##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549


Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|   |  | For the fiscal year ended December 31, 2005                                                 
|  
|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 1-12358


COLONIAL PROPERTIES TRUST


(Exact name of registrant as specified in its charter)


|                                                   |  |                                         
|-------------------------------------------------- |  | ----------------------------------------
|Alabama                                            |  | 59-7007599                              
|(State or other jurisdiction of
    incorporation) |  | (IRS Employer
    Identification Number)
|2101 Sixth Avenue North, Suite 750,                |  | 35203                                   
|Birmingham, Alabama                                |  | (Zip Code)                              
|(Address of principal executive offices)           |  |                                         

Registrants telephone number, including area code:


(205) 250-8700


Securities registered pursuant to Section 12(b) of the
Act:


|                                                                                                                                                                                       |  |                                          
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------
|Title of Each Class                                                                                                                                                                    |  | Name of Each Exchange on Which Registered
|                                                                                                                                                                                       |  |                                          
|Common Shares of Beneficial Interest,
    $.01 par value per share                                                                                                                     |  | New York Stock Exchange                  
|91/4%
    Series C Cumulative Redeemable                                                                                                                                               |  |                                          
|Preferred Shares of Beneficial Interest,
    par value $.01 per share                                                                                                                  |  | New York Stock Exchange                  
|Depositary shares, each
    representing1/10
    of a share of
    81/8%
    Series D Cumulative Redeemable
    Preferred Shares of Beneficial Interest,
    par value $.01 per share  |  | New York Stock Exchange                  
|Depositary shares, each
    representing1/100
    of a share of
    75/8%
    Series E Cumulative
    Redeemable Preferred Shares of Beneficial
    Interest, par value $.01 per share |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act:


None


þ o


o þ


þ o


S-K 10-K 10-K. þ


12b-2


þ o o


12b-2 o þ














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##### 



Contents


|         |  |                                                                                                    |  |  |     | 
|-------- |  | -------------------------------------------------------------------------------------------------- |  |  | --- | 
|PART I   |  |                                                                                                    |  |  |     | 
|Item 1   |  | Business                                                                                           |  |  | 3   | 
|Item 1A  |  | Risk Factors                                                                                       |  |  | 21  | 
|Item 1B  |  | Unresolved Staff Comments                                                                          |  |  | 33  | 
|Item 2   |  | Properties                                                                                         |  |  | 33  | 
|Item 3   |  | Legal Proceedings                                                                                  |  |  | 51  | 
|Item 4   |  | Submission of Matters to a Vote of Security Holders                                                |  |  | 51  | 
|PART II  |  |                                                                                                    |  |  |     | 
|Item 5   |  | Market for Registrants Common Equity and Related
    Shareholder Matters                          |  |  | 52  | 
|Item 6   |  | Selected Financial Data                                                                            |  |  | 53  | 
|Item 7   |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations          |  |  | 54  | 
|Item 7A  |  | Quantitative and Qualitative Disclosures about Market Risk                                         |  |  | 74  | 
|Item 8   |  | Financial Statements and Supplementary Data                                                        |  |  | 75  | 
|Item 9   |  | Change in and Disagreements with Accountants on Accounting and
    Financial Disclosure            |  |  | 121 | 
|Item 9A  |  | Controls and Procedures                                                                            |  |  | 121 | 
|Item 9B  |  | Other Information                                                                                  |  |  | 121 | 
|PART III |  |                                                                                                    |  |  |     | 
|Item 10  |  | Trustees and Executive Officers of Registrant                                                      |  |  | 122 | 
|Item 11  |  | Executive Compensation                                                                             |  |  | 122 | 
|Item 12  |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters |  |  | 122 | 
|Item 13  |  | Certain Relationships and Related Transactions                                                     |  |  | 122 | 
|Item 14  |  | Principal Accountant Fees and Services                                                             |  |  | 122 | 
|PART IV  |  |                                                                                                    |  |  |     | 
|Item 15  |  | Exhibits and Financial Statement Schedules                                                         |  |  | 123 | 
|         |  | Signatures                                                                                         |  |  | 129 | 
|         |  | Certification Under Section 302 of the Sarbanes-Oxley Act                                          |  |  |     | 



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##### 



DOCUMENTS INCORPORATED BY REFERENCE




PART I


10-K




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | national and local economic, business and real estate conditions
    including, but not limited to, the effect of demand for
    multifamily units, office and retail rental space, the extent,
    strength and duration of any economic recovery, such as the
    effects on demand for units and rental space and the creation of
    new multifamily, office and retail developments, availability
    and creditworthiness of tenants, the level of lease rents, and
    the availability of financing for both tenants and us;                                                                  
|
| |  | adverse changes in real estate markets, including, but not
    limited to, the extent of tenant bankruptcies, financial
    difficulties and defaults, the extent of future demand for
    multifamily units and office and retail space in our core
    markets and barriers of entry into new markets which we may seek
    to enter in the future, the extent of decreases in rental rates,
    competition, our ability to identify and consummate attractive
    acquisitions on favorable terms, our ability to consummate any
    planned dispositions in a timely manner on acceptable terms; 
|
| |  | actions, strategies and performance of affiliates that we may
    not control or companies, including joint ventures, in which we
    have made investments;                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | changes in operating costs, including real estate taxes,
    utilities, and insurance;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | legislative or other regulatory decisions, including government
    approvals, actions and initiatives, including the need for
    compliance with environmental and safety requirements, and
    changes in laws and regulations or the interpretation thereof;                                                                                                                                                                                                                                                                                                                                      
|
| |  | effects of tax legislative action;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | our ability to continue to satisfy complex rules in order for us
    to maintain our status as a Real Estate Investment Trust
    (REIT) for federal income tax purposes, the ability
    of our operating partnership to satisfy the rules to maintain
    its status as a partnership for federal income tax purposes, the
    ability of certain of our subsidiaries to maintain their status
    as taxable REIT subsidiaries for federal income tax purposes,
    and our ability and the ability of our subsidiaries to operate
    effectively within the limitations imposed by these rules;
|
| |  | effect of any rating agency actions on the cost and availability
    of new debt financings;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | level and volatility of interest rates or capital market
    conditions;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | effect of any terrorist activity or other heightened
    geopolitical crisis; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | other factors affecting the real estate industry generally.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



2



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##### 





|        |          
|------- | ---------
|Item 1. | Business.

As used herein, the terms Company,
Colonial, we, us and
our refer to Colonial Properties Trust, an Alabama
real estate investment trust, and one or more of its
subsidiaries and other affiliates, including Colonial Realty
Limited Partnership, Colonial Properties Services Limited
Partnership and Colonial Properties Services, Inc. or, as the
context may require, Colonial Properties Trust only or Colonial
Realty Limited Partnership only.










Merger with Cornerstone Realty Income Trust




3



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##### 







| |   |                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a number of Colonial common shares equal to the common share
    conversion rate, which was calculated as 0.2581; or                                                                                                         
|
| |  | a number of Colonial
    75/8%
    Series E preferred depositary shares, $25.00 liquidation
    preference per depositary share, equal to the preferred
    depositary share conversion rate, which was calculated as 0.4194;

S-4 333-121675).




|                                                                                                    |                                              |                |         |           | 
|--------------------------------------------------------------------------------------------------- | -------------------------------------------- | -------------- | ------- | --------- | 
|                                                                                                    |                                              | (In thousands) |        
|Issuance of 11,277,358 Colonial common shares to Cornerstone
    shareholders                       |                                              | $              | 462,347 |          
|Issuance of 5,326,349 Colonial Series E preferred
    depository shares to Cornerstone shareholders |                                              |                | 132,747 |          
|Issuance of 578,358 CRLP common units                                                               |                                              |                | 23,788  |          
|Fees and other expenses related to the merger                                                       |                                              |                | 35,016  |          
|                                                                                                    |                                              |                |        
|                                                                                                    | Total purchase price                         |                |         | 653,898   | 
|Assumption of Cornerstones notes and mortgages payable at
    book value                           |                                              |                | 836,985 |          
|Adjustment to record Cornerstones notes and mortgages at
    fair value                            |                                              |                | 50,880  | (1)      
|Assumption of Cornerstones accounts payable and other
    liabilities at fair value                |                                              |                | 34,380  |          
|                                                                                                    |                                              |                |        
|                                                                                                    | Total purchase price and assumed liabilities |                | $       | 1,576,143 | 
|                                                                                                    |                                              |                |        






|    |                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The fair value adjustment of $50.9 million to account
    for the difference between the fixed rates and market rates for
    the Cornerstone borrowings includes $26.8 million for
    prepayment penalties on debt retired during 2005.



