payable, accrued expenses and tenant security deposits in the accompanying consolidated balance sheets at their fair values of approximately $2.1 million and $6.3 million, respectively. The offsetting adjust- ments of $2.1 million and $6.3 million, respectively, were reflected as deferred losses in accumulated other comprehensive income (loss) in the stockholders’ equity section of the accompanying consolidat- ed balance sheets. Balances in accumulated other comprehensive income (loss) are recognized in earn- ings as swap payments are made. During the next twelve months, we expect to reclassify $0.9 million from accumulated other comprehensive income (loss) to interest expense. Secured notes payable consist of the following (in thousands):  Our secured notes payable generally require monthly payments of principal and interest.The total net book values of properties securing debt were $776,342,000 and $369,731,000 at December 31, 2004 and 2003, respectively.At December 31, 2004, our secured notes payable were comprised of $437.2 mil- lion and $201.7 million of fixed and variable rate debt, respectively, compared to $297.5 million and $22.5 million of fixed and variable rate debt, respectively, at December 31, 2003. Future principal payments due on secured notes payable as of December 31, 2004, are as follows (in thousands):  In February 2002, we sold 418,970 shares of our common stock. The shares were issued at a price of $39.46 per share, resulting in aggregate proceeds of approximately $16.1 million (after deducting under- writing discounts and other offering costs). In July 2002, we sold 2,000,000 shares of our common stock. The shares were issued at a price of $41.07 per share, resulting in aggregate proceeds of approximately $81.4 million (after deducting under- writing discounts and other offering costs).  (1) The weighted average interest rate is calculated based on the outstanding debt as of January 1st of each year. N O T E 7 : I S S U A N C E S O F C O M M O N S T O C K N O T E 6 : S E C U R E D N O T E S PAYA B L E December 31, 2004 2003 Secured notes payable, interest rates varying from 3.69% to 8.71%, (weighted average effective interest rate of 6.12% and 7.06% at December 31, 2004 and 2003, respectively), maturity dates ranging from September 2005 to August 2021 $ 635,432 $ 319,755 Unamortized premiums 3,514 252 Total secured notes payable $ 638,946 $ 320,007 Weighted Average Year Amount  Interest Rate (1) 2005 $ 23,227 5.67% 2006 206,889 5.69% 2007 16,709 6.35% 2008 115,514 6.30% 2009 42,210 6.89% Thereafter 230,883 6.90% Subtotal 635,432 6.12% Unamortized premiums 3,514 Total secured notes payable $ 638,946 P 37