3.15.05 Dear Shareholders, 2004 was both the most exhilarating and challenging year we have experienced since becoming a publicly traded company in 1993. Despite difficult market conditions, we maintained our focus on our 2004 objectives while preparing for a significant merger with Summit Properties. Our results are a testament to our belief that great people with shared values and the desire to be the best can drive the good to get even better. Since our IPO in 1993, we have focused on growing our share price, our earnings and our dividend. Our commitment to our shareholders is demonstrated in the progress that we have made. We have substantially increased our assets, greatly diversified our markets, and produced solid financial results year after year. Our growth has been fueled by the execution of two highly successful mergers: Paragon Group in 1997 and Oasis Residential in 1998 that increased our asset value by $1.7 billion. Our growth has also been driven by a $1.2 billion development program and the prudent recycling of capital through carefully selected acquisitions, and the disposition of non- strategic apartments and land parcels. We have transformed Camden’s operating platform from 6,000 apartment homes in Texas in 1993 to the more than 50,000 apartment homes in nine states that we operated in 2004. Our results speak for themselves. Over the last 11 years, our FFO per share has grown from $1.86 to $3.24. Our annual dividend per share has increased from $1.60 to $2.54, and at all times has been covered with operating cash flow. Our stock price has more than doubled, achieving an all-time high of $51.00 on December 31, 2004. As our history demonstrates, we operate an efficient, geographically diversified portfolio that has delivered stable earnings growth to our shareholders. Since past behavior is the best indicator of future performance, we believe that the way to maintain our leadership position within the multifamily industry is to strive to better our best performance.The effect: Camden is transforming. transforming  camden  21