MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Our operating partnership had $100 million of 7.0% Series B Cumulative Redeemable Perpetual Preferred Units  outstanding as of December 31, 2004. Distributions on the preferred units are payable quarterly in arrears. The Series  B preferred units are redeemable beginning in 2008 by the operating partnership for cash at par plus the amount of any  accumulated and unpaid distributions. The preferred units are convertible beginning in 2013 by the holder into a fi xed  number of corresponding Series B Cumulative Redeemable Perpetual Preferred Shares. The Series B preferred units  are subordinate to present and future debt. Distributions on the Series B preferred units totaled $7.0 million and $8.4  million for the years ended December 31, 2004 and 2003, respectively. Additionally, our operating partnership had issued $53 million of 8.25% Series C Cumulative Redeemable Perpetual Preferred Units. During the third quarter of 2004, we redeemed 1.4 million Series C preferred units at their redemption  price of $25.00 per unit, or an aggregate of $35.5 million, plus accrued and unpaid distributions. In connection with the issuance of these Series C preferred units, we incurred $0.7 million in issuance costs which had been recorded as a  reduction to minority interests. These issuance costs were expensed in connection with the redemption of the Series C  preferred units. Subsequent to year end, we redeemed the remaining 0.7 million Series C preferred units at their redemption price of $25.00 per unit, or an aggregate of $17.5 million, plus accrued and unpaid distributions. In  connection with the issuance of these Series C preferred units, we incurred $0.4 million in issuance costs which had  been recorded as a reduction to minority interests. These issuance costs were expensed in January 2005 in connection  with the redemption of the Series C preferred units. Distributions on the Series C preferred units totaled $3.5 million  and $4.3 million for the years ended December 31, 2004 and 2003, respectively. The following table summarizes our known contractual obligations as of December 31, 2004: The joint ventures in which we have an interest have been funded with secured, third-party debt. We are not committed  to any additional funding on third-party debt in relation to our joint ventures. At December 31, 2004, we had a $500 million unsecured line of credit. Subsequent to year end, we entered into a  new credit agreement which increased our credit facility to $600 million, with the ability to further increase it up to $750  million. This $600 million unsecured line of credit matures in January 2008. The scheduled interest rate is based  on spreads over LIBOR or Prime. The scheduled interest rate spreads are subject to change as our credit ratings  change. Advances under the line of credit may be priced at the scheduled rates, or we may enter into bid rate loans  with participating banks at rates below the scheduled rates. These bid rate loans have terms of six months or less and  may not exceed the lesser of $300 million or the remaining amount available under the line of credit. The line of credit  provides us with additional liquidity to pursue development and acquisition opportunities as well as lower our overall  cost of funds. The line of credit is subject to customary financial covenants and limitations, with which we were in  compliance at December 31, 2004. Our line of credit provides us with the ability to issue up to $100 million in letters of credit. While our issuance of letters  of credit does not increase our borrowings outstanding under our line, it does reduce the amount available to us. At  December 31, 2004, we had outstanding letters of credit totaling $14.3 million, and had $429.7 million available under  our then existing $500 million unsecured line of credit. As an alternative to our unsecured line of credit, we from time to time borrow using competitively bid unsecured short- term notes with lenders who may or may not be a part of the unsecured line of credit bank group. Such borrowings vary  in term and pricing and are typically priced at interest rates below those available under the unsecured line of credit. 58 camden transforming Financial Flexibility Contractual Obligations in millions Total 2005 2006 2007 2008 2009 Thereafter Debt maturities $ 1,576.4 $ 2.8 $ 209.8 $164.9 $ 73.4 $ 119.8 $ 1,005.7 Non-cancelable operating lease payments 11.1 2.1 1.8 1.7 1.2 0.3 4.0 Construction contracts 21.3 21.3 - - - - - $ 1,608.8 $ 26.2 $211.6 $166.6 $ 74.6 $ 120.1 $ 1,009.7