchased Capital City Plaza,
  a 410,000 square foot office building in the Buckhead submarket of Atlanta,
  Georgia from an unrelated party.  Parkway acquired Capital City Plaza for
  a purchase price of $76.3 million plus $2.3 million in closing costs and
  anticipated capital expenditures and leasing commissions during the first two
  years of ownership.  The purchase was funded with Parkway's existing lines of
  credit, assumption of an existing first mortgage of approximately $44 million
  and the issuance of $15.5 million in preferred membership interests to the
  seller.  The mortgage matures in August
  2008 and bears interest at 6.75%.  In accordance with generally accepted
  accounting principles, the mortgage will be recorded at approximately $49
  million to reflect the fair value of the financial instrument based on the rate
  of 3.7% on the date of purchase.  The preferred membership interests pay the
  seller a 7% coupon rate and were issued to accommodate their tax planning
  needs.  The seller has the right to redeem $5.5 million of the membership
  interests within six months of closing and $10 million of the membership
  interests within nine months of closing.  Parkway has the right to retire the
  preferred interest 40 months after closing.
  The Capital City Plaza also includes an adjoining
  five-story parking garage containing 726 spaces, a surface parking lot
  containing 81 parking spaces and rights to an adjacent lot containing 349
  parking spaces.  The property is currently 92% leased to multiple customers,
  with three customers, Blue Cross Blue Shield of Georgia, Industrial Logic and
  Jefferson Pilot, occupying approximately 75% of the property.
  Item
  7.  Financial Statements and Exhibits.
  (a)    Financial
    Statements
  The
    following audited financial statement of Carmel Crossing for the year ended
    December 31, 2002 is attached hereto.  Also included is the unaudited
    financial statement for the nine months ended September 30, 2003:
  Page
  Report
    of Independent Auditors
  4
  Statements
    of Rental Revenues and Direct Operating Expenses
  5
  Notes
    to Statements of Rental Revenues and Direct Operating Expenses
  6
  The
    following audited financial statement of the Capital City Plaza for the year
    ended December 31, 2003 is attached hereto.  Also included is the unaudited
    financial statement for the three months ended March 31, 2004:
  Page
  Report
    of Independent Auditors
  8
  Statements
    of Rental Revenues and Direct Operating Expenses
  9
  Notes
    to Statements of Rental Revenues and Direct Operating Expenses
  10
  (b)    Pro
    Forma Consolidated Financial Statements
  The
    following unaudited Pro Forma Consolidated Financial Statements of Parkway
    for the year ended December 31, 2002 and the nine months ended September 30,
    2003 are attached hereto:
  Page
  Pro
    Forma Consolidated Financial Statements (Unaudited)
  12
  Pro
    Forma Consolidated Balance Sheet (Unaudited) - As of September 30, 2003
  13
  Pro
    Forma Consolidated Statement of Income (Unaudited) -
  For
    the Year Ended December 31, 2002
  14
  Pro
    Forma Consolidated Statement of Income (Unaudited) -
  For
    the Nine Months Ended September 30, 2003
  15
  Notes
    to Pro Forma Consolidated Financial Statements (Unaudited)
  16
  The
    following unaudited Pro Forma Consolidated Financial Statements of Parkway
    for the year ended December 31, 2003 and the three months ended March 31,
    2004 are attached hereto:
  Page
  Pro
    Forma Consolidated Financial Statements (Unaudited)
  19
  Pro
    Forma Consolidated Balance Sheet (Unaudited) - As of March 31, 2004
  20
  Pro
    Forma Consolidated Statement of Income (Unaudited) -
  For
    the Year Ended December 31, 2003
  21
  Pro
    Forma Consolidated Statement of Income (Unaudited) -
  For
    the Three Months Ended March 31, 2004
  22
  Notes
    to Pro Forma Consolidated Financial Statements (Unaudited)
  23
  (c)    Exhibits
  (23.1)  Consent
    of Ernst & Young LLP
  (23.2)  Consent
    of Ernst & Young LLP
  Report of Independent Auditors
  The Board of Directors
  Parkway Properties, Inc.
  We have audited the accompanying statement of rental revenues and direct
  operating expenses of Carmel Crossing for the year ended December 31, 2002.  This statement is the
  responsibility of management.  Our responsibility is to express an opinion on
  this statement based on our audit.
  We conducted our audit in accordance with auditing standards generally accepted
  in the 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.  An
  audit includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the statement.  An audit also includes assessing the basis of
  accounting and accounting principles used and significant estimates made by
  management, as well as evaluating the overall statement presentation.  We
  believe that our audit provides a reasonable basis for our opinion.
  The accompanying statements were 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 are not
  intended to be a complete presentation of Carmel Crossing's revenues and
  expenses.
  In our opinion, the statement of rental revenue 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 Carmel Crossing
  for the year ended December
   31, 2002, in
  conformity with accounting principles generally accepted in the United States.
  Ernst & Young LLP
  New
  Orleans, Louisiana
  May 14,
  2004
  Carmel Crossing
  Statements of Rental Revenues
  and Direct Operating Expenses
  (in thousands)
  Year Ended
  Nine Months
    Ended
  December 31,
    2002
  September 30,
     2003
  (unaudited)
  Rental revenues:
  Minimum
    rents
  $  4,905
  $  4,045
  Reimbursed
    charges
  94
  15
  Other
    income
  76
  33
  5,075
  4,093
  Direct operating expenses:
  Administrative
    and miscellaneous expenses
  81
  24
  Salaries
    and wages
  107
  101
  Utilities
  392
  310
  Janitorial
    services and supplies
  226
  166
  Maintenance
    services and supplies
  230
  181
  Security
  41
  27
  Management
    fees
  194
  165
  Real
    estate taxes
  444
  350
  1,715
  1,324
  Excess of rental revenues over
    direct operating expenses
  $  3,360
  $  2,769
  See report of
  independent auditors and accompanying notes.
  Carmel Crossing
  Notes to Statements of Rental Revenues
  and Direct Operating Expenses
  December
   31, 2002 and September 30, 2003
  1.    Organization and Significant Accounting Policies
  Description of Property
  On November 24, 2003, Parkway Properties, Inc. ("Parkway") purchased the fee
  simple interest in Carmel Crossing, a three-building office campus located at
  the intersection of Carmel Road and Highway 51 in Charlotte, North Carolina
  from an unrelated party. Carmel Crossing contains approximately 324,000
  (unaudited) net rentable square feet of office space on 26 acres with 1,458
  surface parking spaces.
  Management's Use of Estimates
  The preparation of financial statements in conformity
  with accounting principles generally accepted in the United States 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 accounted for 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 Carmel Crossing's non-cancelable operating leases
  at December 31, 2002 are as follows (in thousands):
  Year
  Amount
  2003
  $  2,638
  2004
  4,630
  2005
  3,678
  2006
  2,817
  2007
  2,643
  Thereafter
  2,892
  $19,298
  The above amounts do not include tenant reimbursements for utilities, taxes,
  insurance and common area maintenance.
  See report of independent auditors.
  As of December 31,
   2002, Carmel
  Crossing had four tenants that occupied approximately 51% of the office space,
  Travelers Insurance, the GSA, United Mortgage and Wells Fargo.
  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
  Carmel Crossing such as depreciation and mortgage interest expense.  Management
  is not aware of any material factors relating to Carmel Crossing that would
  cause the reported financial information not to be necessarily indicative of
  future operating results.
  3.     Management Fees
  Management fees of approximately 3%
  of revenues received from the operations of Carmel Crossing were paid to an
  unrelated management company.
  See report of independent auditors.
  Report of Independent Auditors
  The Board of Directors
  Parkway Properties, Inc.
  We have audited the accompanying statement of rental revenues and direct
  operating expenses of Capital City Plaza for the year ended December 31, 2003. 
  This statement is the responsibility of management.  Our responsibility is to express
  an opinion on this statement based on our audit.
  We conducted our audit in accordance with auditing standards generally accepted
  in the 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.  An
  audit includes examining, on a test basis, evidence supporting the amounts and
  disclosures in the statement.  An audit also includes assessing the basis of
  accounting and accounting principles used and significant estimates made by
  management, as well as evaluating the overall statement presentation.  We
  believe that our audit provides a reasonable basis for our opinion.
  The accompanying statements were 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 are not
  intended to be a complete presentation of Capital City Plaza's revenues and
  expenses.
  In our opinion, the statement of rental revenue 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 Capital City
  Plaza for the year ended December 31, 2003, in conformity with accounting
  principles generally accepted in the United States.
  Ernst & Young LLP
  Philadelphia,
  Pennsylvania
  February
  2, 2004
  Capital City Plaza
  Statements of Rental Revenues
  and Direct Operating Expenses
  (in thousands)
  Year Ended
  Three Months
    Ended
  December 31,
     2003
  March 31, 2004
  (unaudited)
  Rental revenues:
  Minimum
    rents
  $  5,449
  $  1,288
  Reimbursed
    charges
  2,754
  607
  Other
    income
  307
  78
  8,510
  1,973
  Direct operating expenses:
  Administrative
    and miscellaneous expenses
  510
  112
  Salaries
    and wages
  158
  46
  Utilities
  692
  173
  Janitorial
    services and supplies
  390
  100
  Operating
    and maintenance costs
  840
  136
  Security
  293
  85
  Management
    fees
  275
  44
  Real
    estate taxes
  1,028
  269
  4,186
  965
  Excess of rental revenues over
    direct operating expenses
  $  4,324
  $  1,008
  See report of
  independent auditors and accompanying notes.
  Capital City Plaza
  Notes to Statements of Rental Revenues
  and Direct Operating Expenses
  December 31, 2003 and March 31, 2004
  1.    Organization and Significant Accounting Policies
  Description of Property
  On April 2, 2004, Parkway Properties, Inc. ("Parkway")
  purchased the Capital City Plaza, a 17-story office building in the Buckhead
  submarket of Atlanta, Georgia from an unrelated party. Capital City Plaza
  contains approximately 410,000 (unaudited) net rentable square feet of office
  space.  The acquisition also includes an adjoining five-story parking garage
  containing 726 spaces, a surface parking lot containing 81 parking spaces and
  rights to an adjacent lot containing 349 parking spaces.
