MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  2004 COMPARED TO 2003 60 camden transforming Same store communities are stabilized communities we have owned since January 1, 2003. Non-same store communities are stabilized communities we have acquired or developed since January 1, 2003. Development and lease-up communities are non-stabilized communities we have developed or acquired after January 1, 2003. The following table presents the components of net operating income for the years ended December 31, 2004 and 2003: Income from continuing operations increased $3.7 million, or 13.8%, from $26.8 million to $30.6 million for the years  ended December 31, 2003 and 2004, respectively. The increase in income from continuing operations was due to many factors, which included, but were not limited to, increases in property net operating income and other non-property related revenues. These increases were partially offset by increases in corporate expenses, interest expense, an impairment loss on land held for sale and decreases in income from joint ventures. Our primary financial focus for our  apartment communities is net operating income. Net operating income represents total property revenues less total  property expenses. Net operating income increased $6.6 million, or 2.8%, from $234.7 million to $241.3 million for the  years ended December 31, 2003 and 2004, respectively. See further discussion of net operating income in our discussion of “Segment Reporting” in the footnotes to our consolidated fi nancial statements. Selected weighted averages for the three years ended December 31, 2004, 2003 and 2002 are as follows: 2004 2003 2002 Average monthly property revenue per apartment home $ 748 $ 729 $ 729 Annualized total property expenses per apartment home $ 3,695 $ 3,533 $ 3,305 Weighted average number of operating apartment homes owned 100%  45,683 44,985 44,287 Weighted average occupancy, by region: West Region 95.2% 94.3% 93.3% Central Region  92.9% 92.0% 92.3% East Region 94.4% 93.0% 90.2% Total operating properties owned 100%  94.0% 92.9% 92.0% YEAR ENDED  YEAR ENDED APARTMENT HOMES  DECEMBER 31, DECEMBER 31,  CHANGE $ in thousands AT 12/31/04  2004 2003 $ %  Property revenues Same store communities  43,497  $ 379,446  $ 376,038  $  3,408  0.9% Non-same store communities  1,988  22,600  15,459  7,141  46.2 Development and lease-up communities  1,188  7,528  1,530  5,998  392.0 Dispositions/other - 533 629 (96) (15.3) Total  property  revenues  46,673   410,107   393,656   16,451  4.2 Property expenses Same store communities  43,497  156,276  151,396  4,880  3.2 Non-same store communities  1,988  8,688  6,502  2,186  33.6 Development and lease-up communities  1,188  3,269  498  2,771  556.4 Dispositions/other - 554 557 (3) (0.5) Total  property  expenses  46,673   168,787   158,953  9,834  6.2 Property net operating income Same store communities 43,497  223,170  224,642  (1,472)  (0.7) Non-same store communities 1,988  13,912  8,957  4,955  55.3 Development and lease-up communities 1,188  4,259  1,032  3,227 312.7 Dispositions/other  - (21)  72  (93) (192.2) Total property net operating income 46,673 $ 241,320 $ 234,703 $  6,617  2.8%