Depreciation and amortization increased from $104.7 million for 2003 to $106.2 million for 2004. This increase was primarily due to new development and capital improvements placed in service and issuance of new debt during the  past year. Gain on sale of land for the year ended December 31, 2004 included a gain of $1.6 million from the sale of 12.5 acres of  undeveloped land located in Houston as well as gains of $1.0 million from the sale of 2.1 acres of undeveloped land in  Long Beach, California. Gain on sale of land for the year ended December 31, 2003 was from the sale of 61.1 acres of  undeveloped land located in Houston. The $1.1 million impairment loss on land held for sale related to 2.4 acres of undeveloped land located in Dallas,  which was classified as held for sale during 2004. Equity in income of joint ventures decreased $2.8 million from 2003, primarily from gains recognized on sale of  properties held in joint ventures in 2003. Our portion of the gain recognized on these property sales totaled $1.4 million  during 2003. Distributions on units convertible into perpetual preferred shares decreased from $12.7 million for 2003 to $10.5 million for 2004, as a result of an amendment to the terms of the Series B preferred units which was effective beginning  December 1, 2003, as well as the redemption of $35.5 million in Series C preferred units in September, 2004. Original  issuance costs of $0.7 million were expensed in connection with the redemption of the Series C preferred units. Income from continuing operations decreased $14.2 million, or 34.5%, from $41.0 million to $26.8 million for the years  ended December 31, 2002 and 2003, respectively. The decrease in income from continuing operations was due to many  factors, which included, but were not limited to, decreases in property net operating income combined with increases  in interest costs and depreciation. Net operating income decreased $6.6 million, or 2.7%, from $241.3 million to  $234.7 million for the years ended December 31, 2002 and 2003, respectively.  Same store communities are stabilized communities we have owned since January 1, 2002. Non-same store communities are stabilized communities we have acquired or developed  since January 1, 2002. Development and lease-up communities are non-stabilized communities we have developed or acquired after January 1, 2002. Dispositions represent communities we have sold since January 1, 2002, which are not included in discontinued operations. 62 camden transforming Property revenues Same store communities  41,153 $ 350,560 $ 354,151 $ (3,591) (1.0) % Non-same store communities  3,420 34,897 24,661 10,236 41.5 Development and lease-up communities  1,324 7,569 - 7,569 - Dispositions/other - 630 8,824 (8,194) (92.9) Total property revenues  45,897 393,656 387,636 6,020 1.6 Property expenses Same store communities  41,153 141,339 133,887 7,452 5.6 Non-same store communities  3,420 13,796 9,601 4,195 43.7 Development and lease-up communities  1,324 3,396 - 3,396 - Dispositions/other - 422 2,861 (2,439) (85.2) Total property expenses  45,897 158,953 146,349 12,604 8.6 Property net operating income Same store communities  41,153 209,221 220,264 (11,043) (5.0) Non-same store communities  3,420 21,101 15,060 6,041 40.1 Development and lease-up communities  1,324 4,173 - 4,173 - Dispositions/other - 208 5,963 (5,755) (96.5) Total property net operating income  45,897 $ 234,703 $ 241,287 $ (6,584) (2.7)% YEAR ENDED  YEAR ENDED APARTMENT HOMES  DECEMBER 31, DECEMBER 31,  CHANGE $ in thousands AT 12/31/03  2003 2002 $ %  2003 COMPARED TO 2002 The following table presents the components of net operating income for the years ended December 31, 2003 and 2002: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS