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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 

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The table below summarizes the option activity for the years 2004, 2003 and 2002 

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## 11. NON-OPERATING ITEMS 

## Gain on Sale of Property 

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. 

## 12. FAIR VALUE OF FINANCIAL INSTRUMENTS 

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. 

