MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Our consolidated balance sheet at December 31, 2004 included $176.8 million related to wholly-owned properties  under development. Of this amount, $38.9 million relates to our two projects currently under development, Camden  Farmers Market II and Camden Lago Vista. Additionally, at December 31, 2004, we had $137.9 million invested in land  held for future development. Included in this amount is $67.6 million related to projects we expect to begin constructing  in early 2005. We also had $39.3 million invested in land tracts adjacent to development projects, which are being  utilized in conjunction with those projects. Upon completion of these development projects, we expect to utilize this  land to further develop apartment homes in these areas. We may also sell certain parcels of these undeveloped land  tracts to third parties for commercial and retail development. At December 31, 2004 and 2003, our investments in various geographic areas, excluding properties held for sale and investments in joint ventures, were as follows: in thousands 2004 2003 West Region Los Angeles/Orange County, California  $ 387,227 13% $ 387,217 13% Las Vegas, Nevada  357,049 11 382,238 12 Denver, Colorado  194,962 6 193,833 6 Phoenix, Arizona  177,072 6 175,693 6 San Diego/Inland Empire, California 135,078 4 128,860 4 Tucson, Arizona  35,724 1 35,266 1 Central Region Dallas, Texas  425,807 14 412,553 13 Houston, Texas  404,897 13 402,724 13 St. Louis, Missouri  120,020 4 118,779 4 Austin, Texas  73,782 2 72,883 2 Corpus Christi, Texas  54,781 2 49,494 2 Kansas City, Missouri  37,154 1 36,730 1 East Region Tampa, Florida  303,157 10 342,421 11 Orlando, Florida  167,194 5 171,594 5 Charlotte, North Carolina  82,877 3 82,250 3 Louisville, Kentucky  78,758 3 78,075 3 Greensboro, North Carolina  18,503 1 18,213 1 Northern Virginia  32,976 1 Total Properties $ 3,087,018 100% $ 3,088,823 100% Third-Party Construction Services Our construction division performs services for our internally developed communities, as well as provides construction  management and general contracting services for third-party owners of multifamily, commercial and retail properties.  At December 31, 2004, we were under contract on projects ranging from $0.4 million to $19.3 million. We earn fees  on these projects ranging from 3% to 12% of the total contracted construction cost, which we recognize as earned.  Fees earned from third-party construction projects totaled $3.8 million, $2.7 million and $2.7 million for the years  ended December 31, 2004, 2003 and 2002, respectively, and are included in fee and asset management revenues in our  consolidated statements of operations.  During 2004, we recorded cost overruns of $1.0 million, compared with $2.0 million for 2003, on fixed fee projects,  which represented the estimate of our remaining costs to complete the projects. These cost overruns are fi rst applied  against revenues earned on the project during the period and any excess are included in fee and asset management  expenses in our consolidated statements of operations. transforming camden 55