Financial Results For the 2004 year, total revenues increased 15.3%  to $112,842,000 compared to $97,884,000 for 2003. Operating income increased 24.2% to $33,707,000 compared to $27,146,000 in 2003. Net income available to common stockholders was $18,174,000, or $1.12 per diluted share, a 2.6% per share decrease from prior year results. Increased operating income was offset by a full year of preferred stock dividends (totaling $8 million versus a partial year of $1.2 million in 2003), by increased general and administrative expenses as a result of a larger acquisition staff and by increased accounting and administrative expenses related to new Sarbanes-Oxley documentation and compliance requirements. Going into 2005, we had available cash of $34  million, a diversified capital structure and 100% of  our debt had fixed interest rates, with a weighted average remaining term of over 9.9 years. Only  $9.2 million of debt matures before 2011. We have  a new $150 million credit line with no outstanding borrowings, providing available funds for working capital requirements and for property acquisition  and development opportunities. 2004 was a year in which Saul Centers successfully completed its largest retail acquisition and development volume since going public in 1993, fully investing the proceeds from our November 2003 $100 million preferred stock offering. We invested over $120 million in operating property acquisitions and land developments, to increase our combined office and retail portfolio by more than  10%, or approximately 700,000 square feet of space. During the first quarter of 2005, we invested an additional $17.5 million to acquire the 126,000 square foot, Albertson’s anchored Palm Springs Center in Altamonte Springs, a suburb of Orlando, Florida. Our core property retail and office markets continued to be healthy, demonstrated by strong leasing activity. During 2004, we signed 147 retail leases, totaling 520,000 square feet of space. Of the leases that expired, 70% were renewed, a strong indicator that tenants wish to remain in our well located centers. At 2004 year end, our retail centers were 93.5% leased and our office properties were 95.9% leased. Long term interest rates remained at historic low  levels throughout 2004. We continued our strategy  of financing our assets with long-term debt and, during 2004, obtained $95 million of 15-year debt  at a weighted average interest rate of 5.63%. Boca Valley Plaza White Oak Broadlands Village  5 MESSAGE TO OUR SHAREHOLDERS MESSAGE