Colonial Properties Trust Reports Earnings for Fourth Quarter and Year-End 2005.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE:CLP), a diversified real estate investment trust that owns a portfolio of multifamily, office and retail properties, reported results for the quarter and year-ended December 31, 2005.

Net income available to common shareholders was $76.3 million or $1.69 per fully diluted share (EPS) for the quarter, compared to $15.0 million or $0.54 per fully diluted share in the same period in 2004. The change from the previous year is primarily due to gains recognized on the sale of six regional mall assets to a newly formed joint venture. EPS for the year-ended December 31, 2005 was $5.13, compared to $1.45 for the year-ended, December 31, 2004.

Funds from operations (FFO), a widely accepted measure of REIT performance, was $52.3 million for the quarter or an increase of $12.4 million from $39.9 million in the same period a year ago. Funds from operations on a per fully diluted share/unit basis (FFOPS) was $0.93 compared to $1.05 for the fourth quarter of 2004. FFO for the year-ended December 31, 2005 increased to $177.9 million from $137.6 million for the year-ended December 31, 2004. FFOPS for the year-ended December 31, 2005 was $3.62 compared to $3.64 for the year 2004. A reconciliation of net income available to common shareholders to FFO is provided in the attached tables.

"We have delivered on our commitments in 2005," said Thomas H. Lowder, the company's chairman and chief executive officer. "With the successful completion of our merger with Cornerstone, we repositioned our portfolio toward the recovering multifamily sector. We executed transactions to capitalize on improving office fundamentals, focus our retail business on open-air shopping centers and increase our geographic concentration in top-quartile Sunbelt markets. Finally, we also delivered on our commitment to improve our leverage ratios, effectively strengthening our balance sheet. We move into 2006 poised for growth."

2005 Highlights

--Completed $1.5 billion merger with Cornerstone Realty Income Trust (Cornerstone), exceeding underwriting projections for same-property NOI growth in the portfolio;

--Realized a 5.2 percent annual increase in multifamily same-property NOI over 2004, 8.7 percent for the former CLP multifamily same-property portfolio;

--Completed a joint venture with DRA Advisors to jointly acquire CRT Properties (CRT), a focused office REIT;

--Sold ten regional malls; expected to reduce NOI contribution from malls to less than three percent in 2006;

--Cultivated diversified income stream from taxable REIT subsidiary;

--Increased geographic concentration in high-growth institutional markets to a projected 80 percent in 2006 from 56 percent in 2004;

--Improved balance sheet by reducing total leverage by approximately 500 basis points;

Highlights since the end of third quarter 2005:

Corporate:

--Initiated development projects in all divisions totaling $189 million;

--Recognized $0.04 of FFOPS and EPS from the sales of residential units; and

--Paid a dividend of $0.675 per common share/unit.

Multifamily:

--Recognized an 8.7 percent increase in same-property NOI for the fourth quarter of 2005 for the combined CLP and former Cornerstone portfolio compared to the same period in the prior year;

--Increased same-property NOI by 13.8 percent for the fourth quarter of 2005 for the former CLP same-property multifamily portfolio compared to the same period in 2004, the ninth consecutive quarter of year-over-year same-property NOI growth for Colonial Properties' multifamily division;

--Realized 5.3 percent increase in same-property NOI for the fourth quarter of 2005 for the former Cornerstone portfolio compared to the same period in the prior year;

--Reported occupancy of 95.3 percent for stabilized properties for the combined multifamily portfolio, and occupancy of 96.5 percent for the combined same-property portfolio, an increase of 130 basis points over fourth quarter of 2004;

--Acquired four class A properties in top-quartile Sunbelt markets totaling 1,157 units;

--Sold nine multifamily properties, eight located in Texas totaling 2,458 units, and one located in North Carolina with 200 units, for $111.6 million during the fourth quarter;

--Sold seven multifamily properties totaling 1,534 units for $101 million in January 2006.

The multifamily dispositions through January 2006 complete the larger transaction initiated in March of 2005 focused on improving the age and quality of the company's multifamily portfolio. Including the January 2006 dispositions, the company sold 8,399 units with an average age of 18 years for a total sales price of $479.6 million, representing a 6.5 percent capitalization rate.

Office:

--Reported a 0.8 percent increase in NOI on a same-property basis for the fourth quarter 2005 compared to fourth quarter 2004;

--Posted occupancy on stabilized properties of 91.3 percent, including the former CRT assets with occupancy of 86.4 percent; reported occupancy on same-property portfolio of 94.9 percent, a 30 basis point increase over the previous quarter and a 300 basis point increase over the fourth quarter, 2004;

--Improved occupancy on former CRT assets from 84.6 percent at completion of the acquisition in September 2005 to 86.7 percent as of today.

