Other Resources and Liquidity Requirements  Exposure to Environmental Liabilities  We do not believe we are exposed to more than a nominal amount of credit risk in our interest rate swap agreements as our counterparties are established, well-capitalized financial institutions. In addition, we have entered into master derivative agreements with each counterparty. These master derivative agreements (all of which are on the standard International Swaps & Derivatives Association, Inc. form) define certain terms between us and each counterparty to address and minimize certain risks associated with our swap agreements, including a default by a counterparty. As of December 31, 2004 and 2003, our interest rate swap agreements have been classified at their fair values of approximately $2.1 million and $6.3 million, respectively, in accounts payable, accrued expens- es and tenant security deposits in our consolidated balance sheets.The offsetting adjustments of $2.1 mil- lion and $6.3 million, respectively, were reflected as deferred losses in accumulated other comprehensive income (loss) in the stockholders’ equity section of our consolidated balance sheets. Balances in accumu- lated other comprehensive income (loss) are recognized in earnings as swap payments are made. In June 2004, we completed a public offering of 5,185,500 shares of our 8.375% Series C cumulative redeemable preferred stock (including the shares issued upon exercise of the underwriters’ over-allot- ment option).The shares were issued at a price of $25.00 per share, resulting in aggregate proceeds of approximately $124.0 million (after deducting underwriters’ discounts and other offering costs).  In December 2004, we amended and restated our existing unsecured line of credit and unsecured term loan.The maximum permitted borrowings under the unsecured line of credit and unsecured term loan increased to $500 million and $250 million, respectively.We may in the future elect to increase commit- ments under the unsecured line of credit and unsecured term loan by up to an additional $100 million. We expect to continue meeting our short-term liquidity and capital requirements generally through our working capital and net cash provided by operating activities.We believe that the net cash provid- ed by operating activities will continue to be sufficient to enable us to make distributions necessary to continue qualifying as a REIT.We also believe that net cash provided by operating activities will be suf- ficient to fund recurring non-revenue enhancing capital expenditures, tenant improvements and leasing commissions.  We expect to meet certain long-term liquidity requirements, such as for property acquisitions, prop- erty development and redevelopment activities, scheduled debt maturities, expansions and other non- recurring capital improvements, through net cash provided by operating activities, long-term secured and unsecured indebtedness, including borrowings under the unsecured line of credit and unsecured term loan, and the issuance of additional debt and/or equity securities.  In connection with the acquisition of all of our properties, we have obtained Phase I environmental assessments to ascertain the existence of any environmental liabilities or other issues.The Phase I envi- ronmental assessments of our properties have not revealed any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of operations taken as a whole, nor are we aware of any material environmental liabilities that have occurred since the Phase I envi- ronmental assessments were completed. In addition, we carry a policy of pollution legal liability insur- ance covering exposure to certain environmental losses at all of our properties. P 13