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

of the Securities Exchange Act of 1934

For Quarterly Period Ended March 31, 2004
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  

       10,986,965 shares of Common Stock, $.001 par value, were outstanding as of May 5, 2004.

PARKWAY PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

March 31

December 31

2004

2003

(Unaudited)

Assets

Real estate related investments:

       Office and parking properties

$              900,928 

$               844,168 

      Accumulated depreciation

(124,418)

(115,473)

776,510 

728,695 

      Land available for sale                        

3,528 

3,528 

      Note receivable from Moore Building Associates LP

- 

5,926 

      Mortgage loans

- 

861 

      Investment in unconsolidated joint ventures

20,011 

20,026 

800,049 

759,036 

Interest, rents receivable and other assets

40,508 

42,804 

Cash and cash equivalents

1,681 

468 

Liabilities

Notes payable to banks

$              150,889 

 $               110,075 

Mortgage notes payable without recourse        

251,384 

247,190 

Accounts payable and other liabilities

28,407 

37,022 

430,680 

394,287 

Minority Interest

Minority Interest - unit holders

40 

41 

Minority Interest - real estate partnerships

4,015 

- 

4,055 

41 

Stockholders' Equity

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

      value, 2,142,857 shares authorized, 1,867,857 and 2,942,857

      shares issued and outstanding in 2004 and 2003, respectively

65,375 

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,

      10,974,187 and 10,808,131 shares issued and outstanding in

      2004 and 2003, respectively

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 

252,695 

Unearned compensation

(4,437)

(4,634)

Accumulated other comprehensive loss

(40)

 - 

Retained earnings