  Management's Use of Estimates
  The preparation of financial statements in conformity with accounting
  principles generally accepted in the United States 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 accounted for 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 Capital City Plaza's non-cancelable operating
  leases at December 31, 2003 are as follows (in thousands):
  Year
  Amount
  2004
  $  6,560
  2005
  7,597
  2006
  6,935
  2007
  6,813
  2008
  6,686
  Thereafter
  39,218
  $73,809
  The above amounts do not include tenant reimbursements for utilities, taxes,
  insurance and common area maintenance.
  See report of independent auditors.
  As of December 31, 2003, Capital City Plaza had three tenants that occupied
  approximately 75% of the office space, Blue Cross Blue Shield of Georgia,
  Industrial Logic and Jefferson Pilot.
  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 Capital
  City Plaza such as depreciation and mortgage interest expense.  Management is
  not aware of any material factors relating to Capital City Plaza that would
  cause the reported financial information not to be necessarily indicative of
  future operating results.
  3.     Management Fees
  Management fees of approximately 3%
  of revenues received from the operations of Capital City Plaza were paid to an
  unrelated management company.
  See report of independent auditors.
  PARKWAY PROPERTIES, INC.
  Pro Forma Consolidated Financial Statements
  (Unaudited)
  The following unaudited pro forma
  consolidated balance sheet as of September 30, 2003 and pro forma consolidated
  statements of income of Parkway Properties, Inc. ("Parkway") for the
  year ended December 31, 2002 and nine months ended September 30, 2003 give
  effect to the purchases by Parkway of certain properties listed below 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 the Carmel Crossing office
  campus as if it had been consummated on September 30, 2003.
  The pro forma consolidated statements
  of income set forth the effects of Parkway's purchases of the buildings listed
  below as if each had been consummated on January 1, 2002.
  Building
  Date of Purchase
  Citrus Center
  02/11/03
  Peachtree Dunwoody Pavilion
  08/28/03
  Wells Fargo Building
  09/12/03
  Carmel Crossing
  11/24/03
  In addition to the purchases listed
  above, the pro forma consolidated statement of income sets forth the effect of
  the sale of 690,000 shares of common stock on March 24, 2003 and the sale of
  the BB&T Financial Center on August 1, 2003 as if these transactions had
  occurred on January 1, 2002.
  These pro
  forma consolidated financial statements may not be indicative of the results
  that actually would have occurred if the transactions 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, 2003.
  PARKWAY PROPERTIES, INC.
  AND SUBSIDIARIES
  PRO
  FORMA CONSOLIDATED BALANCE SHEET
  September
   30, 2003
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (1)
  Parkway
  Pro Forma
  (In thousands)
  Assets
  Real
    estate related investments:
  Office
    and parking properties
  $  807,295
  $    40,950
  $  848,245
  Accumulated
    depreciation
  (109,199)
  -
  (109,199)
  698,096
  $    40,950
  739,046
  Land
    held for sale
  3,528
  -
  3,528
  Note
    receivable from Moore Building Associates LP
  5,996
  -
  5,996
  Mortgage
    loans
  863
  -
  863
  Investment
    in unconsolidated joint ventures
  20,267
  -
  20,267
  728,750
  $    40,950
  769,700
  Interest,
    rents receivable and other assets
  32,338
  -
  32,338
  Cash
    and cash equivalents
  2,924
  -
  2,924
  $  764,012
  $    40,950
  $  804,962
  Liabilities
  Notes
    payable to banks
  $    93,372
  $    40,950
  $  134,322
  Mortgage
    notes payable without recourse
  225,934
  -
  225,934
  Accounts
    payable and other liabilities
  35,411
  -
  35,411
  354,717
  $    40,950
  395,667
  Stockholders'
    Equity
  8.34%
    Series B Cumulative Convertible Preferred
  stock,
    $.001 par value, 2,142,857 shares authorized,
  1,942,857
    shares issued and outstanding
  68,000
  -
  68,000
  Series
    C Preferred stock, $.001 par value, 400,000 shares
  authorized,
    no shares issued
  -
  -
  -
  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, 65,057,143 shares
  authorized,
    10,783,908 shares issued  and outstanding
  10
  -
  10
  Excess
    stock, $.001 par value, 30,000,000 shares authorized,
  no
    shares issued
  -
  -
  -
  Common
    stock held in trust, at cost, 128,000 shares
  (4,321)
  -
  (4,321)
  Additional
    paid-in capital
  251,716
  -
  251,716
  Unearned
    compensation
  (4,592)
  -
  (4,592)
  Accumulated
    other comprehensive loss
  (51)
  -
  (51)
  Retained
    earnings
  40,557
  -
  40,557
  409,295
  -
  409,295
  $  764,012
  $    40,950
  $  804,962
  See accompanying notes
  PARKWAY PROPERTIES, INC. AND SUBSIDIARIES
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME
  FOR THE YEAR ENDED DECEMBER
   31, 2002
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (2)
  Parkway
  Pro Forma
  (In thousands, except per share data)
  Revenues
  Income
    from office and parking  properties
  $152,442
