<PAGE>   1


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended September 30, 2000

                                       OR

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                         Commission file number 0-22725

                            CRESCENT OPERATING, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                 Delaware                              75-2701931
     -------------------------------       ------------------------------------
     (State or other jurisdiction of       (I.R.S. Employer Identification No.)
      incorporation or organization)

     306 West 7th Street, Suite 1000
            Fort Worth, Texas                             76102
----------------------------------------               ----------
(Address of principal executive offices)               (Zip Code)

        Registrant's telephone number, including area code (817) 339-2200

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                 YES [X] NO [ ]

Number of shares of Common Stock, $.01 par value, outstanding as of November 14,
2000: 11,442,791

<PAGE>   2


                            CRESCENT OPERATING, INC.
                                    FORM 10-Q
                                TABLE OF CONTENTS


<TABLE>
<S>                                                                                                          <C>
                                              PART I - FINANCIAL INFORMATION
                                                                                                             Page
                                                                                                             ----

Item 1.       Financial Statements:

              Consolidated Balance Sheets......................................................................3

              Consolidated Statements of Operations............................................................4

              Consolidated Statement of Changes in Shareholders' Equity (Deficit)..............................5

              Consolidated Statements of Cash Flows............................................................6

              Notes to Consolidated Financial Statements (Unaudited)...........................................7

Item 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations...........14

Item 3.       Quantitative and Qualitative Disclosures About Market Risk......................................27

                                                PART II - OTHER INFORMATION

Item 1.       Legal Proceedings...............................................................................27

Item 2.       Change in Securities and Use of Proceeds........................................................28

Item 3.       Defaults Upon Senior Securities.................................................................28

Item 4.       Submission of Matters to a Vote of Security Holders.............................................28

Item 5.       Other Information...............................................................................28

Item 6.       Exhibits and Reports on Form 8-K................................................................28
</TABLE>


                                       2
<PAGE>   3


                            CRESCENT OPERATING, INC.
                           CONSOLIDATED BALANCE SHEETS
                             (Amounts in thousands)

<TABLE>
<CAPTION>
                                                               September 30, 2000   December 31, 1999
                                                               ------------------   -----------------
                                                                   (unaudited)          (audited)
                          ASSETS

<S>                                                            <C>                  <C>
CURRENT ASSETS
  Cash and cash equivalents                                         $  47,621           $  39,017
  Accounts receivable, net                                             69,275              51,638
  Inventories                                                          44,813              47,442
  Real estate                                                         138,628             121,412
  Prepaid expenses and other current assets                            18,202              14,714
                                                                    ---------           ---------
     Total current assets                                             318,539             274,223
                                                                    ---------           ---------

PROPERTY AND EQUIPMENT, NET                                           219,526             215,764
                                                                    ---------           ---------

INVESTMENTS                                                            86,531              80,470
                                                                    ---------           ---------

OTHER ASSETS
  Real estate                                                         108,103              83,147
  Intangible assets, net                                               86,044              92,077
  Other assets                                                         70,729              49,972
                                                                    ---------           ---------
     Total other assets                                               264,876             225,196
                                                                    ---------           ---------

TOTAL ASSETS                                                        $ 889,472           $ 795,653
                                                                    =========           =========

      LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
  Accounts payable and accrued expenses                             $  93,417           $  80,396
  Accounts payable - CEI                                               25,584               9,250
  Current portion of long-term debt - CEI                              15,613               8,000
  Current portion of long-term debt                                    60,916              69,459
  Deferred revenue                                                     80,623              62,864
                                                                    ---------           ---------
     Total current liabilities                                        276,153             229,969

LONG-TERM DEBT - CEI, NET OF CURRENT PORTION                          240,646             208,744

LONG-TERM DEBT, NET OF CURRENT PORTION                                138,918             135,671

OTHER LIABILITIES                                                      72,244              59,837
                                                                    ---------           ---------

     Total liabilities                                                727,961             634,221
                                                                    ---------           ---------

MINORITY INTERESTS                                                    192,676             181,954
                                                                    ---------           ---------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY (DEFICIT)
  Preferred stock, $.01 par value, 10,000 shares authorized,
      no shares issued or outstanding                                      --                  --
  Common stock, $.01 par value, 22,500 shares authorized,
      11,443 and 11,415 shares issued, respectively                       114                 114
  Additional paid-in capital                                           17,754              17,714
  Deferred compensation on restricted shares                             (230)               (198)
  Accumulated comprehensive income (loss)                             (11,214)            (10,127)
  Retained deficit                                                    (33,283)            (23,719)
  Treasury stock at cost, 1,103 shares                                 (4,306)             (4,306)
                                                                    ---------           ---------
     Total shareholders' equity (deficit)                             (31,165)            (20,522)
                                                                    ---------           ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)                $ 889,472           $ 795,653
                                                                    =========           =========
</TABLE>

        See accompanying notes to the consolidated financial statements.


                                       3
<PAGE>   4


                            CRESCENT OPERATING, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
            (Amounts in thousands, except per share data, unaudited)

<TABLE>
<CAPTION>
                                                  For the three months ended               For the nine months ended
                                             --------------------------------------   --------------------------------------
                                             September 30, 2000  September 30, 1999   September 30, 2000  September 30, 1999
                                             --------------------------------------   --------------------------------------

<S>                                          <C>                  <C>                 <C>                  <C>
REVENUES
   Equipment sales & leasing                     $  33,840            $  37,163           $ 108,514           $ 103,858
   Hospitality                                      68,931               65,384             207,570             183,894
   Land development                                 79,362               73,055             209,997             197,991
                                                 ---------            ---------           ---------           ---------

      Total revenues                               182,133              175,602             526,081             485,743
                                                 ---------            ---------           ---------           ---------

OPERATING EXPENSES
   Equipment sales & leasing                        33,047               35,139             105,374              98,737
   Hospitality                                      53,481               50,520             158,648             140,241
   Hospitality properties rent - CEI                16,489               13,656              48,871              40,450
   Land development                                 71,861               72,565             190,414             188,557
   Corporate general and administrative                698                  776               2,662               1,766
                                                 ---------            ---------           ---------           ---------

      Total operating expenses                     175,576              172,656             505,969             469,751
                                                 ---------            ---------           ---------           ---------

INCOME FROM OPERATIONS                               6,557                2,946              20,112              15,992
                                                 ---------            ---------           ---------           ---------

INVESTMENT INCOME                                    5,298                1,859              12,056              15,700
                                                 ---------            ---------           ---------           ---------

OTHER (INCOME) EXPENSE
   Interest expense                                  9,342                7,789              25,972              21,003
   Interest income                                  (1,001)                (884)             (2,886)             (2,648)
   Other                                                74                  182                  89                 325
                                                 ---------            ---------           ---------           ---------

      Total other (income) expense                   8,415                7,087              23,175              18,680
                                                 ---------            ---------           ---------           ---------

INCOME (LOSS) BEFORE INCOME TAXES
    AND MINORITY INTERESTS                           3,440               (2,282)              8,993              13,012

INCOME TAX PROVISION (BENEFIT)                         950               (1,284)              2,212                  60
                                                 ---------            ---------           ---------           ---------

INCOME (LOSS) BEFORE MINORITY INTERESTS              2,490                 (998)              6,781              12,952

MINORITY INTERESTS                                  (6,660)              (1,465)            (16,345)            (11,847)
                                                 ---------            ---------           ---------           ---------

NET INCOME (LOSS)                                $  (4,170)           $  (2,463)          $  (9,564)          $   1,105
                                                 =========            =========           =========           =========

EARNINGS (LOSS) PER SHARE
   Basic                                         $   (0.40)           $   (0.24)          $   (0.93)          $    0.11
                                                 =========            =========           =========           =========
   Diluted                                       $   (0.40)           $   (0.24)          $   (0.93)          $    0.10
                                                 =========            =========           =========           =========

WEIGHTED AVERAGE SHARES OUTSTANDING
   Basic                                            10,340               10,313              10,322              10,380
                                                 =========            =========           =========           =========
   Diluted                                          10,340               10,313              10,322              10,993
                                                 =========            =========           =========           =========
</TABLE>


        See accompanying notes to the consolidated financial statements.


                                       4
<PAGE>   5


                            CRESCENT OPERATING, INC.
       CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)
                        (Amounts in thousands, unaudited)

<TABLE>
<CAPTION>
                                                Common stock          Treasury stock
                                            --------------------   --------------------    Additional
                                             Shares      Amount     Shares      Amount   paid-in capital
                                            --------    --------   --------    --------  ---------------

<S>                                         <C>         <C>        <C>         <C>       <C>
BALANCE at December 31, 1999                  11,415    $    114     (1,103)   $ (4,306)    $ 17,714

Comprehensive income (loss):

     Net loss                                     --          --         --          --           --

     Unrealized loss on Magellan warrants         --          --         --          --           --

Comprehensive income (loss)


Issuance of restricted common stock               28          --         --          --           40

Amortization of restricted common stock           --          --         --          --           --
                                            --------    --------   --------    --------     --------

BALANCE at September 30, 2000                 11,443    $    114     (1,103)   $ (4,306)    $ 17,754
                                            ========    ========   ========    ========     ========

<CAPTION>
                                                Deferred
                                              compensation   Accumulated
                                             on restricted  comprehensive  Retained
                                                 shares     income (loss)   deficit      Total
                                             -------------  -------------  ---------   ---------

<S>                                          <C>            <C>            <C>         <C>
BALANCE at December 31, 1999                   $   (198)      $(10,127)    $(23,719)   $(20,522)

Comprehensive income (loss):

     Net loss                                        --             --       (9,564)     (9,564)

     Unrealized loss on Magellan warrants            --         (1,087)          --      (1,087)
                                                                                       --------
Comprehensive income (loss)                                                             (10,651)


Issuance of restricted common stock                  --             --           --          40

Amortization of restricted common stock             (32)            --           --         (32)
                                               --------       --------     --------    --------

BALANCE at September 30, 2000                  $   (230)      $(11,214)    $(33,283)   $(31,165)
                                               ========       ========     ========    ========
</TABLE>


        See accompanying notes to the consolidated financial statements.


                                       5
<PAGE>   6


                            CRESCENT OPERATING, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                        (Amounts in thousands, unaudited)

<TABLE>
<CAPTION>
                                                                                     For the             For the
                                                                                Nine Months Ended   Nine Months Ended
                                                                                September 30, 2000  September 30, 1999
                                                                                ------------------  ------------------

<S>                                                                             <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                                                 $  (9,564)          $   1,105
  Adjustments to reconcile net income (loss)
    to net cash used in operating activities:
       Depreciation                                                                    17,904              15,432
       Amortization                                                                     9,182              10,349
       Provision for deferred income taxes                                            (13,710)            (23,902)
       Equity in income of unconsolidated subsidiaries                                (10,493)            (13,758)
       Minority interests                                                              16,345              11,847
       Gain on sale of property and equipment                                          (2,660)             (4,030)
       Gain on sale of investments                                                     (1,563)             (1,942)
       Changes in assets and liabilities, net of effects from acquisitions:
           Accounts receivable                                                        (20,936)             (8,512)
           Inventories                                                                  5,613             (29,973)
           Prepaid expenses and current assets                                         (5,842)             (1,555)
           Real estate                                                                (45,577)            (51,928)
           Other assets                                                                   437                 987
           Accounts payable and accrued expenses                                        7,371               9,751
           Accounts payable - CEI                                                      16,333               2,969
           Deferred revenue, current and noncurrent                                    35,827               6,789
           Other liabilities                                                              714                 449
                                                                                    ---------           ---------
                Net cash used in operating activities                                    (619)            (75,922)
                                                                                    ---------           ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisition of business interests, net of cash acquired                                (578)            (23,852)
  Acquisition of business interests by
    Controlled Subsidiaries, net of cash acquired                                      (4,627)            (12,782)
  Purchases of property and equipment                                                 (51,432)            (38,743)
  Proceeds from sale of investments                                                     2,443              22,436
  Proceeds from sale of property and equipment                                         21,255              24,065
  Net proceeds from sale and collection of notes receivable                             9,928               3,361
  Net distributions from investments                                                    3,025               1,291
  Distributions from investments of Controlled Subsidiaries                             7,578              10,666
  Contributions to investments of Controlled Subsidiaries                              (2,550)             (3,015)
  Other                                                                                    --               1,137
                                                                                    ---------           ---------
                Net cash used in investing activities                                 (14,958)            (15,436)
                                                                                    ---------           ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds of long-term debt                                                          200,613             248,655
  Payments on long-term debt                                                         (162,385)           (166,909)
  Proceeds of long-term debt - CEI                                                      6,634              36,342
  Payments on long-term debt - CEI                                                     (7,922)            (61,073)
  Capital contributions by minority interests                                          36,432              35,058
  Distributions to minority interests                                                 (37,594)             (8,133)
  Purchase of treasury stock                                                               --              (1,454)
  Other                                                                               (11,597)             (2,173)
                                                                                    ---------           ---------
                Net cash provided by financing activities                              24,181              80,313
                                                                                    ---------           ---------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                                                      8,604             (11,045)

CASH AND CASH EQUIVALENTS,
  BEGINNING OF PERIOD                                                                  39,017              42,810
                                                                                    ---------           ---------

CASH AND CASH EQUIVALENTS,
  END OF PERIOD                                                                     $  47,621           $  31,765
                                                                                    =========           =========
</TABLE>


      See accompanying notes to the consolidated financial statements.


                                       6
<PAGE>   7


                            CRESCENT OPERATING, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1. ORGANIZATION AND BASIS OF PRESENTATION:

Crescent Operating, Inc. was formed on April 1, 1997 by Crescent Real Estate
Equities Company ("CEI" or "Crescent Equities") and its subsidiary Crescent Real
Estate Equities Limited Partnership ("Crescent Partnership"). Effective June 12,
1997, CEI distributed shares of Crescent Operating, Inc. common stock to
shareholders of CEI and unit holders of Crescent Partnership of record on May
30, 1997.

Crescent Operating, Inc. ("Crescent Operating" or "COPI") is a diversified
management company that, through various subsidiaries and affiliates
(collectively with Crescent Operating, the "Company"), currently operates
primarily in four business segments: Equipment Sales and Leasing, Hospitality,
Temperature Controlled Logistics (formerly Refrigerated Warehousing) and Land
Development. Through these segments, Crescent Operating does business throughout
the United States.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. These financial statements should be read in conjunction
with the audited financial statements and related footnotes of the Company for
the fiscal year ended December 31, 1999 included in the Company's Form 10-K, as
well as, in conjunction with the Company's previously filed Form 10-Qs. In
management's opinion, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation of the consolidated
unaudited interim financial statements have been included and all significant
intercompany balances and transactions have been eliminated. Certain prior
period information has been reclassified to conform to current period
presentation. Due to acquisitions and seasonal fluctuations, operating results
for interim periods reflected are not necessarily indicative of the results that
may be expected for a full fiscal year.

The financial results of the Company primarily include the following:

    o   Subsidiaries which are wholly-owned and consolidated:

        o   Crescent Machinery Company ("Crescent Machinery");

        o   Rosestar Management LLC ("Rosestar"); and

        o   COI Hotel Group, Inc. ("COI Hotel").

    o   Subsidiaries which are not wholly-owned but the Company controls and
        therefore consolidates ("Controlled Subsidiaries"):

        o   A 5% economic interest in:

            o   The Woodlands Land Company, Inc. ("LandCo") which has a 42.5%
                general partner interest in The Woodlands Land Development
                Company, L.P. ("Landevco");

            o   Desert Mountain Development Corporation ("Desert Mountain
                Development") which consolidates its 93% general partner
                interest in Desert Mountain Properties Limited Partnership
                ("DMPLP"); and

            o   CRL Investments, Inc. ("CRL"), which beneficially owns 60% of CR
                Las Vegas, LLC ("CR Las Vegas") and 30% of CR License, LLC ("CR
                License").

        o   A 60% general partner interest in COPI Colorado, L.P. ("COPI
            Colorado") which owns 10% of Crescent Development Management Corp.
            ("CDMC"). The 10% interest in CDMC represents 100% of the voting
            stock, and therefore, CDMC is consolidated into COPI Colorado.


                                       7
<PAGE>   8


    o   Subsidiaries which the Company reports on the equity method of
        accounting:

        o   A 52.5% interest (42.5% in 1999) in The Woodlands Operating Company,
            L.P. ("TWOC");

        o   A 40% interest in Vornado Crescent Logistics Operating Partnership
            ("AmeriCold Logistics"); and

        o   A direct 25% common membership interest in Charter Behavioral
            Health Systems, LLC ("CBHS");

        o   An indirect 65% common membership interest in CBHS held through a
            limited partner interest in COPI CBHS Holdings, L.P.; and

    o   A 1% interest in each of Crescent CS Holdings Corporation ("CS I") and
        Crescent CS Holdings II Corporation ("CS II") (collectively,
        "Temperature Controlled Logistics Partnerships").

    o   A 15.8% common and 21.1% preferred interest in Transportal Network, Inc.
        ("Transportal Holding"), which has a 76% interest in Transportal Network
        LLC ("Transportal"), all of which the Company reports on the cost method
        of accounting.


2. RECENT DEVELOPMENTS:

HOSPITALITY

On November 3, 2000, Crescent Equities completed the sale of the Four Seasons
Hotel in Houston and, in connection therewith, exercised its right under the
lease agreement to terminate the lease. Under the lease agreement, Crescent
Equities is obligated to pay the Company the fair market value of the remaining
term of the lease. Such buy-out amount has not yet been determined.

On July 27, 2000, CRL exercised its option to purchase an additional 10%
economic interest in CR License by paying $3.0 million, bringing CRL's total
economic interest in CR License to 30%. CR License is the entity which owns the
rights to the future use of the "Canyon Ranch" name.

INVESTMENT IN TEMPERATURE CONTROLLED LOGISTICS INTERNET OPPORTUNITY

During the second quarter, the Company restructured its business venture with
Vornado Operating, Inc. and Crescent Equities to pursue a business-to-business
internet opportunity relating to the Temperature Controlled Logistics business.
As a result of the restructuring, the Company was relieved of its previously
reported obligation to fund initial startup costs previously reported, which
resulted in net investment income of $1.2 million during the second quarter of
2000 and left no basis in the investment. In October 2000, operations were
ceased after Transportal failed to secure outside funding. The closure has no
impact on the financial statements of Crescent Operating, and the Company has no
obligation for future cash funding.

LAND DEVELOPMENT

On September 22, 2000, a limited partnership in which CDMC is a majority limited
partner acquired a majority interest in the Northstar-at-Tahoe resort, a
premier, up-scale ski resort located in North Lake Tahoe, California. The
development is expected to span ten years and include an enhanced core village
with new restaurants and retail shops, hotels and spas, and an extensive
residential product mix of over 2,000 condominium and townhome units.