4



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##### 





|                                                               |                                              |                |           |           | 
|-------------------------------------------------------------- | -------------------------------------------- | -------------- | --------- | --------- | 
|                                                               |                                              | (In thousands) |          
|Buildings                                                      |                                              | $              | 1,246,019 |          
|Furniture and fixtures                                         |                                              |                | 14,613    |          
|                                                               |                                              |                |          
|                                                               | Fair value of depreciable real estate assets |                |           | 1,260,632 | 
|Land                                                           |                                              |                | 230,768   |          
|Undeveloped land and construction in progress                  |                                              |                | 3,995     |          
|In place lease value                                           |                                              |                | 45,658    |          
|Customer relationships                                         |                                              |                | 5,068     |          
|Other assets, including cash (excluding in-place lease values) |                                              |                | 21,121    |          
|Investments in partially owned entities                        |                                              |                | 8,901     |          
|                                                               |                                              |                |          
|                                                               | Total purchase price                         |                | $         | 1,576,143 | 
|                                                               |                                              |                |          

10-K).


Acquisitions and Developments


10-K,


|                                  |  |          |                |              |                |                |           |            |  |   |         | 
|--------------------------------- |  | -------- | -------------- | ------------ | -------------- | -------------- | --------- | ---------- |  | - | ------- | 
|                                  |  |          |                | Total Units/ |                |                |          
|                                  |  | Location |                |              | Square Feet(1) |                |           | Total Cost | 
|                                  |  |          |                |              |                |                |           |            | 
|                                  |  |          |                |              |                | (In thousands) |          
|Acquisitions:                     |  |          |                |              |                |                |           |            |  |   |         | 
|Multifamily Properties            |  |          |                |              |                |                |           |            |  |   |         | 
|Colonial Grand at Barrett Creek   |  |          | Atlanta, GA    |              |                |                | 332       |            |  | $ | 30,750  | 
|Colonial Grand at Bear Creek      |  |          | Fort Worth, TX |              |                |                | 436       |            |  |   | 36,750  | 
|Colonial Grand at Bellevue        |  |          | Nashville, TN  |              |                |                | 349       |            |  |   | 35,500  | 
|Colonial Grand at Crabtree Valley |  |          | Raleigh, NC    |              |                |                | 210       |            |  |   | 17,750  | 
|Colonial Grand at Mallard Lake    |  |          | Charlotte, NC  |              |                |                | 302       |            |  |   | 27,500  | 
|Colonial Grand at Shelby Farms    |  |          | Memphis, TN    |              |                |                | 296       |            |  |   | 25,190  | 
|                                  |  |          |                |              |                |                |           |            | 
|                                  |  |          |                |              |                |                | 1,925     |            |  |   | 173,440 | 
|                                  |  |          |                |              |                |                |           |            | 
|Office Properties                 |  |          |                |              |                |                |           |            |  |   |         | 
|Colonial Place I & II             |  |          | Tampa, FL      |              |                |                | 371,000   |            |  |   | 54,903  | 
|Research Park Office Center IV    |  |          | Huntsville, AL |              |                |                | 59,900    |            |  |   | 4,970   | 
|Colonial Center at Bayside        |  |          | Tampa, FL      |              |                |                | 213,800   |            |  |   | 20,660  | 
|Colonial Bank Centre              |  |          | Miami, FL      |              |                |                | 235,500   |            |  |   | 44,000  | 
|Research Park Plaza III & IV      |  |          | Austin, TX     |              |                |                | 357,700   |            |  |   | 90,870  | 
|Esplanade                         |  |          | Charlotte, NC  |              |                |                | 201,900   |            |  |   | 21,463  | 
|Colonial Center Heathrow 1001     |  |          | Orlando, FL    |              |                |                | 192,200   |            |  |   | 23,290  | 
|The Peachtree                     |  |          | Atlanta, GA    |              |                |                | 260,900   |            |  |   | 43,801  | 
|                                  |  |          |                |              |                |                |           |            | 
|                                  |  |          |                |              |                |                | 1,892,900 |            |  |   | 303,957 | 
|                                  |  |          |                |              |                |                |           |            | 

5



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##### 



|                                            |                                                  |          |                  |              |                |                |           |            |  |   |         |         | 
|------------------------------------------- | ------------------------------------------------ | -------- | ---------------- | ------------ | -------------- | -------------- | --------- | ---------- |  | - | ------- | ------- | 
|                                            |                                                  |          |                  | Total Units/ |                |                |          
|                                            |                                                  | Location |                  |              | Square Feet(1) |                |           | Total Cost | 
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            |                                                  |          |                  |              |                | (In thousands) |          
|Retail Properties                           |                                                  |          |                  |              |                |                |           |            |  |   |         |        
|Colonial Promenade at Portofino             |                                                  |          | Houston, TX      |              |                |                | 372,500   |            |  |   | 60,300  |        
|                                           
|For Sale Residential                        |                                                  |          |                  |              |                |                |           |            |  |   |         |        
|St. Andrews(2)                              |                                                  |          | Jensen Beach, FL |              |                |                |           |            |  |   | 61,750  |        
|Mizner/ Delray Beach(2)                     |                                                  |          | Delray Beach, FL |              |                |                |           |            |  |   | 55,000  |        
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            |                                                  |          |                  |              |                |                |           |            |  |   | 116,750 |        
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            | Total Consolidated Acquisitions                  |          |                  |              |                |                |           |            |  |   | $       | 654,447 | 
|                                            |                                                  |          |                  |              |                |                |           |            | 
|Completed Developments/ Redevelopments:     |                                                  |          |                  |              |                |                |           |            |  |   |         |        
|Multifamily Properties                      |                                                  |          |                  |              |                |                |           |            |  |   |         |        
|Colonial Grand at Mallard Creek             |                                                  |          | Charlotte, NC    |              |                |                | 252       |            |  | $ | 20,400  |        
|Colonial Grand at Silverado                 |                                                  |          | Austin, TX       |              |                |                | 238       |            |  |   | 20,343  |        
|Colonial Village at Twin Lakes              |                                                  |          | Orlando, FL      |              |                |                | 460       |            |  |   | 34,961  |        
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            |                                                  |          |                  |              |                |                | 950       |            |  |   | 75,704  |        
|                                            |                                                  |          |                  |              |                |                |           |            | 
|Retail Properties                           |                                                  |          |                  |              |                |                |           |            |  |   |         |        
|Colonial Promenade Alabaster                |                                                  |          | Birmingham, AL   |              |                |                | 607,000   |            |  |   | 29,066  |        
|Colonial Shoppes Colonnade (redevelopment)  |                                                  |          | Birmingham, AL   |              |                |                | 125,500   |            |  |   | 5,474   |        
|Colonial Mall Myrtle Beach (redevelopment)  |                                                  |          | Myrtle Beach, SC |              |                |                | 474,200   |            |  |   | 20,889  |        
|Colonial University Village (redevelopment) |                                                  |          | Auburn, AL       |              |                |                | 526,200   |            |  |   | 14,091  |        
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            |                                                  |          |                  |              |                |                | 1,732,900 |            |  |   | 69,520  |        
|                                            |                                                  |          |                  |              |                |                |           |            | 
|Mixed-Use Properties                        |                                                  |          |                  |              |                |                |           |            |  |   |         |        
|Colonial TownPark Lake Mary                 |                                                  |          | Orlando, FL      |              |                |                |           |            |  |   | 45,300  |        
|                                            | Multifamily                                      |          |                  |              |                |                |           | 80         |  |   |         |         | 
|                                            | Office                                           |          |                  |              |                |                |           | 33,400     |  |   |         |         | 
|                                            | Retail                                           |          |                  |              |                |                |           | 199,300    |  |   |         |         | 
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            | Total Developments                               |          |                  |              |                |                |           |            |  |   | $       | 190,524 | 
|                                            |                                                  |          |                  |              |                |                |           |            | 
|                                            | Total Consolidated Acquisitions and Developments |          |                  |              |                |                |           |            |  |   | $       | 844,971 | 
|                                            |                                                  |          |                  |              |                |                |           |            | 




(1) Square footage includes anchor-owned square
footage.




|    |                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------
|(2) | Properties acquired as part of a 98% joint venture with
    Montecito Property Company. See discussion in Joint
    Ventures below.

