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## 4. PER SHARE DATA 

Basic earnings per share is computed using income from continuing operations and the weighted average number of common shares outstanding. Diluted earnings per share reflects common shares issuable from the assumed conversion of common share options and awards granted and units convertible into common shares. Only those items that have a dilutive impact on our basic earnings per share are included in diluted earnings per share. For the years ended December 31, 2004 and 2003, 1.9 million units convertible into common shares were excluded from the diluted earnings per share calculated as they were not dilutive. 

The following table presents information necessary to calculate basic and diluted earnings per share for the periods indicated: 

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## 5. DISCONTINUED OPERATIONS 

The components of net income that are presented as income from discontinued operations include net operating income, depreciation and property specific interest expense, if any. In addition, the net gain or loss on the disposal of communities is presented in discontinued operations when recognized. Communities sold or held for sale which were owned through our operating partnership have been allocated their portion of income related to common unitholders. 

During 2004, we sold one operating property, with 552 apartment homes, located in Orlando, Florida, and designated two additional operating properties, one of which is located in Tampa, Florida, and the other in Las Vegas, Nevada, totaling 886 apartment homes, as held for sale. Subsequent to December 31, 2004, the operating property located in Las Vegas was sold, and we expect the operating property located in Tampa will be sold during the second quarter of 2005. 