3. INVESTMENTS:

Investments consisted of the following (amounts in thousands):

<TABLE>
<CAPTION>
                                                                September 30, 2000  December 31, 1999
                                                                ------------------  -----------------

<S>                                                             <C>                 <C>
Investment in Landevco .........................................     $ 51,251           $ 41,186
Investment in CDMC projects ....................................       17,087             11,254
Investment in CR License .......................................        5,624              2,797
Investment in CR Las Vegas .....................................        5,596              8,356
Investment in AmeriCold Logistics ..............................        5,423             11,791
Investment in Temperature Controlled Logistics Partnerships ....        2,571              3,068
Investment in Magellan warrants ................................        1,286              2,374
Investment in Houston Center Athletic Club ("HCAC") ............           --                864
Investment in TWOC .............................................       (2,307)            (1,220)
                                                                     --------           --------
                                                                     $ 86,531           $ 80,470
                                                                     ========           ========
</TABLE>


                                       8
<PAGE>   9


Investment income consisted of the following (amounts in thousands):

<TABLE>
<CAPTION>
                                                        Three months ended   Nine months ended
                                                        September 30, 2000   September 30, 2000
                                                        ------------------   ------------------

<S>                                                     <C>                  <C>
Equity in income of Landevco ...........................     $  6,024             $ 14,934
Equity in income of CDMC projects ......................          570                1,909
Equity in income (loss) of CRL .........................           81               (1,893)
Equity in income of HCAC ...............................           --                    8
Gain on sale of HCAC ...................................           --                1,562
Equity in income (loss) of Temperature Controlled
    Logistics Partnerships .............................           (7)                  33
Equity in income (loss) of Transportal Network .........          (20)                 375
Equity in income (loss) of TWOC ........................          (75)               1,496
Equity in loss of AmeriCold Logistics ..................       (1,275)              (6,368)
                                                             --------             --------
                                                             $  5,298             $ 12,056
                                                             ========             ========
</TABLE>

A summary of financial information for the Company's investment in AmeriCold
Logistics, which is a significant unconsolidated investment, is presented below
(amounts in thousands).

<TABLE>
<CAPTION>
                                                     AmeriCold Logistics
                                          ----------------------------------------
                                          Three months ended    Nine months ended
                                          September 30, 2000    September 30, 2000
                                          ------------------    ------------------

<S>                                       <C>                   <C>
Revenues .................................    $ 161,461             $ 485,160
Gross profit .............................    $   7,900             $  17,157
Net income (loss) ........................    $  (3,187)            $ (15,920)

Crescent Operating's equity
    in income (loss) of subsidiary .......    $  (1,275)            $  (6,368)
</TABLE>

AmeriCold Logistics has exercised its right, pursuant to the terms of its leases
with the Temperature Controlled Logistics Partnerships, to defer a portion of
its rent. As of September 30, 2000, AmeriCold Logistics had deferred a total of
$16.9 million of rent.

AmeriCold Logistics is experiencing cash flow deficits which management of
AmeriCold Logistics is currently addressing by the following: (i) discussions
with the Temperature Controlled Logistics Partnerships (the "Landlord") to
restructure the leases to reduce the rent and/or transfer to the Landlord all or
a portion of maintenance capital requirements; (ii) sales of non-core assets;
and (iii) capital infusion by new investors.

4. INTANGIBLE ASSETS:

Intangible assets consisted of the following (amounts in thousands):

<TABLE>
<CAPTION>
                                        September 30, 2000  December 31, 1999
                                        ------------------  -----------------

<S>                                     <C>                 <C>
Goodwill, net - Crescent Machinery .....      $14,138            $13,925
Goodwill, net - RoseStar ...............        1,255              1,417
Goodwill, net - COPI Colorado ..........       41,143             41,798
Membership intangible, net - DMPLP .....       29,508             34,937
                                              -------            -------
                                              $86,044            $92,077
                                              =======            =======
</TABLE>

5. LONG-TERM DEBT:

The Company's long-term debt facilities are composed of (i) corporate and
wholly-owned debt, and (ii) non wholly-owned debt. Corporate and wholly-owned
debt relates to debt facilities at the Crescent Operating level or owed by
entities which are owned 100% by Crescent Operating. Non wholly-owned debt
represents non-recourse debt owed


                                       9
<PAGE>   10


by entities which are consolidated in the Company's financial statements but are
not 100% owned by the Company; the Company's economic investment in these
entities is 6% or less. The non wholly-owned debt is secured by the operations
of each individual subsidiary and is not guaranteed by Crescent Operating.
Following is a summary of the Company's debt financing (amounts in thousands):

<TABLE>
<CAPTION>
                                                                                     September 30, 2000   December 31, 1999
                                                                                     ------------------   -----------------

<S>                                                                                  <C>                  <C>
 LONG-TERM DEBT - CORPORATE AND WHOLLY-OWNED SUBSIDIARIES

 Equipment notes payable to various finance companies, weighted average
 interest of 9.3% and 8.9% at September 30, 2000 and December 31, 1999,
 respectively, due 2000 through 2007 (Crescent Machinery) .....................            $111,372            $102,539

 Floor plan debt payable, three to twelve month terms at 0%
 interest (Crescent Machinery) ................................................              15,575              21,556

 Note payable to Crescent Partnership, interest at 9%, due May
 2002 (COPI) ..................................................................              20,867              19,500

 Line of credit payable to Crescent Partnership, interest at
 12%, due May 2002 or five years after the last draw (COPI) ...................              18,819              17,200

 Line of credit in the amount of $15.0 million payable to Bank of America,
 interest at LIBOR plus 1%, due August 31, 2001 (COPI) .........................             15,000              15,000

 Note payable to Crescent Partnership, interest at 12%, due
 through May 2002 (COPI) ......................................................              15,124              13,824

 Note payable to Crescent Partnership, interest at 12%, due May
 2002 (COPI) ..................................................................               9,847               9,000

 Notes payable to the sellers of equipment companies, weighted average
 interest of 7.6% and 7.7% at September 30, 2000 and December 31, 1999,
 respectively, due 2000 through 2003 (COPI) ...................................               5,288               7,255

 Notes payable to Crescent Partnership, weighted average interest of 10.0%
 and 9.7% at September 30, 2000 and December 31, 1999, respectively, due
 2002 through 2006 (RoseStar / COI Hotel) .....................................               1,750               2,571
                                                                                           --------            --------

            Total debt - corporate and wholly-owned subsidiaries ..............             213,642             208,445
                                                                                           --------            --------

 LONG-TERM DEBT - NON WHOLLY-OWNED SUBSIDIARIES

 Junior note payable to Crescent Partnership, interest at 14%,
 due December 2010 (DMPLP) ....................................................              59,000              60,000

 Construction loans for various East West Resort Development
 projects, interest at 7.8% to 13.9%, due through 2005 (CDMC) .................              46,587              45,024

 Line of credit in the amount of $56.2 million payable to
 Crescent Partnership, interest at 11.5%, due August 2004 (CDMC) ..............              41,628              49,357

 Line of credit in the amount of $40.0 million payable to
 Crescent Partnership, interest at 11.5%, due December 2006 (CDMC) ............              34,676              14,459

 Line of credit in the amount of $22.9 million payable to
 Crescent Partnership, interest at 12%, due January 2003 (CDMC) ...............              17,378              16,418

 Line of credit in the amount of $32.0 million payable to
 Crescent Partnership, interest at 11.5%, due September 2008 (CDMC) ...........              22,055                  --

 Line of credit in the amount of $45.0 million payable to National Bank of
 Arizona, interest at prime to prime plus 1%, due June 2001 (DMPLP) ...........                  --              13,756

 Line of credit in the amount of $7.0 million payable to
 Crescent Partnership, interest at 12%, due August 2003 (CRL) .................               7,000               5,666

 Term note in the amount of $0.2 million payable to Crescent
 Partnership, interest at 12%, due August 2003 (CRL) ..........................                 166                  --

 Term loan in the amount of $5.6 million payable to Crescent Partnership,
 interest ranging from 12% to 15%, due March 2001 (CDMC) ......................               5,600                  --

 Note payable to Crescent Partnership, interest at 12%, due June
 2005 (CDMC) ..................................................................               2,349               2,649

 Senior note payable to Crescent Partnership, interest at 10%,
 due December 2005 (DMPLP) ....................................................               6,012               6,100
                                                                                           --------            --------

           Total debt - non wholly-owned subsidiaries .........................             242,451             213,429
                                                                                           --------            --------

           Total long-term debt ...............................................            $456,093            $421,874
                                                                                           ========            ========

 Current portion of long-term debt - CEI ......................................            $ 15,613            $  8,000

 Current portion of long-term debt ............................................              60,916              69,459

 Long-term debt - CEI, net of current portion .................................             240,646             208,744

 Long-term debt, net of current portion .......................................             138,918             135,671
                                                                                           --------            --------

           Total long-term debt ...............................................            $456,093            $421,874
                                                                                           ========            ========
</TABLE>


                                       10
<PAGE>   11


In February 2000, the Company modified certain debt agreements with Crescent
Equities extending the timing of principal and interest payments until February
2001.

6. OTHER LIABILITIES:

Other liabilities consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                    September 30, 2000  December 31, 1999
                                    ------------------  -----------------

<S>                                 <C>                 <C>
Deferred revenue ............            $65,880            $50,964
Deferred hospitality rent....              5,404              4,698
Other .......................                960              4,175
                                         -------            -------
                                         $72,244            $59,837
                                         =======            =======
</TABLE>


                                       11
<PAGE>   12


7. EARNINGS PER SHARE:

Earnings per share ("EPS") is calculated as follows (in thousands, except per
share data):

<TABLE>
<CAPTION>
                                         Three months ended September 30, 2000      Nine months ended September 30, 2000
                                       ----------------------------------------   ----------------------------------------
                                            Net          Wtd. Avg.    Per Share        Net          Wtd. Avg.    Per Share
                                       Income (Loss)      Shares       Amount     Income (Loss)      Shares       Amount
                                       -------------     ---------    ---------   -------------     ---------    ---------

<S>                                    <C>               <C>          <C>         <C>               <C>          <C>
BASIC EPS .........................       $(4,170)        10,340       $(0.40)       $(9,564)        10,322       $(0.93)

EFFECT OF DILUTIVE SECURITIES:
Stock Options .....................            --             --                                         --           --
                                          -------         ------                     -------         ------

DILUTED EPS .......................       $(4,170)        10,340       $(0.40)       $(9,564)        10,322       $(0.93)
                                          =======         ======       ======        =======         ======       ======
</TABLE>

The Company had 1,320,234 options for its common stock outstanding for each of
the three and nine months ended September 30, 2000 which were not included in
the calculation of diluted EPS as they were anti-dilutive.

8. INCOME TAXES:

The table below shows the reconciliation of the federal statutory income tax
rate to the effective tax rate.

<TABLE>
<CAPTION>
                                                        Three months ended  Nine months ended
                                                        September 30, 2000  September 30, 2000
                                                        ------------------  ------------------

<S>                                                     <C>                 <C>
Federal statutory income tax rate .................            35.0%              35.0%
State income taxes, net of federal tax benefit ....             5.0                5.0
Minority interests ................................           (11.2)             (14.2)
Other, net ........................................            (1.2)              (1.2)
                                                               ----               ----
           Effective tax rate .....................            27.6%              24.6%
                                                               ====               ====
</TABLE>

The Company generally provides for taxes using a 40% effective rate on the
Company's share of income or loss. Based upon the Company's ability to execute
its business plans, tax planning strategies and the potential future transaction
with Crescent Equities, management believes that the deferred tax asset will be
realized. Management continues to evaluate the realizability of the deferred tax
asset quarterly by assessing the need for a valuation allowance.

9. BUSINESS SEGMENT INFORMATION:

Crescent Operating's assets and operations are located entirely within the
United States and are comprised primarily of four business segments: (i)
Equipment Sales and Leasing, (ii) Hospitality, (iii) Temperature Controlled
Logistics and (iv) Land Development. In addition to these four business
segments, the Company has grouped its investment in Magellan warrants,
investment in CBHS, interest expense on corporate debt and general corporate
overhead costs such as legal and accounting costs, insurance costs and corporate
salaries as "Other" for segment reporting purposes. The Company has written off
its entire investment and has no obligation or commitment to fund CBHS's
operations (see Note 2 for information on CBHS's liquidation in bankruptcy) and
no longer reports its operations related to CBHS as a separate segment. The
Company does incur costs of ownership related to the CBHS investment, such as
legal and accounting costs, and also incurred costs related to due diligence on
the assets its subsidiary had offered to purchase from CBHS out of bankruptcy.
The Company uses net income as the measure of segment profit or loss.


                                       12
<PAGE>   13


Business segment information is summarized as follows (in thousands):

<TABLE>
<CAPTION>
                                                           Three months ended                          Nine months ended
                                                ----------------------------------------    ---------------------------------------
                                                September 30, 2000    September 30, 1999    September 30, 2000   September 30, 1999
                                                ------------------    ------------------    ------------------   ------------------
<S>                                             <C>                   <C>                   <C>                  <C>
Revenues:
   Equipment Sales and Leasing .........            $  33,840             $  37,163             $ 108,514             $ 103,858
   Hospitality .........................               68,931                65,384               207,570               183,894
   Temperature Controlled Logistics ....                   --                    --                    --                    --
   Land Development ....................               79,362                73,055               209,997               197,991
   Other ...............................                   --                    --                    --                    --
                                                    ---------             ---------             ---------             ---------
   Total revenues ......................            $ 182,133             $ 175,602             $ 526,081             $ 485,743
                                                    =========             =========             =========             =========

Net income (loss):
   Equipment Sales and Leasing .........            $  (1,167)            $      65             $  (2,939)            $     312
   Hospitality .........................                 (635)                  719                   866                 1,960
   Temperature Controlled Logistics ....                 (784)               (1,015)               (3,593)                 (577)
   Land Development ....................                   90                  (577)                1,371                  (192)
   Other ...............................               (1,674)               (1,655)               (5,269)                 (398)
                                                    ---------             ---------             ---------             ---------
   Total net income (loss) .............            $  (4,170)            $  (2,463)            $  (9,564)            $   1,105
                                                    =========             =========             =========             =========

<CAPTION>
                                                September 30, 2000    December 31, 1999
                                                ------------------    -----------------
<S>                                             <C>                   <C>
Identifiable assets:
   Equipment Sales and Leasing                      $ 185,813             $ 184,964
   Hospitality                                         54,930                44,805
   Temperature Controlled Logistics                    12,003                16,337
   Land Development                                   616,314               535,911
   Other                                               20,412                13,636
                                                    ---------             ---------
   Total identifiable assets                        $ 889,472             $ 795,653
                                                    =========             =========
</TABLE>

10. LITIGATION:

The Company is a party to legal actions related to certain of its investments.
Material losses related to such cases have not been deemed probable by
management after consultation with outside counsel, and no financial statement
accruals have been made. Based on the status of the cases, the Company is unable
to determine a range of possible losses, if any, that might be incurred in
connection with this litigation. The Company believes it is not probable that
the ultimate resolution of this litigation will have a material adverse effect
on its financial position and results of operations.

11. RECENT ACCOUNTING PRONOUNCEMENTS:

SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities,
provides that all derivative instruments be recognized as either assets or
liabilities depending on the rights or obligations under the contract and that
all derivative instruments be measured at fair value. This pronouncement is
effective for the Company beginning January 1, 2001, and will require the
Company to record the net comprehensive income or loss related to the Magellan
warrants in the statement of operations as a reduction or addition to net
income for the year ended December 31, 2001. As of September 30, 2000, the
Company had accumulated comprehensive loss related to the Magellan warrants of
$10.7 million.

                                       13
<PAGE>   14


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The information in this Item 2 should be read in conjunction with the interim
consolidated financial statements and the accompanying notes presented in Item 1
to this Form 10-Q. The financial statements include all adjustments which
management believes are necessary to reflect a fair statement of the financial
results for the interim periods presented. All such adjustments are of a normal
and recurring nature. The information contained in this Item 2 should also be
read in conjunction with the more detailed information included in the Company's
Form 10-K for the year ended December 31, 1999, as well as, in conjunction with
the Company's previously filed Form 10-Qs. Capitalized terms used but not
otherwise defined in this Item 2 have the meanings given to them in the notes to
the financial statements included in Item 1.

This Form 10-Q contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Although the Company believes that the
expectations reflected in such forward-looking statements are based upon
reasonable assumptions, the Company's actual results could differ materially
from those the Company expects to achieve. Some of the factors that might cause
such a difference include:

    o   the effect of the REIT Modernization Act upon future opportunities under
        the Intercompany Agreement with Crescent Partnership (the "Intercompany
        Agreement"), pursuant to which the Company and Crescent Partnership have
        agreed to provide the other with rights to participate in certain
        transactions, and the outcome of ongoing discussions with Crescent
        Equities about its interest in certain of the investments currently
        owned or operated by the Company that the REIT Modernization Act would
        allow Crescent Equities to own or operate,

    o   any resolution of issues that relate to the bankruptcy petition of CBHS
        that is unfavorable to the Company, including, but not limited to,
        judgments against the Company in respect of lawsuits instituted in
        connection with the activities of CBHS prior to its bankruptcy filing,

    o   the underperformance or non-performance of the Company's existing
        business investments,

    o   the relatively high levels of debt that the Company maintains and the
        Company's ability to generate revenue sufficient to meet debt service
        payments and other operating expenses,

    o   the Company's ability to refinance its outstanding debt (some of which
        requires "balloon" payments of principal) as necessary, and the
        possibility that any refinancing will result in higher interest rates or
        other terms less favorable to the Company,

    o   the extreme sensitivity to changes in operations or business activities
        of certain of the Company's investments due to their high levels of debt
        and rental payments,

    o   the availability of any equity and additional debt financing that may be
        necessary or advantageous to expand or maintain the Company's operations
        and investments, and

    o   the potential adverse effect on the Company's cash flows and the value
        of the Company's investments or events in the industries in which the
        Company's businesses and investments operate and the economic,
        demographic and other competitive conditions affecting these industries.

Given these uncertainties, readers are cautioned not to place undue reliance on
such statements. The Company is not obligated to update these forward-looking
statements to reflect any future events or circumstances.