Retail:

--Realized an increase of two percent in NOI on a same-property basis for the fourth quarter compared to the fourth quarter of 2004;

--Posted occupancy for stabilized properties of 92.2 percent, a 80 basis point increase over year-end 2004 and occupancy for the same-property portfolio of 90.6 percent, a 210 basis point increase over the same period in the prior year; and

--Sold six regional malls representing 3.7 million square feet to a joint venture with the Babcock & Brown/GPT Group for a total sales price of $362 million.

Portfolio Overview - As of December 31, 2005

Multifamily: The company owns or manages 46,537 units comprised of 115 wholly-owned properties totaling 34,272 units, and holds a partial interest in 36 properties with 10,065 units. Additionally, the company provides third-party management services for approximately 2,200 units.

Office: Colonial Properties owns or manages 20.2 million square feet of office space. The company's office portfolio includes 35 wholly-owned properties and 27 partially-owned properties that together total 19.5 million square feet. The company manages six additional office properties totaling 0.7 million square-feet.

Retail: The company owns or manages 11.5 million square feet of retail space. The portfolio includes 38 wholly-owned and ten partially-owned retail properties totaling 11.1 million square feet. The company manages an additional four retail centers with 0.4 million square feet of space.

EPS and FFO Per Share Guidance

The company's guidance for the first-quarter and full-year 2006 for fully diluted EPS and FFOPS is set forth and reconciled below:

First-Quarter 2006 Range    Full-Year 2006 Range

                          Low - High                 Low - High

Fully Diluted EPS        $0.08 - $0.16              $1.43 - $1.95

Plus: Real Estate
 Depreciation &
  Amortization             0.80 - 0.80                3.20 - 3.20

Less: Gain on Sale
 of Assets              (0.10) - (0.15)            (0.85) - (1.25)

Fully Diluted FFOPS      $0.78 - $0.81              $3.78 - $3.90

"We expect FFO to grow five to seven percent in 2006 from 2005. Our focus is on delivering above average results in core operations with an emphasis on key operating metrics including physical occupancy and same-property revenue and NOI growth. We estimate FFO from our taxable REIT subsidiary for 2006 will be the same as in our last call: $0.50 from condominium conversions, for-sale projects and residential lot sales plus $0.10 from land, including out-parcel sales, which equals $0.60. We also have approximately $0.10 from management fees for a total of $0.70. We expect to return to a normal re-cycling program in 2006 and are excited about our pipeline of development projects."

For additional details of disposition and investment activities, see the company's detailed Supplemental Financial Highlights available on the company's website.

Conference Call and Supplemental Materials

The company will hold its quarterly conference call Tuesday, January 31 at 1:00 pm Central Time. The call will include a review of the company's fourth quarter and year-end performance and discussion of the company's strategy and expectations for the future.

To participate, dial 1-877-500-9123. As with previous calls, a replay will be available for one week by dialing 1-800-642-1687; the Conference ID will be 3530180. Access to the live call and a replay will be available through the company's website at www.colonialprop.com under "Investor Relations: Shareholder Information."

Colonial Properties produces a supplemental information package that provides detailed information regarding operating performance, investing activities and the company's overall financial position. For a copy of Colonial Properties' detailed Supplemental Financial Highlights, please visit the Company's website at www.colonialprop.com under the "Investor Relations: Financial Reporting" tab or contact Barbara Pooley in Investor Relations at 800-645-3917.

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. The company has a total market capitalization of approximately $5.6 billion. As of Dec., 31, the company owns or manages 46,537 apartment units, 20.2 million square feet of office space and 11.5 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the cost and availability of new debt financings; volatility of interest rates or capital market conditions; effect of any terrorist activity; or other factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the company assumes no liability to update the information in this press release.

The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Business-Risk Factors" in the company's Annual Report on Form 10-K for the year-ended December 31, 2004, which discuss these and other factors that could adversely affect the company's results.

