##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  
|   |  | For the quarterly period ended March 31, 2006                                               
|  
|or
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission file number 0-49782





T REIT, Inc.


(Exact name of registrant as specified in its charter)


|                                                                                                         |  |                                         
|-------------------------------------------------------------------------------------------------------- |  | ----------------------------------------
|Virginia                                                                                                 |  | 52-2140299                              
|(State or other jurisdiction of
    incorporation or organization)                                       |  | (I.R.S. Employer
    Identification No.)
|                                                                                                        
|1551 N. Tustin Avenue, Suite 200
    Santa Ana, California 92705(Address of principal executive offices) |  |                                         

(Registrants telephone number, including area code)


(877) 888-7348


N/A


(Former name)


þ o


12b-2


o o þ


12b-2 o þ












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##### 










T REIT, Inc.


(A Virginia Corporation)


TABLE OF CONTENTS


|                                   |  |                                                                                           |    |                                                                                                                                                           |    |  |   | 
|---------------------------------- |  | ----------------------------------------------------------------------------------------- | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | -- |  | - | 
|                                   |  |                                                                                           |    | Page                                                                                                                                                      |   
|                                   |  |                                                                                           |    |                                                                                                                                                           |   
|PART I  FINANCIAL
    INFORMATION |  |                                                                                           |    |                                                                                                                                                          
|Item 1.                            |  | Financial Statements                                                                      |    |                                                                                                                                                           | 2  | 
|                                   |  |                                                                                           |    | Condensed Consolidated Statements of Net
    Assets (Liquidation Basis) as of March 31, 2006 (Unaudited)
    and December 31, 2005 (Unaudited)            |    |  | 3 | 
|                                   |  |                                                                                           |    | Condensed Consolidated Statement of Changes
    in Net Assets (Liquidation Basis) for the Three Months Ended
    March 31, 2006 (Unaudited)               |    |  | 4 | 
|                                   |  |                                                                                           |    | Condensed Consolidated Statement of
    Operations and Comprehensive Loss (Going Concern Basis) for the
    Three Months Ended March 31, 2005 (Unaudited) |    |  | 5 | 
|                                   |  |                                                                                           |    | Condensed Consolidated Statement of Cash
    Flows (Going Concern Basis) for the Three Months Ended
    March 31, 2005 (Unaudited)                        |    |  | 6 | 
|                                   |  |                                                                                           |    | Notes to Condensed Consolidated Financial
    Statements (Unaudited)                                                                                      |    |  | 7 | 
|Item 2.                            |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |    |                                                                                                                                                           | 21 | 
|Item 3.                            |  | Quantitative and Qualitative Disclosures
    About Market Risk                            |    |                                                                                                                                                           | 29 | 
|Item 4.                            |  | Controls and Procedures                                                                   |    |                                                                                                                                                           | 30 | 
|PART II  OTHER
    INFORMATION    |  |                                                                                           |    |                                                                                                                                                          
|Item 1.                            |  | Legal Proceedings                                                                         |    |                                                                                                                                                           | 31 | 
|Item 1A.                           |  | Risk Factors                                                                              |    |                                                                                                                                                           | 32 | 
|Item 2.                            |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                           |    |                                                                                                                                                           | 32 | 
|Item 3.                            |  | Defaults Upon Senior Securities                                                           |    |                                                                                                                                                           | 32 | 
|Item 4.                            |  | Submission of Matters to a Vote of Security
    Holders                                   |    |                                                                                                                                                           | 32 | 
|Item 5.                            |  | Other Information                                                                         |    |                                                                                                                                                           | 32 | 
|Item 6.                            |  | Exhibits                                                                                  |    |                                                                                                                                                           | 32 | 
|Signatures                         |  |                                                                                           | 33 |                                                                                                                                                          
|EXHIBIT 10.4                      
|EXHIBIT 31.1                      
|EXHIBIT 31.2                      
|EXHIBIT 32.1                      
|EXHIBIT 32.2                      



1



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##### Table of Contents



T REIT, INC





PART I  FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|Item 1. | Financial Statements

10-Q 10-K,


2



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##### Table of Contents



T REIT, INC.





CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS


(Liquidation Basis)


As of March 31, 2006 (Unaudited) and December 31,
2005 (Unaudited)


|                                                                                   |                                           |           |            |            |              |   |            |            | 
|---------------------------------------------------------------------------------- | ----------------------------------------- | --------- | ---------- | ---------- | ------------ | - | ---------- | ---------- | 
|                                                                                   |                                           | March 31, |            |            | December 31, |  
|                                                                                   |                                           | 2006      |            |            | 2005         |  
|                                                                                   |                                           |           |            |            |              |  
|ASSETS                                                                            
|Real estate investments:                                                           |                                           |           |            |            |              |   |            |           
|                                                                                   | Real estate held for sale                 |           | $          | 23,537,000 |              |   | $          | 25,075,000 | 
|                                                                                   | Investments in unconsolidated real estate |           |            | 8,332,000  |              |   |            | 11,710,000 | 
|                                                                                   |                                           |           |            |            |              |  
|                                                                                   |                                           |           | 31,869,000 |            |              |   | 36,785,000 |           
|Cash and cash equivalents                                                          |                                           |           | 1,820,000  |            |              |   | 3,575,000  |           
|Restricted cash                                                                    |                                           |           | 1,550,000  |            |              |   | 1,111,000  |           
|Investment in marketable securities                                                |                                           |           |           |            |              |   | 1,924,000  |           
|Accounts receivable, net                                                           |                                           |           | 48,000     |            |              |   | 1,675,000  |           
|Accounts receivable from related parties                                           |                                           |           | 169,000    |            |              |   | 223,000    |           
|Notes receivable                                                                   |                                           |           | 2,759,000  |            |              |   | 2,762,000  |           
|Asset for estimated receipts in excess of estimated costs during
    liquidation   |                                           |           |           |            |              |   | 267,000    |           
|                                                                                   |                                           |           |            |            |              |  
|Total assets                                                                       |                                           |           | 38,215,000 |            |              |   | 48,322,000 |           
|                                                                                   |                                           |           |            |            |              |  
|                                                                                  
|LIABILITIES                                                                       
|Mortgages payable secured by properties held for sale                              |                                           |           | 11,238,000 |            |              |   | 15,464,000 |           
|Accounts payable and accrued liabilities                                           |                                           |           | 171,000    |            |              |   | 233,000    |           
|Security deposits and prepaid rent                                                 |                                           |           | 17,000     |            |              |   | 96,000     |           
|Reserve for estimated costs in excess of estimated receipts
    during liquidation |                                           |           | 684,000    |            |              |   |           |           
|                                                                                   |                                           |           |            |            |              |  
|Total liabilities                                                                  |                                           |           | 12,110,000 |            |              |   | 15,793,000 |           
|                                                                                   |                                           |           |            |            |              |  
|Net assets in liquidation                                                          |                                           | $         | 26,105,000 |            |              | $ | 32,529,000 |           
|                                                                                   |                                           |           |            |            |              |  



3



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##### Table of Contents



T REIT, INC.





CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS


(Liquidation Basis)


For the Three Months Ended March 31, 2006 (Unaudited)


|                                                                                             |                                                                                                                                                                       |   |            |             |  
|-------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ---------- | ----------- | -
|Net assets in liquidation, beginning of period                                               |                                                                                                                                                                       | $ | 32,529,000 |            
|                                                                                             |                                                                                                                                                                       |   |           
|Changes in net assets in liquidation:                                                        |                                                                                                                                                                       |   |            |            
|Changes to asset for estimated receipts in excess of estimated
    costs during liquidation: |                                                                                                                                                                       |   |            |            
|                                                                                             | Operating income                                                                                                                                                      |   |            | (1,156,000  | )
|                                                                                             | Distributions received from unconsolidated properties                                                                                                                 |   |            | (257,000    | )
|                                                                                             | Payments of liquidation costs and other amounts                                                                                                                       |   |            | 282,000     |  
|                                                                                             | Change in estimated receipts in excess of estimated costs during
    liquidation                                                                                      |   |            | 180,000     |  
|                                                                                             |                                                                                                                                                                       |   |           
|                                                                                             | Changes to asset for estimated receipts in excess of estimated
    costs during liquidation                                                                           |   |            | (951,000    | )
|                                                                                             |                                                                                                                                                                       |   |           
|Change in fair value of assets and liabilities:                                              |                                                                                                                                                                       |   |            |            
|                                                                                             | Change in fair value of marketable securities                                                                                                                         |   |            | (116,000    | )
|                                                                                             | Change in fair value of real estate investments                                                                                                                       |   |            | 5,512,000   |  
|                                                                                             | Change in assets and liabilities due to activity in asset
    (reserve) for estimated receipts (costs) in excess of
    estimated costs (receipts) during liquidation |   |            | 1,131,000   |  
|                                                                                             |                                                                                                                                                                       |   |           
|                                                                                             | Net increase in fair value                                                                                                                                            |   |            | 6,527,000   |  
|                                                                                             |                                                                                                                                                                       |   |           
|                                                                                             | Distributions to shareholders                                                                                                                                         |   |            | (12,000,000 | )
|                                                                                             |                                                                                                                                                                       |   |           
|Change in net assets in liquidation                                                          |                                                                                                                                                                       |   | (6,424,000 | )          
|                                                                                             |                                                                                                                                                                       |   |           
|Net assets in liquidation, end of period                                                     |                                                                                                                                                                       | $ | 26,105,000 |            
|                                                                                             |                                                                                                                                                                       |   |           



4



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T REIT, INC.





CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS


AND COMPREHENSIVE LOSS


(Going Concern Basis)


For the Three Months Ended March 31, 2005 (Unaudited)


|                                                                            |                                                                           |   |           |          |  
|--------------------------------------------------------------------------- | ------------------------------------------------------------------------- | - | --------- | -------- | -
|Expenses:                                                                   |                                                                           |   |           |         
|General and administrative                                                  |                                                                           | $ | 554,000   |         
|                                                                            |                                                                           |   |          
|Operating loss                                                              |                                                                           |   | (554,000  | )       
|Other income (expense):                                                     |                                                                           |   |           |         
|                                                                            | Other income                                                              |   |           | 14,000   |  
|                                                                            | Interest expense (including amortization of deferred financing
    costs) |   |           | (8,000   | )
|                                                                            | Interest and dividend income                                              |   |           | 101,000  |  
|                                                                            | Gain on sale of marketable securities                                     |   |           | 16,000   |  
|                                                                            | Equity in earnings of unconsolidated real estate                          |   |           | 380,000  |  
|                                                                            |                                                                           |   |          
|Loss from continuing operations                                             |                                                                           |   | (51,000   | )       
|Discontinued operations:                                                    |                                                                           |   |           |         
|                                                                            | Loss from discontinued operations                                         |   |           | (297,000 | )
|                                                                            |                                                                           |   |          
|Net loss                                                                    |                                                                           | $ | (348,000  | )       
|                                                                            |                                                                           |   |          
|Comprehensive loss:                                                         |                                                                           |   |           |         
|                                                                            | Net loss                                                                  |   | $         | (348,000 | )
|                                                                            | Unrealized loss on marketable securities                                  |   |           | (74,000  | )
|                                                                            |                                                                           |   |          
|Comprehensive loss                                                          |                                                                           | $ | (422,000  | )       
|                                                                            |                                                                           |   |          
|Net loss per common share:                                                  |                                                                           |   |           |         
|                                                                            | Continuing operations  basic and diluted                                 |   | $         | (0.01    | )
|                                                                            | Discontinued operations  basic and diluted                               |   |           | (0.07    | )
|                                                                            |                                                                           |   |          
|Total net loss per common share  basic and diluted                         |                                                                           | $ | (0.08     | )       
|                                                                            |                                                                           |   |          
|Weighted average shares of common stock outstanding 
    basic and diluted |                                                                           |   | 4,605,000 |         
|                                                                            |                                                                           |   |          



5



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T REIT, INC.





CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


(Going Concern Basis)


For the Three Months Ended March 31, 2005 (Unaudited)


|                                                                                   |                                                                                          |                                                     |           |            |            |  
|---------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | --------------------------------------------------- | --------- | ---------- | ---------- | -
|                                                                                   |                                                                                          | CASH FLOWS FROM OPERATING ACTIVITIES                |           |            |            |  
|Net loss                                                                           |                                                                                          | $                                                   | (348,000  | )         
|Adjustments to reconcile net loss to net cash provided by
    operating activities |                                                                                          |                                                     |           |           
|                                                                                   | Distributions received in excess of equity in earnings of
    unconsolidated real estate |                                                     |           | 127,000    |           
|                                                                                   | Gain on sale of marketable securities                                                    |                                                     |           | (16,000    | )         
|                                                                                   | Depreciation and amortization                                                            |                                                     |           | 763,000    |           
|                                                                                   | Stock based compensation expense                                                         |                                                     |           | 32,000     |           
|                                                                                   | Minority interests                                                                       |                                                     |           | (111,000   | )         
|                                                                                   | Change in operating assets and liabilities:                                              |                                                     |           |            |           
|                                                                                   |                                                                                          | Accounts receivable                                 |           |            | (13,000    | )
|                                                                                   |                                                                                          | Accounts receivable/payable from/to related parties |           |            | 57,000     |  
|                                                                                   |                                                                                          | Other assets                                        |           |            | 117,000    |  
|                                                                                   |                                                                                          | Accounts payable and accrued liabilities            |           |            | (583,000   | )
|                                                                                   |                                                                                          | Security deposits and prepaid rent                  |           |            | 125,000    |  
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   | Net cash provided by operating activities                                                |                                                     |           | 150,000    |           
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   |                                                                                          | CASH FLOWS FROM INVESTING ACTIVITIES                |           |            |            |  
|                                                                                   | Purchase of marketable securities                                                        |                                                     |           | (3,376,000 | )         
|                                                                                   | Proceeds from sale of marketable securities                                              |                                                     |           | 511,000    |           
|                                                                                   | Restricted cash                                                                          |                                                     |           | 468,000    |           
|                                                                                   | Capital expenditures                                                                     |                                                     |           | (3,000     | )         
|                                                                                   | Collections of notes receivable                                                          |                                                     |           | 530,000    |           
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   | Net cash used in investing activities                                                    |                                                     |           | (1,870,000 | )         
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   |                                                                                          | CASH FLOWS FROM FINANCING ACTIVITIES                |           |            |            |  
|                                                                                   | Borrowings under notes payable                                                           |                                                     |           | 1,565,000  |           
|                                                                                   | Principal payments on mortgages payable                                                  |                                                     |           | (17,000    | )         
|                                                                                   | Distributions paid                                                                       |                                                     |           | (948,000   | )         
|                                                                                   | Distributions to minority shareholders                                                   |                                                     |           | (46,000    | )         
|                                                                                   | Repurchase of shares                                                                     |                                                     |           | (64,000    | )         
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   | Net cash provided by financing activities                                                |                                                     |           | 490,000    | )         
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   |                                                                                          | NET DECREASE IN CASH AND CASH EQUIVALENTS           |           |            | (1,230,000 | )
|CASH AND CASH EQUIVALENTS  beginning of period                                    |                                                                                          |                                                     | 7,229,000 |           
|                                                                                   |                                                                                          |                                                     |          
|CASH AND CASH EQUIVALENTS  end of period                                          |                                                                                          | $                                                   | 5,999,000 |           
|                                                                                   |                                                                                          |                                                     |          
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                   |                                                                                          |                                                     |           |           
|Cash paid during the period for:                                                   |                                                                                          |                                                     |           |           
|                                                                                   | Interest                                                                                 |                                                     | $         | 249,000    |           
|                                                                                   |                                                                                          |                                                     |          
|                                                                                   | Income taxes                                                                             |                                                     | $         | 1,000      |           
|                                                                                   |                                                                                          |                                                     |          



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T REIT, INC.





NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)




|   |                                         
|-- | ----------------------------------------
|1. | Organization and Description of Business



day-to month-to




|   |                    
|-- | -------------------
|2. | Plan of Liquidation





7



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                           
|-- | ------------------------------------------
|3. | Summary of Significant Accounting Policies



| |                       
| | ----------------------
| | Interim Financial Data

10-K,




| |                  
| | -----------------
| | Reclassifications





| |                            
| | ---------------------------
| | Principles of Consolidation

Consolidation of
Variable Interest Entities,




| |         
| | --------
| | Segments



8



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                                                              
|-- | -------------------------------------------------------------------------------------------------------------
|4. | Asset (Reserve) for Estimated Receipts (Costs) in Excess of
    Estimated Costs (Receipts) During Liquidation





|                                                                                                                    |                              |              |            |            |                |   |            |           |  |   |           |          |   |   |            |            |  
|------------------------------------------------------------------------------------------------------------------- | ---------------------------- | ------------ | ---------- | ---------- | -------------- | - | ---------- | --------- |  | - | --------- | -------- | - | - | ---------- | ---------- | -
|                                                                                                                    |                              | December 31, |            |            | Cash Payments  |   |            | Change in |  |   | March 31, |         
|                                                                                                                    |                              | 2005         |            |            | and (Receipts) |   |            | Estimates |  |   | 2006      |         
|                                                                                                                    |                              |              |            |            |                |   |            |           |  |   |           |         
|Assets:                                                                                                             |                              |              |            |            |                |   |            |           |  |   |           |          |   |   |            |           
|Estimated net inflows from consolidated and unconsolidated
    operating activities                                 |                              | $            | 2,634,000  |            |                | $ | (1,414,000 | )         |  | $ | 188,000   |          |   | $ | 1,408,000  |           
|Liabilities:                                                                                                        |                              |              |            |            |                |   |            |           |  |   |           |          |   |   |            |           
|                                                                                                                    | Liquidation costs            |              |            | (1,151,000 | )              |   |            | 269,000   |  |   |           | (327,000 | ) |   |            | (1,209,000 | )
|                                                                                                                    | Other (capital expenditures) |              |            | (1,216,000 | )              |   |            | 14,000    |  |   |           | 319,000  |   |   |            | (883,000   | )
|                                                                                                                    |                              |              |            |            |                |   |            |           |  |   |           |         
|                                                                                                                    |                              |              | (2,367,000 | )          |                |   | 283,000    |           |  |   | (8,000    | )        |   |   | (2,092,000 | )         
|                                                                                                                    |                              |              |            |            |                |   |            |           |  |   |           |         
|Total asset (reserve) for estimated receipts (costs) in excess
    of estimated costs (receipts) during liquidation |                              | $            | 267,000    |            |                | $ | (1,131,000 | )         |  | $ | 180,000   |          |   | $ | (684,000   | )         
|                                                                                                                    |                              |              |            |            |                |   |            |           |  |   |           |         



|   |                          
|-- | -------------------------
|5. | Net Assets in Liquidation







|   |                        
|-- | -----------------------
|6. | Real Estate Investments



9



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                          
| | -----------------------------------------
| | Investments in Unconsolidated Real Estate

tenant-in




|                          |  |                |            | 
|------------------------- |  | -------------- | ---------- | 
|                          |  | Three Months   |           
|                          |  | Ended          |           
|                          |  | March 31, 2005 |           
|                          |  |                |           
|Revenues                  |  | $              | 11,385,000 | 
|Rental and other expenses |  |                | 10,814,000 | 
|                          |  |                |           
|Net income                |  | $              | 571,000    | 
|                          |  |                |           
|Our equity in earnings    |  | $              | 380,000    | 
|                          |  |                |           



| |                     
| | --------------------
| | Dispositions in 2006









10



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                          
| | -------------------------
| | Properties Under Contract





|   |                                    
|-- | -----------------------------------
|7. | Investment in Marketable Securities





|   |                 
|-- | ----------------
|8. | Notes Receivable



25-year


11



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T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                  
|-- | -----------------
|9. | Mortgages Payable



|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |           |            |  |              |   |            | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | ---------- |  | ------------ | - | ---------- | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | March 31, |            |  | December 31, |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | 2006      |            |  | 2005         |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |           |            |  |              |  
|Note payable to a mortgage company, secured by a deed of trust,
    rate per annum equal to an initial benchmark floor rate of 3.00%
    based on the 10-year Treasury note plus 2.25% and matures
    January 1, 2008. As of December 31, 2005 the interest
    rate was 5.25% per annum. Equal principal and interest
    payments of $24,000 were payable monthly until repaid in full.
    The note was repaid in full on January 31, 2006 |  | $         |           |  |              | $ | 4,214,000  | 
|Note payable to a bank, secured by a first deed of trust,
    monthly interest-only through February 15, 2006 and
    thereafter, principal and interest payments through the maturity
    date of January 20, 2007 at the prime rate plus 1.07%,
    subject to a floor of 5.50% per annum. The interest rate as
    of March 31, 2006 and December 31, 2005 was 8.50% and
    8.00% per annum, respectively                                  |  |           | 14,984,000 |  |              |   | 15,000,000 | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |           |            |  |              |  
|Total mortgages payable                                                                                                                                                                                                                                                                                                                                                                                                                        |  |           | 14,984,000 |  |              |   | 19,214,000 | 
|Less: minority interest share of mortgages payable                                                                                                                                                                                                                                                                                                                                                                                             |  |           | 3,746,000  |  |              |   | 3,750,000  | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |           |            |  |              |  
|Mortgages payable (liquidation basis)                                                                                                                                                                                                                                                                                                                                                                                                          |  | $         | 11,238,000 |  |              | $ | 15,464,000 | 
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |           |            |  |              |  





| |           
| | ----------
| | Other Debt





|    |                     
|--- | --------------------
|10. | Shareholders Equity



| |                         
| | ------------------------
| | Share Repurchase Program



12



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                   
| | ------------------
| | Stock Option Plans





|    |                                                   
|--- | --------------------------------------------------
|11. | Advisory Fees and Other Related Party Transactions



| |                   
| | ------------------
| | Advisory Agreement



| |              
| | -------------
| | Advisory Fees

month-to day-to






| |                         
| | ------------------------
| | Property Management Fees





| |                        
| | -----------------------
| | Real Estate Commissions



13



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                          
| | -------------------------
| | Compensation for Services





| |                        
| | -----------------------
| | Incentive Distributions





| |                                         
| | ----------------------------------------
| | Investment in Unconsolidated Real Estate





| |                                           
| | ------------------------------------------
| | Related Party Accounts Receivable/ Payable







|    |                              
|--- | -----------------------------
|12. | Commitments and Contingencies



| |                  
| | -----------------
| | SEC Investigation

In the matter of Triple Net Properties, LLC.


Accounting for
Contingencies.




| |                         
| | ------------------------
| | Prior Performance Tables



14



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                    
| | -------------------
| | Unconsolidated Debt





|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |             |  |  |   |            | 
|----------------------------- |  | ---------- | ---- | -------------------- | ---------- | - | ----------------------- | ---------- |  | ------------ | ---------- |  | -------------- | ---------- | ----------- |  |  | - | ---------- | 
|                              |  |            |      | As of March 31, 2006 |            |   | As of December 31, 2005 |           
|                              |  |            |      |                      |            |   |                         |           
|                              |  |            |      | Mortgage and         |            |   | T REIT, Inc.s          |            |  | Mortgage and |            |  | T REIT, Inc.s |           
|                              |  | Ownership  |      |                      | Other Debt |   |                         | Portion of |  |              | Other Debt |  |                | Portion of |            
|Property                      |  | Percentage |      |                      | Balance    |   |                         | Debt       |  |              | Balance    |  |                | Debt       |            
|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |            
|Reno Trademark Building  TIC |  |            | 40.0 | %                    |            | $ |                        |            |  | $            |           |  |                | $          | 4,449,000   |  |  | $ | 1,780,000  | 
|Titan Building & Plaza  TIC  |  |            | 48.5 |                      |            |   | 5,900,000               |            |  |              | 2,862,000  |  |                |            | 5,900,000   |  |  |   | 2,861,000  | 
|Congress Center  LLC         |  |            | 10.3 |                      |            |   | 97,500,000              |            |  |              | 9,962,000  |  |                |            | 97,500,000  |  |  |   | 9,962,000  | 
|Enclave Parkway  LLC         |  |            | 3.3  |                      |            |   | 22,915,000              |            |  |              | 746,000    |  |                |            | 23,000,000  |  |  |   | 749,000    | 
|Oakey Building  LLC          |  |            | 9.8  |                      |            |   |                        |            |  |              |           |  |                |            | 8,757,000   |  |  |   | 855,000    | 
|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |            
|Total                         |  |            |      |                      |            | $ | 126,315,000             |            |  | $            | 13,570,000 |  |                | $          | 139,606,000 |  |  | $ | 16,207,000 | 
|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |            









| |           
| | ----------
| | Litigation



15



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                      
| | ---------------------
| | Environmental Matters





| |       
| | ------
| | Leases



16



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |      
| | -----
| | Other





|    |                                                 
|--- | ------------------------------------------------
|13. | Discontinued Operations  Property Held for Sale

Accounting for the Impairment or
Disposal of Long Lived Assets,


|                                                                         |  |                |           |  
|------------------------------------------------------------------------ |  | -------------- | --------- | -
|                                                                         |  | Three Months   |          
|                                                                         |  | Ended          |          
|                                                                         |  | March 31, 2005 |          
|                                                                         |  |                |          
|Rental income                                                            |  | $              | 1,011,000 |  
|Rental expenses                                                          |  |                | 454,000   |  
|Depreciation and amortization                                            |  |                | 615,000   |  
|Other (income)                                                           |  |                | (4,000    | )
|Interest expense (including amortization of deferred financing
    fees) |  |                | 354,000   |  
|Minority interest                                                        |  |                | (111,000  | )
|                                                                         |  |                |          
|Loss from discontinued operations                                        |  | $              | (297,000  | )
|                                                                         |  |                |          



|    |                   
|--- | ------------------
|14. | Minority Interests





|    |                             
|--- | ----------------------------
|15. | Concentration of Credit Risk



17



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                        |  |              |           |               |             |  |      |          |  |        |           |  |       |                 |        |  |  |  |            | 
|----------------------- |  | ------------ | --------- | ------------- | ----------- |  | ---- | -------- |  | ------ | --------- |  | ----- | --------------- | ------ |  |  |  | ---------- | 
|                        |  |              |           | Percentage of |             |  |      |          |  |        |          
|                        |  | 2006 Annual  |           |               | 2006 Annual |  |      |          |  | Square |           |  | Lease |                
|Tenant                  |  | Base Rent(*) |           |               | Base Rent   |  |      | Property |  |        | Footage   |  |       | Expiration Date |       
|                        |  |              |           |               |             |  |      |          |  |        |           |  |       |                 |       
|Netsolve, Inc.          |  | $            | 1,112,000 |               |             |  | 50.3 | %        |  |        | AmberOaks |  |       |                 | 78,000 |  |  |  | April 2007 | 
|Newell Rubbermaid, Inc. |  |              | 493,000   |               |             |  | 22.3 |          |  |        | AmberOaks |  |       |                 | 51,000 |  |  |  | April 2008 | 
|URS Corporation         |  |              | 244,000   |               |             |  | 11.0 |          |  |        | AmberOaks |  |       |                 | 21,000 |  |  |  | July 2011  | 
|InfoEdgeTechnology      |  |              | 222,000   |               |             |  | 10.1 |          |  |        | AmberOaks |  |       |                 | 22,000 |  |  |  | June 2016  | 






|  |                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------
|* | Annualized rental income is based on contractual base rent set
    forth in leases in effect as of March 31, 2006.



|                         |  |              |           |               |             |  |       |          |  |        |           |  |       |                 |        |  |  |  |            | 
|------------------------ |  | ------------ | --------- | ------------- | ----------- |  | ----- | -------- |  | ------ | --------- |  | ----- | --------------- | ------ |  |  |  | ---------- | 
|                         |  |              |           | Percentage of |             |  |       |          |  |        |          
|                         |  | 2005 Annual  |           |               | 2005 Annual |  |       |          |  | Square |           |  | Lease |                
|Tenant                   |  | Base Rent(*) |           |               | Base Rent   |  |       | Property |  |        | Footage   |  |       | Expiration Date |       
|                         |  |              |           |               |             |  |       |          |  |        |           |  |       |                 |       
|ACS State Health Systems |  | $            | 588,000   |               |             |  | 17.7% |          |  |        | AmberOaks |  |       |                 | 44,000 |  |  |  | May 2005   | 
|Netsolve, Inc.           |  | $            | 1,073,000 |               |             |  | 32.2% |          |  |        | AmberOaks |  |       |                 | 78,000 |  |  |  | April 2007 | 
|Newell Rubbermaid, Inc.  |  | $            | 493,000   |               |             |  | 14.8% |          |  |        | AmberOaks |  |       |                 | 51,000 |  |  |  | April 2008 | 






|  |                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------
|* | Annualized rental income is based on contractual base rent set
    forth in leases in effect as of March 31, 2005.



|    |               
|--- | --------------
|16. | Per Share Data

Earnings Per Share.


18



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                      |                                             |                |           |       |  
|--------------------------------------------------------------------- | ------------------------------------------- | -------------- | --------- | ----- | -
|                                                                      |                                             | Three Months   |          
|                                                                      |                                             | Ended          |          
|                                                                      |                                             | March 31, 2005 |          
|                                                                      |                                             |                |          
|Loss from continuing operations                                       |                                             | $              | (51,000   | )    
|Loss from discontinued operations                                     |                                             |                | (297,000  | )    
|                                                                      |                                             |                |          
|Net loss                                                              |                                             | $              | (348,000  | )    
|                                                                      |                                             |                |          
|Net loss per share:                                                   |                                             |                |           |      
|                                                                      | Continuing operations  basic and diluted   |                | $         | (0.01 | )
|                                                                      | Discontinued operations  basic and diluted |                |           | (0.07 | )
|                                                                      |                                             |                |          
|Total net loss per share  basic and diluted                          |                                             | $              | (0.08     | )    
|                                                                      |                                             |                |          
|Weighted-average number of shares outstanding  basic
    and diluted |                                             |                | 4,605,000 |      
|                                                                      |                                             |                |          



|    |                         
|--- | ------------------------
|17. | Stock Based Compensation

Accounting for Stock-Based
Compensation, Accounting for
Stock-Based Compensation Transition and Disclosure, Accounting for Stock Issued to Employees,


|                                                                                                                    |  |                |          |  
|------------------------------------------------------------------------------------------------------------------- |  | -------------- | -------- | -
|                                                                                                                    |  | Three Months   |         
|                                                                                                                    |  | Ended          |         
|                                                                                                                    |  | March 31, 2005 |         
|                                                                                                                    |  |                |         
|Reported net loss                                                                                                   |  | $              | (348,000 | )
|Add: Stock based employee compensation expense included in
    reported net loss                                    |  |                | 32,000   |  
|Less: Total stock based employee compensation expense determined
    under a fair value based method for all awards |  |                | (49,000  | )
|                                                                                                                    |  |                |         
|Pro forma net loss                                                                                                  |  | $              | (365,000 | )
|                                                                                                                    |  |                |         
|Reported net loss per share  basic and diluted                                                                     |  | $              | (0.08    | )
|                                                                                                                    |  |                |         
|Pro forma net loss per share  basic and diluted                                                                    |  | $              | (0.08    | )
|                                                                                                                    |  |                |         

19



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##### Table of Contents



T REIT, INC.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                           |  |                |           |  
|---------------------------------------------------------- |  | -------------- | --------- | -
|                                                           |  | Three Months   |          
|                                                           |  | Ended          |          
|                                                           |  | March 31, 2005 |          
|                                                           |  |                |          
|Expected life                                              |  |                | 8.8 years |  
|Risk-free interest based on the 10-year U.S. Treasury Bond |  |                | 4.2       | %
|Expected dividend yield                                    |  |                | 8.3       | %
|Expected volatility                                        |  |                | 10.0      | %



|    |                  
|--- | -----------------
|18. | Subsequent Events





20



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##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

10-Q.