  $  15,966
  (a)
  $168,402
  Management company income
  1,197
  327
  (e)
  1,524
  Interest on note receivable from Moore Building Associates LP
  895
  -
  895
  Incentive management fee from Moore Building Associates LP
  325
  -
  325
  Other
    income and deferred gains
  401
  -
  401
  Total
    Revenues
  155,260
  16,287
  171,547
  Expenses
  Office
    and parking properties:
  Operating expense
  65,942
  7,264
  (a)
  73,206
  Interest
    expense:
  Contractual
  18,766
  389
  (c)
  19,155
  Prepayment
    expenses
  833
  -
  833
  Amortization
    of loan costs
  240
  (6)
  (c)
  234
  Depreciation
    and amortization
  27,412
  3,228
  (d)
  30,640
  Operating expense for other real estate properties
  34
  -
  34
  Interest expense on bank notes:
  Contractual
  6,055
  1,270
  (d)
  7,325
  Amortization
    of loan costs
  592
  -
  592
  Management company expenses
  416
  -
  416
  General and administrative
  5,029
  141
  (e)
  5,170
  Total Expenses
  125,319
  12,286
  137,605
  Income before equity in earnings,  gain (loss) , minority
    interest
  and
    discontinued  operations
  29,941
  4,001
  33,942
  Equity in earnings of unconsolidated joint ventures
  824
  -
  824
  Gain (loss) on sale of joint venture interest and real
    estate
  (474)
  4,195
  (e)
  3,721
  Impairment loss on office property
  (1,594)
  -
  (1,594)
  Minority interest - unit holders
  (2)
  -
  (2)
  Income before discontinued operations
  28,695
  8,196
  36,891
  Discontinued operations:
  Income from
    discontinued operations
  47
  -
  47
  Gain on sale
    of real estate from discontinued operations
  770
  -
  770
  Net income
  29,512
  8,196
  37,708
  Change in market value of interest rate swap
  1,524
  -
  1,524
  Comprehensive income
  $  31,036
  $    8,196
  $  39,232
  Net income available to common stockholders:
  Net income
  $  29,512
  $    8,196
  $  37,708
  Dividends on preferred stock
  (5,797)
  -
  (5,797)
  Dividends on convertible preferred stock
  (6,257)
  -
  (6,257)
  Net income available to common stockholders
  $  17,458
  $    8,196
  $  25,654
  Net income per common share:
  Basic:
  Income before discontinued operations
  $      1.78
  -
  $      2.48
  Discontinued operations
  .09
  -
  .08
  Net income
  $      1.87
  -
  $      2.56
  (4)
  Diluted:
  Income before discontinued operations
  $      1.75
  -
  $      2.44
  Discontinued operations
  .09
  -
  .08
  Net income
  $      1.84
  -
  $      2.52
  (4)
  Dividends per common share
  $      2.56
  -
  $      2.56
  Weighted average shares outstanding:
  Basic
  9,312
  690
  10,002
  (4)
  Diluted
  9,480
  690
  10,170
  (4)
  See accompanying notes.
  PARKWAY PROPERTIES, INC. AND SUBSIDIARIES
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME
  FOR THE NINE MONTHS ENDED SEPTEMBER 30,
  2003
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (2)
  Parkway
  Pro Forma
  (In thousands, except per share data)
  Revenues
  Income from office and parking  properties
  $ 107,107
  $  8,075
  (b)
  $115,182
  Management company income
  1,688
  (115)
  (e)
  1,573
  Interest on note receivable from Moore Building Associates LP
  613
  -
  613
  Incentive management fee from Moore Building Associates LP
  221
  -
  221
  Other income and deferred gains
  551
  -
  551
  Total Revenues
  110,180
  7,960
  118,140
  Expenses
  Office and parking properties:
  Operating expense
  47,608
  3,487
  (b)
  51,095
  Interest expense:
  Contractual
  12,063
  (348)
  (c)
  11,715
  Amortization
    of loan costs
  209
  (3)
  (c)
  206
  Depreciation and
    amortization
  20,674
  1,854
  (b)
  22,528
  Operating expense for other real estate properties
  31
  -
  31
  Interest expense on bank notes:
  Contractual
  2,138
  764
  (d)
  2,902
  Amortization
    of loan costs
  428
  -
  428
  Management company expenses
  302
  -
  302
  General and administrative
  3,184
  71
  (e)
  3,255
  Total Expenses
  86,637
  5,825
  92,462
  Income before equity in earnings, gain and
  minority interest
  23,543
  2,135
  25,678
  Equity in earnings of unconsolidated joint ventures
  1,644
  -
  1,644
  Gain  on sale of joint venture interest and real estate
  10,661
  (5,020)
  (e)
  5,641
  Minority interest - unit holders
  (2)
  -
  (2)
  Net Income
  35,846
  (2,885)
  32,961
  Change in market value of interest rate swap
  119
  -
  119
  Comprehensive income
  $  35,965
  $  (2,885)
  $  33,080
  Net income available to common stockholders:
  Net income
  $  35,846
  $  (2,885)
  $  32,961
  Original issue costs associated with redemption of preferred stock
  (2,619)
  -
  (2,6191)
  Dividends on preferred stock
  (4,152)
  -
  (4,152)
  Dividends on convertible preferred stock
  (4,673)
  -
  (4,673)
  Net income available to common stockholders
  $  24,402
  $  (2,885)
  $  21,517
  Net income per common share:
  Basic
  $      2.43
  $     2.10
  (4)
  Diluted
  $      2.35
  $     2.06
  (4)
  Dividends per common share
  $      1.95
  $     1.95
  Weighted average shares outstanding:
  Basic
  10,031
  208
  10,239
  (4)
  Diluted
  12,390
  (1,925)
  10,465
  (4)
  See accompanying notes
  PARKWAY PROPERTIES, INC.