                                       14
<PAGE>   15


                                    OVERVIEW

Crescent Operating is a diversified management company that, through various
subsidiaries and affiliates, currently operates primarily in four business
segments: (i) Equipment Sales and Leasing, (ii) Hospitality, (iii) Temperature
Controlled Logistics (formerly Refrigerated Warehousing) and (iv) Land
Development. Within these segments the Company owned the following as of
September 30, 2000:

o   THE EQUIPMENT SALES AND LEASING SEGMENT consisted of a wholly-owned interest
    in Crescent Machinery Company and its subsidiaries ("Crescent Machinery"), a
    construction equipment sales, leasing and service company with 18 locations
    in seven states.

o   THE HOSPITALITY SEGMENT consisted of (i) the Company's lessee interests in
    Business Class Hotels which include the Denver Marriott City Center, the
    Hyatt Regency Albuquerque, the Four Seasons Hotel in Houston, Texas (hotel
    was sold and lease terminated in November; see Hospitality - Recent
    Developments), and the Renaissance Hotel in Houston, Texas; lessee interests
    in Luxury Spa Resorts which include the Hyatt Regency Beaver Creek, the
    Ventana Inn and Spa and the Sonoma Mission Inn and Spa (including the Sonoma
    Mission Inn Golf and Country Club); and lessee interests in Destination
    Fitness Resorts and Spas which include Canyon Ranch-Tucson and Canyon
    Ranch-Lenox (collectively, the "Hospitality Properties"), and (ii) a 5%
    economic interest in CRL Investments, Inc. ("CRL"), which has an investment
    in the Canyon Ranch Day Spa in the Venetian Hotel in Las Vegas, Nevada and
    participates in the future use of the "Canyon Ranch" name.

o   THE TEMPERATURE CONTROLLED LOGISTICS SEGMENT consisted primarily of a 40%
    interest in (i) the operations of Vornado Crescent Logistics Operating
    Partnership ("AmeriCold Logistics"), which currently operates 103
    refrigerated storage properties with an aggregate storage capacity of
    approximately 529.4 million cubic feet, (ii) an effective 12% common
    interest and a 16% preferred interest in Transportal Network LLC
    ("Transportal"), a venture planned to provide routing and load management
    services and facilitate related purchases over the internet to independent
    truckers, shippers and receivers to enable them to increase efficiency
    (ceased operations in October; see Temperature Controlled Logistics
    Segment - Recent Developments), and (iii) a 1% interest in Crescent CS
    Holdings Corporation ("CS I") and Crescent CS Holdings II Corporation ("CS
    II", and together with CS I, the "Temperature Controlled Logistics
    Partnerships").

o   THE LAND DEVELOPMENT SEGMENT consisted of (i) a 4.65% economic interest in
    Desert Mountain, a master planned, luxury residential and recreational
    community in northern Scottsdale, Arizona, (ii) a 52.5% general partner
    interest in The Woodlands Operating Company, L.P. ("Woodlands Operating"),
    (iii) a 2.125% economic interest in The Woodlands Land Development Company
    L.P. ("Landevco") and (iv) a 60% economic interest in COPI Colorado, L.P.
    ("COPI Colorado"), a company that has a 10% economic interest in Crescent
    Development Management Corp. ("CDMC").

The Company has previously written off its entire investment and has no
obligation or commitment to fund CBHS' operations and no longer reports its
operations related to CBHS as a separate segment. CBHS has engaged in efforts to
sell and liquidate, in a controlled fashion through the pending bankruptcy
proceedings, all of its ongoing business. The Company does incur costs of
ownership related to the CBHS investment, such as legal and accounting costs,
and the Company incurred costs related to due diligence on the assets its
subsidiary had offered to purchase out of bankruptcy. See Other - Recent
Developments.

On December 17, 1999, President Clinton signed into law the REIT Modernization
Act which will become effective after December 31, 2000, and contains a
provision that would permit real estate investments trusts ("REITS"), such as
Crescent Equities, to own and operate certain types of investments that are
currently owned and operated by Crescent Operating. The REIT Modernization Act
is expected to reduce the number of business opportunities that Crescent
Equities would otherwise offer to the Company pursuant to the Intercompany
Agreement. Crescent Equities has expressed an interest in certain of the
investments currently owned or operated by the Company that the REIT
Modernization Act would allow Crescent Equities to own or operate. Crescent
Operating is exploring alternatives with Crescent Equities regarding a potential
future transaction with respect to certain of the Company's investments and
believes that an agreement may be reached in the fourth quarter of 2000.


                                       15
<PAGE>   16


                       EQUIPMENT SALES AND LEASING SEGMENT

FINANCIAL ACTIVITY

<TABLE>
<CAPTION>
(in thousands)                             Three months ended September 30,  Nine months ended September 30,
                                           --------------------------------  -------------------------------
                                                 2000           1999               2000           1999
                                               --------       --------           --------       --------

<S>                                        <C>                <C>            <C>                <C>
Revenue:
   New and used equipment ..............       $ 15,800       $ 21,049           $ 59,401       $ 64,649
   Rental equipment ....................         10,887          8,932             27,813         20,355
   Parts, service and supplies .........          7,153          7,182             21,300         18,854
                                               --------       --------           --------       --------
Total revenue ..........................         33,840         37,163            108,514        103,858

Expenses:
   Cost of sales:
        New and used equipment .........         14,036         18,395             51,944         55,174
        Rental equipment ...............          6,539          4,249             16,529         11,597
        Parts, service and supplies ....          4,488          4,683             13,291         11,863
                                               --------       --------           --------       --------
   Total cost of sales .................         25,063         27,327             81,764         78,634

   Gross profit ........................          8,777          9,836             26,750         25,224

   Operating expenses ..................          7,984          7,812             23,610         20,103
                                               --------       --------           --------       --------

Income from operations .................       $    793       $  2,024           $  3,140       $  5,121
                                               ========       ========           ========       ========

EBITDA .................................       $  5,514       $  5,961           $ 15,466       $ 15,928
                                               ========       ========           ========       ========
</TABLE>

Equipment sales and leasing revenue increased $4.6 million, or 4.4%, to $108.5
million for the nine months ended September 30, 2000, compared with $103.9
million for the nine months ended September 30, 1999. Net loss for the nine
months ended September 30, 2000 was $2.9 million as compared with net income of
$0.3 million for the nine months ended September 30, 1999. Profitability of the
Equipment Sales and Leasing segment during the first nine months of 2000 was
negatively impacted by lower new and used equipment sales and an increase in the
amount of interest-bearing debt as well as an increase in overall interest rates
as compared to last year. Crescent Machinery continues to incorporate the
operations of its acquisitions into its overall business plan of growth in
rental revenue while maintaining its distribution-based operations.

Earnings before interest expense, income taxes, depreciation and amortization
("EBITDA") for the Equipment Sales and Leasing segment for the nine months ended
September 30, 2000 was $15.5 million as compared with EBITDA of $15.9 million
for the nine months ended September 30, 1999. Management believes that EBITDA
can be a meaningful measure of operating performance, cash generation and the
ability to service debt. However, EBITDA should not be considered as an
alternative to: (i) net income (determined in accordance with GAAP); (ii)
operating cash flow (determined in accordance with GAAP); or (iii) liquidity.
There can be no assurance that the Company's EBITDA is comparable to similarly
titled items reported by other companies.


                                       16
<PAGE>   17


                               HOSPITALITY SEGMENT

RECENT DEVELOPMENTS

On November 3, 2000, Crescent Equities completed the sale of the Four Seasons
Hotel in Houston and, in connection therewith, exercised it right under the
lease agreement to terminate the lease. Under the lease agreement, Crescent
Equities is obligated to pay the Company the fair market value of the remaining
term of the lease. Such buy-out amount has not yet been determined.

On July 27, 2000, CRL exercised its option to purchase an additional 10%
economic interest in CR License by paying $3.0 million, bringing CRL's total
economic interest in CR License to 30%. CR License is the entity which owns the
rights to the future use of the "Canyon Ranch" name.

The Company has deferred payment of lease rental obligations on the Hospitality
Properties; for additional information, see Liquidity and Capital Resources.

FINANCIAL ACTIVITY

The following table sets forth certain information about the Hospitality
Properties for the nine months ended September 30, 2000 and 1999. The
information for the Hospitality Properties is based on available rooms, except
for Canyon Ranch-Tucson and Canyon Ranch-Lenox, which are destination health and
fitness resorts that measure performance based on available guest nights.

<TABLE>
<CAPTION>
                                                                        For the nine months ended September 30,
                                                        ----------------------------------------------------------------------
                                                               Average                  Average                 Revenue Per
                                                           Occupancy Rate             Daily Rate              Available Room
                                                        --------------------      ------------------         -----------------
                                         Rooms           2000         1999         2000        1999           2000        1999
                                         -----          -----        -----        -----       -----          -----       -----
<S>                                      <C>            <C>          <C>          <C>         <C>            <C>         <C>
Business Class Hotels:
Denver Marriott City Center .........      613             87%          81%       $ 121       $ 125          $ 104       $ 100
Hyatt Regency Albuquerque ...........      395             69           69          105         105             72          72
Four Seasons Hotel Houston(1) .......      399             71           65          204         197            145         128
Renaissance Houston(2) ..............      389             63           63           94          94             59          59
                                         -----          -----        -----        -----       -----          -----       -----
    Total/Weighted Average ..........    1,796             74%          71%       $ 131       $ 130          $  97       $  92
                                         =====          =====        =====        =====       =====          =====       =====

Luxury Spa Resorts:
Hyatt Regency Beaver Creek(3) .......      276             71%          75%       $ 268       $ 254          $ 191       $ 191
Sonoma Mission Inn & Spa ............      228(4)          77           82          300         219(4)         230         178(4)
Ventana Inn & Spa ...................       62             80           80          457         371            365         297
                                         -----          -----        -----        -----       -----          -----       -----
    Total/Weighted Average ..........      566             74%          78%       $ 304       $ 255          $ 226       $ 199
                                         =====          =====        =====        =====       =====          =====       =====

                                          Guest
Destination Fitness Resorts and Spas:     Nights
                                         --------
Canyon Ranch-Tucson..................      250(5)
Canyon Ranch-Lenox...................      212(5)
                                         -----          -----        -----        -----       -----          -----       -----
    Total/Weighted Average                 462             88%(6)       88%(6)    $ 579(7)    $ 528(7)       $ 487(8)    $ 446(8)
                                         =====          =====        =====        =====       =====          =====       =====

Grand Total/Weighted Average                               76%          75%       $ 239       $ 220          $ 187       $ 171
                                                        =====        =====        =====       =====          =====       =====
</TABLE>

(1) This property was sold by Crescent Equities subsequent to September 30,
    2000.

(2) The hotel is undergoing an estimated $15.5 million renovation project
    scheduled to be completed during the fourth quarter 2000. The renovation
    includes improvements to all guest rooms, the lobby, corridor, and exterior
    and interior systems.

(3) The hotel is undergoing a $6.9 million renovation of all guest rooms. The
    project is scheduled to be completed by the fourth quarter of 2001.

(4) In January 2000, 20 rooms, which previously were taken out of commission for
    construction of a 30,000 square foot, full-service spa in connection with an
    approximately $21.0 million expansion of the hotel, were returned to
    service. The expansion was completed in the second quarter of 2000. The
    overall expansion included 30 additional guest rooms. Rates were discounted
    during the construction period, which resulted in a lower average daily rate
    and revenue per available room in the first nine months of 1999.

(5) Represents available guest nights, which is the maximum number of guests
    that the resort can accommodate per night.

(6) Represents the number of paying and complimentary guests for the period,
    divided by the maximum number of available guest nights for the period.

(7) Represents the average daily "all-inclusive" guest package charges for the
    period, divided by the average daily number of paying guests for the period.


                                       17
<PAGE>   18


(8) Represents the total "all-inclusive" guest package charges for the period,
    divided by the maximum number of available guest nights for the period.

                    TEMPERATURE CONTROLLED LOGISTICS SEGMENT

RECENT DEVELOPMENTS

During the second quarter, the Company restructured its business venture with
Vornado Operating, Inc. and Crescent Equities to pursue a business-to-business
internet opportunity relating to the Temperature Controlled Logistics business.
As a result of the restructuring, the Company was relieved of its previously
reported obligation to fund initial startup costs previously reported, which
resulted in net investment income of $1.2 million during the second quarter of
2000 and left no basis in the investment. In October 2000, operations were
ceased after Transportal failed to secure outside funding. The closure has no
impact on the financial statements of Crescent Operating, and the Company has no
obligation for future cash funding.

FINANCIAL ACTIVITY

The Company has a 40% economic interest in AmeriCold Logistics and a 0.4%
interest in the Temperature Controlled Logistics Partnerships. Prior to the
restructuring on March 12, 1999, the Company's economic share of the operations
of the Temperature Controlled Logistics Partnerships for the nine months ended
September 30, 1999 included a 2% economic interest for the period from January
1, 1999 through March 11, 1999 and a 0.4% economic interest for the period from
March 12, 1999 through September 30, 1999. The Company's economic share of the
operations of AmeriCold Logistics for the nine months ended September 30, 1999
includes a 40% economic interest for the period from March 12, 1999 through
September 30, 1999.

The Company's share of pretax loss from AmeriCold Logistics for the three and
nine months ended September 30, 2000 was $1.3 and $6.4 million, respectively.
The Company's share of net income (loss) from the Temperature Controlled
Logistics Partnerships for each of the three and nine months ended September 30,
2000 was less than $0.1 million.

AmeriCold Logistics has exercised its right, pursuant to the terms of its leases
with the Temperature Controlled Logistics Partnerships, to defer a portion of
its rent. As of September 30, 2000, AmeriCold Logistics had deferred a total of
$16.9 million of rent.

AmeriCold Logistics is experiencing cash flow deficits which management of
AmeriCold Logistics is currently addressing by the following: (i) discussions
with the Temperature Controlled Logistics Partnerships (the "Landlord") to
restructure the leases to reduce the rent and/or transfer to the Landlord all or
a portion of maintenance capital requirements; (ii) sales of non-core assets;
and (iii) capital infusion by new investors.

                            LAND DEVELOPMENT SEGMENT

FINANCIAL ACTIVITY

Net income for the Land Development Segment was $0.1 and $1.4 million for the
three and nine months ended September 30, 2000, respectively. The Company's
share of Desert Mountain Development's net income for each of the three and nine
months ended September 30, 2000 was less than $0.1 million. The Company's share
of net income from both The Woodlands Land Company and WOCOI Investment Company
for the three and nine months ended September 30, 2000 was $0.1 and $1.4
million, respectively. The Company's share of COPI Colorado's net income for the
three months ended September 30, 2000 and net loss for the nine months ended
September 30, 2000 was less than $0.1 million.


                                       18
<PAGE>   19


The following table sets forth certain information as of September 30, 2000
relating to the active projects of the residential development properties in
which the Company owns an interest.

<TABLE>
<CAPTION>
                                                Total
                                              Lots/Units           Total            Average
                                  Total       Developed         Lots/Units        Closed Sale
                                Lots/Units      Since             Closed           Price Per        Range of Proposed
Land Development                 Planned      Inception       Since Inception     Lot/Unit(1)     Sale Prices Per Lot(2)
----------------                ----------    ----------      ---------------    ------------     ----------------------

<S>                               <C>          <C>            <C>                <C>              <C>
Desert Mountain ...........        2,665         2,254              2,095        $ 490,000(3)       $425,000-$3,000,000(3)
The Woodlands .............       36,385        23,612             22,238        $  47,000          $ 13,800-$  990,000
CDMC ......................        2,745           593                339              N/A          $ 25,000-$4,545,000
                                  ------        ------             ------

Total Land Development ....       41,795        26,459             24,672
                                  ======        ======             ======
</TABLE>

(1) Based on lots/units closed during the Company's ownership period.

(2) Based on existing inventory of developed lots and lots to be developed.

(3) Includes golf membership, which at September 30, 2000 was $225,000.

                                      OTHER

RECENT DEVELOPMENTS

On February 16, 2000, CBHS petitioned for relief under Chapter 11 of the United
States Bankruptcy Code. Under the protection of the bankruptcy court, CBHS has
engaged in efforts to sell and liquidate, in a controlled fashion, all of its
ongoing business. On April 16, 2000, the asset purchase agreement to which a
newly formed, wholly-owned subsidiary of Crescent Operating had agreed to
acquire, for $24.5 million, CBHS's core business assets used in the operation of
37 behavioral healthcare facilities, subject to certain conditions, terminated
by its own terms because not all of the conditions precedent to closing had been
met by that date. Sales of 55 properties closed during the nine months ended
September 30, 2000. Subsequent to September 30, 2000, three additional
properties were sold and contracts or letters of intent have been entered into
to sell five additional properties.


                                       19
<PAGE>   20


          SEGMENT FINANCIAL INFORMATION
      (Amounts in thousands, except share data)

The following is a summary of Crescent Operating's financial information
reported by segment for the three months ended September 30, 2000:

<TABLE>
<CAPTION>
                                                             EQUIPMENT                              TEMPERATURE
                                                               SALES                                 CONTROLLED
                                                            AND LEASING         HOSPITALITY          LOGISTICS
                                                            -----------         -----------         -----------
<S>                                                         <C>                 <C>                 <C>
Revenues ..........................................          $  33,840           $  68,931           $      --

Operating expenses ................................             33,047              69,969                   4
                                                             ---------           ---------           ---------
Income (loss) from operations .....................                793              (1,038)                 (4)
                                                             ---------           ---------           ---------
Investment income (loss) ..........................                 --                  81              (1,303)
                                                             ---------           ---------           ---------
Other (income) expense
     Interest expense .............................              2,676                 252                  --
     Interest income ..............................                 (5)                (31)                 --
     Other ........................................                138                  --                  --
                                                             ---------           ---------           ---------
Total other (income) expense ......................              2,809                 221                  --
                                                             ---------           ---------           ---------
Income (loss) before income
     taxes and minority interest ..................             (2,016)             (1,178)             (1,307)
Income tax provision (benefit) ....................               (849)               (471)               (523)
                                                             ---------           ---------           ---------
Income (loss) before minority interests ...........             (1,167)               (707)               (784)
Minority interests ................................                 --                  72                  --
                                                             ---------           ---------           ---------
Net income (loss) .................................          $  (1,167)          $    (635)          $    (784)
                                                             =========           =========           =========
Net income (loss) per share, basic and diluted ....          $   (0.11)          $   (0.06)          $   (0.08)
                                                             =========           =========           =========
EBITDA Calculation:(1)
     Net income (loss) ............................          $  (1,167)          $    (635)          $    (784)
     Interest expense, net ........................              2,671                  27                 286
     Income tax provision (benefit) ...............               (849)               (423)               (523)
     Depreciation and amortization ................              4,859                 293                 929
                                                             ---------           ---------           ---------
EBITDA ............................................          $   5,514           $    (738)          $     (92)
                                                             =========           =========           =========
<CAPTION>
                                                               LAND
                                                            DEVELOPMENT            OTHER               TOTAL
                                                            -----------          ----------          ----------
<S>                                                         <C>                  <C>                 <C>
Revenues ..........................................          $  79,362           $      --           $ 182,133

Operating expenses ................................             71,861                 695             175,576
                                                             ---------           ---------           ---------
Income (loss) from operations .....................              7,501                (695)              6,557
                                                             ---------           ---------           ---------
Investment income (loss) ..........................              6,520                  --               5,298
                                                             ---------           ---------           ---------
Other (income) expense
     Interest expense .............................              4,244               2,170               9,342
     Interest income ..............................               (893)                (72)             (1,001)
     Other ........................................                (63)                 (1)                 74
                                                             ---------           ---------           ---------
Total other (income) expense ......................              3,288               2,097               8,415
                                                             ---------           ---------           ---------
Income (loss) before income
     taxes and minority interest ..................             10,733              (2,792)              3,440
Income tax provision (benefit) ....................              3,911              (1,118)                950
                                                             ---------           ---------           ---------
Income (loss) before minority interests ...........              6,822              (1,674)              2,490
Minority interests ................................             (6,732)                 --              (6,660)
                                                             ---------           ---------           ---------
Net income (loss) .................................          $      90           $  (1,674)          $  (4,170)
                                                             =========           =========           =========
Net income (loss) per share, basic and diluted ....          $    0.01           $   (0.16)          $   (0.40)
                                                             =========           =========           =========

EBITDA Calculation:(1)
     Net income (loss) ............................          $      90           $  (1,674)          $  (4,170)
     Interest expense, net ........................                186               2,098               5,268
     Income tax provision (benefit) ...............                167              (1,118)             (2,746)
     Depreciation and amortization ................                179                 (18)              6,242
                                                             ---------           ---------           ---------
EBITDA ............................................          $     622           $    (712)          $   4,594
                                                             =========           =========           =========
</TABLE>

(1) EBITDA represents earnings before interest, income taxes, depreciation and
    amortization. Amounts are calculated based on the Company's ownership
    percentage of the EBITDA components. Management believes that EBITDA can be
    a meaningful measure of the Company's operating performance, cash generation
    and ability to service debt. However, EBITDA should not be considered as an
    alternative to either: (i) net earnings (determined in accordance with
    GAAP); (ii) operating cash flow (determined in accordance with GAAP); or
    (iii) liquidity. There can be no assurance that the Company's calculation of
    EBITDA is comparable to similarly titled items reported by other companies.