Forward-Looking Statements




Overview and Background






day-to


21



---



##### Table of Contents



month-to








Critical Accounting Policies


10-K,




| |                       
| | ----------------------
| | Interim Financial Data



22



---



##### Table of Contents



10-K,


Dispositions in 2006










Factors Which May Influence Results of Operations




| |              
| | -------------
| | Rental Income





| |                            
| | ---------------------------
| | Scheduled Lease Expirations



23



---



##### Table of Contents





| |                   
| | ------------------
| | Sarbanes-Oxley Act



Changes in Net Assets in Liquidation




| |                                  
| | ---------------------------------
| | Three Months Ended March 31, 2006



Liquidity and Capital Resources






| |                                         
| | ----------------------------------------
| | Current Sources of Capital and Liquidity







| |                      
| | ---------------------
| | Other Liquidity Needs



24



---



##### Table of Contents

















Capital Resources




| |        
| | -------
| | General



25



---



##### Table of Contents











| |          
| | ---------
| | Financing









| |                    
| | -------------------
| | Unconsolidated Debt





|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |             |  |  |   |            | 
|----------------------------- |  | ---------- | ---- | -------------------- | ---------- | - | ----------------------- | ---------- |  | ------------ | ---------- |  | -------------- | ---------- | ----------- |  |  | - | ---------- | 
|                              |  |            |      | As of March 31, 2006 |            |   | As of December 31, 2005 |           
|                              |  |            |      |                      |            |   |                         |           
|                              |  |            |      | Mortgage and         |            |   | T REIT, Inc.s          |            |  | Mortgage and |            |  | T REIT, Inc.s |           
|                              |  | Ownership  |      |                      | Other Debt |   |                         | Portion of |  |              | Other Debt |  |                | Portion of |            
|Property                      |  | Percentage |      |                      | Balance    |   |                         | Debt       |  |              | Balance    |  |                | Debt       |            
|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |            
|Reno Trademark Building  TIC |  |            | 40.0 | %                    |            | $ |                        |            |  | $            |           |  |                | $          | 4,449,000   |  |  | $ | 1,780,000  | 
|Titan Building & Plaza  TIC  |  |            | 48.5 |                      |            |   | 5,900,000               |            |  |              | 2,862,000  |  |                |            | 5,900,000   |  |  |   | 2,861,000  | 
|Congress Center  LLC         |  |            | 10.3 |                      |            |   | 97,500,000              |            |  |              | 9,962,000  |  |                |            | 97,500,000  |  |  |   | 9,962,000  | 
|Enclave Parkway  LLC         |  |            | 3.3  |                      |            |   | 22,915,000              |            |  |              | 746,000    |  |                |            | 23,000,000  |  |  |   | 749,000    | 
|Oakey Building  LLC          |  |            | 9.8  |                      |            |   |                        |            |  |              |           |  |                |            | 8,757,000   |  |  |   | 855,000    | 
|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |            
|Total                         |  |            |      |                      |            | $ | 126,315,000             |            |  | $            | 13,570,000 |  |                | $          | 139,606,000 |  |  | $ | 16,207,000 | 
|                              |  |            |      |                      |            |   |                         |            |  |              |            |  |                |            |            

26



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##### Table of Contents











| |                  
| | -----------------
| | REIT Requirements





| |                        
| | -----------------------
| | Contractual Obligations



|                                                                           |  |           |         |  |             |   |            |             |           |              |   |       |  |   |   |  |  |   |            | 
|-------------------------------------------------------------------------- |  | --------- | ------- |  | ----------- | - | ---------- | ----------- | --------- | ------------ | - | ----- |  | - | - |  |  | - | ---------- | 
|                                                                           |  | Less Than |         |  |             |   |            |             | More Than |              |  
|                                                                           |  | 1 Year    |         |  | 1-3 Years   |   |            | 4-5 Years   |           | 5 Years      |   |      
|                                                                           |  | (2006)    |         |  | (2007-2008) |   |            | (2009-2010) |           | (After 2010) |   | Total | 
|                                                                           |  |           |         |  |             |   |            |             |           |              |   |       | 
|Principal payments   variable rate debt                                   |  | $         | 50,000  |  |             | $ | 11,188,000 |             |           | $            |  |       |  | $ |  |  |  | $ | 11,238,000 | 
|Interest payments   variable rate debt (rate as of
    December 31, 2005) |  |           | 728,000 |  |             |   | 92,000     |             |           |              |  |       |  |   |  |  |  |   | 820,000    | 
|                                                                           |  |           |         |  |             |   |            |             |           |              |   |       |  |   |  
|Total                                                                      |  | $         | 778,000 |  |             | $ | 11,280,000 |             |           | $            |  |       |  | $ |  |  |  | $ | 12,058,000 | 
|                                                                           |  |           |         |  |             |   |            |             |           |              |   |       |  |   |  



| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements





| |                  
| | -----------------
| | SEC Investigation

In the matter of Triple Net Properties, LLC.


27



---



##### Table of Contents



Accounting for
Contingencies.




| |          
| | ---------
| | Inflation



Funds from Operations










28



---



##### Table of Contents





|                                                                   |                                                                                     |                |           |         | 
|------------------------------------------------------------------ | ----------------------------------------------------------------------------------- | -------------- | --------- | ------- | 
|                                                                   |                                                                                     | Three Months   |          
|                                                                   |                                                                                     | Ended          |          
|                                                                   |                                                                                     | March 31, 2005 |          
|                                                                   |                                                                                     |                |          
|Net loss                                                           |                                                                                     | $              | (348,000  | )      
|Add:                                                               |                                                                                     |                |           |        
|                                                                   | Depreciation and Amortization  discontinued operations                             |                |           | 640,000 | 
|                                                                   | Depreciation and Amortization  unconsolidated real
    estate operating properties |                |           | 316,000 | 
|Less:                                                              |                                                                                     |                |           |        
|Gain on sale of property                                           |                                                                                     |                |          |        
|                                                                   |                                                                                     |                |          
|Funds from operations                                              |                                                                                     | $              | 608,000   |        
|                                                                   |                                                                                     |                |          
|Weighted-average common shares outstanding  basic and
    diluted |                                                                                     |                | 4,605,000 |        
|                                                                   |                                                                                     |                |          
|Gain on sale of investments included in net loss and FFO           |                                                                                     | $              | 16,000    |        
|                                                                   |                                                                                     |                |          

