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Depreciation and amortization increased from $104.7 million for 2003 to $106.2 million for 2004. This increase was primarily due to new development and capital improvements placed in service and issuance of new debt during the past year. 

Gain on sale of land for the year ended December 31, 2004 included a gain of $1.6 million from the sale of 12.5 acres of undeveloped land located in Houston as well as gains of $1.0 million from the sale of 2.1 acres of undeveloped land in Long Beach, California. Gain on sale of land for the year ended December 31, 2003 was from the sale of 61.1 acres of undeveloped land located in Houston. 

The $1.1 million impairment loss on land held for sale related to 2.4 acres of undeveloped land located in Dallas, which was classified as held for sale during 2004. 

Equity in income of joint ventures decreased $2.8 million from 2003, primarily from gains recognized on sale of properties held in joint ventures in 2003. Our portion of the gain recognized on these property sales totaled $1.4 million during 2003. 

Distributions on units convertible into perpetual preferred shares decreased from $12.7 million for 2003 to $10.5 million for 2004, as a result of an amendment to the terms of the Series B preferred units which was effective beginning December 1, 2003, as well as the redemption of $35.5 million in Series C preferred units in September, 2004. Original issuance costs of $0.7 million were expensed in connection with the redemption of the Series C preferred units. 

##  2003 COMPARED TO 2002 

Income from continuing operations decreased $14.2 million, or 34.5%, from $41.0 million to $26.8 million for the years ended December 31, 2002 and 2003, respectively. The decrease in income from continuing operations was due to many factors, which included, but were not limited to, decreases in property net operating income combined with increases in interest costs and depreciation. Net operating income decreased $6.6 million, or 2.7%, from $241.3 million to $234.7 million for the years ended December 31, 2002 and 2003, respectively. 

The following table presents the components of net operating income for the years ended December 31, 2003 and 2002: YEAR ENDED YEAR ENDED 

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Same store communities are stabilized communities we have owned since January 1, 2002. Non-same store communities are stabilized communities we have acquired or developed since January 1, 2002. Development and lease-up communities are non-stabilized communities we have developed or acquired after January 1, 2002. Dispositions represent communities we have sold since January 1, 2002, which are not included in discontinued operations. 

