Maryland

#36-3953261

(State or other jurisdiction

(I.R.S. Employer Identification Number)

of incorporation or organization)

2901 Butterfield Road, Oak Brook, Illinois

60523

(Address of principal executive office)

(Zip code)

Part I

Page

Item 1.

Financial Statements

          Consolidated Balance Sheets

3

          Consolidated Statements of Operations

5

          Consolidated Statement of Stockholders' Equity

7

          Consolidated Statements of Cash Flows

8

          Notes to Consolidated Financial Statements

11

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

45

Item 4.

Controls and Procedures

45

Part II

Item 2.

Changes in Securities and Use of Proceeds

46

Item 6.

Exhibits and Reports on Form 8-K

          (a) Exhibits

46

          (b) Reports on Form 8-K

47

SIGNATURES

48

March 31, 2004
(unaudited)

December 31, 2003

Investment properties:

  Land

$

349,689,424

346,088,070

  Construction in progress

1,615,940

-

  Building and improvements

931,072,688

920,542,755

1,282,378,052

1,266,630,825

  Less accumulated depreciation

154,111,920

147,341,377

Net investment properties

1,128,266,132

1,119,289,448

Cash and cash equivalents

36,831,836

58,388,077

Investment in securities (net of an unrealized gain of $1,538,615 and
  $1,501,765 at March 31, 2004 and December 31, 2003, respectively)

12,400,201

12,040,689

Assets held for sale (net of accumulated depreciation of $4,953,170
  and $2,835,477 at March 31, 2004 and December 31, 2003,
  respectively)

26,926,021

14,443,761

Restricted cash

9,089,100

13,329,091

Accounts and rents receivable (net of provision for doubtful accounts
  of $3,727,024 and $2,966,275 at March 31, 2004 and December 31,
  2003, respectively)

33,697,540

30,020,794

Investment in and advances to joint venture

-

8,392,406

Deposits and other assets

9,551,638

1,941,614

Acquired above market lease intangibles (net of accumulated
  amortization of $1,134,907 and $933,811 at March 31, 2004 and
  December 31, 2003, respectively)

5,588,980

5,772,521

Acquired in-place lease intangibles (net of accumulated amortization
  of $1,059,704 and $740,796 at March 31, 2004 and December 31,
  2003, respectively)

12,440,241

10,414,375

Leasing fees (net of accumulated amortization of $1,541,345 and
  $1,368,464 at March 31, 2004 and December 31, 2003, respectively)

1,965,855

1,990,576

Loan fees (net of accumulated amortization of $5,553,393 and
  $5,096,350 at March 31, 2004 and December 31, 2003, respectively)

4,223,727

4,632,258

Total assets

$

1,280,981,271

1,280,655,610

March 31, 2004
(unaudited)

December 31, 2003

Liabilities:

  Accounts payable and accrued expenses

$

1,992,157

1,994,427

  Acquired below market lease intangibles (net of accumulated
    amortization of $1,811,359 and $1,459,136 at March 31, 2004 and
    December 31, 2003, respectively)

7,802,604

8,154,827

  Accrued interest

1,922,451

1,809,480

  Accrued real estate taxes

25,881,738

25,492,747

  Distributions payable

5,417,604

5,406,012

  Security and other deposits

2,493,566

2,485,207

  Mortgages payable

608,683,093

615,511,713

  Line of credit

135,000,000

135,000,000

  Prepaid rents and unearned income

3,837,668

3,151,431

  Liabilities associated with assets held for sale

13,687,403

7,741,868

  Other liabilities

2,265,490

2,440,372

Total liabilities

808,983,774

809,188,084

Minority interest

20,714,779

20,973,496

Redeemable common stock relating to Put Agreement (3,932,584   Shares)

35,000,000

35,000,000

Stockholders' Equity:

  Preferred stock, $.01 par value, 6,000,000 Shares authorized; none
    issued and outstanding at March 31, 2004 and December 31, 2003

-

-

  Common stock, $.01 par value, 100,000,000 Shares authorized;
    62,055,975 and 61,660,061 Shares issued and outstanding at
    March 31, 2004 and December 31, 2003, respectively

620,560

616,600

  Additional paid-in capital (net of offering costs of $58,816,092 and
    redeemable common stock relating to Put Agreement of
    $35,000,000)

596,410,068

592,169,119

  Deferred stock compensation

(36,000)

(48,000)

  Accumulated distributions in excess of net income

(182,250,525)

(178,745,454)

  Accumulated other comprehensive income

1,538,615

1,501,765

Total stockholders' equity

416,282,718

415,494,030

Commitments and contingencies

Total liabilities and stockholders' equity

$

1,280,981,271

1,280,655,610

Three months
ended
March 31, 2004

Three months
ended
March 31, 2003

Income:

  Rental income

$

33,461,451

30,280,090

  Additional rental income

14,518,903

12,374,115

  Lease termination income

-

369,819

  Interest income

152,626

126,898

  Dividend income

257,849

273,548

  Other income

417,698

113,876

48,808,527

43,538,346

Expenses:

  Professional services

215,596

81,442

  General and administrative expenses

1,461,502

1,091,856

  Bad debt expense

1,053,172

686,784

  Property operating expenses

15,267,464

14,187,349

  Interest expense

10,636,377

9,617,209

  Depreciation

8,949,508

7,991,161

  Amortization

525,380

229,413

  Acquisition cost expenses

35,561

16,383

38,144,560

33,901,597

Income from operations

10,663,967

9,636,749

Minority interest

(216,358)

(180,304)

Loss from operations of unconsolidated ventures

-

(100,298)

Income before discontinued operations

10,447,609

9,356,147

  Income from discontinued operations (including gain on sale of
    investment property of $873,073 for the three months ended
    March 31, 2004)

1,437,902

518,395

Net income

11,885,511

9,874,542

Other comprehensive income:

  Unrealized gain (loss) on investment securities, net of amounts
    realized of $289,658 and $2,299, for the three months ended
    March 31, 2004 and 2003,  respectively

36,850

(444,449)

  Comprehensive income

$

11,922,361

9,430,093

Three months ended
March 31, 2004

Three months ended
March 31, 2003

Income before discontinued operations per common share, basic   and diluted

$

.16

.14

Income from discontinued operations per common share, basic   and diluted

$

.02

.01

Net income per common share, basic and diluted

$

.18

.15

Weighted average common shares outstanding, basic

65,849,672

64,658,652

Weighted average common shares outstanding, diluted

65,852,946

64,664,106

Number of
Shares

Common
Stock

Additional
Paid-in Capital

Deferred Stock
Compensation

Accumulated
Distributions in
Excess of Net
Income

Accumulated
Other
Comprehensive
Income

Total

Balance January  1, 2004

61,660,061

$

616,600

592,169,119

(48,000)

(178,745,454)

1,501,765

415,494,030

Net income

-

-

-

-

11,885,511

-

11,885,511

Other comprehensive income 

-

-

-

-

-

36,850

36,850

Distributions declared ($.23 for the
  three months ended March 31, 2004
  per basic and diluted weighted
  average common shares outstanding)

-

-

-

-

(15,390,582)

-

(15,390,582)

Proceeds from DRP

549,641

5,497

5,738,250

-

-

-

5,743,747

Stock compensation

-

-

-

12,000

-

-

12,000

Repurchase of shares

(153,727)

(1,537)

(1,497,301)

-

-

-

(1,498,838)