Acquisitions






| |                       
| | ----------------------
| | Multifamily Properties

Cornerstone Assets


Colonial Grand at Barrett Creek 332-unit


6



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##### 



Colonial Grand at Bear Creek 436-unit


Colonial Grand at Bellevue 349-unit


Colonial Grand at Crabtree Valley 210-unit


Colonial Grand at Mallard Lake 302-unit


Colonial Grand at Shelby Farms 296-unit




| |                  
| | -----------------
| | Office Properties

Colonial Place I & II


Research Park Office Center IV


Colonial Center at Bayside


Colonial Bank Centre


Research Park Plaza III & IV


Esplanade


Colonial Center Heathrow 1001


The Peachtree


7



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##### 





| |                  
| | -----------------
| | Retail Properties

Colonial Promenade Portofino


Completed Development




| |                       
| | ----------------------
| | Multifamily Properties

Colonial Grand at Mallard Creek 252-unit


Colonial Grand at Silverado 238-unit


Colonial Village at Twin Lakes 460-unit




| |                  
| | -----------------
| | Retail Properties

Colonial Promenade Alabaster


Colonial Shoppes Colonnade


Colonial Mall Myrtle Beach


Colonial University Village


8



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##### 





| |                   
| | ------------------
| | Mixed Use Property

Colonial TownPark Lake Mary 80-unit


Continuing Development Activity




|                                    |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   |        |         | 
|----------------------------------- | ------------------------------------------- | ------- | ------- |  | ---------- | -------------- | ---- | ----------- | -------------- | - | ----------- |  |  | - | ------ | ------- | 
|                                    |                                             | Total   |         |  |            |                |      |             |               
|                                    |                                             | Units/  |         |  |            |                |      |             | Costs          |  
|                                    |                                             | Square  |         |  | Estimated  |                |      | Estimated   |                |   | Capitalized | 
|                                    |                                             | Feet(1) |         |  | Completion |                |      | Total Costs |                |   | to Date     | 
|                                    |                                             |         |         |  |            |                |      |             |                |   |             | 
|                                    |                                             |         |         |  |            | (In thousands) |      |             | (In thousands) |  
|Multifamily Projects:               |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   |        |        
|Colonial Grand at Silverado Reserve |                                             |         | 238     |  |            |                | 2006 |             |                | $ | 23,200      |  |  | $ | 19,760 |        
|Colonial Grand at Round Rock        |                                             |         | 422     |  |            |                | 2006 |             |                |   | 34,500      |  |  |   | 20,305 |        
|Colonial Grand at Canyon Creek      |                                             |         | 336     |  |            |                | 2006 |             |                |   | 29,100      |  |  |   | 6,568  |        
|Colonial Grand at Double Creek      |                                             |         | 300     |  |            |                | 2007 |             |                |   | 27,300      |  |  |   | 3,882  |        
|Colonial Grand at Ayrsley           |                                             |         | 365     |  |            |                | 2007 |             |                |   | 33,100      |  |  |   | 178    |        
|Colonial Grand at Traditions        |                                             |         | 320     |  |            |                | 2007 |             |                |   | 30,800      |  |  |   | 2,800  |        
|Office Projects:                    |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   |        |        
|Northrop Grumman                    |                                             |         | 110,000 |  |            |                | 2006 |             |                |   | 17,300      |  |  |   | 1,478  |        
|Colonial Center TownPark 300        |                                             |         | 150,000 |  |            |                | 2006 |             |                |   | 20,600      |  |  |   | 3,760  |        
|Retail Projects:                    |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   |        |        
|Colonial Pinnacle Tutwiler Farm     |                                             |         | 450,000 |  |            |                | 2006 |             |                |   | 36,000      |  |  |   | 17,473 |        
|Colonial Pinnacle Craft Farms       |                                             |         | 440,000 |  |            |                | 2007 |             |                |   | 50,800      |  |  |   | 14,264 |        
|Colonial Promenade Fultondale       |                                             |         | 257,000 |  |            |                | 2007 |             |                |   | 26,300      |  |  |   | 1,985  |        
|Colonial Promenade Alabaster II     |                                             |         | 127,000 |  |            |                | 2007 |             |                |   | 21,600      |  |  |   | 387    |        
|For Sale Projects:                  |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   |        |        
|Central Park                        |                                             |         | 212     |  |            |                | 2006 |             |                |   | 22,300      |  |  |   | 5,133  |        
|Colonial Traditions at Gulf Shores  |                                             |         | 371     |  |            |                | 2006 |             |                |   | 20,000      |  |  |   | 15,363 |        
|Colonial Traditions at South Park   |                                             |         | 48      |  |            |                | 2007 |             |                |   | 11,500      |  |  |   | 2,014  |        
|The Renwick                         |                                             |         | 85      |  |            |                | 2007 |             |                |   | 17,700      |  |  |   | 4,075  |        
|Other Projects and Undeveloped Land |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   |        |        
|Mansell Land and Infrastructure     |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   | 9,306  |        
|TownPark Land and Infrastructure    |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   | 14,852 |        
|Heathrow Land and Infrastructure    |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   | 13,914 |        
|Canal Place Land and Infrastructure |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   | 10,952 |        
|Land                                |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   | 16,168 |        
|Other                               |                                             |         |         |  |            |                |      |             |                |   |             |  |  |   | 17,435 |        
|                                    |                                             |         |         |  |            |                |      |             |                |   |             | 
|                                    | Total Consolidated Construction in Progress |         |         |  |            |                |      |             |                |   |             |  |  |   | $      | 202,052 | 
|                                    |                                             |         |         |  |            |                |      |             |                |   |             | 
|Colonial Pinnacle Turkey Creek(2)   |                                             |         | 520,000 |  |            |                | 2006 |             |                |   | 37,900      |  |  |   | 25,949 |        
|                                    |                                             |         |         |  |            |                |      |             |                |   |             | 
|                                    | Total Construction in Progress              |         |         |  |            |                |      |             |                |   |             |  |  |   | $      | 228,001 | 
|                                    |                                             |         |         |  |            |                |      |             |                |   |             | 




(1) Square footage includes anchor-owned square
footage.




|    |                                                                                                 
|--- | ------------------------------------------------------------------------------------------------
|(2) | Represents 50% of the development costs, as we are a 50%
    equity partner in this development.

Continuing Multifamily Development Activity


Colonial Grand at Silverado Reserve 238-unit


9



---



##### 





Colonial Grand at Round Rock 422-unit


Colonial Grand at Canyon Creek 336-unit


Colonial Grand at Double Creek 300-unit


Colonial Grand at Ayrsley 365-unit


Colonial Grand at Traditions 320-unit




Continuing Office Development Activity


Northrop Grumman


Colonial Center TownPark 300


Continuing Retail Development Activity


Colonial Pinnacle Tutwiler Farms


Colonial Pinnacle Craft Farms


10



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##### 



Colonial Promenade Fultondale


Colonial Promenade Alabaster II


Colonial Pinnacle Turkey Creek


Continuing For Sale Activity




Central Park 212-unit


Colonial Traditions at Gulf Shores


Colonial Traditions at South Park 48-unit


The Renwick 85-unit


Joint Ventures






| |             
| | ------------
| | Consolidated

Montecito Property Company 384-unit 273-unit 10-K).


11



---



##### 



10-K).




| |                          
| | -------------------------
| | Equity Method Investments

The Grove at Riverchase 345-unit


Regents Park


Colonial Grand at Research Park 370-unit


DRA/ Colonial Office Joint Venture 10-K).




GPT Transaction


12



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##### 



Dispositions






| |                  
| | -----------------
| | For Sale Projects





| |                   
| | ------------------
| | Other Dispositions



|            |                                       |          |  |                 |      |                |  |             |                |  |          |        |  |  |   |        | 
|----------- | ------------------------------------- | -------- |  | --------------- | ---- | -------------- |  | ----------- | -------------- |  | -------- | ------ |  |  | - | ------ | 
|            |                                       |          |  |                 |      |                |  | Gain on     |               
|            |                                       |          |  | Units/Square    |      |                |  |             | Sales of       | 
|Property    |                                       | Location |  |                 | Feet |                |  | Sales Price |                |  | Property |       
|            |                                       |          |  |                 |      |                |  |             |                |  |          |       
|            |                                       |          |  |                 |      | (In thousands) |  |             | (In thousands) | 
|Multifamily |                                       |          |  |                 |      |                |  |             |                |  |          |        |  |  |   |       
|            | Arbors on Forest Ridge(1)             |          |  | Fort Worth, TX  |      |                |  | 210         |                |  | $        | 10,000 |  |  | $ |       | 
|            | Ashley Run(1)                         |          |  | Atlanta, GA     |      |                |  | 348         |                |  |          | 16,000 |  |  |   |       | 
|            | Aspen Hills(1)                        |          |  | Dallas, TX      |      |                |  | 240         |                |  |          | 9,400  |  |  |   |       | 
|            | Bridgetown Bay(1)                     |          |  | Charlotte, NC   |      |                |  | 120         |                |  |          | 5,700  |  |  |   |       | 
|            | Carlyle Club(1)                       |          |  | Atlanta, GA     |      |                |  | 243         |                |  |          | 13,600 |  |  |   |       | 
|            | Colonial Grand at Galleria Woods      |          |  | Birmingham, AL  |      |                |  | 244         |                |  |          | 14,800 |  |  |   | 4,252  | 
|            | Colonial Grand at Riverhills(2)       |          |  | Tampa, FL       |      |                |  | 776         |                |  |          | 6,900  |  |  |   | 1,661  | 
|            | Colonial Grand at Wesleyan            |          |  | Macon, GA       |      |                |  | 328         |                |  |          | 20,700 |  |  |   | 5,209  | 
|            | Colonial Village at Ashley Plantation |          |  | Bluffton, SC    |      |                |  | 414         |                |  |          | 27,900 |  |  |   | 6,087  | 
|            | Colonial Village at Cahaba Heights(2) |          |  | Birmingham, AL  |      |                |  | 125         |                |  |          | 1,200  |  |  |   | 235    | 
|            | Colonial Village at Gainesville       |          |  | Gainesville, FL |      |                |  | 560         |                |  |          | 37,400 |  |  |   | 14,308 | 
|            | Colonial Village at Lake Mary         |          |  | Orlando, FL     |      |                |  | 504         |                |  |          | 41,200 |  |  |   | 23,458 | 
|            | Colonial Village at TownPark          |          |  | Sarasota, FL    |      |                |  | 272         |                |  |          | 28,000 |  |  |   | 9,665  | 
|            | Colonial Village at Walton Way        |          |  | Augusta, GA     |      |                |  | 256         |                |  |          | 15,000 |  |  |   | 4,768  | 
|            | Cutters Point(1)                     |          |  | Dallas, TX      |      |                |  | 196         |                |  |          | 9,800  |  |  |   |       | 
|            | Cypress Cove at Suntree(1)(2)         |          |  | Melbourne, FL   |      |                |  | 326         |                |  |          | 4,000  |  |  |   |       | 
|            | Devonshire(1)                         |          |  | Dallas, TX      |      |                |  | 144         |                |  |          | 7,500  |  |  |   |       | 
|            | Dunwoody Springs(1)                   |          |  | Atlanta, GA     |      |                |  | 350         |                |  |          | 23,500 |  |  |   |       | 
|            | Eagle Crest(1)                        |          |  | Dallas, TX      |      |                |  | 484         |                |  |          | 20,800 |  |  |   |       | 
|            | Mills Crossing(1)                     |          |  | Dallas, TX      |      |                |  | 184         |                |  |          | 6,100  |  |  |   |       | 
|            | Sierra Ridge(1)                       |          |  | San Antonio, TX |      |                |  | 230         |                |  |          | 8,800  |  |  |   |       | 
|            | Silverbrook I & II(1)                 |          |  | Fort Worth, TX  |      |                |  | 642         |                |  |          | 23,500 |  |  |   |       | 
|            | The Landing(1)                        |          |  | Raleigh, NC     |      |                |  | 200         |                |  |          | 12,900 |  |  |   |       | 
|            | The Meridian(1)                       |          |  | Austin, TX      |      |                |  | 200         |                |  |          | 8,000  |  |  |   |       | 
|            | Timberglen(1)                         |          |  | Dallas, TX      |      |                |  | 304         |                |  |          | 12,200 |  |  |   |       | 
|            | Toscana(1)                            |          |  | Dallas, TX      |      |                |  | 192         |                |  |          | 5,800  |  |  |   |       | 

13



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##### 



|          |                                |          |  |                  |      |                |  |             |                |  |          |         |           |  |  |        |         | 
|--------- | ------------------------------ | -------- |  | ---------------- | ---- | -------------- |  | ----------- | -------------- |  | -------- | ------- | --------- |  |  | ------ | ------- | 
|          |                                |          |  |                  |      |                |  | Gain on     |               
|          |                                |          |  | Units/Square     |      |                |  |             | Sales of       | 
|Property  |                                | Location |  |                  | Feet |                |  | Sales Price |                |  | Property |        
|          |                                |          |  |                  |      |                |  |             |                |  |          |        
|          |                                |          |  |                  |      | (In thousands) |  |             | (In thousands) | 
|Retail(3) |                                |          |  |                  |      |                |  |             |                |  |          |         |           |  |  |       
|          | Colonial Mall Bel Air(4)       |          |  | Mobile, AL       |      |                |  | 1,333,800   |                |  |          | 142,404 |           |  |  | 54,245 |        
|          | Colonial Mall Burlington       |          |  | Burlington, NC   |      |                |  | 419,200     |                |  |          | 32,500  |           |  |  | 345    |        
|          | Colonial Mall Gadsden          |          |  | Gadsden, AL      |      |                |  | 517,000     |                |  |          | 58,847  |           |  |  | 45,669 |        
|          | Colonial Mall Glynn Place(4)   |          |  | Brunswick, GA    |      |                |  | 507,900     |                |  |          | 29,499  |           |  |  | 1,155  |        
|          | Colonial Mall Greenville(4)    |          |  | Greenville, NC   |      |                |  | 450,300     |                |  |          | 52,621  |           |  |  | 17,320 |        
|          | Colonial Mall Macon            |          |  | Macon, GA        |      |                |  | 1,446,400   |                |  |          | 133,500 |           |  |  | 65,469 |        
|          | Colonial Mall Myrtle Beach(4)  |          |  | Myrtle Beach, SC |      |                |  | 472,200     |                |  |          | 59,767  |           |  |  | 1,507  |        
|          | Colonial Mall Temple           |          |  | Temple, TX       |      |                |  | 555,600     |                |  |          | 33,500  |           |  |  | 2,907  |        
|          | Colonial Mall Valdosta(4)      |          |  | Valdosta, GA     |      |                |  | 399,000     |                |  |          | 46,478  |           |  |  | 8,831  |        
|          | Colonial University Village(4) |          |  | Auburn, AL       |      |                |  | 526,200     |                |  |          | 31,231  |           |  |  | 10,170 |        
|          |                                |          |  |                  |      |                |  |             |                |  |          |        
|          |                                | Total    |  |                  |      |                |  |             |                |  |          | $       | 1,011,047 |  |  | $      | 277,261 | 
|          |                                |          |  |                  |      |                |  |             |                |  |          |        






|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Properties acquired as part of the Cornerstone
    Acquisition.                                                                                                                              
|   
|(2) | We disposed of our 15% interest in Colonial Grand at
    Riverhills and Colonial Village at Cahaba Heights and our 10%
    interest in Cypress Cove at Suntree, which is reflected
    above.
|   
|(3) | Retail square footage includes total square footage of asset
    including anchor owned square footage.                                                                                      
|   
|(4) | Properties were transferred to the GPT Joint Venture.                                                                                                                                        



Accounting for the
Impairment or Disposal of Long-Lived Assets


Recent Developments


Property Acquisitions


358-unit




14



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##### 



Property Dispositions


|                      |  |          |                |  |       |               |     |             |  |   |       | 
|--------------------- |  | -------- | -------------- |  | ----- | ------------- | --- | ----------- |  | - | ----- | 
|Property Name         |  | Location |                |  | Units |               |     | Sales Price | 
|                      |  |          |                |  |       |               |     |             | 
|                      |  |          |                |  |       | (In millions) |    
|The Timbers           |  |          | Raleigh, NC    |  |       |               | 176 |             |  | $ | 7.6   | 
|CV at Remington Place |  |          | Raleigh, NC    |  |       |               | 136 |             |  |   | 7.9   | 
|Summerwalk            |  |          | Charlotte, NC  |  |       |               | 160 |             |  |   | 8.2   | 
|CV at Paces Glen      |  |          | Charlotte, NC  |  |       |               | 172 |             |  |   | 6.0   | 
|CV at Stone Brook     |  |          | Atlanta, GA    |  |       |               | 188 |             |  |   | 9.4   | 
|CG at Whitemarsh      |  |          | Savannah, GA   |  |       |               | 352 |             |  |   | 38.7  | 
|CV at Caledon Woods   |  |          | Greenville, SC |  |       |               | 350 |             |  |   | 22.9  | 
|                      |  |          |                |  |       |               |     |             | 
|                      |  |          |                |  |       |               |     |             |  | $ | 100.7 | 
|                      |  |          |                |  |       |               |     |             | 



10-K)




Financing activity 10-K).


Distribution


Preferred Share Buyback 5 8


15



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##### 



Business Strategy






| |   |                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | realizing growth in income from our existing portfolio of
    properties;                                                                                                                                                                                                                                          
|
| |  | expanding and selectively acquiring additional multifamily,
    office and retail properties (primarily lifestyle
    and power centers) in growth markets located in the
    Sunbelt region of the United States, where we have
    first-hand knowledge of growth patterns and local economic
    conditions;
|
| |  | recycling capital by selectively disposing of assets that have
    reached their maximum investment potential and reinvesting the
    proceeds into opportunities-with more growth potential;                                                                                                                      
|
| |  | managing our own properties, which enables us to better control
    operating expenses and establish long-term relationships with
    our office and retail tenants;                                                                                                                                               
|
| |  | developing for-sale lots and residential units;                                                                                                                                                                                                                                                                    
|
| |  | converting existing and acquired multifamily apartment
    communities into for-sale condominium projects;                                                                                                                                                                                                         
|
| |  | maintaining our third-party property management business, which
    increases cash flow and establishes additional relationships
    with investors and tenants; and                                                                                                                                               
|
| |  | employing a comprehensive capital maintenance program to
    maintain properties in first-class condition.                                                                                                                                                                                                         



Financing Strategy






| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |  | maintaining conservative debt service and fixed charge coverage
    ratios in order to sustain our investment grade status;
|
| |  | extending and sequencing the maturity dates of our debt;                                                                   
|
| |  | borrowing primarily at fixed rates; and                                                                                    
|
| |  | generally pursuing long-term debt financings and refinancings on
    an unsecured basis.                                   







16



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##### 



Property Management




Operational Structure


10-K 10-K




| |                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Multifamily Division. Our multifamily division is
    responsible for all aspects of multifamily operations, including
    day-to-day management
    and leasing of our 151 multifamily properties, as well as
    providing third-party management services for apartment
    communities in which we do not have an ownership interest or
    have a non-controlling ownership interest.         
|
| | Office Division. Our office division is responsible for
    all aspects of our commercial office operations, including the
    management and leasing services for our 62 office properties, as
    well as providing third-party management services for office
    properties in which we do not have an ownership interest and for
    brokerage services in other office property transactions.
|
| | Retail Division. Our retail division is responsible for
    all aspects of our retail operations, including the management
    and leasing services for our 48 retail properties, as well as
    providing third-party management services for retail properties
    in which we do not have an ownership interest and for brokerage
    services in other retail property transactions.           

Competition


Competition for acquisitions could
reduce the number of acquisition opportunities available to us
and result in increased prices for properties, which could
adversely affect our return on properties we purchase


17



---



##### 





Seasonality


lease-up


Environmental Matters


We could incur significant costs
related to environmental issues which could adversely affect our
results of operations through increased compliance costs or our
financial condition if we become subject to a significant
liability


Insurance






Employees


on-site


Tax Status




18



---



##### 





|             |       |  |          |  |        |              |  |  |        | 
|------------ | ----- |  | -------- |  | ------ | ------------ |  |  | ------ | 
|Distribution |       |  | Ordinary |  |        |             
|per Share    |       |  | Income   |  |        | Capital Gain | 
|             |       |  |          |  |        |              | 
|             | $2.70 |  |          |  | 25.30% |              |  |  | 74.70% | 



Available Information


www.colonialprop.com 10-K, 10-Q, 8-K,


Executive Officers of the Company




Thomas H. Lowder


C. Reynolds Thompson, III


19



---



##### 





Weston M. Andress


John P. Rigrish


Paul F. Earle


Robert A. Bo Jackson


Charles E. Chip Light


20



---



##### 





Charles A. McGehee


John E. Tomlinson


Item 1A.     Risk
Factors


10-K,


Risks Associated with Real Estate




| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We face numerous risks associated with the real estate
    industry that could adversely affect our results of operations
    through decreased revenues or increased costs.





| |   |                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | worsening of national and regional economic conditions, as well
    as the local economic conditions in our principal market areas;                                                                                                                    
|
| |  | the existence and quality of the competition, such as the
    attractiveness of our property as compared to our
    competitors properties based on considerations such as
    convenience of location, rental rates, amenities and safety
    record;
|
| |  | increased operating costs, including increased real property
    taxes, maintenance, insurance and utilities costs;                                                                                                                                    
|
| |  | weather conditions that may increase or decrease energy costs
    and other weather-related expenses;                                                                                                                                                  
|
| |  | oversupply of multifamily, office or retail space or a reduction
    in demand for real estate in the markets in which our properties
    are located;                                                                                                 

21



---



##### 





| |   |                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a favorable interest rate environment that may result in a
    significant number of potential tenants of our multifamily
    properties deciding to purchase homes instead of
    renting; and
|
| |  | changing trends in the demand by consumers for merchandise
    offered by retailers conducting business at our retail
    properties.                                                          





| |                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Real estate investments are illiquid, and therefore we may
    not be able to sell our properties in response to economic
    changes which could adversely affect our results of operations
    or financial condition.





| |                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to significant regulation that inhibits our
    activities, which could adversely affect our results of
    operations through increased costs or inability to pursue
    business opportunities.



Risks Associated with Our Operations




| |                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our properties may not generate sufficient income to pay
    our expenses if we are unable to lease our new properties or
    renew leases or re-lease space at our existing properties as
    leases expire, which may adversely affect our operating
    results.





| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | local conditions such as an oversupply of, or reduction in
    demand for, multifamily, office or retail properties;
|
| |  | the attractiveness of our properties to residents, shoppers and
    tenants;                                        
|
| |  | decreases in market rental rates; and                                                                               
|
| |  | our ability to collect rent from our tenants.                                                                       





22



---



##### 







| |                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to control our operating costs or our
    expenses may remain constant, even if our revenues decrease,
    causing our results of operations to be adversely
    affected.





| |   |                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------
| |  | the need to pay for insurance and other operating costs,
    including real estate taxes, which could increase over time;
|
| |  | the need periodically to repair, renovate and re-lease space;                                                            
|
| |  | the cost of compliance with governmental regulation, including
    zoning and tax laws;                                  
|
| |  | the potential for liability under applicable laws;                                                                       
|
| |  | interest rate levels; and                                                                                                
|
| |  | the availability of financing.                                                                                           







| |                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | An economic downturn or natural disaster in an area in
    which our properties are concentrated could adversely affect our
    results of operations or financial condition.





| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | Tenant bankruptcies and downturns in tenants
    businesses may adversely affect our operating results by
    decreasing our revenues.



