The following table shows the computation of income per common share and dividends declared per share of common stock: We view our operations as principally one segment and the financial information disclosed herein represents all of the financial infor- mation related to our principal operating segment. As a REIT, we are not subject to federal income taxation as long as we meet a number of organizational and operational requirements and make distributions greater than or equal to 100% of our taxable income to our stockholders. Since we believe we have met these requirements and our distributions exceeded taxable income, no federal income tax provision has been reflected in the accompanying consolidated financial statements for the years ended December 31, 2003, 2002 and 2001. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate tax rates. During 2003, 2002 and 2001, we declared dividends on our common stock of $2.20, $2.00 and $1.84 per share, respectively. During 2003, 2002 and 2001, we declared dividends on our Series A preferred stock of $2.375, $2.375 and $2.375 per share, respectively. During 2003 and 2002, we declared dividends on our Series B preferred stock of $2.275 and $1.662 per share, respectively. In May 2003, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity” (“SFAS 150”), which establishes standards for how an issuer classifies and measures certain financial instruments with characteristics of both liabilities and equity. We adopted SFAS 150 in the third quarter of 2003. The adoption of SFAS 150 did not have an impact on the accompanying financial statements. In April 2003, the FASB issued Statement of Financial Accounting Standards No. 149, “Amendment of Statement 133 on Derivative Instruments and Hedging Activities” (“SFAS 149”), which amends and clarifies financial accounting and reporting for derivative instruments and hedging activities under FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging Activities”. SFAS 149, among other things, clarifies under what circumstances a contract with an initial net investment meets the characteristic of a derivative, clarifies when a derivative contains a financing component and amends the definition of an “underlying” to conform it to language used in FASB Interpretation No. 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others”. SFAS 149 is effective for contracts entered into or modified after September 30, 2003 and for hedging relationships designated after September 30, 2003. The adoption of SFAS 149 did not have an impact on the accompanying financial statements. In January 2003, the FASB issued Interpretation No. 46, “Consolidation of Variable Interest Entities” an interpretation of Accounting Research Bulletin No. 51 (“FIN 46”), which requires the consolidation of entities with respect to which an enterprise absorbs a majority of the entity’s expected losses, receives a majority of the entity’s expected residual returns, or both, as a result of ownership, contrac- tual or other financial interests in the entity. Currently, an entity is generally consolidated by an enterprise when it has a controlling financial interest through ownership of a majority voting interest in the entity. FIN 46 applies immediately to variable interest entities created after January 31, 2003 and is generally effective December 31, 2003 for variable interest entities acquired before February 1, 2003. The adoption of FIN 46 did not have an impact on the accompanying financial statements. 42 Impact of Recently Issued Accounting Standards Income Taxes Operating Segments Year Ended December 31, (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2001 Net income available to common stockholders $ 50,745 $ 31,453 $ 26,611 Weighted average shares of common stock outstanding - basic 18,993,856 17,594,228 15,953,459 Add: dilutive effect of stock options and grants 253,934 265,559 254,719 Weighted average shares of common stock outstanding - diluted 19,247,790 17,859,787 16,208,178 Net income per common share - basic $ 2.67 $ 1.79 $ 1.67 Net income per common share - diluted $ 2.64 $ 1.76 $ 1.64 Common dividends declared per share $ 2.20 $ 2.00 $ 1.84 Net Income Per Share