COLONIAL PROPERTIES TRUST
                         Financial Statements
                          Fourth Quarter 2005

--------------------------------------------------------------------
BALANCE SHEET
--------------------------------------------------------------------
 ($ in 000s)                                      As of       As of
                                               12/31/2005  12/31/2004
                                               ----------- -----------
ASSETS
Real Estate Assets
----------------------------------------------
   Operating Properties                       $ 3,957,289 $ 2,696,304
   Undeveloped Land & Construction in Progress    202,052     158,954
                                               ----------- -----------
     Total Real Estate, before Depreciation     4,159,341   2,855,258

   Less: Accumulated Depreciation                (453,365)   (437,635)
   Real Estate Assets Held for Sale, net          367,372     167,712
                                               ----------- -----------

     Net Real Estate Assets                     4,073,348   2,585,335

 Cash and Equivalents                              30,615      10,725
 Restricted Cash                                    8,142       2,333
 Accounts Receivable, net                          28,543      20,642
 Notes Receivable                                  36,387         906
 Prepaid Expenses                                  19,549      11,238
 Deferred Debt and Lease Costs                     50,436      36,750
 Investment in Unconsolidated Subsidiaries        123,700      65,472
 Other Assets                                     128,538      67,942
                                               ----------- -----------

   Total Assets                               $ 4,499,258 $ 2,801,343
                                               =========== ===========

 LIABILITIES
Long-Term Liabilities
----------------------------------------------
   Unsecured Credit Facility                  $   210,228 $   239,970
   Notes and Mortgages Payable                  2,274,620   1,615,817
   Mortgages Payable Related to Real Estate
    Assets Held for Sale                            9,502           -
                                               ----------- -----------
     Total Long-Term Liabilities                2,494,350   1,855,787

 Other Liabilities                                138,861      74,548
                                               ----------- -----------
   Total Liabilities                            2,633,211   1,930,335
                                               ----------- -----------

 MINORITY INTEREST & EQUITY

 Limited Partners' Interest in Consolidated
  Partnership                                       8,094       1,389

 Preferred Shares and Units, at Liquidation
  Value
----------------------------------------------
   Series B 7 1/4%, Preferred Units               100,000     100,000
   Series C 9 1/4%, Preferred Shares               50,000      50,000
   Series D 8 1/8%, Preferred Shares              125,000     125,000
   Series E 7 5/8%, Preferred Shares              133,159           -
                                               ----------- -----------
     Total Preferred Shares and Units, at
      Liquidation Value                           408,159     275,000

 Common Equity, including Minority Interest in
  Operating Partnership                         1,449,794     594,619
                                               ----------- -----------
   Total Equity, including Minority Interest    1,866,047     871,008
                                               ----------- -----------

 Total Liabilities and Equity                 $ 4,499,258 $ 2,801,343
                                               =========== ===========


----------------------------------------------
 SHARES & UNITS OUTSTANDING, END OF PERIOD
--------------------------------------------------------------------
 (shares and units in 000s)                       As of       As of
                                               12/31/2005  12/31/2004
                                               ----------- -----------
 Basic
   Shares                                          44,857      27,599
   Operating Partnership Units (OP Units)          10,872      10,373
                                               ----------- -----------
   Total Shares & OP Units                         55,729      37,972

 Dilutive Common Share Equivalents                    391         341

 Diluted
   Shares                                          45,248      27,940
   Total Shares & OP Units                         56,120      38,313


                       COLONIAL PROPERTIES TRUST
                         Financial Statements
                          Fourth Quarter 2005

------------------------------------------------------------------

----------------
 CONSOLIDATED STATEMENTS OF INCOME
------------------------------------------------------------------
 ($ in 000s,
  except per
  share data)   Three Months Ended         Twelve Months Ended
                --------------------       --------------------
                 12/31/05  12/31/04         12/31/05  12/31/04
                 --------- ---------        --------- ---------
Revenue
----------------
   Minimum Rent $ 115,412 $ 72,762   58.6% $ 410,135 $ 258,802   58.5%
   Percentage
    Rent            2,187    1,514   44.5%     3,801     2,960   28.4%
   Tenant
    Recoveries      9,694    8,776   10.5%    37,579    31,016   21.2%
   Other
    Property
    Related
    Revenue         8,433    4,795   75.9%    28,752    17,531   64.0%
   Other Non-
    Property
    Related
    Revenue         4,692    3,439   36.4%    15,176     7,321  107.3%
                 --------- ---------------- --------- ----------------
     Total
      Revenue     140,418   91,286   53.8%   495,443   317,630   56.0%