                                       20
<PAGE>   21


                          SEGMENT FINANCIAL INFORMATION
                    (Amounts in thousands, except share data)

The following is a summary of Crescent Operating's financial information
reported by segment for the nine months ended September 30, 2000:

<TABLE>
<CAPTION>
                                                             EQUIPMENT                              TEMPERATURE
                                                               SALES                                 CONTROLLED
                                                            AND LEASING         HOSPITALITY          LOGISTICS
                                                            -----------         -----------         -----------
<S>                                                         <C>                 <C>                 <C>
Revenues ..........................................          $ 108,514           $ 207,570           $      --

Operating expenses ................................            105,374             207,518                  27
                                                             ---------           ---------           ---------
Income (loss) from operations .....................              3,140                  52                 (27)
                                                             ---------           ---------           ---------
Investment income (loss) ..........................                 --                (323)             (5,961)
                                                             ---------           ---------           ---------
Other (income) expense
     Interest expense .............................              7,809                 696                  --
     Interest income ..............................                (25)               (104)                 --
     Other ........................................                426                  (4)                 --
                                                             ---------           ---------           ---------
Total other (income) expense ......................              8,210                 588                  --
                                                             ---------           ---------           ---------
Income (loss) before income
     taxes and minority interest ..................             (5,070)               (859)             (5,988)
Income tax provision (benefit) ....................             (2,131)               (344)             (2,395)
                                                             ---------           ---------           ---------
Income (loss) before minority interests ...........             (2,939)               (515)             (3,593)
Minority interests ................................                 --               1,381                  --
                                                             ---------           ---------           ---------
Net income (loss) .................................          $  (2,939)          $     866           $  (3,593)
                                                             =========           =========           =========
Net income (loss) per share, basic and diluted ....          $   (0.28)          $    0.08           $   (0.35)
                                                             =========           =========           =========
EBITDA Calculation: (1)
     Net income (loss) ............................          $  (2,939)          $     866           $  (3,593)
     Interest expense, net ........................              7,784                  95                 856
     Income tax provision (benefit) ...............             (2,131)                578              (2,389)
     Depreciation and amortization ................             12,752                 872               2,585
                                                             ---------           ---------           ---------
EBITDA ............................................          $  15,466           $   2,411           $  (2,541)
                                                             =========           =========           =========
<CAPTION>
                                                               LAND
                                                            DEVELOPMENT            OTHER               TOTAL
                                                            -----------          ----------          ----------
<S>                                                         <C>                  <C>                 <C>
Revenues ..........................................          $ 209,997           $      --           $ 526,081

Operating expenses ................................            190,414               2,636             505,969
                                                             ---------           ---------           ---------
Income (loss) from operations .....................             19,583              (2,636)             20,112
                                                             ---------           ---------           ---------
Investment income (loss) ..........................             18,340                  --              12,056
                                                             ---------           ---------           ---------
Other (income) expense
     Interest expense .............................             11,073               6,394              25,972
     Interest income ..............................             (2,509)               (248)             (2,886)
     Other ........................................               (335)                  2                  89
                                                             ---------           ---------           ---------
Total other (income) expense ......................              8,229               6,148              23,175
                                                             ---------           ---------           ---------
Income (loss) before income
     taxes and minority interest ..................             29,694              (8,784)              8,993
Income tax provision (benefit) ....................             10,597              (3,515)              2,212
                                                             ---------           ---------           ---------
Income (loss) before minority interests ...........             19,097              (5,269)              6,781
Minority interests ................................            (17,726)                 --             (16,345)
                                                             ---------           ---------           ---------
Net income (loss) .................................          $   1,371           $  (5,269)          $  (9,564)
                                                             =========           =========           =========
Net income (loss) per share, basic and diluted ....          $    0.13           $   (0.51)          $   (0.93)
                                                             =========           =========           =========
EBITDA Calculation: (1)
     Net income (loss) ............................          $   1,371           $  (5,269)          $  (9,564)
     Interest expense, net ........................                459               6,146              15,340
     Income tax provision (benefit) ...............              1,095              (3,515)             (6,362)
     Depreciation and amortization ................              1,007                 (54)             17,162
                                                             ---------           ---------           ---------
EBITDA ............................................          $   3,932           $  (2,692)          $  16,576
                                                             =========           =========           =========
</TABLE>

(1) EBITDA represents earnings before interest, income taxes, depreciation and
    amortization. Amounts are calculated based on the Company's ownership
    percentage of the EBITDA components. Management believes that EBITDA can be
    a meaningful measure of the Company's operating performance, cash generation
    and ability to service debt. However, EBITDA should not be considered as an
    alternative to either: (i) net earnings (determined in accordance with
    GAAP); (ii) operating cash flow (determined in accordance with GAAP); or
    (iii) liquidity. There can be no assurance that the Company's calculation of
    EBITDA is comparable to similarly titled items reported by other companies.


                                       21
<PAGE>   22


RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000,
COMPARED TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999

REVENUES

Total revenue increased $6.5 million, or 3.7%, to $182.1 million for the three
months ended September 30, 2000, compared with $175.6 million for the three
months ended September 30, 1999. Total revenue increased $40.4 million, or 8.3%,
to $526.1 million for the nine months ended September 30, 2000, compared with
$485.7 million for the nine months ended September 30, 1999. The increase in
total revenue is attributable to the factors discussed in the following
paragraphs.

Equipment Sales and Leasing Segment

Equipment sales and leasing revenue decreased $3.4 million, or 9.1%, to $33.8
million for the three months ended September 30, 2000, compared with $37.2
million for the three months ended September 30, 1999. Equipment sales and
leasing revenue increased $4.6 million, or 4.4%, to $108.5 million for the nine
months ended September 30, 2000, compared with $103.9 million for the nine
months ended September 30, 1999. Significant components of the three month
decrease and nine month increase were:

o    a decrease in new equipment revenues for the three months ended September
     30, 2000 due to increased demand from customers for rentals as compared to
     purchases; and

o    an increase in revenues for the nine months ended September 30, 2000 due to
     the Company's acquisitions of Westco Tractor & Equipment, Inc. ("Westco")
     in Santa Rosa, California during the first quarter of 1999, E. L. Lester
     and Company ("Lester") in Houston, Texas and Solveson Crane Rental
     ("Solveson") in Tracy, California during the second quarter of 1999 and the
     opening of the new location in Fort Worth, Texas on August 1, 1999
     resulting in incremental revenue during the three and nine months ended
     September 30, 2000.

Hospitality Segment

Hospitality revenue increased $3.5 million, or 5.4%, to $68.9 million for the
three months ended September 30, 2000, compared with $65.4 million for the three
months ended September 30, 1999. Revenues increased $23.7 million, or 12.9%, to
$207.6 million for the nine months ended September 30, 2000, compared with
$183.9 million for the nine months ended September 30, 1999. Significant
components of the overall increase were:

o    increased revenues at Sonoma Mission Inn and Spa in the amount of $3.5 and
     $7.9 million for the three and nine months, respectively, which can be
     attributed to the 30 additional guest rooms completed in April 2000 as well
     as increased rates in the current year as compared to discounted rates used
     in the prior year during the construction period;

o    increased revenues at the Renaissance Hotel in the amount of $6.2 million
     for nine months, which was not leased by the Company until June 19, 1999;
     and

o    increased average daily rates at certain of the other Hospitality
     Properties resulted in higher revenues during 2000 as compared to the
     corresponding period in 1999.

Land Development Segment

Land development revenue, which represents revenue from Desert Mountain
Development and COPI Colorado prior to the elimination of the minority
interests, increased $6.3 million, or 8.6%, to $79.4 million for the three
months ended September 30, 2000, compared with $73.1 million for the three
months ended September 30, 1999. Revenues increased $12.0 million, or 6.1%, to
$210.0 million for the nine months ended September 30, 2000, compared with
$198.0 million for the nine months ended September 30, 1999. Significant
components of the overall increase were:


                                       22
<PAGE>   23


o    a $8.1 and $16.4 million increase in revenue from COPI Colorado during the
     three and nine months ended September 30, 2000, respectively, as compared
     to the same periods in 1999, primarily due to CDMC's consolidation of
     certain investments which previously had been accounted for using the
     equity method; partially offset by

o    a $1.8 and $4.4 million decrease in revenue from Desert Mountain
     Development for the three and nine months, respectively, due primarily to
     fewer homes being sold during the three and nine months ended September 30,
     2000 as compared to the same periods in 1999.

OPERATING EXPENSES

Total operating expenses increased $2.9 million, or 1.7%, to $175.6 million for
the three months ended September 30, 2000, compared with $172.7 million for the
three months ended September 30, 1999. Total operating expenses increased $36.2
million, or 7.7%, to $506.0 million for the nine months ended September 30,
2000, compared with $469.8 million for the nine months ended September 30, 1999.
The increase in total operating expenses is attributable to the factors
discussed in the following paragraphs.

Equipment Sales and Leasing Segment

Equipment sales and leasing expenses decreased $2.1 million, or 6.0%, to $33.0
million for the three months ended September 30, 2000, compared with $35.1
million for the three months ended September 30, 1999. Equipment sales and
leasing expense increased $6.7 million or 6.8% to $105.4 million for the nine
months ended September 30, 2000, compared with $98.7 million for the nine months
ended September 30, 1999. Significant components of the three month decrease and
nine months increase were:

o    an increase in expenses for the nine months ended September 30, 2000 due to
     the Company's acquisitions of Westco during the first quarter of 1999,
     Lester and Solveson during the second quarter of 1999 and the opening of
     the new location in Fort Worth, Texas on August 1, 1999 resulting in
     incremental operating expenses during the three and nine months ended
     September 30, 2000; and

o    a decrease in expenses during the three months ended September 30, 2000,
     consistent with the decrease in equipment sales and leasing revenue that
     are not attributable to acquisitions.

Hospitality Segment

Hospitality expenses increased $5.8 million, or 9.0%, to $70.0 million for the
three months ended September 30, 2000, compared with $64.2 million for the three
months ended September 30, 1999. Expenses increased $26.8 million or 14.8% to
$207.5 million for the nine months ended September 30, 2000, compared with
$180.7 million for the nine months ended September 30, 1999. Significant
components of the overall increase were:

o    increased rent and expenses associated with the Renaissance Hotel in the
     amount of $7.6 million for the nine months, which was not leased by the
     Company until June 19, 1999;

o    additional rent in the amount of $1.3 million and $3.6 million for the
     three and nine months ended September 30, 2000, resulting from increased
     revenue generated by the Hospitality Properties as well as additional rent
     in the amount of $0.5 million and $2.1 million for the three and nine
     months ended September 30, 2000 due to increased base rent as a result of
     capital expenditures made at certain of the hotels.

Land Development Segment

Land development expenses, which primarily represent operating costs incurred by
Desert Mountain Development and COPI Colorado prior to the elimination of the
minority interests, decreased $0.7 million, or 1.0%, to $71.9 million for the
three months ended September 30, 2000, compared with $72.6 million for the three
months ended September 30, 1999. Expenses increased $1.8 million or 1.0% to
$190.4 million for the nine months ended


                                       23
<PAGE>   24


September 30, 2000, compared with $188.6 million for the nine months ended
September 30, 1999. Significant components of the three month decrease and nine
month increase were:

o    a $7.3 and $11.4 million decrease in expenses incurred by Desert Mountain
     Development for the three and nine months, respectively, is due primarily
     to lower costs associated with decreased home sales during the three and
     nine months ended September 30, 2000 as compared to the same period in
     1999; partially offset by

o    a $6.6 and $13.0 million increase in expenses incurred by COPI Colorado
     during the three and nine months ended September 30, 2000 as compared to
     the same period in 1999, primarily due to CDMC's consolidation of certain
     investments which previously had been accounted for using the equity
     method.

Corporate General and Administrative Expenses

Corporate general and administrative expenses totaled $0.7 and $2.7 million for
the three and nine months ended September 30, 2000, respectively, as compared to
$0.8 and $1.8 million for the three and nine months ended September 30, 1999,
respectively. These expenses consisted of general corporate overhead costs, such
as legal and accounting costs, insurance costs and corporate salaries. The
increase for the nine months ended September 30, 2000 compared to the same
period in 1999 is primarily attributable to (i) costs of approximately $0.3
million for the nine months ended September 30, 2000 incurred in connection with
proceedings in bankruptcy court and litigation outside of bankruptcy court
arising from the Company's ownership interest in CBHS, (ii) professional fees of
approximately $0.1 million for the nine months ended September 30, 2000
resulting from analyses of the REIT Modernization Act and the Company's
exploration of alternatives with Crescent Equities regarding a potential future
transaction with respect to certain of the Company's assets and (iii)
transaction costs of approximately $0.5 million for the nine months ended
September 30, 2000 incurred by the Company in conjunction with the negotiation,
execution and termination of the asset purchase agreement with CBHS. The Company
expects to incur additional litigation expenses in the future in defending
against claims made as a result of the Company's ownership interest in CBHS.
Although management cannot quantify these future expenses due to the
unpredictable nature of litigation, management believes at this time that such
expenses are not likely, in the aggregate, to become material to the Company as
a whole. See Part II - Other Information - Legal Proceedings.

INVESTMENT INCOME

Investment income increased $3.4 million or 178.9%, to $5.3 million for the
three months ended September 30, 2000, compared with $1.9 million for the three
months ended September 30, 1999. Significant components of the overall increase
were:

o    an increase in equity in income of Landevco in the amount of $1.3 million
     primarily due to an increase in commercial land sales;

o    an increase in equity in income of CRL in the amount of $1.1 million
     primarily due to start-up costs associated with CR Las Vegas expensed in
     the prior year; and

o    an increase in equity in income of CDMC projects in the amount of $0.9
     million.

For the nine months ended September 30, 2000, investment income decreased $3.6
million, or 22.9%, to $12.1 million, compared with $15.7 million for the nine
months ended September 30, 1999. Significant components of the overall decrease
were:

o    a decrease in equity in income of CDMC projects in the amount of $1.1
     million primarily due to CDMC's consolidation of certain of these
     investments which previously had been accounted for using the equity
     method;

o    an increase of $3.6 million in equity in loss of AmeriCold Logistics,
     primarily due to holding the investment for a full nine months as compared
     to seven months in the prior year as well as increased labor costs;
     partially offset by


                                       24
<PAGE>   25


o    an increase in equity in income of Landevco in the amount of $1.5 million
     primarily due to an increase in commercial land sales.

OTHER (INCOME) EXPENSE

Other (income) expense increased $1.3 million, or 18.3%, to $8.4 million for the
three months ended September 30, 2000, compared with $7.1 million for the three
months ended September 30, 1999. For the nine months ended September 30, 2000,
other (income) expense increased $4.5 million, or 24.1%, to $23.2 million,
compared with $18.7 million for the nine months ended September 30, 1999. The
increase is primarily attributable to an increase in interest expense in the
amount of $1.5 and $5.0 million for the three and nine months ended September
30, 2000, respectively, resulting from an increase in overall interest rates on
floating rate debt and increases in outstanding indebtedness in connection with
acquisitions and growth, partially offset by a decrease in indebtedness at
Desert Mountain Development.

MINORITY INTERESTS

Minority interests increased $5.2 million, or 346.7%, to $6.7 million for the
three months ended September 30, 2000, compared to $1.5 million for the three
months ended September 30, 1999. Minority interests increased $4.5 million, or
38.1%, to $16.3 million for the nine months ended September 30, 2000, compared
to $11.8 million for the nine months ended September 30, 1999. Minority
interests consist of the non-voting interests in the Land Development segment
and in CRL Investments.

INCOME TAX PROVISION (BENEFIT)

Income tax provision of $1.0 million for the three months ended September 30,
2000 represents a change of $2.3 million from the three months ended September
30, 1999. Income tax provision consisted of a $3.9 million tax provision for the
Land Development segment, partially offset by a $0.5 million tax benefit for the
Hospitality segment, a $1.1 million tax benefit at the corporate level, a $0.5
million tax benefit for the Temperature Controlled Logistics segment and a $0.8
tax benefit for the Equipment Sales and Leasing segment.

Income tax provision of $2.2 million for the nine months ended September 30,
2000 represents a change of $2.1 million from the nine months ended September
30, 1999. Income tax provision consisted primarily of a $10.6 million tax
provision for the Land Development segment, partially offset by a $3.5 million
tax benefit at the corporate level, a $2.4 million tax benefit for the
Temperature Controlled Logistics segment, a $2.1 million tax benefit for the
Equipment Sales and Leasing segment and a $0.3 million tax benefit for the
Hospitality segment.

The Company generally provides for taxes using a 40% effective rate on the
Company's share of income or loss. Management continues to evaluate the
realizability of the deferred tax assets quarterly by assessing the need for a
valuation allowance. Inability of the Company to execute business plans for
certain of the company's segments could affect the ultimate realization of the
deferred tax assets.

LIQUIDITY AND CAPITAL RESOURCES

Recognizing that cash flow from its assets would not be likely to provide the
Company with adequate capital to meet its requirements during 2000, during the
first quarter of 2000 the Company extended certain payment obligations by
reaching agreements with Crescent Equities to defer, until 2001, payments on
certain of Crescent Operating's obligations to Crescent Equities otherwise
scheduled to be made in 2000. The deferrals include amendments to defer until
February 2001 principal and interest payments otherwise due on loans from
Crescent Partnership to Crescent Operating and permission to defer, during the
time required to explore a potential future transaction with respect to certain
of the Company's investments, payment of rent under lease agreements for the
Hospitality Properties (rent payments accrued but deferred for periods through
September 30, 2000, totaled approximately $15.0 million). With these agreements,
the Company believes that it will be able to meet its capital requirements
during 2000 from the recurring cash flow of its assets. The Company believes
that alternatives for funding its long-term capital requirements include one or
more restructuring transactions, including, but not limited to, the sale of
certain assets and public or private issuances of equity. There can be no
assurances, however, that any such transaction will


                                       25
<PAGE>   26


occur, or, if it does, that the proceeds from the transaction would be
sufficient to meet the Company's long-term capital requirements.

For a listing of the Company's primary debt financing arrangements, see Note 5
to the Financial Statements included in Part I.

CASH FLOWS

Cash and cash equivalents include amounts from all consolidated subsidiaries,
including subsidiaries not wholly-owned. Changes, therefore, do not necessarily
represent increases or decreases in cash directly available to the Company.

Cash and cash equivalents were $47.6 million and $39.0 million at September 30,
2000 and December 31, 1999, respectively. The 22.1% increase is attributable to
$24.2 million of cash provided by financing activities, partially offset by $0.6
and $15.0 million of cash used in operating and investing activities,
respectively.

