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Maryland	76-0594970
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

 

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Consolidated Balance Sheets as of March 31, 2005 (unaudited) and December 31, 2004	2
	Consolidated Statements of Income for the Three Months Ended
	March 31, 2005 and 2004 (unaudited)	4
	Consolidated Statements of Changes in Shareholders' Equity for the Three Months
	Ended March 31, 2005 (unaudited) and for the Year Ended December 31, 2004	5
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2005 and
	2004 (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	30
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 2.	Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities	31
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Submission of Matters to a Vote of Security Holders	32
Item 5.	Other Information	32
Item 6.	Exhibits	32

		March 31, 2005			December 31  2004
		(Unaudited)
Assets
Real estate
Land		$	29,552,752		$	28,446,210
Buildings and improvements			118,242,872			113,551,420
			147,795,624			141,997,630
Less accumulated depreciation			(16,479,294	)		(15,450,416	)
Real estate, net			131,316,330			126,547,214
Cash and cash equivalents			1,397,755			631,978
Escrows and acquisition deposits			2,320,159			4,978,362
Note receivable			652,030			655,035
Receivables
Accounts receivable, net of allowance for doubtful
accounts of $510,675 and $342,690 as of March 31, 2005
and December 31, 2004, respectively			1,098,392			1,008,621
Accrued rent receivable			2,609,683			2,594,933
Due from affiliates			3,213,160			3,300,202
Receivables, net			6,921,235			6,903,756
Deferred costs, net			2,726,154			2,797,294
Prepaid expenses and other assets			594,966			103,301
Total assets		$	145,928,629		$	142,616,940

 

 

		March 31, 2005			December 31, 2004
		(Unaudited)
Liabilities and Shareholders’ Equity
Liabilities
Notes payable		$	60,062,756		$	57,226,111
Accounts payable and accrued expenses			1,369,042			3,354,610
Due to affiliates			310,845			675,861
Tenants’ security deposits			1,101,119			1,066,147
Prepaid rent			302,604			254,765
Offering proceeds escrowed			1,137,690			1,471,696
Dividends payable			1,281,800			1,230,281
Other liabilities			1,026,914			1,019,363
Total liabilities			66,592,770			66,298,834
Minority interests of unit holders in Operating Partnership;
5,808,337 units at March 31, 2005
and December 31, 2004			36,159,437			36,489,114
Commitments and contingencies			-			-
Shareholders’ equity
Preferred shares, $0.001 par value per share; 50,000,000
shares authorized; none issued and outstanding
at March 31, 2005 and December 31, 2004			-			-
Common shares, $0.001 par value per share; 400,000,000
shares authorized; 7,443,420 and 7,010,146 issued and
outstanding at March 31, 2005 and December 31, 2004			7,443			7,010
Additional paid-in capital			49,331,505			45,527,152
Accumulated deficit			(6,162,526	)		(5,705,170	)
Total shareholders’ equity			43,176,422			39,828,992
Total liabilities and shareholders’ equity		$	145,928,629		$	142,616,940

		Three Months Ended March 31,
		2005			2004
Revenues
Rental income		$	4,777,193		$	4,431,851
Tenants’ reimbursements			1,359,938			917,700
Interest and other income			175,509			136,875
Total revenues			6,312,640			5,486,426
Expenses
Operation and maintenance			756,465			691,414
Interest expense			770,060			568,550
Real estate taxes			729,032			670,720
Insurance			104,759			127,808
Electricity, water and gas utilities			219,610