NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTES 25 Per Share Data Reclassifications Recent Accounting Pronouncements 3. REAL ESTATE ACQUIRED Boca Valley Plaza Countryside Cruse MarketPlace Briggs Chaney Plaza Per share data is calculated in accordance with SFAS No. 128, “Earnings Per Share.” Per share data for net income (basic and diluted) is computed using weighted average shares of common stock. Convertible limited partnership units and employee stock options are the Company’s potentially dilutive securities. For all periods presented, the convertible limited partnership units are anti-dilutive. For the years ended December 31, 2004, 2003 and 2002 the options are dilutive because the average share price of the Company’s common stock exceeded the exercise prices. The treasury share method was used to measure the effect of the dilution. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. The reclassifications have no impact on operating results previously reported. In December 2004, the FASB issued FAS No. 123 (revised 2004), “Share-Based Payment” (“FAS No. 123R”), which is a revision of FAS No. 123, “Accounting for Stock-Based Compensation.” FAS No. 123R supersedes APB Opinion No. 25, “Accounting for  Stock Issued to Employees,” and amends FAS No. 95, “Statement of Cash Flows.” FAS No. 123R requires  all share-based payments to employees, including grants of employee stock options, to be recorded as  an expense based on their fair values. The grant-date fair value of employee share options and similar instruments will be estimated using an option-pricing model adjusted for any unique characteristics of a particular instrument. If an equity award is modified after  the grant date, incremental compensation cost will be recognized in an amount equal to the excess of the fair value of the modified award over the fair value of the original award immediately before the modification. The Company already values stock option awards using the fair value method and expenses the option value over the vesting period of the options. We believe the adoption of FAS No. 123R will not have a material impact upon the Company’s financial statements. On February 13, 2004, the Company acquired Boca Valley Plaza in Boca Raton, Florida. Boca Valley Plaza is a 121,000 square foot neighborhood shopping  center on U.S. Highway 1 in South Florida. The center, constructed in 1988, is 91% leased and anchored by  a 42,000 square foot Publix supermarket. The property was acquired for a purchase price of $17.5 million, subject to the assumption of a $9.2 million mortgage (See Note 5. Mortgage Notes Payable). The mortgage assumption was treated as a non-cash acquisition in the Statement of Cash Flows. On February 17, 2004, the Company completed  the acquisition of the 142,000 square foot Safeway anchored Countryside shopping center, its fourth neighborhood shopping center investment in Loudoun County, Virginia. The center is 95% leased and was acquired for a purchase price of $29.7 million. On March 25, 2004, the Company completed the acquisition of the 79,000 square foot Publix anchored, Cruse MarketPlace located in Forsyth County, Georgia. Cruse MarketPlace was constructed in 2002 and is 97% leased. The center was purchased for $12.6 million subject to the assumption of an $8.8 million mortgage (See Note 5. Mortgage Notes Payable). The mortgage assumption was treated as a non-cash acquisition in the Statement of Cash Flows. On April 23, 2004, the Company completed the acquisition of the 197,000 square foot Safeway anchored Briggs Chaney Plaza shopping center located in Silver Spring, Maryland. The center is 94% leased and was acquired for a purchase price of $27.3 million. Basic and Diluted Shares Outstanding ( In thousands, except December 31, per share amounts) 2004 2003 2002 Weighted average  common shares  outstanding – Basic 16,154 15,591 14,865 Effect of dilutive options 57 17 22 Weighted average  common shares  outstanding – Diluted 16,211 15,608 14,887 Average Share Price $ 30.66 $ 25.77 $ 22.90