  Notes to Pro Forma Consolidated Financial Statements
  (Unaudited)
  1.       On November 24, 2003, Parkway Properties, Inc.
  ("Parkway") purchased Carmel Crossing, a 324,000 square foot, three-building
  office campus in Charlotte, North Carolina.  The property was acquired for $41
  million plus $1.5 million in closing costs and anticipated capital expenditures
  and leasing commissions during the first two years of ownership.  The purchase
  was funded with our line of credit.  Carmel Crossing is situated on 26 acres
  with 1,458 surface parking spaces.  The buildings were constructed in 1990,
  1997 and 1998 and are currently 90% leased to 41 customers, with four
  customers, Travelers Insurance, the GSA, United Mortgage and Wells Fargo
  occupying approximately 55% of the properties.
  2.       The pro forma adjustments to the
  Consolidated Statement of Income for the year ended December 31, 2002 and nine
  months ended September 30, 2003 set forth the effects of Parkway's purchase of
  the following buildings as if they had been consummated on January 1, 2002.
  Date of
  Building
  Purchase
  Citrus Center
  02/11/03
  Peachtree
    Dunwoody Pavilion
  08/28/03
  Wells Fargo Building
  09/12/03
  Carmel
    Crossing
  11/24/03
  These
  pro forma adjustments are detailed below for the year ended December 31, 2002
  and nine months ended September 30, 2003.
  The
  effect on income and expenses from real estate properties is as follows (in
  thousands):
  (a)   For
  the year ended December
   31, 2002:
  Revenue
  Expenses
  Income From
  Real Estate Owned
  Real Estate
  Operating
  Depreciation
  Properties
  Expense
  Expense
  Citrus Center
  $    6,033
  $  2,841
  $    1,038
  Sale of BB&T Financial Center
  (4,670)
  (1,586)
  (739)
  Peachtree
    Dunwoody Pavilion
  7,273
  3,198
  1,284
  Wells Fargo Building
  2,249
  1,096
  368
  Carmel
    Crossing
  5,075
  1,715
  1,277
  $  15,960
  $  7,264
  $  3,228
  Depreciation is provided by the
  straight-line method over the estimated useful life (40 years for buildings and
  5 - 15 years for building improvements).
  (b)   For the nine
  months ended September 30, 2003:
  Revenue
  Expenses
  Income From
  Real Estate Owned
  Real Estate
  Operating
  Depreciation
  Properties
  Expense
  Expense
  Citrus Center
  $      626
  $      159
  $      193
  Sale of BB&T Financial Center
  (2,643)
  (921)
  (436)
  Peachtree
    Dunwoody Pavilion
  4,504
  2,130
  878
  Wells Fargo Building
  1,495
  795
  262
  Carmel
    Crossing
  4,093
  1,324
  957
  $   8,075
  $   3,487
  $   1,854
  Depreciation
  is provided by the straight-line method over the estimated useful life (40
  years for buildings and 5 - 15 years for building improvements).
  (c)   Pro
  forma interest expense on real estate owned reflects interest and loan cost
  amortization on non-recourse debt assumed upon purchase and the extinguishment
  of debt from the sale proceeds of the BB&T Financial Center as if in place
  January 1, 2002 and is detailed below (in thousands).
  Nine
  Property/
  Year Ended
  Months Ended
  Placement Date/Rate
  Debt
  12/31/02
  09/30/03
  Debt assumed in Citrus Center
    purchase
  02/03    6.00%
  $    21,153
  $1,269
  $    143
  Proceeds from sale of BB&T Financial
     Center
  08/03    7.30%
  (11,201)
  (886)
  (494)
  $      9,952
  $   383
  $  (351)
  (d)   The
  pro forma effect of the Citrus Center Purchase, the Wells Fargo Building
  Purchase and the Carmel Crossing Purchase on interest expense on notes payable
  to banks was $1,270,000 for the year ended December 31, 2002 and $764,000 for
  the nine months ended September 30, 2003.