Operating Expenses
----------------
   Property
    Operating
    Expenses:
     General
      Operating
      Expenses     12,006    6,473   85.5%    40,495    23,519   72.2%
     Salaries
      and
      Benefits      8,635    4,510   91.5%    29,937    15,468   93.5%
    Repairs and
     Maintenance   11,546    8,431   36.9%    43,557    30,080   44.8%
    Taxes,
     Licenses,
     and
     Insurance     14,015    8,138   72.2%    51,785    29,677   74.5%
                 --------- ---------------- --------- ----------------
  Total Property
   Operating
   Expenses        46,202   27,552   67.7%   165,774    98,744   67.9%

   General
    and
    Administrative 11,497    9,078   26.6%    42,040    27,287   54.1%
   Depreciation    37,777   22,516   67.8%   129,954    79,344   63.8%
   Amortization     7,443    3,643  104.3%    51,769     8,681  496.3%
                 --------- ---------------- --------- ----------------
     Total
      Operating
      Expenses    102,919   62,789   63.9%   389,537   214,056   82.0%
                 --------- ---------------- --------- ----------------
 Income from
  Operations       37,499   28,497   31.6%   105,906   103,574    2.3%

Other Income
 (Expense)
----------------
   Interest
    Expense       (36,815) (22,600)  62.9%  (130,636)  (77,743)  68.0%
   Interest
    Income          1,773      244  626.6%     4,460     1,064  319.2%
   Income from
    Investments    (1,964)     445 -541.3%      (886)    1,145 -177.4%
   Gain on
    Hedging
    Activities        200      245  -18.4%       698       387   80.4%
   Gain on Sale
    of Property   100,713    5,839 1624.8%   111,238     8,860 1155.5%
   Other             (728)    (415)  75.4%    (2,343)     (691) 239.1%
                 --------- ---------------- --------- ----------------
     Total Other
      Income
      (Expense)    63,179  (16,242)-489.0%   (17,469)  (66,978) -73.9%
                 --------- ---------------- --------- ----------------
 Income (Loss)
  before
  Minority
  Interest
  & Discontinued
  Operations      100,678   12,255  721.5%    88,437    36,596  141.7%

Minority Interest
----------------
   Minority
    Interest of
    limited
    partners       (2,361)    (245) 863.7%    (5,830)     (281)1974.7%
   Minority
    Interest in
    CRLP -
    Preferred      (1,813)  (1,813)   0.0%    (7,250)   (7,494)  -3.3%
   Minority
    Interest in
    CRLP -
    Common        (17,603)  (1,776) 891.2%   (11,806)   (3,879) 204.4%
                 --------- ---------------- --------- ----------------
     Total
      Minority
      Interest    (21,777)  (3,834) 468.0%   (24,886)  (11,654) 113.5%
                 --------- ---------------- --------- ----------------

 Income from
  Continuing
  Operations       78,901    8,421  837.0%    63,551    24,942  154.8%

Discontinued
 Operations
----------------
   Income from
    Discontinued
    Operations      4,765    7,925  -39.9%    16,452    23,425  -29.8%
   Gain (Loss)
    on Disposal
    of Discontinued
    Operations       (197)   6,273 -103.1%   184,410    17,574  949.3%
   Minority
    Interest in
    Discontinued
    Operations       (891)  (3,879) -77.0%   (44,772)  (11,323) 295.4%
                 --------- ---------------- --------- ----------------
 Income from
  Discontinued
  Operations        3,677   10,319  -64.4%   156,090    29,676  426.0%
                 --------- ---------------- --------- ----------------

 Net Income        82,578   18,740  340.7%   219,641    54,618  302.1%
                 --------- ---------------- --------- ----------------

 Dividends to
  Preferred
  Shareholders     (6,232)  (3,695)  68.7%   (22,391)  (14,781)  51.5%
                 --------- ---------------- --------- ----------------

 Net Income
  Available to
  Common
  Shareholders  $  76,346 $ 15,045  407.5% $ 197,250 $  39,837  395.1%
                 ========= ================ ========= ================

 Earnings per
  Share - Basic
   Continuing
    Operations  $    1.63 $   0.17    0.0% $    1.08 $    0.38  184.2%
   Discontinued
    Operations       0.08     0.37  -78.4%      4.10      1.09  276.1%
                 --------- ---------------- --------- ----------------
    EPS - Basic $    1.71 $   0.54  216.7% $    5.18 $    1.47  252.4%
                 ========= ================ ========= ================

 Earnings per
  Share - Diluted
   Continuing
    Operations  $    1.61 $   0.17    0.0% $    1.07 $    0.37  189.2%
   Discontinued
    Operations       0.08     0.37  -78.4%      4.06      1.08  275.9%
                 --------- ---------------- --------- ----------------
   EPS -Diluted $    1.69 $   0.54  213.0% $    5.13 $    1.45  253.8%
                 ========= ================ ========= ================

