Consistently, we have taken a conservative approach to our financial management, and the last three years have demonstrated that applying this key strategy will put us in the best position to leverage opportunities to the benefit of our residents, our employees and our shareholders. Our balance sheet remains strong and flexible with 89% of our assets at cost unencumbered, 89% of our debt unsecured, very manageable debt maturities over the next several years and significant capacity available under our unsecured line of credit. We were financially prepared to merge with the most attractive candidate in the multifamily space in 2005. If 2004 was a year of revitalized earnings growth and market stabilization, then 2005 is the year of transformation for Camden. MERGING EXCELLENCE Our merger with Summit Properties is another crucial step in the pursuit of our key objectives. Summit is known for high-quality, well-located apartment communities. Their East Coast presence in markets such as Washington, D.C., Southeast Florida, Atlanta, Raleigh and Charlotte expands our presence in 16 of the 20 highest projected employment growth markets in the U.S. From their geography to their smart, talented associ- ates, it is hard to imagine a better fit with our strategic objectives than Summit Properties. One of our key operating strategies is Market Balance. Instrumental to this strategy has been our goal of limiting the NOI concentration in any market to single digits. Since 1993, we have been working diligently to reduce the NOI contributions of our over-weighted markets, such as Houston, Dallas and Las Vegas and increase our exposure in other high-growth markets to achieve a portfolio with NOI contributions below 10% in every market. This merger gets us to single digit NOI concentrations in all markets in less time than we planned and on an FFO accretive basis. Not only does Summit bring an excellent East Coast portfolio to the table, but it also brings a sufficient number of premier communities in each of those markets to achieve the operating efficiencies that our core market strategy requires. Additionally, with Summit’s average asset age of six years and Camden’s 11 years, our overall asset age will be reduced to an average age of nine years. The result is a portfolio of newer, higher-quality apartment communities. transforming  camden  29 2005: CAMDEN’S TRANSFORMING 2005 is the year of transformation for Camden 2004 was a year of revitalized earnings growth and market stabilization