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## MESSAGE MESSAGE TO OUR SHAREHOLDERS 

## 2004 Acquisitions 

Early in 2004, we acquired four shopping centers. We added Publix as one of our grocery tenants with the acquisition of Boca Valley Plaza and Cruse MarketPlace. Boca Valley Plaza is a 121,000 square foot neighborhood shopping center on U.S. Highway 1 in South Florida. The center was 91% leased at year end and is anchored by a 42,000 square foot Publix supermarket. The demographics in the center’s market area are very attractive with 1-mile and 3-mile household incomes averaging $113,000 and $97,000, respectively and a population of 58,000 within 3 miles. Publix is the dominant grocer in South Florida, with an estimated grocery market share exceeding 40%. 

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The Cruse MarketPlace acquisition in suburban Atlanta has 79,000 square feet of space, including a Publix supermarket. The shopping center was 97% leased at year end. Forsyth County is one of the fastest growing counties in the country and the center’s surrounding 1-mile and 3-mile household incomes average $105,000 and $100,000, respectively. 

We acquired two Safeway anchored shopping centers in our core Washington, DC metropolitan market area. Countryside, our fourth Loudoun County property, is a 95% leased, 142,000 square foot neighborhood shopping center. The center is conveniently located along Route 7 within a planned community of 3,000 homes. No other undeveloped retail zoned land exists within this community. 

Briggs Chaney Plaza, a 197,000 square foot Safeway anchored neighborhood center in Silver Spring, Maryland, is well located on the Route 29 corridor of Montgomery County, Maryland. The center is 94% leased. Since the April acquisition of Briggs Chaney Plaza, we completed an interior renovation of 11,000 square feet of previously vacant space. We reconfigured the space into six small shops, five of which are currently leased. We are finalizing plans for a facade renovation of this shopping center, projected to be substantially completed in mid-2005. 

## 2004 Developments and Redevelopment 

During 2004, we developed and constructed Shops at Monocacy, a Giant anchored 107,000 square foot neighborhood shopping center in Frederick, Maryland. The center was substantially completed and Giant opened for business during October 2004. The property was 84% leased at year end. 

Construction of a 30,000 square foot second phase of our Broadlands Village shopping center was completed in November 2004. This phase was 96% leased at year end, and includes Original Steakhouse and Bonefish Grill, both quality restaurants that recently opened. 

