18 SAUL CENTERS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) Additional Preferred Common Paid-in Accumulated (In thousands, except per share amounts) Stock Stock Capital Deficit Total Stockholders’ equity (deficit) Balance, December 31, 2001 $ -- $ 145 $ 64,564 $ (88,832) $ (24,123) Issuance of 660,779 shares of  common stock: 556,872 shares - dividend  reinvestment plan -- 6 12,469 -- 12,475  103,907 shares - employee stock  options and directors deferred stock plan -- 1 2,098 -- 2,099  Net income -- -- -- 19,566 19,566  Distributions – common stock -- -- -- (17,360) (17,360) Distributions payable  common stock ($0.39 per share) -- -- -- (5,924) (5,924) Balance, December 31, 2002 -- 152 79,131 (92,550) (13,267) Issuance of 664,651 shares of  common stock: 552,170 shares - dividend  reinvestment plan -- 6 13,697 -- 13,703 112,481 shares - employee stock  options and directors deferred  stock plan -- 1 2,314 -- 2,315 Issuance of 40,000 shares of  preferred stock 100,000 -- (3,673) -- 96,327  Net income -- -- -- 19,242 19,242  Distributions payable  preferred stock ($31.00 per share) -- -- -- (1,244) (1,244) Distributions – common stock -- -- -- (18,247) (18,247) Distributions payable  common stock ($0.39 per share) -- -- -- (6,186) (6,186) Balance, December 31, 2003 100,000 159 91,469 (98,985) 92,643  Issuance of 538,208 shares  of common stock: 497,282 shares - dividend  reinvestment plan -- 5 14,077 -- 14,082  40,928 shares - employee stock  options and directors deferred  stock plan -- -- 1,340 -- 1,340  Net income -- -- -- 26,174 26,174  Preferred stock distributions -- -- -- (6,000) (6,000) Distributions payable preferred stock ($50.00 per share) -- -- -- (2,000) (2,000) Distributions – common stock -- -- -- (18,879) (18,879) Distributions payable  common stock ($0.39 per share) -- -- -- (6,396) (6,396) Balance, December 31, 2004 $ 100,000 $ 164 $ 106,886 $ (106,086) $ 100,964  The accompanying notes are an integral part of these statements.