  (e)   The
  pro forma effect of the sale of the BB&T Financial Center on gain on sale
  of real estate is an increase of $4,195,000 for the year ended December 31,
  2002 and a decrease of $5,020,000 for the nine months ended September 30, 2003. 
  The pro forma effect of the acquisition fee earned on the sale of the BB&T Financial
  Center on management company income is an increase of $186,000 for the year
  ended December 31, 2002 and a decrease of $186,000 for the nine months ended
  September 30, 2003.
  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, 2002 and nine months ended September 30, 2003 was
  $1.84 and $2.35, respectively, based on diluted weighted average shares
  outstanding of 9,480,000 and 12,390,000, respectively.
  Pro Forma diluted
  net income per share for the year ended December 31, 2002 and the nine months
  ended September 30, 2003 reflect the sale of 690,000 shares of common stock on
  March 24, 2003 as if the shares had been sold on January 1, 2002 and was $2.52
  and $2.06 respectively, based on pro forma diluted weighted average shares
  outstanding of 10,170,000 and 10,465,000 respectively.
  PARKWAY PROPERTIES, INC.
  Pro Forma Consolidated Financial Statements
  (Unaudited)
  The following unaudited pro forma
  consolidated balance sheet as of March 31, 2004 and pro forma consolidated
  statements of income of Parkway Properties, Inc. ("Parkway") for the
  year ended December 31, 2003 and three months ended March 31, 2004 give effect
  to the purchases by Parkway of certain properties listed below 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 the Capital City Plaza as
  if it had been consummated on March 31, 2004.
  The pro forma consolidated statements
  of income set forth the effects of Parkway's purchases of the buildings listed
  below as if each had been consummated on January 1, 2003.
  Building
  Date of Purchase
  Maitland 200
  01/29/04
  Capital City Plaza
  04/02/04
  These pro
  forma consolidated financial statements may not be indicative of the results
  that actually would have occurred if the transactions 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, 2003.
  PARKWAY PROPERTIES, INC.
  AND SUBSIDIARIES
  PRO
  FORMA CONSOLIDATED BALANCE SHEET
  March 31, 2004
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (1)
  Parkway
  Pro Forma
  (In thousands)
  Assets
  Real
    estate related investments:
  Office
    and parking properties
  $  900,928
  $    81,711
  $  982,639
  Accumulated
    depreciation
  (124,418)
  -
  (124,418)
  776,510
  81,711
  858,221
  Land
    available for sale
  3,528
  -
  3,528
  Investment
    in unconsolidated joint ventures
  20,011
  -
  20,011
  800,049
  81,711
  881,760
  Interest,
    rents receivable and other assets
  40,508
  -
  40,508
  Cash
    and cash equivalents
  1,681
  -
  1,681
  $  842,238
  $    81,711
  $  923,949
  Liabilities
  Notes
    payable to banks
  $  150,889
  $    17,147
  $  168,036
  Mortgage
    notes payable without recourse
  251,384
  49,073
  300,457
  Accounts
    payable and other liabilities
  28,407
  -
  28,407
  430,680
  66,220
  496,900
  Minority
    Interest
  Minority
    Interest - unit holders
  40
  -
  40
  Minority
    Interest - real estate partnerships
  4,015
  -
  4,015
  4,055
  -
  4,055
  Stockholders'
    Equity
  8.34%
    Series B Cumulative Convertible Preferred stock,
  $.001
    par value, 2,142,857 shares authorized,
  1,867,857
    shares issued and outstanding
  65,375
  -
  65,375
  Series
    C Preferred stock, $.001 par value, 400,000 shares authorized,
  no
    shares issued
  -
  -
  -
  8.00%
    Series D Preferred stock, $.001 par value, 2,400,000 shares
  authorized,
    issued and outstanding
  57,976
  -
  57,976
  7.00%
    Preferred membership interests
  -
  15,491
  15,491
  Common
    stock, $.001 par value, 65,057,143 shares authorized,
  10,974,187
    shares issued and outstanding
  11
  -
  11
  Excess
    stock, $.001 par value, 30,000,000 shares authorized,
  no
    shares issued
  -
  -
  -
  Common
    stock held in trust, at cost, 128,000 shares
  (4,321)
  -
  (4,321)
  Additional
    paid-in capital
  257,672
  -
  257,672
  Unearned
    compensation
  (4,437)
  -
  (4,437)
  Accumulated
    other comprehensive loss
  (40)
  -
  (40)
  Retained
    earnings
  35,267
  -
  35,267
  407,503
  15,491
  422,994
  $  842,238
  $    81,711
  $  923,949
  See accompanying notes
  PARKWAY PROPERTIES, INC. AND SUBSIDIARIES
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME
  FOR THE YEAR ENDED DECEMBER 31, 2003
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (2)
  Parkway