-------------------------


 FOURTH QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
-------------------------------------------------------------------
 ($ in 000s,
  except per
  share data)   Three Months Ended          Twelve Months Ended
               --------------------        --------------------
                12/31/05  12/31/04          12/31/05  12/31/04
                --------- ---------         --------- ---------
Net Income
 Available to
 Common
 Shareholders  $  76,346 $ 15,045   407.5% $ 197,250 $  39,837  395.1%
Minority
 Interest in
 CRLP
 (Operating Ptr
 Unitholders)     18,494    5,655   227.0%   56,578    15,202  272.2%
Minority
 Interest in
 Gain/(Loss) on
 Sale of
 Undepreciated
 Property          2,361        -              5,241         -
                --------- ---------         --------- ---------
Total             97,201   20,700   369.6%  259,069    55,039  370.7%

Adjustments -
 Consolidated
 Properties
---------------
   Depreciation
    - Real
    Estate        38,211   24,466    56.2%  135,121    90,659   49.0%
   Amortization
    - Real
    Estate         7,569    3,819    98.2%   58,029     9,482  512.0%
   Remove:
    Gain/(Loss)
    on Sale of
    Property,
    net of
    Income Tax   (98,577)  (5,610) 1657.2% (288,621)  (18,473)1462.4%
Include:
 Gain/(Loss) on
 Sale of
 Undepreciated
Property, net
 of Income Tax
 and Minority
 Interest          3,004    1,189   152.6%    8,063     3,313  143.4%
                --------- ----------------- --------- ----------------
Total
 Adjustments -
 Consolidated    (49,793)  23,864  -308.7%  (87,408)   84,981 -202.9%

Adjustments -
 Unconsolidated
 Properties
---------------
   Depreciation
    - Real
    Estate         3,826    1,649   132.0%    7,501     4,562   64.4%
   Amortization
    - Real
    Estate           965        7 13685.7%      969        89  988.8%
   Remove:
    Gain/(Loss)
    on Sale of
    Property         118   (6,267) -101.9%   (2,200)   (7,061) -68.8%
                --------- ----------------- --------- ----------------
Total
 Adjustments -
 Unconsolidated    4,909   (4,611) -206.5%    6,270    (2,410)-360.2%
                --------- ----------------- --------- ----------------

 Funds from
  Operations   $  52,317 $ 39,953    30.9% $177,931 $ 137,610   29.3%
                ========= ================= ========= ================

 FFO per Share
   Basic       $    0.94 $   1.06   -10.9% $   3.65 $    3.67   -0.7%
   Diluted     $    0.93 $   1.05   -10.8% $   3.62 $    3.64   -0.6%



Pursuant to the definition of Funds from Operations ("FFO")
adopted by the Board of Governors of the National Association of Real
Estate Investment Trusts ("NAREIT"), FFO is calculated by adjusting
net income (loss) (computed in accordance with GAAP), excluding gains
(or losses) from sales of depreciated property, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures are calculated to reflect FFO on the same basis.

The Company believes that FFO is useful to investors because it
provides an additional indicator of the Company's financial and
operating performance. This is because, by excluding the effect of
real estate depreciation and gains (or losses) from sales of
properties (all of which are based on historical costs which may be of
limited relevance in evaluating current performance), FFO can
facilitate comparison of operating performance among equity REITs. FFO
is a widely recognized measure in the Company's industry.FFO does not
represent cash generated from operating activities determined in
accordance with GAAP, and should not be considered as an alternative
to net cash flows from operating activities (determined in accordance
with GAAP), as a measure of our liquidity, or as an indicator of our
ability to make cash distributions.



-------------------------------
 FOURTH QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED
----------------------------------------------------------------------
 (shares and units in    Three Months           Twelve Months
  000s)                      Ended                   Ended
                      ------------------      ------------------
                      12/31/05 12/31/04       12/31/05 12/31/04
                      ------------------      ------------------

 Basic Shares           44,696   27,467  62.7%  38,071   27,121  40.4%
   Operating
    Partnership Units
    (OP Units)          10,872   10,323   5.3%  10,740   10,347   3.8%
                      ------------------------------------------------
   Total Shares & OP
    Units               55,568   37,790  47.0%  48,811   37,468  30.3%

 Dilutive Common Share
  Equivalents              444      372  19.4%     391      341  14.7%

