NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 27 4. MINORITY INTERESTS - HOLDERS OF CONVERTIBLE LIMITED PARTNERSHIP  UNITS IN THE OPERATING PARTNERSHIP 5. MORTGAGE NOTES PAYABLE, REVOLVING CREDIT FACILITY, INTEREST EXPENSE AND AMORTIZATION OF DEFERRED  DEBT COSTS During 2004, the Company completed new financings and refinanced several existing mortgage loans to take advantage of favorable financing terms available to  the Company. In addition, the Company assumed two mortgages securing real estate properties acquired by the Company during 2004. In February, the Company refinanced Kentlands Square with a new $10.2 million fixed-rate 15 year mortgage and assumed a $9.2 million mortgage with the acquisition of Boca Valley Plaza. In March, the Company assumed an $8.8 million mortgage with the acquisition of Cruse MarketPlace. In April 2004, the Company obtained a new $15.5 million fixed-rate 15 year mortgage secured by Olde Forte Village, acquired in July 2003. In July 2004, the Company obtained a new $21.35 million fixed-rate 15 year mortgage secured by Countryside, acquired in February 2004. In August 2004, the Company obtained a new $21 million fixed-rate 15 year mortgage secured by Briggs Chaney Plaza, acquired in April 2004. In December 2004, the Company obtained a new $18.75 million fixed-rate 15 year mortgage secured by Shops  at Monocacy, a development placed in service during the fourth quarter of 2004. Also in December 2004,  the Company obtained a new $8 million fixed-rate  14 year mortgage secured by Broadlands Village  and Broadlands Village II, a development placed in service during the fourth quarter of 2004. Saul Centers has guaranteed portions of two mortgage notes payable totaling $7,464,000, the amount of  which are considered recourse obligations to Saul Centers as of December 31, 2004. The guarantees  are expected to be released upon the completion of improvements and achievement of specified leasing thresholds at these recently developed and acquired properties. Saul Centers is also a guarantor of the revolving credit facility. The operating partnership issued a letter of credit from the revolving credit facility in the amount of $2,100,000 related to a non-recourse mortgage note to ensure completion of construction  at the recently developed Shops at Monocacy. The balance of the mortgage notes payable totaling $446,182,000 are non-recourse. The Saul Organization has a 24.1% limited partnership interest, represented by 5,199,000 convertible limited partnership units, in the Operating Partnership, as  of December 31, 2004. These convertible limited partnership units are convertible into shares of Saul Centers’ common stock, at the option of the unitholders, on a one-for-one basis, provided the  rights may not be exercised at any time that The Saul Organization beneficially owns, directly or indirectly,  in the aggregate more than 24.9% of the outstanding equity securities of Saul Centers. The limited partnership units were not convertible as of December 31, 2004 because The Saul Organization owned in excess of 24.9% of the Company’s equity securities. The impact of The Saul Organization’s 24.1% limited partnership interest in the Operating Partnership is reflected as minority interests in the accompanying consolidated financial statements. Fully converted partnership units and diluted weighted average shares outstanding for the years ended December 31, 2004, 2003 and 2002, were 21,405,000, 20,790,000 and 20,059,000, respectively. of December 31, 2004 supported line availability of $80,000,000, of which $2,100,000 had been issued under a letter of credit, leaving $77,900,000 available for working capital uses. An additional $45,000,000 was available for funding working capital and operating property acquisitions supported by the unencumbered properties’ internal cash flow growth and operating income of future acquisitions. Notes payable totaled $453,646,000 at December 31, 2004, all of which was fixed rate debt. At the prior year’s end, notes payable totaled $357,248,000, all of which was fixed rate debt. At December 31, 2004, the Company had a $125 million unsecured revolving credit facility with no outstanding borrowings. The facility  was due to mature August 2005 and required monthly interest payments, if applicable, at a rate of LIBOR plus a spread of 1.625% to 1.875% (determined by certain debt service coverage and leverage tests) or upon the bank’s reference rate at the Company’s option. On January 28, 2005, the Company replaced the line  with a new three year, $150 million unsecured revolving credit facility. (See Note 17. Subsequent Events.) Loan availability is determined by operating income from  the Company’s unencumbered properties, which, as