48 (f) The loan is collateralized by Countryside and requires equal monthly principal and interest payments of $133,000 based upon a 25 year amortization schedule and a balloon payment of $12,231,000 at loan maturity. Principal of $165,000 was amortized during 2004. (g) The loan is collateralized by Briggs Chaney Plaza and requires equal monthly principal and interest payments of $133,000 based upon a 25 year amortization schedule and a balloon payment of $12,134,000 at loan maturity. Principal of $94,000 was amortized during 2004. (h) The loan is collateralized by Shops at Monocacy and requires equal monthly principal and interest payments of $112,000 based upon a 25 year amortization schedule and a balloon payment of $10,522,000 at loan maturity. Payments commenced February 2005. (i) The loan is collateralized by Olde Forte Village and requires equal monthly principal and interest payments of $98,000 based upon a 25 year amortization schedule and a balloon payment of $8,942,000 at loan maturity. Principal of $165,000 was amortized during 2004. (j) The loan is collateralized by Shops at Fairfax and Boulevard shopping centers and requires monthly principal and interest payments of $118,000 based upon a 22 year amortization schedule and a balloon payment of $7,577,000 at loan maturity. Principal of $318,000 was amortized during 2004. (k) The loan is collateralized by Boca Valley Plaza and requires monthly interest only payments of $52,000. A balloon payment of $9,200,000 is due at loan maturity. (l) The loan is collateralized by Cruse MarketPlace and requires equal monthly principal and interest payments of $56,000 based upon an amortization schedule of approximately 24 years and a balloon payment of $6,797,000 at loan maturity. Principal of $126,000 was amortized during 2004. (m)The $7,112,000 loan was collateralized by Kentlands Square and was repaid and retired at maturity in February 2004 using proceeds provided by a $10,200,000 increase to the loan described in (c) above. (n) The loan is an unsecured revolving credit facility totaling $125,000,000. Loan availability for working capital and general corporate uses is determined by operating income from the Company’s unencumbered properties, with a portion available only for funding qualified operating property acquisitions. Interest expense is calculated based upon the 1,2,3 or 6 month LIBOR rate 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. The line may be extended one year with payment of a fee of 1/4% at the Company’s option. There were no outstanding borrowings as of December 31, 2004. Monthly payments, if applicable, are interest only and will vary depending upon the amount outstanding and the applicable interest rate for any given month. On January 28, 2005, the Company executed a new $150,000,000 unsecured revolving credit facility to replace the $125,000,000 line. The new line has a three year term and provides for an additional one year extension at the Company’s option, subject to the Company’s satisfaction of certain conditions. (see Note 17. Subsequent Events). • limit the amount of debt so as to maintain a gross asset value in excess of liabilities of at least $250 million; • limit the amount of debt as a percentage of gross asset value (leverage ratio) to less than 60%; • limit the amount of debt so that interest coverage will exceed 2.1 to 1 on a trailing four quarter basis; and • limit the amount of debt so that interest, scheduled principal amortization and preferred dividend coverage exceeds 1.6 to 1. The December 31, 2004 and 2003 depreciation adjusted cost of properties collateralizing the  mortgage notes payable totaled $420,320,000 and $295,506,000, respectively. The Company’s credit facility requires the Company and its subsidiaries to maintain certain financial covenants. As of December 31, 2004, the material covenants required the Company, on a consolidated basis, to: As of December 31, 2004, the Company was in compliance with all such covenants. 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 placed a new $15.5 million, fixed-rate, 15-year mortgage secured by Olde Forte Plaza, acquired in July 2003. In July 2004, the Company placed a new $21.35 million, fixed-rate,  15-year mortgage secured by Countryside, acquired in February 2004. In August 2004, the Company placed  a new $21 million, fixed-rate, 15-year mortgage secured by Briggs Chaney Plaza, acquired in April 2004. In December 2004, the Company placed a new $18.75 million, fixed-rate, 15-year mortgage secured by Shops  at Monocacy, a development placed in service during MD&A MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS