The table below summarizes the status of the 2003 and 2004  option grants and the value of the options expensed and included in general  and administrative expense in the Consolidated Statements of Operations Stock Options  Officers Directors Total Grant date 05/23/2003 04/26/2004 04/26/2004 Total grant 220,000 122,500 30,000 372,500 Vested 55,000 -- 30,000 85,000 Exercised 20,000 -- -- 20,000 Remaining unexercised 200,000 122,500 30,000 352,500 Exercise price $ 24.91 $ 25.78 $ 25.78 Volatility 0.175 0.183 0.183 Expected life (years) 7.0 7.0 5.0 Assumed yield 7.00 % 5.75 % 5.75 % Risk-free rate 4.00 % 4.05 % 3.57 % Total value $ 332,200 $ 292,775 $ 66,600 $ 691,575 Expensed in 2003 50,000 -- -- 50,000 Expensed in 2004 83,000 50,000 66,600 199,600 To be expensed (2005-2007) 199,200 242,775 -- 441,975 2004 2003 2002 Wtd Avg Wtd Avg Wtd Avg Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1 220,000 $ 24.91 93,210 $ 20.00 180,000 $ 20.00 Granted 152,500 25.78 220,000 24.91 -- -- Exercised (20,000) 24.91 (93,210) 20.00 (86,790) 20.00 Expired/Forfeited -- -- -- -- -- -- Outstanding December 31 352,500 25.29 220,000 24.91 93,210 20.00 Exercisable at December 31 65,000 25.31 -- -- 93,210 20.00 The table below summarizes the option activity for the years 2004, 2003 and 2002 The gain on sale of property of $572,000 in 2004 represents the Company’s share of the gain recognized as a result of a condemnation of a portion of land at the Company’s White Oak shopping center for road improvements. The gain on sale of property of $182,000 in 2003 represents the gain recognized as a result of a condemnation of a portion of land at the Company’s Avenel Business Park property for improvement of an interchange on I-270, adjacent to the property. The gain on sale of property of $1,426,000 in 2002 represents the final proceeds received upon appeal of the District of Columbia’s purchase of the Company’s Park Road property as part of an assemblage of parcels for a neighborhood revitalization project. Statement of Financial Accounting Standards No. 107, “Disclosure about Fair Value of Financial Instruments,” requires disclosure about the fair value of financial instruments. The carrying values of cash and cash equivalents, accounts receivable, accounts payable  and accrued expenses are reasonable estimates of  their fair value. Based upon management’s estimate  of borrowing rates and loan terms currently available  to the Company for fixed-rate financing, the fair value  of the fixed-rate notes payable is in excess of the $453,646,000 and $357,248,000 carrying value  at December 31, 2004 and 2003, respectively. Management estimates that the fair value of these  fixed-rate notes payable, assuming long term interest rates of approximately 5.5% and 6.0%, would be approximately $474,993,000 and $386,300,000, as  of December 31, 2004 and 2003, respectively. 12. FAIR VALUE OF FINANCIAL INSTRUMENTS 11. NON-OPERATING ITEMS Gain on Sale of Property NOTES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 33