Subsequent Events











|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk

10-K






|                                                                                |  |      |        |   |      |   |            |      |  |      |   |      |  |            |   |       |  |   |   |  |  |   |   |  |  |   |            |  
|------------------------------------------------------------------------------- |  | ---- | ------ | - | ---- | - | ---------- | ---- |  | ---- | - | ---- |  | ---------- | - | ----- |  | - | - |  |  | - | - |  |  | - | ---------- | -
|                                                                                |  | 2006 |        |   | 2007 |   |            | 2008 |  | 2009 |   | 2010 |  | Thereafter |   | Total | 
|                                                                                |  |      |        |   |      |   |            |      |  |      |   |      |  |            |   |       | 
|Variable rate debt                                                              |  | $    | 50,000 |   |      | $ | 11,188,000 |      |  | $    |  |      |  | $          |  |       |  | $ |  |  |  | $ |  |  |  | $ | 11,238,000 |  
|Average interest rate on maturing variable rate debt (as of
    March 31, 2006) |  |      | 8.50   | % |      |   | 8.50       | %    |  |      |  |      |  |            |  |       |  |   |  |  |  |   |  |  |  |   | 8.50       | %



29



---



##### Table of Contents










|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Evaluation of disclosure controls and
procedures.


10-Q 13a-14(a) 15d-14(a) 10-Q


13a-15(e) 15d-15(e)




Changes in internal control over financial
reporting.


30



---



##### Table of Contents






PART II  OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings

SEC Investigation


In the matter of Triple Net Properties, LLC.


Accounting for
Contingencies.


Prior Performance Tables




Litigation




31



---



##### Table of Contents














|         |             
|-------- | ------------
|Item 1A. | Risk Factors

10-K,







|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits



32



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##### Table of Contents






SIGNATURES






| |             
| | ------------
| | T REIT, Inc.
| | (Registrant)



| |     |                   
| | --- | ------------------
| | By: | /s/ Jack R. Maurer

| |                        
| | -----------------------
| |                        
| | Jack R. Maurer         
| | Chief Executive Officer



| |     |                    
| | --- | -------------------
| | By: | /s/ Scott D. Peters

| |                        
| | -----------------------
| |                        
| | Scott D. Peters        
| | Chief Financial Officer



33



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##### Table of Contents



EXHIBIT INDEX


S-K,


10-Q S-K).


| |    |     |  |                                                                                                                                                                                                                                                                                                                     
| | -- | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2  | .1  |  | T REIT, Inc. Plan of Liquidation and Dissolution, as
    approved by stockholders on July 27, 2005 and as currently
    in effect (included as Exhibit A to the Companys
    Definitive Proxy Statement for the Annual Meeting of
    Shareholders filed on June 15, 2005 and incorporated herein
    by reference)
| | 3  | .1  |  | Articles of Incorporation of the Company (included as
    Exhibit 3.1 to the Companys Registration Statement on
    Form S-11 filed on April 28, 1999 (File
    No. 333-77229) and incorporated herein by reference)                                                                                               
| | 3  | .2  |  | Form of Amended and Restated Articles of Incorporation of the
    Company (included as Exhibit 3.2 to Amendment No. 3 to
    the Companys Registration Statement on Form S-11
    filed on November 22, 1999 (File No. 333-77229) and
    incorporated herein by reference)                                        
| | 3  | .3  |  | Form of By-Laws of the Company (included as Exhibit 3.3 to
    the Companys Registration Statement on Form S-11
    filed on April 28, 1999 (File No. 333-77229) and
    incorporated herein by reference)                                                                                                         
| | 3  | .4  |  | Form of Amended By-Laws of the Company (included as
    Exhibit 3.4 to Post-Effective Amendment No. 2 to the
    Companys Registration Statement on Form S-11 filed on
    July 17, 2001 (File No. 333-77229) and incorporated
    herein by reference)                                                            
| | 10 | .1  |  | Form of Agreement of Limited Partnership of T REIT, L.P.
    (included as Exhibit 10.1 to Amendment No. 2 to the
    Companys Registration Statement on Form S-11 filed on
    October 13, 1999 (File No. 333-77229) and incorporated
    herein by reference)                                                     
| | 10 | .2  |  | Advisory Agreement between the Company and our Advisor (included
    as Exhibit 10.5 to Amendment No. 2 to the
    Companys Registration Statement on Form S-11 filed on
    October 13, 1999 (File No. 333-77229) and incorporated
    herein by reference)                                                       
| | 10 | .3  |  | First Amendment to Advisory Agreement between the Company and
    our Advisor (included as Exhibit 10.10 to Post-Effective
    Amendment No. 1 to the Companys Registration
    Statement filed on Form S-11 on July 17, 2001 (File
    No. 333-772229) and incorporated herein by reference)                      
| | 10 | .4* |  | Agreement for Purchase and Sale of Real Property and Escrow
    Instructions dated as of May 8, 2006, by and between T
    REIT-AmberOaks, LP, et al and Chase Merritt, L.P.                                                                                                                                        
| | 31 | .1* |  | Certification of Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                             
| | 31 | .2* |  | Certification of Chief Financial Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                             
| | 32 | .1* |  | Certification of Chief Executive Officer, pursuant to
    18 U.S.C. Section 1350, as created by Section 906
    of the Sarbanes-Oxley Act of 2002                                                                                                                                                                   
| | 32 | .2* |  | Certification of Chief Financial Officer, pursuant to
    18 U.S.C. Section 1350, as created by Section 906
    of the Sarbanes-Oxley Act of 2002                                                                                                                                                                   






|  |                
|- | ---------------
|* | Filed herewith.