23



---



##### 







| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Risks associated with the property management, leasing and
    brokerage businesses could adversely affect our results of
    operations by decreasing our revenues.





| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | management contracts or service agreements with third-party
    owners will be lost to competitors;                 
|
| |  | contracts will not be renewed upon expiration or will not be
    renewed on terms consistent with current terms; and
|
| |  | leasing and brokerage activity generally may decline.                                                               





| |                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We could incur significant costs related to environmental
    issues which could adversely affect our results of operations
    through increased compliance costs or our financial condition if
    we become subject to a significant liability.





24



---



##### 







| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Uninsured or underinsured losses could adversely affect
    our financial condition.







| |                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Competition for acquisitions could reduce the number of
    acquisition opportunities available to us and result in
    increased prices for properties, which could adversely affect
    our return on properties we purchase.





| |                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be unable to successfully integrate and effectively
    manage the properties we acquire, which could adversely affect
    our results of operations.

day-to


25



---



##### 





| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to achieve the anticipated financial
    and operating results from our acquisitions, which would
    adversely affect our operating results.





| |                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be unable to develop new properties or redevelop
    existing properties successfully, which could adversely affect
    our results of operations due to unexpected costs, delays and
    other contingencies.





| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | significant expenditure of money and time on projects that may
    be delayed or never be completed,                                                                                                           
|
| |  | higher than projected construction costs,                                                                                                                                                                      
|
| |  | lack of availability of debt or equity financing on acceptable
    terms,                                                                                                                                      
|
| |  | failure to meet anticipated occupancy or rent levels,                                                                                                                                                          
|
| |  | failure to obtain zoning, occupancy or other governmental
    approvals,                                                                                                                                       
|
| |  | changes in applicable zoning and land use laws may require us to
    abandon projects prior to their completion, resulting in the
    loss of development costs incurred up to the time of
    abandonment, and
|
| |  | late completion because of construction delays, delays in the
    receipt of zoning, occupancy and other approvals or other
    factors outside of our control.                                                





| |                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our joint venture investments could be adversely affected
    by our lack of sole decision-making authority, our reliance on
    our joint venture partners financial condition, any
    disputes that may arise between us and our joint venture
    partners and our exposure to potential losses from the actions
    of our joint venture partners.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we share decision-making authority with some of our joint
    venture partners regarding major decisions affecting the
    ownership or operation of the joint venture and the joint
    venture properties, such as the sale of the properties or the
    making of additional capital contributions for the benefit of
    the properties, which may prevent us from taking actions that
    are opposed by those joint venture partners;
|
| |  | prior consent of our joint venture partners is required for a
    sale or transfer to a third party of our interests in the joint
    venture, which restricts our ability to dispose of our interest
    in the joint venture;                                                                                                                                                                                                            
|
| |  | our joint venture partners might become bankrupt or fail to fund
    their share of required capital contributions, which may delay
    construction or development of a joint venture property or
    increase our financial commitment to the joint venture;                                                                                                                                                                             
|
| |  | our joint venture partners may have business interests or goals
    with respect to the joint venture properties that conflict with
    our business interests and goals, which could increase the
    likelihood of disputes regarding the ownership, management or
    disposition of such properties;                                                                                                                                   

26



---



##### 





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | disputes may develop with our joint venture partners over
    decisions affecting the joint venture properties or the joint
    venture, which may result in litigation or arbitration that
    would increase our expenses and distract our officers and/or
    trustees from focusing their time and effort on our business,
    and possibly disrupt the
    day-to-day operations
    of the property such as by delaying the implementation of
    important decisions until the conflict or dispute is
    resolved; and
|
| |  | we may suffer losses as a result of the actions of our joint
    venture partners with respect to our joint venture investments.                                                                                                                                                                                                                                                                                                                                                                                              

Risks Associated with Our Indebtedness and Financing




| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have substantial indebtedness and our cash flow may not
    be sufficient to make required payments on our indebtedness or
    repay our indebtedness as it matures.










| |                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our degree of leverage could limit our ability to obtain
    additional financing which would negatively impact our results
    of operation and financial condition.





| |                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------
| | Due to the amount of our variable rate debt, rising
    interest rates would adversely affect our results of
    operation.



27



---



##### 







| |                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have entered into debt agreements with covenants that
    restrict our operating activities, which could adversely affect
    our results of operations, and violation of these restrictive
    covenants could adversely affect our financial condition through
    debt defaults or acceleration.





| |   |                                         
| | - | ----------------------------------------
| |  | secured debt to total asset value ratio;
|
| |  | interest coverage ratio;                
|
| |  | fixed charge coverage ratio;            
|
| |  | debt to total asset value ratio;        
|
| |  | unencumbered interest coverage ratio;   
|
| |  | unencumbered leverage ratio; and        
|
| |  | adjusted total asset value.             





| |   |                                                    
| | - | ---------------------------------------------------
| |  | incur secured and unsecured indebtedness;          
|
| |  | sell all or substantially all or our assets; and   
|
| |  | engage in mergers, consolidations and acquisitions.





| |                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our inability to obtain sufficient third party financing
    could adversely affect our results of operations and financial
    condition because we depend on third party financing for our
    development, expansion or acquisition activities.





| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | Our senior notes do not have an established trading
    market, therefore, holders of our notes may not be able to sell
    their notes.



28



---



##### 





Risks Associated with Our Organization




| |                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Some of our trustees and officers have conflicts of
    interest and could exercise influence in a manner inconsistent
    with the interests of our shareholders.







| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | Restrictions on the acquisition and change in control of
    the Company may have adverse effects on the value of our common
    shares.



Our Declaration of Trust contains ownership limits and
restrictions on transferability.




| |   |                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 9.8%, in either number of shares or value (whichever is more
    restrictive), of any class of outstanding shares of Colonial;                                                    
|
| |  | 5% in number or value (whichever is more restrictive), of the
    outstanding common shares and any outstanding excess shares of
    Colonial; and                                
|
| |  | in the case of certain excluded holders related to the Lowder
    family: 29% by one individual; 34% by two individuals; 39% by
    three individuals; or 44% by four individuals.



Our Declaration of Trust permits our Board of Trustees to
issue preferred shares with terms that may discourage a third
party from acquiring us.


29



---



##### 





Our Declaration of Trust and Bylaws contain other possible
anti-takeover provisions.




| |   |                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a prohibition on shareholder action by written consent;                                                                                                                                                                                                                                                                                      
|
| |  | the ability to remove trustees only at a meeting of shareholders
    called for that purpose, by the affirmative vote of the holders
    of not less than two-thirds of the shares then outstanding and
    entitled to vote in the election of trustees;                                                                                    
|
| |  | the limitation that a special meetings of shareholders can be
    called only by the president or chairman of the board or upon
    the written request of shareholders holding outstanding shares
    representing at least 25% of all votes entitled to be cast at
    the special meeting;                                                
|
| |  | the advance written notice requirement for shareholders to
    nominate a trustee before a meeting of shareholders; and                                                                                                                                                                                                                      
|
| |  | the requirement that the amendment of certain provisions of the
    Declaration of Trust relating to the removal of trustees, the
    termination of the Company and any provision that would have the
    effect of amending these provisions, require the affirmative
    vote of the holders of two-thirds of the shares then outstanding.



| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | Our board of directors has adopted a shareholder rights
    plan that could discourage a third party from making a proposal
    to acquire us.





| |                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------
| | We may change our business policies in the future, which
    could adversely affect our financial condition or results of
    operations.



Risks Related to Our Shares




| |                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------
| | Market interest rates and low trading volume may have an
    adverse effect on the market value of our common shares.