OPERATING ACTIVITIES

The Company's outflow of cash used in operating activities of $0.6 million was
primarily attributable to outflows from:

o    an increase in real estate of $45.6 million;

o    increase in accounts receivable of $20.9 million;

o    increase in deferred taxes of $13.7 million; and

o    equity in income from unconsolidated subsidiaries of $10.5 million.

The outflow of cash used in operating activities was partially offset by inflows
from:

o    increase in deferred revenue of $35.8 million;

o    non-cash depreciation and amortization of $27.1 million;

o    increase in accounts payable to CEI of $16.3 million; and

o    minority interests of $16.3 million.

INVESTING ACTIVITIES

The Company's outflow of cash used in investing activities of $15.0 million was
primarily attributable to outflows from:

o    purchases of property and equipment of $51.4 million.

The outflow of cash used in investing activities was partially offset by inflows
from:

o    proceeds from the sale of property and equipment of $21.3 million;

o    net proceeds from sale and collection of notes receivable of $9.9 million;
     and

o    increase in distributions from investments of controlled subsidiaries of
     $7.6 million.


FINANCING ACTIVITIES

The Company's inflow of cash provided by financing activities of $24.2 million
was primarily attributable to inflow from:

o    proceeds of long-term debt of $200.6 million; and

o    capital contributions attributable to minority interests of $36.4 million.


                                       26
<PAGE>   27


The inflow of cash provided by financing activities was partially offset by
outflows from:

o    payments of long-term debt of $162.4 million; and

o    distributions to minority interests of $37.6 million.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Since December 31, 1999, there have been no material changes to the information
regarding market risk that was provided in the Company's Form 10-K for the year
ended December 31, 1999.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

CBHS became the subject of Chapter 11 bankruptcy proceedings by filing a
voluntary petition on February 16, 2000, in United States Bankruptcy Court for
the District of Delaware. Although CBHS is not a subsidiary of Crescent
Operating, Crescent Operating does own a majority (90%) economic interest in
CBHS. Crescent Operating's claims against the estate of CBHS include (i) its
interests as a direct and indirect equity holder of CBHS and (ii) its claim for
indemnification or contribution against third party lawsuits and claims where
Crescent Operating is a named defendant with CBHS, such as lawsuits based upon
alleged Worker Adjustment and Retraining Notification ("WARN") Act violations
purported to have been committed by CBHS and/or its subsidiaries in closing
behavioral health care facilities in 1999 and 2000. Prior to the original bar
date of May 1, 2000 Crescent Operating filed proofs of claim against CBHS with
regard to these claims; due in part to objections made by terminated CBHS
employees that the May 1 bar date did not allow adequate time for them to file
claims, including claims based on alleged violations of the WARN Act, the bar
date has been reset to December 1, 2000.

Another claimant in the CBHS bankruptcy is expected to be Crescent Partnership
(either individually, or together with its parent, Crescent Equities), which is
the owner of certain facilities leased to and operated by CBHS and its
subsidiaries and is also the secured lender of $10 million to CBHS. CBHS had an
arrearage on its lease payments owed to Crescent Partnership accrued prior to
the commencement of bankruptcy and accrued rent for facilities after the
commencement of bankruptcy. While the claims of Crescent Partnership against
CBHS are not necessarily adverse to the interests of Crescent Operating, the
interests of Crescent Partnership are separate, distinguishable and at least
nominally in conflict with the competing interests and claims of all other
interested parties in the bankruptcy, including Crescent Operating. To the
Company's knowledge, none of the directors, officers or security holders of
Crescent Operating has, in his or its individual capacity, an interest adverse
to Crescent Operating in connection with the CBHS bankruptcy; however, in their
capacities as directors, officers and/or security holders of Crescent
Partnership or Crescent Equities, certain persons may be deemed to hold
interests adverse to the Company's interest in connection with the CBHS
bankruptcy.

Through the third quarter, four lawsuits, all seeking class action
certification, had been filed against CBHS and its subsidiaries outside of the
bankruptcy proceeding alleging violations of the WARN Act in the closing of
certain healthcare facilities; three of those lawsuits also named Crescent
Operating as a defendant. Under the automatic stay provisions of federal
bankruptcy law, lawsuits against CBHS or its subsidiaries would be stayed unless
otherwise directed by the bankruptcy court, but the lawsuits against other
defendants, including Crescent Operating, would not be stayed automatically;
however, the Company anticipated that those suits might be stayed because CBHS
and its subsidiaries would be indispensable parties. On June 22, 2000, the
plaintiffs in one of those suits voluntarily dismissed without prejudice
Crescent Operating from that suit; based on discussions with the attorneys for
the plaintiffs in the other two suits, the Company expects to be likewise
dismissed without prejudice from those suits. A similar WARN adversary
proceeding, also seeking class certification, was filed in June in the CBHS
bankruptcy proceeding but in late July the plaintiffs filed a stipulation for
dismissal of their complaint against Crescent Operating in that action. (In a
separate action in bankruptcy court, a motion has been filed on behalf of a
putative class of CBHS terminated employees in Texas, requesting permission for
WARN claims to be made before the bankruptcy court.) In connection with the
dismissals and anticipated dismissals in the three non-bankruptcy


                                       27
<PAGE>   28
court lawsuits and the one bankruptcy court adversary proceeding discussed
above, on July 24, 2000, the principal plaintiffs in those four actions filed
suit against the Company, Crescent Partnership, Crescent Equities and certain
entities related to Crescent Equities in the United States District Court for
the District of Delaware. The plaintiffs did not include CBHS or its
subsidiaries as defendants in that suit. The plaintiffs and the defendants
(including the Company) in that case have agreed with the court to first seek
determination of whether any of the defendants can be held to be an "employer"
of the plaintiffs under the WARN Act and thus responsible for alleged violations
of the WARN Act in the plaintiffs' terminations; a hearing on that question is
scheduled for May 21, 2001. If the Company prevails, then the plaintiffs' suit
against it would be dismissed; if the plaintiffs prevail, they would then seek
to prove that their termination had violated the WARN Act. According to
allegations made by plaintiffs in connection with the various lawsuits, the size
of the potential plaintiff class may exceed 5,000 former employees. Although
other similar lawsuits may be filed due to the closing of other facilities, the
Company believes it more likely than not that all suits eventually will be
consolidated before a single court. The lawsuits seek, among other relief, back
pay and employee benefits for the 60-day maximum period allowed by the WARN Act.
With respect to the pending suits and possible future claims against Crescent
Operating based on the closure by CBHS or its subsidiaries of facilities in 1999
and 2000, the Company believes that such actions are without basis under the
WARN Act and should be dismissed and that the Company should ultimately be
successful in its defense of such suits and claims; however, no assurance can be
given that Crescent Operating will prevail.

ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS

Not Applicable

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not Applicable

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not Applicable

ITEM 5. OTHER INFORMATION

Not Applicable

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits         Description

            3.1         First Amended and Restated Certificate of Incorporation
                        (filed as Exhibit 3.3 to the Company's registration
                        statement on Form S-1 dated July 12, 1997 ("Form S-1")
                        and incorporated by reference herein)

            3.2         First Amended and Restated Bylaws (filed as Exhibit 3.4
                        to Form S-1 and incorporated by reference herein)

            3.3         Amendment of Article V of First Amended and Restated
                        Bylaws (filed as Exhibit 3.3 to the Company's June 30,
                        1998 Form 10-Q ("June 30, 1998 Form 10-Q") and
                        incorporated by reference herein)

            3.4         Repeal of Amendment of Article V of First Amended and
                        Restated Bylaws (filed as Exhibit 3.4 to the Company's
                        September 30, 1998 Form 10-Q ("September 30, 1998 Form
                        10-Q") and incorporated by reference herein)

            4.1         Specimen stock certificate (filed as Exhibit 4.1 to Form
                        S-1 and incorporated by reference herein)

            4.2         Preferred Share Purchase Rights Plan (filed as Exhibit
                        4.2 to Form S-1 and incorporated by reference herein)

            4.3         First Amendment to Preferred Share Purchase Rights
                        Agreement dated as of September 25, 1998, between
                        Crescent Operating, Inc. and Bank Boston, N.A., as
                        Rights Agent (filed as Exhibit 4.3 to September 30, 1998
                        Form 10-Q and incorporated by reference herein)

            4.4         Second Amendment to Preferred Share Purchase Rights
                        Agreement dated as of March 4, 1999, between Crescent
                        Operating, Inc. and Bank Boston, N.A., as Rights Agent
                        (filed as Exhibit 4.4 to March 31, 1999 Form 10-Q
                        ("March 31, 1999 Form 10-Q") and incorporated by
                        reference herein)

           10.1         Amended Stock Incentive Plan (filed as Exhibit 10.1 to
                        Form S-1 and incorporated by reference herein)

           10.2         Intercompany Agreement between Crescent Operating, Inc.
                        and Crescent Real Estate Equities Limited Partnership
                        (filed as Exhibit 10.2 to the Company's Quarterly Report
                        on Form 10-Q for the Quarter Ended June 30, 1997 ("June
                        30, 1997 Form 10-Q") and incorporated by reference
                        herein)

           10.3         Amended and Restated Operating Agreement of Charter
                        Behavioral Health Systems, LLC (filed as Exhibit 10.3 to
                        June 30, 1997 Form 10-Q and incorporated by reference
                        herein)
<PAGE>   29
           10.5         Amended and Restated Credit and Security Agreement,
                        dated as of May 30, 1997, between Crescent Real Estate
                        Equities Limited Partnership and Crescent Operating,
                        Inc., together with related Note (filed as Exhibit 10.5
                        to the Company's September 30, 1997 Form 10-Q
                        ("September 30, 1997 Form 10-Q") and incorporated by
                        reference herein)

           10.6         Line of Credit and Security Agreement, dated as of May
                        21, 1997, between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc., together with
                        related Line of Credit Note (filed as Exhibit 10.6 to
                        September 30, 1997 Form 10-Q and incorporated by
                        reference herein)

           10.7         Acquisition Agreement, dated as of February 10, 1997,
                        between Crescent Real Estate Equities Limited
                        Partnership and Carter-Crowley Properties, Inc. (filed
                        as Exhibit 10.7 to Form S-1 and incorporated by
                        reference herein)

          10.10         Security Agreement dated September 22, 1997 between COI
                        Hotel Group, Inc., as debtor, and Crescent Real Estate
                        Equities Limited Partnership, as lender, together with
                        related $1 million promissory note (filed as Exhibit
                        10.10 to September 30, 1997 Form 10-Q and incorporated
                        by reference herein)

          10.11         Security Agreement dated September 22, 1997 between COI
                        Hotel Group, Inc., as debtor, and Crescent Real Estate
                        Equities Limited Partnership, as lender, together with
                        related $800,000 promissory note (filed as Exhibit 10.11
                        to September 30, 1997 Form 10-Q and incorporated by
                        reference herein)

          10.12         Amended and Restated Asset Management dated August 31,
                        1997, to be effective July 31, 1997, between Wine
                        Country Hotel, LLC and The Varma Group, Inc. (filed as
                        Exhibit 10.12 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.13         Amended and Restated Asset Management Agreement dated
                        August 31, 1997, to be effective July 31, 1997, between
                        RoseStar Southwest, LLC and The Varma Group, Inc. (filed
                        as Exhibit 10.13 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.14         Amended and Restated Asset Management Agreement dated
                        August 31, 1997, to be effective July 31, 1997, between
                        RoseStar Management LLC and The Varma Group, Inc. (filed
                        as Exhibit 10.14 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.15         Agreement for Financial Services dated July 1, 1997,
                        between Crescent Real Estate Equities Company and
                        Petroleum Financial, Inc. (filed as Exhibit 10.15 to
                        September 30, 1997 Form 10-Q and incorporated by
                        reference herein)

          10.16         Credit Agreement dated August 27, 1997, between Crescent
                        Operating, Inc. and NationsBank of Texas, N.A. together
                        with related $15.0 million promissory note (filed as
                        Exhibit 10.16 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.17         Support Agreement dated August 27, 1997, between Richard
                        E. Rainwater, John Goff and Gerald Haddock in favor of
                        Crescent Real Estate Equities Company and NationsBank of
                        Texas, N.A. (filed as Exhibit 10.17 to September 30,
                        1997 Form 10-Q and incorporated by reference herein)

          10.18         1997 Crescent Operating, Inc. Management Stock Incentive
                        Plan (filed as Exhibit 10.18 to the Company's Annual
                        Report on Form 10-K for the year ended December 31, 1997
                        ("December 31, 1997 Form 10-K") and incorporated by
                        reference herein)

          10.19         Memorandum of Agreement executed November 16, 1997,
                        among Charter Behavioral Health Systems, LLC, Charter
                        Behavioral Health Systems, Inc. and Crescent Operating,
                        Inc. (filed as Exhibit 10.19 to December 31, 1997 Form
                        10-K and incorporated by reference herein)

          10.20         Purchase Agreement dated August 31, 1997, by and among
                        Crescent Operating, Inc., RoseStar Management LLC,
                        Gerald W. Haddock, John C. Goff and Sanjay Varma (filed
                        as Exhibit 10.20 to December 31, 1997 Form 10-K and
                        incorporated by reference herein)

          10.21         Stock Purchase Agreement dated August 31, 1997, by and
                        among Crescent Operating, Inc., Gerald W. Haddock, John
                        C. Goff and Sanjay Varma (filed as Exhibit 10.21 to
                        December 31, 1997 Form 10-K and incorporated by
                        reference herein)
<PAGE>   30
          10.22         Amended and Restated Lease Agreement, dated June 30,
                        1995 between Crescent Real Estate Equities Limited
                        Partnership and RoseStar Management LLC, relating to the
                        Denver Marriott City Center (filed as Exhibit 10.17 to
                        the Annual Report on Form 10-K of Crescent Real Estate
                        Equities Company for the Fiscal Year Ended December 31,
                        1995 (the "1995 CEI 10-K") and incorporated by reference
                        herein)

          10.23         Lease Agreement, dated December 19, 1995 between
                        Crescent Real Estate Equities Limited Partnership and
                        RoseStar Management LLC, relating to the Hyatt Regency
                        Albuquerque (filed as Exhibit 10.16 to the 1995 CEI 10-K
                        and incorporated by reference herein)

          10.24         Form of Amended and Restated Lease Agreement, dated
                        January 1, 1996, among Crescent Real Estate Equities
                        Limited Partnership, Mogul Management, LLC and RoseStar
                        Management LLC, relating to the Hyatt Regency Beaver
                        Creek (filed as Exhibit 10.12 to the 1995 CEI 10-K and
                        incorporated by reference herein)

          10.25         Lease Agreement, dated July 26, 1996, between Canyon
                        Ranch, Inc. and Canyon Ranch Leasing, L.L.C., assigned
                        by Canyon Ranch, Inc. to Crescent Real Estate Equities
                        Limited Partnership pursuant to the Assignment and
                        Assumption Agreement of Master Lease, dated July 26,
                        1996 (filed as Exhibit 10.24 to the Quarterly Report on
                        Form 10-Q/A of Crescent Real Estate Equities Company for
                        the Quarter Ended June 30, 1997 (the "1997 CEI 10-Q")
                        and incorporated by reference herein)

          10.26         Lease Agreement, dated November 18, 1996 between
                        Crescent Real Estate Equities Limited Partnership and
                        Wine Country Hotel, LLC (filed as Exhibit 10.25 to the
                        Annual Report on Form 10-K of Crescent Real Estate
                        Equities Company for the Fiscal Year Ended December 31,
                        1996 and incorporated by reference herein)

          10.27         Lease Agreement, dated December 11, 1996, between Canyon
                        Ranch-Bellefontaine Associates, L.P. and Vintage
                        Resorts, L.L.C., as assigned by Canyon
                        Ranch-Bellefontaine Associates, L.P. to Crescent Real
                        Estate Funding VI, L.P. pursuant to the Assignment and
                        Assumption Agreement of Master Lease, dated December 11,
                        1996 (filed as Exhibit 10.26 to the 1997 CEI 10-Q and
                        incorporated by reference herein)

          10.28         Master Lease Agreement, dated June 16, 1997, between
                        Crescent Real Estate Funding VII, L.P. and Charter
                        Behavioral Health Systems, LLC and its subsidiaries,
                        relating to the Facilities (filed as Exhibit 10.27 to
                        the 1997 CEI 10-Q and incorporated by reference herein)

          10.29         Form of Indemnification Agreement (filed as Exhibit
                        10.29 to December 31, 1997 Form 10-K and incorporated by
                        reference herein)

          10.30         Purchase Agreement, dated as of September 29, 1997,
                        between Crescent Operating, Inc. and Crescent Real
                        Estate Equities Limited Partnership, relating to the
                        purchase of Desert Mountain Development Corporation
                        (filed as Exhibit 10.30 to December 31, 1997 Form 10-K
                        and incorporated by reference herein)

          10.31         Lease Agreement dated December 19, 1997, between
                        Crescent Real Estate Equities Limited Partnership, as
                        Lessor, and Wine Country Hotel, as Lessee, for lease of
                        Ventana Inn (filed as Exhibit 10.31 to the Company's
                        March 31, 1998 Form 10-Q ("March 31, 1998 Form 10-Q")
                        and incorporated by reference herein)

          10.32         Lease Agreement dated September 22, 1997, between
                        Crescent Real Estate Equities Limited Partnership, as
                        Lessor, and COI Hotel Group, Inc., as lessee, for lease
                        of Four Seasons Hotel, Houston (filed as Exhibit 10.32
                        to March 31, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.33         Asset Purchase Agreement dated December 19, 1997, among
                        Crescent Operating, Inc., Preco Machinery Sales, Inc.,
                        and certain individual Preco shareholders (filed as
                        Exhibit 10.33 to March 31, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.34         Asset Purchase Agreement dated April 30, 1998, among
                        Crescent Operating, Inc., Central Texas Equipment
                        Company, and certain individual Central Texas
                        shareholders (filed as Exhibit 10.34 to March 31, 1998
                        Form 10-Q and incorporated by reference herein)

          10.35         Credit Agreement dated August 29, 1997 between Crescent
                        Real Estate Equities Limited Partnership, as lender, and
                        Desert Mountain Properties Limited Partnership, as
                        borrower, together with related Senior Note, Junior Note
                        and deed of trust (filed as Exhibit 10.35 to March 31,
                        1998 Form 10-Q and incorporated by reference herein)



<PAGE>   31
          10.36         Buy-Out Agreement dated April 24, 1998, between Crescent
                        Operating, Inc. and Crescent Real Estate Equities
                        Limited Partnership (filed as Exhibit 10.36 to March 31,
                        1998 Form 10-Q and incorporated by reference herein)

          10.37         Stock Acquisition Agreement and Plan of Merger dated
                        June 4, 1998, among Machinery, Inc., Oklahoma Machinery,
                        Inc., Crescent Machinery Company, Crescent Operating,
                        Inc. and certain individual Machinery shareholders
                        (filed as Exhibit 10.37 to June 30, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.38         Master Revolving Line of Credit Loan Agreement
                        (Borrowing Base and Warehouse) dated May 14, 1998,
                        between Desert Mountain Properties Limited Partnership
                        and National Bank of Arizona (filed as Exhibit 10.38 to
                        June 30, 1998 Form 10-Q and incorporated by reference
                        herein)

