FUNDS FROM OPERATIONS For the three months and years ended December 31, 2004 and 2003 (dollars in thousands, except per share amounts)

		Three Months Ended 12/31/04		Three Months Ended 12/31/03		Year Ended 12/31/04		Year Ended 12/31/03
Net income available to    common stockholders	$	24,312	$	25,056	$	90,168	$	76,722
Depreciation and    amortization:    Continuing operations		10,411		8,946		40,339		32,676
Discontinued operations		48		231		519		1,238
Depreciation of furniture,    fixtures and equipment		(31)		(28)		(117)		(114)
Gain on sales of    investment properties:
Continuing operations		(185)		--		(185)		--
Discontinued operations		(5,763)		(2,900)		(12,543)		(7,156)
Funds from operations    available to    common stockholders	$	28,792	$	31,305	$	118,181	$	103,366
Dividends paid to    common stockholders	$	26,021	$	22,030	$	97,420	$	83,842
FFO in excess of dividends	$	2,771	$	9,275	$	20,761	$	19,524
FFO per common share:
Basic	$	0.36	$	0.42	$	1.51	$	1.45
Diluted	$	0.36	$	0.42	$	1.50	$	1.45
Weighted average number of    common shares used for    computation per share:
Basic		79,301,254		74,482,314		78,518,296		71,128,282
Diluted		79,383,964		74,575,552		78,598,788		71,222,628

 

CONTRIBUTIONS BY CREST NET LEASE TO FUNDS FROM OPERATIONS For the three months and years ended December 31, 2004 and 2003 (dollars in thousands, except per share amounts)

Crest Net acquires properties with the intention of reselling them rather than holding them as investments and operating the properties. Consequently, we classify properties acquired by Crest Net as held for sale at the date of acquisition and do not depreciate them. The operations of Crest Net’s properties are classified as “income from discontinued operations, real estate acquired for resale.”

Gain on sales of real    estate acquired for resale	$	706	$	5,329	$	10,254	$	6,217
Rental revenue		352		1,266		2,303		1,698
Other revenue		--		18		1		26
Interest expense		(154)		(330)		(674)		(561)
General and administrative    expense		(105)		(230)		(464)		(566)
Property expenses		(21)		(5)		(93)		(24)
Income taxes		(180)		(1,927)		(3,480)		(2,202)
Funds from operations    contributed by Crest	$	598	$	4,121	$	7,847	$	4,588
FFO per common share,    basic and diluted	$	0.01	$	0.06	$	0.10	$	0.06
Total FFO	$	28,792		31,305		118,181		103,366
Less FFO contributed by Crest		(598)		(4,121)		(7,847)		(4,588)
FFO before Crest    contribution	$	28,194	$	27,184	$	110,334	$	98,778
FFO before Crest    contribution per    common share:    Basic	$	0.36	$	0.36	$	1.41	$	1.39
Diluted	$	0.36	$	0.36	$	1.40	$	1.39
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 on sales of investment property and extraordinary items.