30



---



##### 







| |                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------
| | A large number of shares available for future sale could
    adversely affect the market price of our common shares.





| |                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in market conditions or a failure to meet the
    markets expectations with regard to our earnings and cash
    distributions could adversely affect the market price of our
    common shares.







| |   |                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our financial condition and operating performance and the
    performance of other similar companies;                                                                     
|
| |  | actual or anticipated differences in our quarterly operating
    results;                                                                                                 
|
| |  | changes in our revenues or earnings estimates or recommendations
    by securities analysts;                                                                              
|
| |  | publication of research reports about us or our industry by
    securities analysts;                                                                                      
|
| |  | additions and departures of key personnel;                                                                                                                                
|
| |  | strategic decisions by us or our competitors, such as
    acquisitions, divestments, spin-offs, joint ventures, strategic
    investments or changes in business strategy;
|
| |  | the reputation of REITs generally and the reputation of REITs
    with portfolios similar to ours;                                                                        
|
| |  | the attractiveness of the securities of REITs in comparison to
    securities issued by other entities (including securities issued
    by other real estate companies);  
|
| |  | an increase in market interest rates, which may lead prospective
    investors to demand a higher distribution rate in relation to
    the price paid for our shares;     
|
| |  | the passage of legislation or other regulatory developments that
    adversely affect us or our industry;                                                                 
|
| |  | speculation in the press or investment community;                                                                                                                         
|
| |  | actions by institutional shareholders or hedge funds;                                                                                                                     
|
| |  | changes in accounting principles;                                                                                                                                         
|
| |  | terrorist acts; and                                                                                                                                                       

31



---



##### 





| |   |                                                                               
| | - | ------------------------------------------------------------------------------
| |  | general market conditions, including factors unrelated to our
    performance.



Risks Associated with Income Tax Laws




| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to qualify as a REIT would decrease the funds
    available for distribution to our shareholders and adversely
    affect the market price of our common shares.

10-K






| |                                                                         
| | ------------------------------------------------------------------------
| | Even if we qualify as a REIT, we will be required to pay
    some taxes.



32



---



##### 







Item 1B.     Unresolved
Staff Comments.






|        |            
|------- | -----------
|Item 2. | Properties.

General




Summary of Properties


|                 |       |            |     |        |        |                |            |            |  |            |            |         |            |                  |      |       |   |  |      |   | 
|---------------- | ----- | ---------- | --- | ------ | ------ | -------------- | ---------- | ---------- |  | ---------- | ---------- | ------- | ---------- | ---------------- | ---- | ----- | - |  | ---- | - | 
|                 |       |            |     |        |        |                |            | Percent of |  |            |           
|                 |       |            |     | Units/ |        |                | Total 2005 |            |  | Total 2005 |            |         | Percentage |                 
|                 |       | Number of  |     |        | NRA/   |                |            | Property   |  |            | Property   |         |            | Occupancy at     |     
|Type of Property |       | Properties |     |        | GRA(1) |                |            | Revenue(2) |  |            | Revenue(2) |         |            | Dec. 31, 2005(3) |     
|                 |       |            |     |        |        |                |            |            |  |            |            |         |            |                  |     
|                 |       |            |     |        |        | (In thousands) |            |            |  |            |           
|Multifamily      |       |            | 151 |        |        |                | 44,337     | (4)        |  | $          | 279,744    |         |            |                  | 48.9 | %     |   |  | 95.3 | %
|Office           |       |            | 62  |        |        |                | 19,499,515 | (5)        |  |            | 133,368    |         |            |                  | 23.3 | %     |   |  | 91.3 | %
|Retail           |       |            | 48  |        |        |                | 13,452,603 | (6)        |  |            | 159,460    |         |            |                  | 27.8 | %     |   |  | 92.2 | %
|                 |       |            |     |        |        |                |            |            |  |            |            |         |            |                  |     
|                 | Total |            |     | 261    |        |                |            |            |  |            | $          | 572,572 | (7)        |                  |      | 100.0 | % |  |      |   | 
|                 |       |            |     |        |        |                |            |            |  |            |            |         |            |                  |     






|    |                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Units (in this table only) refers to multifamily units, NRA
    refers to net rentable area of office space and GRA refers to
    gross retail area, which includes gross leasable area and space
    owned by anchor tenants.
|   
|(2) | Includes our proportionate share of revenue from those
    multifamily, office and retail properties accounted for under
    the equity method, and our share of the proceeds from properties
    disposed in 2005.           

33



---



##### 





|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Excludes the units/square feet of development or expansion
    phases of one multifamily property, one office property and two
    retail properties that had not achieved stabilized occupancy as
    of December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                         
|   
|(4) | Amount includes 10,065 units at 36 multifamily
    properties, in which we maintain a 10.0%  35.0%
    ownership interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(5) | Amount includes 11,756,400 square feet at 27 office
    properties, in which we maintain a 15.0%  33.33%
    ownership interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(6) | Amount includes 4,901,300 square feet at 10 retail
    properties, in which we maintain a 10.0%  50.0%
    ownership interest. Square footage includes anchor-owned square
    footage.                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(7) | Amount includes $30,332 of our proportionate share of revenue
    from unconsolidated properties and $61,973 of revenue from
    properties classified as discontinued operations during 2005. In
    order to arrive at consolidated property revenues of $480,266,
    in accordance with GAAP, these amounts must be removed from the
    total property revenue. Management believes including our
    proportionate share of revenue from unconsolidated properties
    and revenues from discontinued operations provides investors
    with a more complete description of our gross revenues.