          10.39         1997 Management Stock Incentive Plan (filed as Exhibit
                        10.39 to June 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.40         Credit and Security Agreement, dated as of September 21,
                        1998, between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc., together with
                        related Note (filed as Exhibit 10.40 to September 30,
                        1998 Form 10-Q and incorporated by reference herein)

          10.41         First Amendment to Amended and Restated Pledge
                        Agreement, dated as of September 21, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.41 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.42         First Amendment to Line of Credit and Security
                        Agreement, dated as of August 11, 1998, between Crescent
                        Real Estate Equities Limited Partnership and Crescent
                        Operating, Inc., together with related Note (filed as
                        Exhibit 10.42 to September 30, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.43         First Amendment to Amended and Restated Credit and
                        Security Agreement, dated as of August 11, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.43 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.44         Second Amendment to Amended and Restated Credit and
                        Security Agreement, dated as of September 21, 1998,
                        between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc. (filed as
                        Exhibit 10.44 to September 30, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.45         Second Amendment to Line of Credit and Security
                        Agreement, dated as of September 21, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.45 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.46         Agreement of Limited Partnership of COPI Colorado, L.P.
                        (filed as Exhibit 10.1 to that Schedule 13D Statement
                        dated September 28, 1998, filed by COPI Colorado, L.P.,
                        Crescent Operating, Inc., Gerald W. Haddock, John C.
                        Goff and Harry H. Frampton, III, and incorporated by
                        reference herein)

          10.47         Contribution Agreement effective as of September 11,
                        1998, by and among Crescent Operating, Inc., Gerald W.
                        Haddock, John C. Goff and Harry H. Frampton, III (filed
                        as Exhibit 10.2 to that Schedule 13D Statement dated
                        September 28, 1998, filed by COPI Colorado, L.P.,
                        Crescent Operating, Inc., Gerald W. Haddock, John C.
                        Goff and Harry H. Frampton, III, and incorporated by
                        reference herein)

          10.48         Agreement Regarding Schedules and Other Matters made as
                        of September 11, 1998, by and among Crescent Operating,
                        Inc., Gerald W. Haddock, John C. Goff and Harry H.
                        Frampton, III (filed as Exhibit 10.3 to that Schedule
                        13D Statement dated September 28, 1998, filed by COPI
                        Colorado, L.P., Crescent Operating Inc., Gerald W.
                        Haddock, John C. Goff and Harry H. Frampton, III, and
                        incorporated by reference herein)

          10.49         Stock Purchase Agreement dated as of August 7, 1998 by
                        and among Western Traction Company, The Carlston Family
                        Trust, Ronald D. Carlston and Crescent Operating, Inc.
                        (filed as Exhibit 10.49 to September 30, 1998 Form 10-Q
                        and incorporated by reference herein)

<PAGE>   32
          10.50         Stock Purchase Agreement dated as of July 31, 1998 by
                        and among Harvey Equipment Center, Inc., L and H Leasing
                        Company, William J. Harvey, Roy E. Harvey, Jr., Betty J.
                        Harvey and Crescent Operating, Inc. (filed as Exhibit
                        10.50 to September 30, 1998 Form 10-Q and incorporated
                        by reference herein)

          10.51         Credit Agreement dated as of July 28, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        CRL Investments, Inc., together with the related Note
                        (filed as Exhibit 10.51 to September 30, 1998 Form 10-Q
                        and incorporated by reference herein)

          10.52         Security Agreement dated as of July 28, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        CRL Investments, Inc. (filed as Exhibit 10.52 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.53         First Amendment to Credit Agreement effective as of
                        August 27, 1998, among Crescent Operating, Inc.,
                        NationsBank, N. A., and the Support Parties identified
                        therein (filed as Exhibit 10.53 to September 30, 1998
                        Form 10-Q and incorporated by reference herein)

          10.54         Lease Agreement dated as of October 13, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Wine Country Golf Club, Inc., relating to Sonoma Golf
                        Club (filed as Exhibit 10.54 to September 30, 1998 Form
                        10-Q and incorporated by reference herein)

          10.55         First Amendment to Lease Agreement effective December
                        31, 1998, between Canyon Ranch Leasing, L.L.C., and
                        Crescent Real Estate Equities Limited Partnership,
                        relating to Canyon Ranch - Tucson (filed as Exhibit
                        10.55 to the Company's Annual Report on Form 10-K for
                        the year ended December 31, 1998 ("December 31, 1998
                        Form 10-K") and incorporated by reference herein)

          10.56         First Amendment to Lease Agreement effective April 1,
                        1996; Second Amendment to Lease Agreement effective
                        November 22, 1996; Third Amendment to Lease Agreement
                        effective August 12, 1998; and Fourth Amendment to Lease
                        Agreement effective December 31, 1998 between RoseStar
                        Southwest, LLC, and Crescent Real Estate Funding II
                        L.P., relating to Hyatt Regency Albuquerque (filed as
                        Exhibit 10.56 to December 31, 1998 Form 10-K and
                        incorporated by reference herein)

          10.57         First Amendment to Lease Agreement effective December
                        31, 1998, between Wine Country Hotel, LLC, and Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Sonoma Mission Inn & Spa (filed as Exhibit 10.57 to
                        December 31, 1998 Form 10-K and incorporated by
                        reference herein)

          10.58         First Amendment to Amended and Restated Lease Agreement
                        effective December 31, 1998, between RoseStar
                        Management, LLC, and Crescent Real Estate Equities
                        Limited Partnership, relating to Marriott City Center,
                        Denver (filed as Exhibit 10.58 to December 31, 1998 Form
                        10-K and incorporated by reference herein)

          10.59         First Amendment to Lease Agreement effective December
                        31, 1998, between Wine Country Hotel, LLC, and Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Ventana Inn (filed as Exhibit 10.59 to December 31, 1998
                        Form 10-K and incorporated by reference herein)

          10.60         First Amendment to Amended and Restated Lease Agreement
                        effective April 1, 1996 and Second Amendment to Amended
                        and Restated Lease Agreement effective December 31,
                        1998, between RoseStar Southwest, LLC, and Crescent Real
                        Estate Funding II, L.P., relating to Hyatt Regency
                        Beaver Creek (filed as Exhibit 10.60 to December 31,
                        1998 Form 10-K and incorporated by reference herein)

          10.61         First Amendment to Lease Agreement effective December
                        31, 1998, between COI Hotel Group, Inc. and Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Four Seasons - Houston (filed as Exhibit 10.61 to
                        December 31, 1998 Form 10-K and incorporated by
                        reference herein)

          10.62         First Amendment to Lease Agreement effective December
                        31, 1998, between Wine Country Hotel, LLC and Crescent
                        Real Estate Funding VI, L.P., relating to Canyon Ranch -
                        Lenox (filed as Exhibit 10.62 to March 31, 1999 Form
                        10-Q and incorporated by reference herein)

          10.63         Master Guaranty effective December 31, 1998, by Crescent
                        Operating, Inc. for the benefit of Crescent Real Estate
                        Equities Limited Partnership, Crescent Real Estate
                        Funding II, L.P., and Crescent Real Estate Funding VI,
                        L.P., relating to leases for Hyatt Regency Albuquerque,
                        Hyatt Regency Beaver Creek, Canyon Ranch-Lenox, Sonoma
                        Mission Inn & Spa, Canyon Ranch - Tucson, and Marriott
                        City Center Denver (filed as Exhibit 10.63 to December
                        31, 1998 Form 10-K and incorporated by reference herein)
<PAGE>   33
          10.64         Guaranty of Lease effective December 19, 1997, by
                        Crescent Operating, Inc. for the benefit of Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Ventana Inn (filed as Exhibit 10.64 to December 31, 1998
                        Form 10-K and incorporated by reference herein)

          10.65         Amended and Restated Guaranty of Lease effective
                        December 31, 1998, by Crescent Operating, Inc. for the
                        benefit of Crescent Real Estate Equities Limited
                        Partnership, relating to Four Seasons Hotel - Houston
                        (filed as Exhibit 10.65 to December 31, 1998 Form 10-K
                        and incorporated by reference herein)

          10.66         Amended and Restated Guaranty of Lease effective
                        December 31, 1998, by Crescent Operating, Inc. for the
                        benefit of Crescent Real Estate Equities Limited
                        Partnership, relating to Sonoma Golf Club (filed as
                        Exhibit 10.66 to December 31, 1998 Form 10-K and
                        incorporated by reference herein)

          10.67         Credit Agreement dated August 11, 1995, between Crescent
                        Development Management Corp., as borrower, and Crescent
                        Real Estate Equities Limited Partnership, as lender;
                        First Amendment to Credit Agreement dated as of April
                        15, 1997; Second Amendment to Credit Agreement dated as
                        of May 8, 1998; and related Note and Security Agreement
                        (filed as Exhibit 10.67 to December 31, 1998 Form 10-K
                        and incorporated by reference herein)

          10.68         Credit Agreement dated January 1, 1998, between Crescent
                        Development Management Corp., as borrower, and Crescent
                        Real Estate Equities Limited Partnership, as lender, and
                        related Note and Security Agreement (filed as Exhibit
                        10.68 to December 31, 1998 Form 10-K and incorporated by
                        reference herein)

          10.69         $3,100,000 Note dated February 29, 1996, made by
                        Crescent Development Management Corp. payable to
                        Crescent Real Estate Equities Limited Partnership (filed
                        as Exhibit 10.69 to December 31, 1998 Form 10-K and
                        incorporated by reference herein)

          10.70         Credit Agreement dated January 1, 1999, between Crescent
                        Development Management Corp., as borrower, and Crescent
                        Real Estate Equities Limited Partnership, as lender, and
                        related Line of Credit Note and Security Agreement
                        (filed as Exhibit 10.70 to March 31, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.71         Amended and Restated Credit Agreement dated January 1,
                        1999, between Crescent Development Management Corp., as
                        borrower, and Crescent Real Estate Equities Limited
                        Partnership, as lender, and related Line of Credit Note
                        and Amended and Restated Security Agreement (filed as
                        Exhibit 10.71 to March 31, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.72         Purchase Agreement dated March 12, 1999, between
                        Crescent Operating, Inc. and Crescent Real Estate
                        Equities Limited Partnership, relating to sale of
                        interests in Crescent CS Holdings Corp., and Crescent CS
                        Holdings II Corp., and related Put Agreement of same
                        date (filed as Exhibit 10.72 to March 31, 1999 Form 10-Q
                        and incorporated by reference herein)

          10.73         Second Amendment to Lease Agreement effective April 1,
                        1999, between Wine Country Hotel, LLC, and Crescent Real
                        Estate Funding VI, L.P., relating to Canyon Ranch-Lenox
                        (filed as Exhibit 10.73 to March 31, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.74         Master Revolving Line of Credit Loan Agreement
                        (Borrowing Base and Warehouse) dated May 14, 1998,
                        between Desert Mountain Properties Limited Partnership,
                        as borrower, and National Bank of Arizona, as lender;
                        Modification Agreement dated December 30, 1998; second
                        Modification Agreement dated March 31, 1999; and related
                        Promissory Note (Borrowing Base), Promissory Note
                        (Warehouse), Pledge Agreement, Deed of Trust, and
                        Amendment to Deed of Trust (filed as Exhibit 10.74 to
                        March 31, 1999 Form 10-Q and incorporated by reference
                        herein)

          10.75         Lease Agreement dated as of June 15, 1999, between
                        Crescent Real Estate Funding III, L.P. and COI Hotel
                        Group, Inc., relating to the Renaissance Houston Hotel
                        (filed as Exhibit 10.75 to June 30, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.76         Guaranty of Lease dated June 15, 1999, by Crescent
                        Operating, Inc. for the benefit of Crescent Real Estate
                        Funding III, L.P., relating to Renaissance Houston Hotel
                        (filed as Exhibit 10.76 to June 30, 1999 Form 10-Q and
                        incorporated by reference herein)
<PAGE>   34
          10.77         Asset Management Agreement dated as of January 1, 1999,
                        between Crescent Real Estate Equities Limited
                        Partnership and COI Hotel Group, Inc., relating to the
                        Omni Austin Hotel (filed as Exhibit 10.77 to June 30,
                        1999 Form 10-Q and incorporated by reference herein)

          10.78         Agreement dated June 11, 1999, by and between Gerald W.
                        Haddock and Crescent Operating, Inc. and its
                        subsidiaries and affiliates (filed as Exhibit 10.78 to
                        June 30, 1999 Form 10-Q and incorporated by reference
                        herein)

          10.79         Stock Purchase Agreement dated as of July 15, 1999, by
                        and among E. L. Lester & Company, Incorporated, E. L.
                        Lester, Jr., Howard T. Tellepsen II, Karen Tellepsen,
                        Tom Tellepsen II, Linda Lester Griffen, Crescent
                        Operating, Inc. and Crescent Machinery Company (filed as
                        Exhibit 10.79 to the Company's September 30, 1999 Form
                        10-Q ("September 30, 1999 Form 10-Q") and incorporated
                        by reference herein)

          10.80         Stock Purchase Agreement dated as of July 8, 1999, by
                        and among Solveson Crane Rental, Inc., Solveson Family
                        Revocable Trust, and Crescent Machinery Company (filed
                        as Exhibit 10.80 to September 30, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.81         Second Amendment to Credit Agreement effective as of
                        August 27, 1999, among Crescent Operating, Inc., Bank of
                        America, N. A. (formerly NationsBank, N. A.), and the
                        Support Parties identified therein (filed as Exhibit
                        10.81 to September 30, 1999 Form 10-Q and incorporated
                        by reference herein)

          10.82         First Amendment to 1997 Crescent Operating, Inc.
                        Management Stock Incentive Plan (filed as Exhibit 10.82
                        to the Company's Annual Report on Form 10-K for the year
                        ended December 31, 1999 ("December 31, 1999 Form 10-K")
                        and incorporated by reference herein)

          10.83         Form of Sales and Service Agreement between BLAW KNOX
                        Construction Equipment Corporation and certain of
                        Crescent Machinery Company and its subsidiaries (filed
                        as Exhibit 10.83 to December 31, 1999 Form 10-K and
                        incorporated by reference herein)

          10.84         Form of Heavy Equipment Distributor Agreement between
                        Compaction America, Inc. and certain of Crescent
                        Machinery Company and its subsidiaries (filed as Exhibit
                        10.84 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.85         Form of Gradall Equipment Distributor Agreement between
                        The Gradall Company and certain of Crescent Machinery
                        Company and its subsidiaries (filed as Exhibit 10.85 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.86         Form of Distributor Selling Agreement between
                        Ingersoll-Rand Company and certain of Crescent Machinery
                        Company and its subsidiaries (filed as Exhibit 10.86 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.87         Form of JCB Dealership Agreement between JCB Inc. and
                        certain of Crescent Machinery Company and its
                        subsidiaries (filed as Exhibit 10.87 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.88         Form of Distributor Agreement between LBX Company, LLC,
                        and certain of Crescent Machinery Company and its
                        subsidiaries (filed as Exhibit 10.88 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.89         Form of Distributor Agreement between Liebherr
                        Construction Equipment Co. and certain of Crescent
                        Machinery Company and its subsidiaries (filed as Exhibit
                        10.89 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.90         Form of Distributor Agreement between Link-Belt
                        Construction Equipment Company and certain of Crescent
                        Machinery Company and its subsidiaries (filed as Exhibit
                        10.90 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.91         Form of Dealer Floor Plan Financing and Security
                        Agreement between General Electric Capital Corporation
                        and certain of Crescent Machinery Company and its
                        subsidiaries (filed as Exhibit 10.91 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.92         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Crescent
                        Development Management Corp. (filed as Exhibit
                        10.92 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

<PAGE>   35
          10.93         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Crescent CS
                        Holdings II Corp. (filed as Exhibit 10.93 to December
                        31, 1999 Form 10-K and incorporated by reference herein)

          10.94         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Crescent CS
                        Holdings Corp. (filed as Exhibit 10.94 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.95         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Desert
                        Mountain Development Corp. (filed as Exhibit 10.95 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.96         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and The Woodlands
                        Land Company, Inc. (filed as Exhibit 10.96 to December
                        31, 1999 Form 10-K and incorporated by reference herein)

          10.97         $19.5 Million Credit and Security Agreement effective as
                        of March 11, 1999, between Crescent Real Estate Equities
                        Limited Partnership and Crescent Operating, Inc. with
                        related Promissory Note (filed as Exhibit 10.97 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.98         First Amendment to Credit and Security Agreement
                        effective as of March 11, 1999, between Crescent Real
                        Estate Equities Limited Partnership and Crescent
                        Operating, Inc. (filed as Exhibit 10.98 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.99         Third Amendment to Amended and Restated Credit and
                        Security Agreement effective as of March 11, 1999,
                        between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc. (filed as
                        Exhibit 10.99 to December 31, 1999 Form 10-K and
                        incorporated by reference herein)

         10.100         Third Amendment to Line of Credit Credit and Security
                        Agreement effective as of March 11, 1999, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.100 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

         10.101         Agreements for Wholesale Financing (with Addendum)
                        between Deutsche Financial Services Corporation and,
                        respectively, Western Traction Company, Machinery Inc.,
                        Solveson Crane Rentals Inc., Harvey Equipment Center
                        Inc., and Crescent Machinery Company, with Guarantees
                        (filed as Exhibit 10.101 to December 31, 1999 Form 10-K
                        and incorporated by reference herein)

         10.102         Master Security Agreements between Associates Commercial
                        Corporation and, respectively, Crescent Machinery
                        Company and Western Traction Company; Security Agreement
                        between Associates Commercial Corporation and Western
                        Traction Company; Addendum; and Continuing Guaranty by
                        Crescent Machinery Company (filed as Exhibit 10.102 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

         10.103         First Amendment to Amended and Restated Credit Agreement
                        dated as of December 20, 1999, between Crescent Real
                        Estate Equities Limited Partnership and Crescent
                        Development Management Corp. with related Line of Credit
                        Note and letter amendment to related security agreement
                        (filed as Exhibit 10.103 to December 31, 1999 Form 10-K
                        and incorporated by reference herein)

         10.104         $5,600,000 Promissory Note dated February 28, 2000, made
                        by East West Resorts, LLC payable to Crescent Real
                        Estate Equities Limited Partnership (filed as Exhibit
                        10.104 to the Company's March 31, 2000 Form 10-Q
                        ("March 31, 2000 Form 10-Q") and incorporated by
                        reference herein)

         10.105         Mutual Termination of Asset Management Agreement for
                        Omni Austin Hotel, Austin, Texas, effective January 31,
                        2000, between Crescent Real Estate Equities Limited
                        Partnership and COI Hotel Group, Inc. (filed as Exhibit
                        10.105 to March 31, 2000 From 10-Q and incorporated by
                        reference herein)
<PAGE>   36
         10.106         Master Asset Management and Administrative Services
                        Agreement dated February 1, 2000, by and among Sonoma
                        Management Corp. I, Crescent Operating, Inc. and each of
                        its subsidiaries identified therein (filed as Exhibit
                        10.106 to March 31, 2000 From 10-Q and incorporated by
                        reference herein)


         10.107         Management Agreement effective February 1, 2000, between
                        Sonoma Management Corp. I, as Manager, and Crescent Real
                        Estate Funding VIII, L.P., as Owner and assignor to the
                        Company, relating to Ventana Inn & Spa (filed as Exhibit
                        10.107 to March 31, 2000 From 10-Q and incorporated by
                        reference herein)

         10.108         Management Agreement effective February 1, 2000, between
                        Sonoma Management Corp. I, as Manager, and Crescent Real
                        Estate Funding VIII, L.P., as Owner and assignor to the
                        Company, relating to Sonoma Mission Inn Golf and Country
                        Club (filed as Exhibit 10.108 to March 31, 2000 From
                        10-Q and incorporated by reference herein)

         10.109         Management Agreement effective February 1, 2000, between
                        Sonoma Management Corp. I, as Manager, and Crescent Real
                        Estate Funding VIII, L.P., as Owner and assignor to the
                        Company, relating to Sonoma Mission Inn and Spa (filed
                        as Exhibit 10.109 to March 31, 2000 From 10-Q and
                        incorporated by reference herein)

         10.110         Termination of Lease Agreement for The Four Seasons
                        Hotel, Houston, effective November 3, 2000, between COI
                        Hotel Group, Inc. and Crescent Real Estate Funding IX
                        L.P. (filed herewith)

         10.111         First Amendment to Credit and Security Agreement
                        effective February 1, 2000, between Crescent Realty
                        Estate Equities Limited Partnership and Crescent
                        Operating, Inc. relating to $19.5 Million Credit and
                        Security Agreement effective March 11, 1999 (filed
                        herewith)

         10.112         Second Amendment to Credit and Security Agreement
                        effective February 1, 2000, between Crescent Real Estate
                        Equities Limited Partnership and Crescent Operating,
                        Inc. relating to $9 Million Credit and Security
                        Agreement effective September 21, 1998 (filed herewith)

         10.113         Fourth Amendment to Amended and Restated Credit and
                        Security Agreement effective February 1, 2000, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. relating to Amended and
                        Restated Credit and Security Agreement effective May 21,
                        1997 (filed herewith)

         10.114         Fourth Amendment to Line of Credit Credit and Security
                        Agreement effective February 1, 2000, between Crescent
                        Real Estate Equities Limited Partnership and Crescent
                        Operating, Inc. relating to Line of Credit Credit and
                        Security Agreement effective May 21, 1997 (filed
                        herewith)

             27         Financial Data Schedule

         A complete exhibit listing is on file with the Securities and Exchange
Commission.

