FUNDS FROM OPERATIONS For the three months and years ended December 31, 2003 and 2002 (dollars in thousands, except per share amounts)

		Three Months Ended 12/31/03		Three Months Ended 12/31/02		Year Ended 12/31/03		Year Ended 12/31/02
Net income available to    common stockholders	$	25,056	$	17,679	$	76,722	$	68,954
Depreciation and    amortization:    Continuing operations		9,147		7,912		33,465		30,113
Discontinued operations		30		208		449		1,114
Depreciation of furniture,    fixtures and equipment		(28)		(32)		(114)		(136)
Gain on sales of    investment properties:    Continuing operations		--		--		--		(340)
Discontinued operations		(2,660)		(813)		(6,484)		(5,957)
Funds from operations    available to    common stockholders	$	31,545	$	24,954	$	104,038	$	93,748
Dividends paid to    common stockholders	$	22,030	$	20,269	$	83,842	$	78,042
FFO in excess of dividends	$	9,515	$	4,685	$	20,196	$	15,706
FFO per common share:    Basic	$	0.85	$	0.72	$	2.93	$	2.76
Diluted		0.85		0.71		2.92		2.76
Weighted average number of    common shares used for    computation per share:
Basic		37,241,157		34,871,485		35,564,141		33,933,749
Diluted		37,287,776		34,928,294		35,611,314		33,988,157

 

FUNDS FROM OPERATIONS GENERATED BY CREST NET LEASE For the three months and years ended December 31, 2003 and 2002 (dollars in thousands, except per share amounts)

Gain on sales of real    estate acquired for resale	$	5,329	$	1,035	$	6,217	$	3,495
Rent and other revenue		1,284		161		1,724		1,422
Interest expense		(330)		(76)		(561)		(395)
General and administrative    expense		(230)		(70)		(566)		(410)
Property expenses		(5)		(13)		(24)		(117)
Income taxes		(1,927)		(230)		(2,202)		(1,247)
Funds from operations    contributed by Crest Net	$	4,121	$	807	$	4,588	$	2,748
FFO per common share,    basic and diluted	$	0.11	$	0.02	$	0.13	$	0.08
Total FFO	$	31,545		24,954		104,038		93,748
Less FFO contributed by    Crest Net		(4,121)		(807)		(4,588)		(2,748)
FFO before Crest Net    contribution	$	27,424	$	24,147	$	99,450	$	91,000
FFO before Crest Net    contribution per    common share:    Basic	$	0.74	$	0.69	$	2.80	$	2.68
Diluted		0.74		0.69		2.79		2.68
We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust's definition, as net income available to common stockholders, plus depreciation and amortization of assets uniquely significant to the real estate industry, reduced by gains and increased by losses on (i) sales of investment property and (ii) extraordinary items.