  Pro Forma
  (In thousands, except per share
    data)
  Revenues
  Income from office and parking  properties
  $142,196
  $  12,334
  (a)
  $154,530
  Management company income
  2,136
  -
  2,136
  Interest on note receivable from Moore Building
    Associates LP
  819
  -
  819
  Incentive management fee from Moore Building
    Associates LP
  300
  -
  300
  Other income and deferred gains
  599
  -
  599
  Total Revenues
  146,050
  12,334
  158,384
  Expenses
  Office and parking properties:
  Operating
    expense
  63,362
  5,747
  (a)
  69,109
  Interest
    expense:
  Contractual
  16,026
  1,801
  (c)
  17,827
  Amortization
    of loan costs
  293
  -
  293
  Depreciation
    and amortization
  28,030
  2,444
  (a)
  30,474
  Operating expense for other real estate properties
  37
  -
  37
  Interest expense on bank notes:
  Contractual
  2,834
  1,024
  (d)
  3,858
  Amortization
    of loan costs
  565
  -
  565
  Management company expenses
  391
  -
  391
  General and administrative
  4,201
  -
  4,201
  Total Expenses
  115,739
  11,016
  126,755
  Income before equity in earnings, gain and minority
    interest
  30,311
  1,318
  31,629
  Equity in earnings of unconsolidated joint ventures
  2,212
  -
  2,212
  Gain on sale of joint venture interests and real
    estate
  10,661
  -
  10,661
  Minority interest - unit holders
  (3)
  -
  (3)
  Net income
  43,181
  1,318
  44,499
  Change in market value of interest rate swap
  170
  -
  170
  Comprehensive income
  $  43,351
  $    1,318
  $  44,669
  Net income available to common stockholders:
  Net income
  $  43,181
  $    1,318
  $  44,499
  Original issue costs associated with redemption or
    preferred stock
  (2,619)
  -
  (2,619)
  Dividends on preferred stock
  (5,352)
  -
  (5,352)
  Dividends on preferred membership interests
  -
  (1,084)
  (e)
  (1,084)
  Dividends on convertible preferred stock
  (6,091)
  -
  (6,091)
  Net income available to common stockholders
  $  29,119
  $      234
  $  29,353
  Net income per common share:
  Basic
  $      2.85
  -
  $      2.87
  Diluted
  $      2.79
  -
  $      2.81
  Dividends per common share
  $      2.60
  -
  $      2.60
  Weighted average shares outstanding:
  Basic
  10,224
  -
  10,224
  Diluted
  10,453
  -
  10,453
  See accompanying notes.
  PARKWAY PROPERTIES, INC. AND SUBSIDIARIES
  PRO FORMA CONSOLIDATED STATEMENT OF INCOME
  FOR THE THREE MONTHS ENDED MARCH 31, 2004
  (Unaudited)
  Parkway
  Historical
  Pro Forma
  Adjustments (2)
  Parkway
  Pro Forma
  (In thousands, except per share data)
  Revenues
  Income from office and
    parking  properties
  $  36,907
  $    2,258
  (b)
  $  39,165
  Management company
    income
  406
  -
  406
  Other income and
    deferred gains
  14
  -
  14
  Total Revenues
  37,327
  2,258
  39,585
  Expenses
  Office and parking
    properties:
  Operating
    expense
  17,569
  1,082
  (b)
  18,651
  Interest
    expense:
  Contractual
  4,512
  450
  (c)
  4,962
  Prepayment
    expenses
  271
  -
  271
  Amortization
    of loan costs
  89
  -
  89
  Depreciation
    and amortization
  7,629
  508
  (b)
  8,137
  Operating expense for
    other real estate properties
  10
  -
  10
  Interest expense on
    bank notes:
  Contractual
  834
  149
  (d)
  983
  Amortization
    of loan costs
  112
  -
  112
  Management company
    expenses
  76
  -
  76
  General and
    administrative
  1,034
  -
  1,034
  Total Expenses
  32,136
  2,189
  34,325
  Income before
    equity in earnings, gain and minority interest
  5,191
  69
  5,260
  Equity in earnings of
    unconsolidated joint ventures
  743
  -
  743
  Gain on note
    receivable
  774
  -
  774
  Minority interest -
    real estate partnerships
  22
  -
  22
  Net Income
  6,730
  69
  6,799
  Change in market value
    of interest rate swap
  (40)
  -
  (40)
  Comprehensive
    income
  $    6,690
  $          69
  $   6,759
  Net income
    available to common stockholders:
  Net income
  $    6,730
  $          69
  $   6,799
  Dividends on preferred
    stock
  (1,200)
  -
  (1,471)
  Dividends on preferred
    membership interests
  -
  (271)
  (e)
  (271)
  Dividends on
    convertible preferred stock
  (1,409)
  -
  (1,409)
  Net income
    available to common stockholders
  $    4,121
  $      (202)
  $   3,919
  Net income per
    common share:
  Basic
  $      0.38
  -
  $    0.36
  Diluted
  $      0.37
  -
  $    0.35
  Dividends per
    common share
  $      0.65
  -
  $    0.65
  Weighted average
    shares outstanding:
  Basic
  10,864
  -
  10,864
  Diluted
  11,095
  -
  11,095
  See accompanying notes
  PARKWAY PROPERTIES, INC.
