x                                                    Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For Quarterly Period Ended September 30, 2003

or

o                                                    Transition Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the Transition Period from ________ to ________
Commission File Number 1-11533

Parkway Properties, Inc.

(Exact name of registrant as specified in its charter)

Maryland

74-2123597

(State or other jurisdiction of

(IRS Employer Identification No.)

incorporation or organization)

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

Registrant's web site www.pky.com

(Former name, former address and former fiscal year, if changed since last report)

       Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes     x No  o

       Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).  Yes    x   No  o

       10,791,931 shares of Common Stock, $.001 par value, were outstanding as of November 5, 2003.

PARKWAY PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

September 30

December 31

2003

2002

(Unaudited)

Assets

Real estate related investments:

Office and parking properties

$            807,295 

 $            806,000 

Accumulated depreciation

(109,199)

(99,449)

698,096 

706,551 

Land available for sale                        

3,528 

3,528 

Note receivable from Moore Building Associates LP

5,996 

5,996 

Mortgage loans

863 

869 

Investment in unconsolidated joint ventures

20,267 

15,640 

728,750 

732,584 

Interest, rents receivable and other assets

32,338 

29,759 

Cash and cash equivalents

2,924 

1,594 

$            764,012 

 $            763,937 

Liabilities

Notes payable to banks

$              93,372 

 $            141,970 

Mortgage notes payable without recourse        

225,934 

209,746 

Accounts payable and other liabilities

35,411 

35,400 

354,717 

387,116 

Stockholders' Equity

8.75% Series A Preferred stock, $.001 par value, 2,760,000 shares

       authorized and 2,650,000 shares issued and outstanding in 2002

- 

            66,250 

8.34% Series B Cumulative Convertible Preferred stock, $.001 par

        value, 2,142,857 shares authorized, 1,942,857 and 2,142,857

        shares issued and outstanding in 2003 and 2002, respectively

68,000 

75,000 

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 in 2003

57,976 

- 

Common stock, $.001 par value, 65,057,143 shares authorized,

        10,783,908 and 9,385,420 shares issued and outstanding in

        2003 and 2002, respectively

10 

9 

Excess stock, $.001 par value, 30,000,000 shares authorized,

        no shares issued

- 

- 

Common stock held in trust, at cost, 128,000 shares in 2003

(4,321)

- 

Additional paid-in capital              

251,716 

199,979 

Unearned compensation

(4,592)

- 

Accumulated other comprehensive loss

(51)

 (170)

Retained earnings            

40,557 

35,753 

409,295 

376,821 

$            764,012 

 $            763,937