(b)      Reports on Form 8-K

         Not Applicable


                                       28
<PAGE>   37


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized, on the 14th day of November, 2000.

                         CRESCENT OPERATING, INC.
                         (Registrant)


                            By    /s/ John C. Goff
                              ------------------------------------------------
                                  John C. Goff, President, Chief
                                  Executive Officer and Vice-Chairman
                                  (Principal Executive Officer)


                            By    /s/ Richard P. Knight
                              ------------------------------------------------
                                  Richard P. Knight, Vice President
                                  and Chief Financial Officer
                                  (Principal Financial and Accounting Officer)


                                       29
<PAGE>   38


                               INDEX TO EXHIBITS

<TABLE>
<CAPTION>
          EXHIBIT
          NUMBER        DESCRIPTION
          -------       -----------
          <S>           <C>
            3.1         First Amended and Restated Certificate of Incorporation
                        (filed as Exhibit 3.3 to the Company's registration
                        statement on Form S-1 dated July 12, 1997 ("Form S-1")
                        and incorporated by reference herein)

            3.2         First Amended and Restated Bylaws (filed as Exhibit 3.4
                        to Form S-1 and incorporated by reference herein)

            3.3         Amendment of Article V of First Amended and Restated
                        Bylaws (filed as Exhibit 3.3 to the Company's June 30,
                        1998 Form 10-Q ("June 30, 1998 Form 10-Q") and
                        incorporated by reference herein)

            3.4         Repeal of Amendment of Article V of First Amended and
                        Restated Bylaws (filed as Exhibit 3.4 to the Company's
                        September 30, 1998 Form 10-Q ("September 30, 1998 Form
                        10-Q") and incorporated by reference herein)

            4.1         Specimen stock certificate (filed as Exhibit 4.1 to Form
                        S-1 and incorporated by reference herein)

            4.2         Preferred Share Purchase Rights Plan (filed as Exhibit
                        4.2 to Form S-1 and incorporated by reference herein)

            4.3         First Amendment to Preferred Share Purchase Rights
                        Agreement dated as of September 25, 1998, between
                        Crescent Operating, Inc. and Bank Boston, N.A., as
                        Rights Agent (filed as Exhibit 4.3 to September 30, 1998
                        Form 10-Q and incorporated by reference herein)

            4.4         Second Amendment to Preferred Share Purchase Rights
                        Agreement dated as of March 4, 1999, between Crescent
                        Operating, Inc. and Bank Boston, N.A., as Rights Agent
                        (filed as Exhibit 4.4 to March 31, 1999 Form 10-Q
                        ("March 31, 1999 Form 10-Q") and incorporated by
                        reference herein)

           10.1         Amended Stock Incentive Plan (filed as Exhibit 10.1 to
                        Form S-1 and incorporated by reference herein)

           10.2         Intercompany Agreement between Crescent Operating, Inc.
                        and Crescent Real Estate Equities Limited Partnership
                        (filed as Exhibit 10.2 to the Company's Quarterly Report
                        on Form 10-Q for the Quarter Ended June 30, 1997 ("June
                        30, 1997 Form 10-Q") and incorporated by reference
                        herein)

           10.3         Amended and Restated Operating Agreement of Charter
                        Behavioral Health Systems, LLC (filed as Exhibit 10.3 to
                        June 30, 1997 Form 10-Q and incorporated by reference
                        herein)

           10.5         Amended and Restated Credit and Security Agreement,
                        dated as of May 30, 1997, between Crescent Real Estate
                        Equities Limited Partnership and Crescent Operating,
                        Inc., together with related Note (filed as Exhibit 10.5
                        to the Company's September 30, 1997 Form 10-Q
                        ("September 30, 1997 Form 10-Q") and incorporated by
                        reference herein)

           10.6         Line of Credit and Security Agreement, dated as of May
                        21, 1997, between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc., together with
                        related Line of Credit Note (filed as Exhibit 10.6 to
                        September 30, 1997 Form 10-Q and incorporated by
                        reference herein)

           10.7         Acquisition Agreement, dated as of February 10, 1997,
                        between Crescent Real Estate Equities Limited
                        Partnership and Carter-Crowley Properties, Inc. (filed
                        as Exhibit 10.7 to Form S-1 and incorporated by
                        reference herein)

          10.10         Security Agreement dated September 22, 1997 between COI
                        Hotel Group, Inc., as debtor, and Crescent Real Estate
                        Equities Limited Partnership, as lender, together with
                        related $1 million promissory note (filed as Exhibit
                        10.10 to September 30, 1997 Form 10-Q and incorporated
                        by reference herein)

          10.11         Security Agreement dated September 22, 1997 between COI
                        Hotel Group, Inc., as debtor, and Crescent Real Estate
                        Equities Limited Partnership, as lender, together with
                        related $800,000 promissory note (filed as Exhibit 10.11
                        to September 30, 1997 Form 10-Q and incorporated by
                        reference herein)
</TABLE>
<PAGE>   39

<TABLE>
          <S>           <C>
          10.12         Amended and Restated Asset Management dated August 31,
                        1997, to be effective July 31, 1997, between Wine
                        Country Hotel, LLC and The Varma Group, Inc. (filed as
                        Exhibit 10.12 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.13         Amended and Restated Asset Management Agreement dated
                        August 31, 1997, to be effective July 31, 1997, between
                        RoseStar Southwest, LLC and The Varma Group, Inc. (filed
                        as Exhibit 10.13 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.14         Amended and Restated Asset Management Agreement dated
                        August 31, 1997, to be effective July 31, 1997, between
                        RoseStar Management LLC and The Varma Group, Inc. (filed
                        as Exhibit 10.14 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.15         Agreement for Financial Services dated July 1, 1997,
                        between Crescent Real Estate Equities Company and
                        Petroleum Financial, Inc. (filed as Exhibit 10.15 to
                        September 30, 1997 Form 10-Q and incorporated by
                        reference herein)

          10.16         Credit Agreement dated August 27, 1997, between Crescent
                        Operating, Inc. and NationsBank of Texas, N.A. together
                        with related $15.0 million promissory note (filed as
                        Exhibit 10.16 to September 30, 1997 Form 10-Q and
                        incorporated by reference herein)

          10.17         Support Agreement dated August 27, 1997, between Richard
                        E. Rainwater, John Goff and Gerald Haddock in favor of
                        Crescent Real Estate Equities Company and NationsBank of
                        Texas, N.A. (filed as Exhibit 10.17 to September 30,
                        1997 Form 10-Q and incorporated by reference herein)

          10.18         1997 Crescent Operating, Inc. Management Stock Incentive
                        Plan (filed as Exhibit 10.18 to the Company's Annual
                        Report on Form 10-K for the year ended December 31, 1997
                        ("December 31, 1997 Form 10-K") and incorporated by
                        reference herein)

          10.19         Memorandum of Agreement executed November 16, 1997,
                        among Charter Behavioral Health Systems, LLC, Charter
                        Behavioral Health Systems, Inc. and Crescent Operating,
                        Inc. (filed as Exhibit 10.19 to December 31, 1997 Form
                        10-K and incorporated by reference herein)

          10.20         Purchase Agreement dated August 31, 1997, by and among
                        Crescent Operating, Inc., RoseStar Management LLC,
                        Gerald W. Haddock, John C. Goff and Sanjay Varma (filed
                        as Exhibit 10.20 to December 31, 1997 Form 10-K and
                        incorporated by reference herein)

          10.21         Stock Purchase Agreement dated August 31, 1997, by and
                        among Crescent Operating, Inc., Gerald W. Haddock, John
                        C. Goff and Sanjay Varma (filed as Exhibit 10.21 to
                        December 31, 1997 Form 10-K and incorporated by
                        reference herein)

          10.22         Amended and Restated Lease Agreement, dated June 30,
                        1995 between Crescent Real Estate Equities Limited
                        Partnership and RoseStar Management LLC, relating to the
                        Denver Marriott City Center (filed as Exhibit 10.17 to
                        the Annual Report on Form 10-K of Crescent Real Estate
                        Equities Company for the Fiscal Year Ended December 31,
                        1995 (the "1995 CEI 10-K") and incorporated by reference
                        herein)

          10.23         Lease Agreement, dated December 19, 1995 between
                        Crescent Real Estate Equities Limited Partnership and
                        RoseStar Management LLC, relating to the Hyatt Regency
                        Albuquerque (filed as Exhibit 10.16 to the 1995 CEI 10-K
                        and incorporated by reference herein)

          10.24         Form of Amended and Restated Lease Agreement, dated
                        January 1, 1996, among Crescent Real Estate Equities
                        Limited Partnership, Mogul Management, LLC and RoseStar
                        Management LLC, relating to the Hyatt Regency Beaver
                        Creek (filed as Exhibit 10.12 to the 1995 CEI 10-K and
                        incorporated by reference herein)

          10.25         Lease Agreement, dated July 26, 1996, between Canyon
                        Ranch, Inc. and Canyon Ranch Leasing, L.L.C., assigned
                        by Canyon Ranch, Inc. to Crescent Real Estate Equities
                        Limited Partnership pursuant to the Assignment and
                        Assumption Agreement of Master Lease, dated July 26,
                        1996 (filed as Exhibit 10.24 to the Quarterly Report on
                        Form 10-Q/A of Crescent Real Estate Equities Company for
                        the Quarter Ended June 30, 1997 (the "1997 CEI 10-Q")
                        and incorporated by reference herein)

          10.26         Lease Agreement, dated November 18, 1996 between
                        Crescent Real Estate Equities Limited Partnership and
                        Wine Country Hotel, LLC (filed as Exhibit 10.25 to the
                        Annual Report on Form 10-K of Crescent Real Estate
                        Equities Company for the Fiscal Year Ended December 31,
                        1996 and incorporated by reference herein)
</TABLE>
<PAGE>   40

<TABLE>
          <S>           <C>
          10.27         Lease Agreement, dated December 11, 1996, between Canyon
                        Ranch-Bellefontaine Associates, L.P. and Vintage
                        Resorts, L.L.C., as assigned by Canyon
                        Ranch-Bellefontaine Associates, L.P. to Crescent Real
                        Estate Funding VI, L.P. pursuant to the Assignment and
                        Assumption Agreement of Master Lease, dated December 11,
                        1996 (filed as Exhibit 10.26 to the 1997 CEI 10-Q and
                        incorporated by reference herein)

          10.28         Master Lease Agreement, dated June 16, 1997, between
                        Crescent Real Estate Funding VII, L.P. and Charter
                        Behavioral Health Systems, LLC and its subsidiaries,
                        relating to the Facilities (filed as Exhibit 10.27 to
                        the 1997 CEI 10-Q and incorporated by reference herein)

          10.29         Form of Indemnification Agreement (filed as Exhibit
                        10.29 to December 31, 1997 Form 10-K and incorporated by
                        reference herein)

          10.30         Purchase Agreement, dated as of September 29, 1997,
                        between Crescent Operating, Inc. and Crescent Real
                        Estate Equities Limited Partnership, relating to the
                        purchase of Desert Mountain Development Corporation
                        (filed as Exhibit 10.30 to December 31, 1997 Form 10-K
                        and incorporated by reference herein)

          10.31         Lease Agreement dated December 19, 1997, between
                        Crescent Real Estate Equities Limited Partnership, as
                        Lessor, and Wine Country Hotel, as Lessee, for lease of
                        Ventana Inn (filed as Exhibit 10.31 to the Company's
                        March 31, 1998 Form 10-Q ("March 31, 1998 Form 10-Q")
                        and incorporated by reference herein)

          10.32         Lease Agreement dated September 22, 1997, between
                        Crescent Real Estate Equities Limited Partnership, as
                        Lessor, and COI Hotel Group, Inc., as lessee, for lease
                        of Four Seasons Hotel, Houston (filed as Exhibit 10.32
                        to March 31, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.33         Asset Purchase Agreement dated December 19, 1997, among
                        Crescent Operating, Inc., Preco Machinery Sales, Inc.,
                        and certain individual Preco shareholders (filed as
                        Exhibit 10.33 to March 31, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.34         Asset Purchase Agreement dated April 30, 1998, among
                        Crescent Operating, Inc., Central Texas Equipment
                        Company, and certain individual Central Texas
                        shareholders (filed as Exhibit 10.34 to March 31, 1998
                        Form 10-Q and incorporated by reference herein)

          10.35         Credit Agreement dated August 29, 1997 between Crescent
                        Real Estate Equities Limited Partnership, as lender, and
                        Desert Mountain Properties Limited Partnership, as
                        borrower, together with related Senior Note, Junior Note
                        and deed of trust (filed as Exhibit 10.35 to March 31,
                        1998 Form 10-Q and incorporated by reference herein)

          10.36         Buy-Out Agreement dated April 24, 1998, between Crescent
                        Operating, Inc. and Crescent Real Estate Equities
                        Limited Partnership (filed as Exhibit 10.36 to March 31,
                        1998 Form 10-Q and incorporated by reference herein)

          10.37         Stock Acquisition Agreement and Plan of Merger dated
                        June 4, 1998, among Machinery, Inc., Oklahoma Machinery,
                        Inc., Crescent Machinery Company, Crescent Operating,
                        Inc. and certain individual Machinery shareholders
                        (filed as Exhibit 10.37 to June 30, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.38         Master Revolving Line of Credit Loan Agreement
                        (Borrowing Base and Warehouse) dated May 14, 1998,
                        between Desert Mountain Properties Limited Partnership
                        and National Bank of Arizona (filed as Exhibit 10.38 to
                        June 30, 1998 Form 10-Q and incorporated by reference
                        herein)

          10.39         1997 Management Stock Incentive Plan (filed as Exhibit
                        10.39 to June 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.40         Credit and Security Agreement, dated as of September 21,
                        1998, between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc., together with
                        related Note (filed as Exhibit 10.40 to September 30,
                        1998 Form 10-Q and incorporated by reference herein)

          10.41         First Amendment to Amended and Restated Pledge
                        Agreement, dated as of September 21, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.41 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)
</TABLE>
<PAGE>   41
<TABLE>
          <S>           <C>
          10.42         First Amendment to Line of Credit and Security
                        Agreement, dated as of August 11, 1998, between Crescent
                        Real Estate Equities Limited Partnership and Crescent
                        Operating, Inc., together with related Note (filed as
                        Exhibit 10.42 to September 30, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.43         First Amendment to Amended and Restated Credit and
                        Security Agreement, dated as of August 11, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.43 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.44         Second Amendment to Amended and Restated Credit and
                        Security Agreement, dated as of September 21, 1998,
                        between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc. (filed as
                        Exhibit 10.44 to September 30, 1998 Form 10-Q and
                        incorporated by reference herein)

          10.45         Second Amendment to Line of Credit and Security
                        Agreement, dated as of September 21, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.45 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.46         Agreement of Limited Partnership of COPI Colorado, L.P.
                        (filed as Exhibit 10.1 to that Schedule 13D Statement
                        dated September 28, 1998, filed by COPI Colorado, L.P.,
                        Crescent Operating, Inc., Gerald W. Haddock, John C.
                        Goff and Harry H. Frampton, III, and incorporated by
                        reference herein)

          10.47         Contribution Agreement effective as of September 11,
                        1998, by and among Crescent Operating, Inc., Gerald W.
                        Haddock, John C. Goff and Harry H. Frampton, III (filed
                        as Exhibit 10.2 to that Schedule 13D Statement dated
                        September 28, 1998, filed by COPI Colorado, L.P.,
                        Crescent Operating, Inc., Gerald W. Haddock, John C.
                        Goff and Harry H. Frampton, III, and incorporated by
                        reference herein)

          10.48         Agreement Regarding Schedules and Other Matters made as
                        of September 11, 1998, by and among Crescent Operating,
                        Inc., Gerald W. Haddock, John C. Goff and Harry H.
                        Frampton, III (filed as Exhibit 10.3 to that Schedule
                        13D Statement dated September 28, 1998, filed by COPI
                        Colorado, L.P., Crescent Operating Inc., Gerald W.
                        Haddock, John C. Goff and Harry H. Frampton, III, and
                        incorporated by reference herein)

          10.49         Stock Purchase Agreement dated as of August 7, 1998 by
                        and among Western Traction Company, The Carlston Family
                        Trust, Ronald D. Carlston and Crescent Operating, Inc.
                        (filed as Exhibit 10.49 to September 30, 1998 Form 10-Q
                        and incorporated by reference herein)

          10.50         Stock Purchase Agreement dated as of July 31, 1998 by
                        and among Harvey Equipment Center, Inc., L and H Leasing
                        Company, William J. Harvey, Roy E. Harvey, Jr., Betty J.
                        Harvey and Crescent Operating, Inc. (filed as Exhibit
                        10.50 to September 30, 1998 Form 10-Q and incorporated
                        by reference herein)

          10.51         Credit Agreement dated as of July 28, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        CRL Investments, Inc., together with the related Note
                        (filed as Exhibit 10.51 to September 30, 1998 Form 10-Q
                        and incorporated by reference herein)

