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QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2004.

OR

o

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.

For the transition period from               to               

Commission file number 1-14462

Maryland

84-1240264

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer Identification No.)

1780 South Bellaire Street
Suite 100, Denver, Colorado

80222

(Address of principal executive offices)

(Zip Code)

(303) 297-1800

(Registrant’s telephone number, including area code)

Part I

Financial Information

Item 1.

Financial Statements:

Condensed Consolidated Balance Sheets as of June 30, 2004 (unaudited)
and December 31, 2003

1

Condensed Consolidated Statements of Operations for the three and six months
ended June 30, 2004 and 2003 (unaudited)

2

Condensed Consolidated Statement of Stockholders’ Equity for the six months
ended June 30, 2004 (unaudited)

3

Condensed Consolidated Statements of Cash Flows for the six months
ended June, 2004 and 2003 (unaudited)

4

Notes to Condensed Consolidated Financial Statements (unaudited)

6

Item 2.

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

10

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

16

Item 4.

Controls and Procedures

17

Part II

Other Information

Item 1.

Legal Proceedings

18

Item 2.

Changes in Securities and Use of Proceeds

18

Item 4.

Submission of Matters to a Vote of Security Holders

18

Item 6.

Exhibits and Reports on Form 8-K

19

June 30,
2004

December 31,
2003

(unaudited)

ASSETS

Investment in real estate

Land

$

37,607,272

$

28,838,214

Buildings and improvements

226,587,118

184,519,890

Furniture, fixtures and equipment

1,144,438

799,730

Tenant improvements

11,161,115

6,144,440

Tenant leasing commissions

2,097,777

1,061,160

Intangible assets

17,657,776

11,468,120

Less: accumulated depreciation and amortization

(18,686,505

)

(12,134,025

)

Net investment in real estate

277,568,991

220,697,529

Cash and cash equivalents

2,828,615

1,477,585

Escrow deposits

8,579,577

5,778,427

Assets – held for sale

—

3,196,877

Investment in affiliate

—

1,364,032

Due from related party

—

3,371,526

Due from affiliate

—

262,347

Accounts receivable

798,768

296,377

Deferred rents receivable

2,084,806

1,401,455

Deferred financing costs, net

2,186,199

2,301,043

Prepaid expenses and other assets

829,542

353,264

Total assets

$

294,876,498

$

240,500,462

LIABILITIES

Mortgage loans and notes payable

$

176,637,287

$

158,237,661

Liabilities – held for sale

—

1,296,049

Accounts payable and accrued expenses

2,796,019

2,736,657

Accrued real estate taxes

3,034,605

3,169,183

Prepaid rents, deferred revenue and security deposits

3,244,960

2,694,335

Dividends payable

3,110,750

2,262,170

Total liabilities

188,823,621

170,396,055

MINORITY INTEREST

1,775,186

—

STOCKHOLDERS’ EQUITY

Preferred stock, $.001 par value
Authorized – 5,000,000 shares
Issued and outstanding – none

—

—

Common stock, $.001 par value
Authorized – 75,000,000 shares
Issued and outstanding – 23,928,849 and 17,401,309 shares, respectively

23,929

17,401

Capital in excess of par value

132,184,673

91,706,371

Distributions in excess of accumulated earnings

(27,930,911

)

(21,619,365

)

Total stockholders’ equity

104,277,691

70,104,407

Total liabilities and stockholders’ equity

$

294,876,498

$

240,500,462

For the three months ended
June 30,

For the six months ended
June 30,

2004

2003

2004

2003

REAL ESTATE OPERATING REVENUE

Rental revenue

$

11,402,649

$

6,680,723

$

20,996,544

$

13,229,350

REAL ESTATE OPERATING EXPENSES

Property operating expenses-