 Diluted Shares         45,140   27,839  62.1%  38,462   27,462  40.1%
  Total Shares & OP
  Units                 56,012   38,162  46.8%  49,202   37,809  30.1%


----------------------
 FOURTH QUARTER SEGMENT DATA & RECONCILIATION
----------------------------------------------------------------------
                         Three Months           Twelve Months
                             Ended                   Ended
                      ------------------      ------------------
                      12/31/05 12/31/04       12/31/05 12/31/04
                      ------------------      ------------------
 Net Operating Income
  (NOI)
  Divisional Same-
   Property NOI
     Multifamily       $15,121  $13,287  13.8% $55,742  $51,302   8.7%
     Office             17,117   16,975   0.8%  67,346   67,829  -0.7%
     Retail             12,866   12,609   2.0%  46,689   45,681   2.2%
                      ------------------------------------------------
     Total Same-
      Property          45,104   42,871   5.2% 169,777  164,812   3.0%

     Less:
      Unconsolidated
      Assets            (1,066)    (989)        (3,743)  (3,492)
                      ------------------      ------------------
     Same-Property
      NOI,
      Consolidated      44,038   41,882        166,034  161,320
                      ------------------      ------------------

  Divisional Non Same-
   Property NOI
     Multifamily        33,517    9,097        111,230   23,978
     Office             12,114      838         22,929    2,118
     Retail             14,047   22,457         65,414   72,685
                      ------------------      ------------------
     Total Non-Same
      Property          59,678   32,392        199,573   98,781

     Less:
      Unconsolidated
      Assets            (7,512)  (2,454)       (14,040)  (7,119)
                      ------------------      ------------------
     Non Same-Property
      NOI,
      Consolidated      52,166   29,938        185,533   91,662
                      ------------------      ------------------

  Divisional Total NOI
     Multifamily        48,638   22,384 117.3% 166,972   75,280 121.8%
     Office             29,231   17,813  64.1%  90,275   69,947  29.1%
     Retail             26,913   35,066 -23.3% 112,103  118,366  -5.3%
                      ------------------------------------------------
     Total Divisional
      NOI              104,782   75,263  39.2% 369,350  263,593  40.1%

   Less: NOI,
    Unconsolidated      (8,578)  (3,443)       (17,784) (10,611)
   Less: Discontinued
    Operations          (6,307) (11,316)       (36,693) (41,498)
   Unallocated
    Corporate Rev        4,692    3,439         15,176    7,321
   Other Revenue
    (Expense)             (373)    (209)          (380)      81
   General &
    Administrative
    Expenses           (11,497)  (9,078)       (42,040) (27,287)
   Depreciation        (37,777) (22,516)      (129,954) (79,344)
   Amortization         (7,443)  (3,643)       (51,769)  (8,681)
                      ------------------      ------------------
   Income from
    Operations,
    restated for
    additional
    discontinued
    operations          37,499   28,497        105,906  103,574
   Total Other Income
    (Expense)           63,179  (16,242)       (17,469) (66,978)
                      ------------------      ------------------
   Income from
    Continuing
    Operations before
    Extraordinary
    Items, Minority
    Interest and
    Discontinued
    Operations,
    as restated for
    additional
    discontinued
    operations         100,678   12,255         88,437   36,596
                      ------------------      ------------------

   Add: Discontinued
    Operations Income,
    post 4Q 2004             -   (3,511)             -   (2,948)
                      ------------------      ------------------
   Income from
    Continuing
    Operations before
    Extraordinary
    Items, Minority
    Interest and
    Discontinued
    Operations, per
    corresponding
    10-K or 10-Q      $100,678   $8,744        $88,437  $33,648
                      ==================      ==================



Divisional NOI is defined as total property revenues, including
unconsolidated partnerships and joint ventures, less real estate
expenses (such items as repairs and maintenance, payroll, utilities,
property taxes, insurance, advertising, management fees).

The Company believes Total Divisional NOI (and other NOI measures
aggregating segment data) is useful to investors as a meaningful
indicator of property level operating performance and current market
conditions affecting the Company . Additionally, the Company also
believes Total Divisional NOI (and such other NOI measures) is useful
to investors because NOI is commonly used industry-wide to evaluate
and compare property level operating results of real estate companies,
allowing investors to view the Company in comparison to these other
real estate companies. The Company cautions investors that other real
estate companies may calculate Total Divisional NOI on a basis
different than the Company. In addition, Total Divisional NOI (and
such other NOI measures) should not be viewed as a substitute measure
of performance for GAAP income from continuing operations or other
applicable GAAP performance measures.