          10.52         Security Agreement dated as of July 28, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        CRL Investments, Inc. (filed as Exhibit 10.52 to
                        September 30, 1998 Form 10-Q and incorporated by
                        reference herein)

          10.53         First Amendment to Credit Agreement effective as of
                        August 27, 1998, among Crescent Operating, Inc.,
                        NationsBank, N. A., and the Support Parties identified
                        therein (filed as Exhibit 10.53 to September 30, 1998
                        Form 10-Q and incorporated by reference herein)

          10.54         Lease Agreement dated as of October 13, 1998, between
                        Crescent Real Estate Equities Limited Partnership and
                        Wine Country Golf Club, Inc., relating to Sonoma Golf
                        Club (filed as Exhibit 10.54 to September 30, 1998 Form
                        10-Q and incorporated by reference herein)

          10.55         First Amendment to Lease Agreement effective December
                        31, 1998, between Canyon Ranch Leasing, L.L.C., and
                        Crescent Real Estate Equities Limited Partnership,
                        relating to Canyon Ranch - Tucson (filed as Exhibit
                        10.55 to the Company's Annual Report on Form 10-K for
                        the year ended December 31, 1998 ("December 31, 1998
                        Form 10-K") and incorporated by reference herein)
</TABLE>
<PAGE>   42
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          <S>           <C>
          10.56         First Amendment to Lease Agreement effective April 1,
                        1996; Second Amendment to Lease Agreement effective
                        November 22, 1996; Third Amendment to Lease Agreement
                        effective August 12, 1998; and Fourth Amendment to Lease
                        Agreement effective December 31, 1998 between RoseStar
                        Southwest, LLC, and Crescent Real Estate Funding II
                        L.P., relating to Hyatt Regency Albuquerque (filed as
                        Exhibit 10.56 to December 31, 1998 Form 10-K and
                        incorporated by reference herein)

          10.57         First Amendment to Lease Agreement effective December
                        31, 1998, between Wine Country Hotel, LLC, and Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Sonoma Mission Inn & Spa (filed as Exhibit 10.57 to
                        December 31, 1998 Form 10-K and incorporated by
                        reference herein)

          10.58         First Amendment to Amended and Restated Lease Agreement
                        effective December 31, 1998, between RoseStar
                        Management, LLC, and Crescent Real Estate Equities
                        Limited Partnership, relating to Marriott City Center,
                        Denver (filed as Exhibit 10.58 to December 31, 1998 Form
                        10-K and incorporated by reference herein)

          10.59         First Amendment to Lease Agreement effective December
                        31, 1998, between Wine Country Hotel, LLC, and Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Ventana Inn (filed as Exhibit 10.59 to December 31, 1998
                        Form 10-K and incorporated by reference herein)

          10.60         First Amendment to Amended and Restated Lease Agreement
                        effective April 1, 1996 and Second Amendment to Amended
                        and Restated Lease Agreement effective December 31,
                        1998, between RoseStar Southwest, LLC, and Crescent Real
                        Estate Funding II, L.P., relating to Hyatt Regency
                        Beaver Creek (filed as Exhibit 10.60 to December 31,
                        1998 Form 10-K and incorporated by reference herein)

          10.61         First Amendment to Lease Agreement effective December
                        31, 1998, between COI Hotel Group, Inc. and Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Four Seasons - Houston (filed as Exhibit 10.61 to
                        December 31, 1998 Form 10-K and incorporated by
                        reference herein)

          10.62         First Amendment to Lease Agreement effective December
                        31, 1998, between Wine Country Hotel, LLC and Crescent
                        Real Estate Funding VI, L.P., relating to Canyon Ranch -
                        Lenox (filed as Exhibit 10.62 to March 31, 1999 Form
                        10-Q and incorporated by reference herein)

          10.63         Master Guaranty effective December 31, 1998, by Crescent
                        Operating, Inc. for the benefit of Crescent Real Estate
                        Equities Limited Partnership, Crescent Real Estate
                        Funding II, L.P., and Crescent Real Estate Funding VI,
                        L.P., relating to leases for Hyatt Regency Albuquerque,
                        Hyatt Regency Beaver Creek, Canyon Ranch-Lenox, Sonoma
                        Mission Inn & Spa, Canyon Ranch - Tucson, and Marriott
                        City Center Denver (filed as Exhibit 10.63 to December
                        31, 1998 Form 10-K and incorporated by reference herein)

          10.64         Guaranty of Lease effective December 19, 1997, by
                        Crescent Operating, Inc. for the benefit of Crescent
                        Real Estate Equities Limited Partnership, relating to
                        Ventana Inn (filed as Exhibit 10.64 to December 31, 1998
                        Form 10-K and incorporated by reference herein)

          10.65         Amended and Restated Guaranty of Lease effective
                        December 31, 1998, by Crescent Operating, Inc. for the
                        benefit of Crescent Real Estate Equities Limited
                        Partnership, relating to Four Seasons Hotel - Houston
                        (filed as Exhibit 10.65 to December 31, 1998 Form 10-K
                        and incorporated by reference herein)

          10.66         Amended and Restated Guaranty of Lease effective
                        December 31, 1998, by Crescent Operating, Inc. for the
                        benefit of Crescent Real Estate Equities Limited
                        Partnership, relating to Sonoma Golf Club (filed as
                        Exhibit 10.66 to December 31, 1998 Form 10-K and
                        incorporated by reference herein)

          10.67         Credit Agreement dated August 11, 1995, between Crescent
                        Development Management Corp., as borrower, and Crescent
                        Real Estate Equities Limited Partnership, as lender;
                        First Amendment to Credit Agreement dated as of April
                        15, 1997; Second Amendment to Credit Agreement dated as
                        of May 8, 1998; and related Note and Security Agreement
                        (filed as Exhibit 10.67 to December 31, 1998 Form 10-K
                        and incorporated by reference herein)

          10.68         Credit Agreement dated January 1, 1998, between Crescent
                        Development Management Corp., as borrower, and Crescent
                        Real Estate Equities Limited Partnership, as lender, and
                        related Note and Security Agreement (filed as Exhibit
                        10.68 to December 31, 1998 Form 10-K and incorporated by
                        reference herein)
</TABLE>
<PAGE>   43
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          <S>           <C>
          10.69         $3,100,000 Note dated February 29, 1996, made by
                        Crescent Development Management Corp. payable to
                        Crescent Real Estate Equities Limited Partnership (filed
                        as Exhibit 10.69 to December 31, 1998 Form 10-K and
                        incorporated by reference herein)

          10.70         Credit Agreement dated January 1, 1999, between Crescent
                        Development Management Corp., as borrower, and Crescent
                        Real Estate Equities Limited Partnership, as lender, and
                        related Line of Credit Note and Security Agreement
                        (filed as Exhibit 10.70 to March 31, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.71         Amended and Restated Credit Agreement dated January 1,
                        1999, between Crescent Development Management Corp., as
                        borrower, and Crescent Real Estate Equities Limited
                        Partnership, as lender, and related Line of Credit Note
                        and Amended and Restated Security Agreement (filed as
                        Exhibit 10.71 to March 31, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.72         Purchase Agreement dated March 12, 1999, between
                        Crescent Operating, Inc. and Crescent Real Estate
                        Equities Limited Partnership, relating to sale of
                        interests in Crescent CS Holdings Corp., and Crescent CS
                        Holdings II Corp., and related Put Agreement of same
                        date (filed as Exhibit 10.72 to March 31, 1999 Form 10-Q
                        and incorporated by reference herein)

          10.73         Second Amendment to Lease Agreement effective April 1,
                        1999, between Wine Country Hotel, LLC, and Crescent Real
                        Estate Funding VI, L.P., relating to Canyon Ranch-Lenox
                        (filed as Exhibit 10.73 to March 31, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.74         Master Revolving Line of Credit Loan Agreement
                        (Borrowing Base and Warehouse) dated May 14, 1998,
                        between Desert Mountain Properties Limited Partnership,
                        as borrower, and National Bank of Arizona, as lender;
                        Modification Agreement dated December 30, 1998; second
                        Modification Agreement dated March 31, 1999; and related
                        Promissory Note (Borrowing Base), Promissory Note
                        (Warehouse), Pledge Agreement, Deed of Trust, and
                        Amendment to Deed of Trust (filed as Exhibit 10.74 to
                        March 31, 1999 Form 10-Q and incorporated by reference
                        herein)

          10.75         Lease Agreement dated as of June 15, 1999, between
                        Crescent Real Estate Funding III, L.P. and COI Hotel
                        Group, Inc., relating to the Renaissance Houston Hotel
                        (filed as Exhibit 10.75 to June 30, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.76         Guaranty of Lease dated June 15, 1999, by Crescent
                        Operating, Inc. for the benefit of Crescent Real Estate
                        Funding III, L.P., relating to Renaissance Houston Hotel
                        (filed as Exhibit 10.76 to June 30, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.77         Asset Management Agreement dated as of January 1, 1999,
                        between Crescent Real Estate Equities Limited
                        Partnership and COI Hotel Group, Inc., relating to the
                        Omni Austin Hotel (filed as Exhibit 10.77 to June 30,
                        1999 Form 10-Q and incorporated by reference herein)

          10.78         Agreement dated June 11, 1999, by and between Gerald W.
                        Haddock and Crescent Operating, Inc. and its
                        subsidiaries and affiliates (filed as Exhibit 10.78 to
                        June 30, 1999 Form 10-Q and incorporated by reference
                        herein)

          10.79         Stock Purchase Agreement dated as of July 15, 1999, by
                        and among E. L. Lester & Company, Incorporated, E. L.
                        Lester, Jr., Howard T. Tellepsen II, Karen Tellepsen,
                        Tom Tellepsen II, Linda Lester Griffen, Crescent
                        Operating, Inc. and Crescent Machinery Company (filed as
                        Exhibit 10.79 to the Company's September 30, 1999 Form
                        10-Q ("September 30, 1999 Form 10-Q") and incorporated
                        by reference herein)

          10.80         Stock Purchase Agreement dated as of July 8, 1999, by
                        and among Solveson Crane Rental, Inc., Solveson Family
                        Revocable Trust, and Crescent Machinery Company (filed
                        as Exhibit 10.80 to September 30, 1999 Form 10-Q and
                        incorporated by reference herein)

          10.81         Second Amendment to Credit Agreement effective as of
                        August 27, 1999, among Crescent Operating, Inc., Bank of
                        America, N. A. (formerly NationsBank, N. A.), and the
                        Support Parties identified therein (filed as Exhibit
                        10.81 to September 30, 1999 Form 10-Q and incorporated
                        by reference herein)

          10.82         First Amendment to 1997 Crescent Operating, Inc.
                        Management Stock Incentive Plan (filed as Exhibit 10.82
                        to the Company's Annual Report on Form 10-K for the year
                        ended December 31, 1999 ("December 31, 1999 Form 10-K")
                        and incorporated by reference herein)

</TABLE>
<PAGE>   44
<TABLE>
          <S>           <C>
          10.83         Form of Sales and Service Agreement between BLAW KNOX
                        Construction Equipment Corporation and certain of
                        Crescent Machinery Company and its subsidiaries (filed
                        as Exhibit 10.83 to December 31, 1999 Form 10-K and
                        incorporated by reference herein)

          10.84         Form of Heavy Equipment Distributor Agreement between
                        Compaction America, Inc. and certain of Crescent
                        Machinery Company and its subsidiaries (filed as Exhibit
                        10.84 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.85         Form of Gradall Equipment Distributor Agreement between
                        The Gradall Company and certain of Crescent Machinery
                        Company and its subsidiaries (filed as Exhibit 10.85 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.86         Form of Distributor Selling Agreement between
                        Ingersoll-Rand Company and certain of Crescent Machinery
                        Company and its subsidiaries (filed as Exhibit 10.86 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.87         Form of JCB Dealership Agreement between JCB Inc. and
                        certain of Crescent Machinery Company and its
                        subsidiaries (filed as Exhibit 10.87 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.88         Form of Distributor Agreement between LBX Company, LLC,
                        and certain of Crescent Machinery Company and its
                        subsidiaries (filed as Exhibit 10.88 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.89         Form of Distributor Agreement between Liebherr
                        Construction Equipment Co. and certain of Crescent
                        Machinery Company and its subsidiaries (filed as Exhibit
                        10.89 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.90         Form of Distributor Agreement between Link-Belt
                        Construction Equipment Company and certain of Crescent
                        Machinery Company and its subsidiaries (filed as Exhibit
                        10.90 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.91         Form of Dealer Floor Plan Financing and Security
                        Agreement between General Electric Capital Corporation
                        and certain of Crescent Machinery Company and its
                        subsidiaries (filed as Exhibit 10.91 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.92         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Crescent
                        Development Management Corp. (filed as Exhibit
                        10.92 to December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.93         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Crescent CS
                        Holdings II Corp. (filed as Exhibit 10.93 to December
                        31, 1999 Form 10-K and incorporated by reference herein)

          10.94         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Crescent CS
                        Holdings Corp. (filed as Exhibit 10.94 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.95         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and Desert
                        Mountain Development Corp. (filed as Exhibit 10.95 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

          10.96         Taxable REIT Subsidiary Election Agreement dated
                        December 17, 1999, among Crescent Real Estate Equities
                        Company, Crescent Real Estate Equities Limited
                        Partnership, Crescent Operating, Inc. and The Woodlands
                        Land Company, Inc. (filed as Exhibit 10.96 to December
                        31, 1999 Form 10-K and incorporated by reference herein)

          10.97         $19.5 Million Credit and Security Agreement effective as
                        of March 11, 1999, between Crescent Real Estate Equities
                        Limited Partnership and Crescent Operating, Inc. with
                        related Promissory Note (filed as Exhibit 10.97 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

</TABLE>
<PAGE>   45
<TABLE>
          <S>           <C>
          10.98         First Amendment to Credit and Security Agreement
                        effective as of March 11, 1999, between Crescent Real
                        Estate Equities Limited Partnership and Crescent
                        Operating, Inc. (filed as Exhibit 10.98 to December 31,
                        1999 Form 10-K and incorporated by reference herein)

          10.99         Third Amendment to Amended and Restated Credit and
                        Security Agreement effective as of March 11, 1999,
                        between Crescent Real Estate Equities Limited
                        Partnership and Crescent Operating, Inc. (filed as
                        Exhibit 10.99 to December 31, 1999 Form 10-K and
                        incorporated by reference herein)

         10.100         Third Amendment to Line of Credit Credit and Security
                        Agreement effective as of March 11, 1999, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. (filed as Exhibit 10.100 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

         10.101         Agreements for Wholesale Financing (with Addendum)
                        between Deutsche Financial Services Corporation and,
                        respectively, Western Traction Company, Machinery Inc.,
                        Solveson Crane Rentals Inc., Harvey Equipment Center
                        Inc., and Crescent Machinery Company, with Guarantees
                        (filed as Exhibit 10.101 to December 31, 1999 Form 10-K
                        and incorporated by reference herein)

         10.102         Master Security Agreements between Associates Commercial
                        Corporation and, respectively, Crescent Machinery
                        Company and Western Traction Company; Security Agreement
                        between Associates Commercial Corporation and Western
                        Traction Company; Addendum; and Continuing Guaranty by
                        Crescent Machinery Company (filed as Exhibit 10.102 to
                        December 31, 1999 Form 10-K and incorporated by
                        reference herein)

         10.103         First Amendment to Amended and Restated Credit Agreement
                        dated as of December 20, 1999, between Crescent Real
                        Estate Equities Limited Partnership and Crescent
                        Development Management Corp. with related Line of Credit
                        Note and letter amendment to related security agreement
                        (filed as Exhibit 10.103 to December 31, 1999 Form 10-K
                        and incorporated by reference herein)

         10.104         $5,600,000 Promissory Note dated February 28, 2000, made
                        by East West Resorts, LLC payable to Crescent Real
                        Estate Equities Limited Partnership (filed as Exhibit
                        10.104 to the Company's March 31, 2000 Form 10-Q
                        ("March 31, 2000 Form 10-Q") and incorporated by
                        reference herein)

         10.105         Mutual Termination of Asset Management Agreement for
                        Omni Austin Hotel, Austin, Texas, effective January 31,
                        2000, between Crescent Real Estate Equities Limited
                        Partnership and COI Hotel Group, Inc. (filed as Exhibit
                        10.105 to March 31, 2000 From 10-Q and incorporated by
                        reference herein)

         10.106         Master Asset Management and Administrative Services
                        Agreement dated February 1, 2000, by and among Sonoma
                        Management Corp. I, Crescent Operating, Inc. and each of
                        its subsidiaries identified therein (filed as Exhibit
                        10.106 to March 31, 2000 From 10-Q and incorporated by
                        reference herein)


         10.107         Management Agreement effective February 1, 2000, between
                        Sonoma Management Corp. I, as Manager, and Crescent Real
                        Estate Funding VIII, L.P., as Owner and assignor to the
                        Company, relating to Ventana Inn & Spa (filed as Exhibit
                        10.107 to March 31, 2000 From 10-Q and incorporated by
                        reference herein)

         10.108         Management Agreement effective February 1, 2000, between
                        Sonoma Management Corp. I, as Manager, and Crescent Real
                        Estate Funding VIII, L.P., as Owner and assignor to the
                        Company, relating to Sonoma Mission Inn Golf and Country
                        Club (filed as Exhibit 10.108 to March 31, 2000 From
                        10-Q and incorporated by reference herein)

         10.109         Management Agreement effective February 1, 2000, between
                        Sonoma Management Corp. I, as Manager, and Crescent Real
                        Estate Funding VIII, L.P., as Owner and assignor to the
                        Company, relating to Sonoma Mission Inn and Spa (filed
                        as Exhibit 10.109 to March 31, 2000 From 10-Q and
                        incorporated by reference herein)

         10.110         Termination of Lease Agreement for The Four Seasons
                        Hotel, Houston, effective November 3, 2000, between COI
                        Hotel Group, Inc. and Crescent Real Estate Funding IX
                        L.P. (filed herewith)

         10.111         First Amendment to Credit and Security Agreement
                        effective February 1, 2000, between Crescent Realty
                        Estate Equities Limited Partnership and Crescent
                        Operating, Inc. relating to $19.5 Million Credit and
                        Security Agreement effective March 11, 1999 (filed
                        herewith)
</TABLE>
<PAGE>   46
<TABLE>
          <S>           <C>
         10.112         Second Amendment to Credit and Security Agreement
                        effective February 1, 2000, between Crescent Real Estate
                        Equities Limited Partnership and Crescent Operating,
                        Inc. relating to $9 Million Credit and Security
                        Agreement effective September 21, 1998 (filed herewith)

         10.113         Fourth Amendment to Amended and Restated Credit and
                        Security Agreement effective February 1, 2000, between
                        Crescent Real Estate Equities Limited Partnership and
                        Crescent Operating, Inc. relating to Amended and
                        Restated Credit and Security Agreement effective May 21,
                        1997 (filed herewith)

         10.114         Fourth Amendment to Line of Credit Credit and Security
                        Agreement effective February 1, 2000, between Crescent
                        Real Estate Equities Limited Partnership and Crescent
                        Operating, Inc. relating to Line of Credit Credit and
                        Security Agreement effective May 21, 1997 (filed
                        herewith)

             27         Financial Data Schedule
</TABLE>