  Notes to Pro Forma Consolidated Financial Statements
  (Unaudited)
  1.       On April 2, 2004, Parkway Properties, Inc. ("Parkway") purchased Capital City Plaza, a 410,000
  square foot office building in the Buckhead submarket of Atlanta, Georgia from an unrelated party. 
  Parkway acquired Capital City Plaza for
  a purchase price of $76.3 million plus $2.3 million in closing costs and anticipated
  capital expenditures and leasing commissions during the first two years of
  ownership.  The purchase was funded with Parkway's existing lines of credit,
  assumption of an existing first mortgage of approximately $44 million and the
  issuance of $15.5 million in preferred membership interests to the seller.  The mortgage matures in August 2008 and bears interest
  at 6.75%.  In accordance with generally accepted accounting principles, the
  mortgage will be recorded at approximately $49 million to reflect the fair
  value of the financial instrument based on the rate of 3.7% on the date of
  purchase.  The preferred membership interests pay the seller a 7% coupon rate
  and were issued to accommodate their tax planning needs.  The seller has the
  right to redeem $5.5 million of the membership interests within six months of
  closing and $10 million of the membership interests within nine months of
  closing.  Parkway has the right to retire the preferred interest 40 months
  after closing.
  The Capital City Plaza also
  includes an adjoining five-story parking garage containing 726 spaces, a
  surface parking lot containing 81 parking spaces and rights to an adjacent lot
  containing 349 parking spaces.  The property is currently 92% leased to
  multiple customers, with three customers, Blue Cross Blue Shield of Georgia,
  Industrial Logic and Jefferson Pilot, occupying approximately 75% of the
  property.
  2.       The
  pro forma adjustments to the Consolidated Statement of Income for the year
  ended December 31, 2003 and three months ended March 31, 2004 set forth the
  effects of Parkway's purchase of the following buildings as if they had been
  consummated on January 1, 2003.
  Date of
  Building
  Purchase
  Maitland
    200
  01/29/04
  Capital
    City Plaza
  04/02/04
  These pro forma
  adjustments are detailed below for the year ended December 31, 2003 and three
  months ended March 31, 2004
  The effect on
  income and expenses from real estate properties is as follows (in thousands):
  (a)   For
  the year ended December 31, 2003:
  Revenue
  Expenses
  Income From
  Real Estate Owned
  Real Estate
  Operating
  Depreciation
  Properties
  Expense
  Expense
  Maitland
    200
  $    3,824
  $  1,561
  $     592
  Capital
    City Plaza
  8,510
  4,186
  1,852
  $  12,334
  $  5,747
  $  2,444
  Depreciation
  is provided by the straight-line method over the estimated useful life (40
  years for buildings and 5 - 15 years for building improvements).
  (b)   For
  the three months ended March 31, 2004:
  Revenue
  Expenses
  Income From
  Real Estate Owned
  Real Estate
  Operating
  Depreciation
  Properties
  Expense
  Expense
  Maitland
    200
  $     285
  $     116
  $    45
  Capital
    City Plaza
  1,973
  966
  463
  $  2,258
  $  1,082
  $  508
  Depreciation
  is provided by the straight-line method over the estimated useful life (40
  years for buildings and 5 - 15 years for building improvements).
  (c)   Pro
  forma interest expense on real estate owned reflects interest on non-recourse
  debt assumed upon purchase as if in place January 1, 2003 and is detailed below
  (in thousands).
  Three
  Property/Placement
  Year Ended
  Months Ended
  Date/Rate
  Debt
  12/31/03
  03/31/04
  Debt assumed in Capital City Plaza purchase
  04/04    3.67%
  $49,073
  $1,801
  $450
  (d)   The
  pro forma effect of the Maitland 200 Purchase and the Capital City Plaza
  Purchase on interest expense on notes payable to banks was $1,024,000 for the
  year ended December 31, 2003 and $149,000 for the three months ended March 31,
  2004.
  (e)   The
  pro forma effect of the Capital City Plaza Purchase on dividends on preferred membership
  interests was $1,084,000 for the year ended December 31, 2003 and $271,000 for
  the three months ended March 31, 2004.
  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, 2003 and three months ended March 31, 2004 was $2.79
  and $.37 respectively, based on diluted weighted average shares outstanding of 10,453,000
  and 11,095,000, respectively.
  Pro
  forma diluted net income per share for the year ended December 31, 2003 and the
  three months ended March 31, 2004 was $2.81 and $.35, respectively, based on
  diluted weighted average shares outstanding of 10,453,000 and 11,095,000,
  respectively.
  FORM 8-K
  PARKWAY PROPERTIES, INC.
  SIGNATURES
  Pursuant to the requirements of the
  Securities Exchange Act of 1934, the Registrant has duly caused this report to
  be signed on its behalf by the undersigned hereunto duly authorized.
  DATE:   June
    14, 2004
  PARKWAY
    PROPERTIES, INC.
  BY:
  /s/ Mandy
    M. Pope
  Mandy
    M. Pope, CPA
  Chief
    Accounting Officer