Multifamily Properties






Multifamily Properties


|                               |  |          |            |      |              |  |            |             |  |               |               |         |         |          |           |                   |                  |  |                  |          |  |          |            |  |  |  |           |     |  |  |     |  
|------------------------------ |  | -------- | ---------- | ---- | ------------ |  | ---------- | ----------- |  | ------------- | ------------- | ------- | ------- | -------- | --------- | ----------------- | ---------------- |  | ---------------- | -------- |  | -------- | ---------- |  |  |  | --------- | --- |  |  | --- | -
|                               |  |          |            |      |              |  |            |             |  |               |               | Average |         |          |           |                   | Percent of Total | 
|                               |  |          |            |      |              |  |            | Approximate |  |               |               |         | Rental  |          |           | Total Multifamily |                  |  | 2005 Multifamily |         
|Multifamily                    |  |          |            | Year |              |  | Number of  |             |  | Rentable Area |               |         | Percent |          |           | Rate              |                  |  | Property Revenue |          |  | Property |           
|Property(1)                    |  | Location |            |      | Completed(2) |  |            | Units(3)    |  |               | (Square Feet) |         |         | Occupied |           |                   | per Unit         |  |                  | for 2005 |  |          | Revenue(4) | 
|                               |  |          |            |      |              |  |            |             |  |               |               |         |         |          |           |                   |                  |  |                  |          |  |          |            | 
|Alabama:                       |  |          |            |      |              |  |            |             |  |               |               |         |         |          |           |                   |                  |  |                  |          |  |          |            |  |  |  |           |     |  |  |     |  
|CG at Edgewater                |  |          | Huntsville |      |              |  | 1990       |             |  |               | 500           |         |         |          | 541,650   |                   |                  |  | 96.2             | %        |  |          | 733        |  |  |  | 4,170,604 |     |  |  | 1.5 | %
|CG at Galleria                 |  |          | Birmingham |      |              |  | 1986/96    |             |  |               | 1,080         |         |         |          | 1,195,186 |                   |                  |  | 94.8             | %        |  |          | 679        |  |  |  | 9,117,933 |     |  |  | 3.3 | %
|CG at Galleria Woods           |  |          | Birmingham |      |              |  | 1994       |             |  |               |               |         |         |          |           |                   |                  |  |                  |          |  |          |            |  |  |  | 525,906   | (8) |  |  | 0.2 | %
|CG at Inverness Lakes II(7)    |  |          | Mobile     |      |              |  | 1996       |             |  |               | 312           |         |         |          | 329,926   |                   |                  |  | 92.0             | %        |  |          | 676        |  |  |  | 361,007   |     |  |  | 0.1 | %
|CG at Liberty Park             |  |          | Birmingham |      |              |  | 2000       |             |  |               | 300           |         |         |          | 338,684   |                   |                  |  | 96.3             | %        |  |          | 997        |  |  |  | 3,355,474 |     |  |  | 1.2 | %
|CG at Madison                  |  |          | Huntsville |      |              |  | 2000       |             |  |               | 336           |         |         |          | 354,592   |                   |                  |  | 94.3             | %        |  |          | 800        |  |  |  | 3,072,106 |     |  |  | 1.1 | %
|CG at Mountain Brook(7)        |  |          | Birmingham |      |              |  | 1987/91    |             |  |               | 392           |         |         |          | 392,700   |                   |                  |  | 94.4             | %        |  |          | 722        |  |  |  | 487,918   |     |  |  | 0.2 | %
|CG at Promenade                |  |          | Montgomery |      |              |  | 2000       |             |  |               | 384           |         |         |          | 424,372   |                   |                  |  | 96.4             | %        |  |          | 844        |  |  |  | 3,965,903 |     |  |  | 1.4 | %
|CG at Riverchase               |  |          | Birmingham |      |              |  | 1984/91    |             |  |               | 468           |         |         |          | 745,840   |                   |                  |  | 95.7             | %        |  |          | 834        |  |  |  | 4,439,115 |     |  |  | 1.6 | %
|Colony Woods(7)                |  |          | Birmingham |      |              |  | 1988       |             |  |               | 414           |         |         |          | 450,682   |                   |                  |  | 93.7             | %        |  |          | 718        |  |  |  | 355,400   |     |  |  | 0.1 | %
|CV at Ashford Place            |  |          | Mobile     |      |              |  | 1983       |             |  |               | 168           |         |         |          | 139,128   |                   |                  |  | 98.2             | %        |  |          | 586        |  |  |  | 1,057,031 |     |  |  | 0.4 | %
|CV at Cahaba Heights(7)        |  |          | Birmingham |      |              |  | 1992       |             |  |               |               |         |         |          |           |                   |                  |  |                  |          |  |          |            |  |  |  | 22,110    | (8) |  |  | 0.0 | %
|CV at Hillwood(7)(10)          |  |          | Montgomery |      |              |  | 1984       |             |  |               | 160           |         |         |          | 150,912   |                   |                  |  | 100.0            | %        |  |          | 648        |  |  |  | 175,760   |     |  |  | 0.1 | %
|CV at Huntleigh Woods          |  |          | Mobile     |      |              |  | 1978       |             |  |               | 233           |         |         |          | 199,052   |                   |                  |  | 99.1             | %        |  |          | 585        |  |  |  | 1,418,235 |     |  |  | 0.5 | %
|CV at Inverness                |  |          | Birmingham |      |              |  | 1986/87/90 |             |  |               | 586           |         |         |          | 551,597   |                   |                  |  | 93.3             | %        |  |          | 678        |  |  |  | 4,181,802 |     |  |  | 1.5 | %
|CV at Inverness Lakes I(7)(10) |  |          | Mobile     |      |              |  | 1983       |             |  |               | 186           |         |         |          | 176,460   |                   |                  |  | 100.0            | %        |  |          | 598        |  |  |  | 186,047   |     |  |  | 0.1 | %
|CV at Research Park            |  |          | Huntsville |      |              |  | 1987/94    |             |  |               | 736           |         |         |          | 809,343   |                   |                  |  | 99.3             | %        |  |          | 625        |  |  |  | 5,555,272 |     |  |  | 2.0 | %
|CV at Rocky Ridge(7)           |  |          | Birmingham |      |              |  | 1984       |             |  |               | 226           |         |         |          | 258,900   |                   |                  |  | 95.1             | %        |  |          | 630        |  |  |  | 257,215   |     |  |  | 0.1 | %
|CV at Trussville               |  |          | Birmingham |      |              |  | 1996/97    |             |  |               | 376           |         |         |          | 410,340   |                   |                  |  | 93.6             | %        |  |          | 749        |  |  |  | 3,284,392 |     |  |  | 1.2 | %
|Madison at Shoal Run(7)        |  |          | Birmingham |      |              |  | 1985       |             |  |               | 276           |         |         |          | 249,300   |                   |                  |  | 97.5             | %        |  |          | 637        |  |  |  | 214,028   |     |  |  | 0.1 | %

34



---



##### 



|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |      |  
|---------------------------- | ------------------ | -------- | ------------ | ---- | ------------ |  | ---------- | ----------- |  | ------------- | ------------- | ------- | ------- | -------- | ------- | ----------------- | ---------------- |  | ---------------- | -------- | - | -------- | ---------- | --- |  |  | --------- | ---------- |  |  | --- | ---- | -
|                             |                    |          |              |      |              |  |            |             |  |               |               | Average |         |          |         |                   | Percent of Total | 
|                             |                    |          |              |      |              |  |            | Approximate |  |               |               |         | Rental  |          |         | Total Multifamily |                  |  | 2005 Multifamily |         
|Multifamily                  |                    |          |              | Year |              |  | Number of  |             |  | Rentable Area |               |         | Percent |          |         | Rate              |                  |  | Property Revenue |          |   | Property |           
|Property(1)                  |                    | Location |              |      | Completed(2) |  |            | Units(3)    |  |               | (Square Feet) |         |         | Occupied |         |                   | per Unit         |  |                  | for 2005 |   |          | Revenue(4) |    
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Meadows at Brook Highland(7) |                    |          | Birmingham   |      |              |  | 1987       |             |  |               | 400           |         |         |          | 465,605 |                   |                  |  | 96.5             | %        |   |          | 730        |     |  |  | 323,169   |            |  |  | 0.1 | %   
|The Grove at Riverchase(7)   |                    |          | Birmingham   |      |              |  | 1996       |             |  |               | 345           |         |         |          | 344,625 |                   |                  |  | 95.7             | %        |   |          | 777        |     |  |  | 182,716   | (6)        |  |  | 0.1 | %   
|Deer Creek Homes             |                    |          | Montgomery   |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 27,386    |            |  |  | 0.0 | %   
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  Alabama |          |              |      |              |  |            |             |  |               |               | 7,878   |         |          |         | 8,528,894         |                  |  |                  | 95.8     | % |          |            | 716 |  |  |           | 46,736,529 |  |  |     | 16.8 | %
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Arizona                      |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|Arabian Trials(7)            |                    |          | Scottsdale   |      |              |  | 1986       |             |  |               | 384           |         |         |          | 347,240 |                   |                  |  | 97.1             | %        |   |          | 1,054      |     |  |  | 627,495   |            |  |  | 0.2 | %   
|Casa Lindas(7)               |                    |          | Tucson       |      |              |  | 1986       |             |  |               | 144           |         |         |          | 160,624 |                   |                  |  | 95.1             | %        |   |          | 774        |     |  |  | 248,653   |            |  |  | 0.1 | %   
|Colonia del Rio(7)           |                    |          | Tucson       |      |              |  | 1985       |             |  |               | 176           |         |         |          | 177,892 |                   |                  |  | 96.0             | %        |   |          | 737        |     |  |  | 302,325   |            |  |  | 0.1 | %   
|Fairway Crossing(7)          |                    |          | Phoenix      |      |              |  | 1986       |             |  |               | 310           |         |         |          | 303,170 |                   |                  |  | 94.2             | %        |   |          | 759        |     |  |  | 477,766   |            |  |  | 0.2 | %   
|Hacienda del Rio(7)          |                    |          | Tucson       |      |              |  | 1983       |             |  |               | 248           |         |         |          | 152,504 |                   |                  |  | 97.6             | %        |   |          | 542        |     |  |  | 297,500   |            |  |  | 0.1 | %   
|La Entrada(7)                |                    |          | Scottsdale   |      |              |  | 1988       |             |  |               | 130           |         |         |          | 112,810 |                   |                  |  | 98.5             | %        |   |          | 830        |     |  |  | 217,262   |            |  |  | 0.1 | %   
|Pinnancle Heights(7)         |                    |          | Tucson       |      |              |  | 1995       |             |  |               | 310           |         |         |          | 339,364 |                   |                  |  | 97.1             | %        |   |          | 936        |     |  |  | 591,829   |            |  |  | 0.2 | %   
|Posada del Este(7)           |                    |          | Phoenix      |      |              |  | 1979       |             |  |               | 148           |         |         |          | 128,894 |                   |                  |  | 98.0             | %        |   |          | 802        |     |  |  | 248,000   |            |  |  | 0.1 | %   
|Rancho Viejo(7)              |                    |          | Phoenix      |      |              |  | 1985       |             |  |               | 266           |         |         |          | 207,366 |                   |                  |  | 98.5             | %        |   |          | 665        |     |  |  | 324,875   |            |  |  | 0.1 | %   
|Springhill(7)                |                    |          | Tucson       |      |              |  | 1988       |             |  |               | 224           |         |         |          | 175,520 |                   |                  |  | 97.8             | %        |   |          | 626        |     |  |  | 304,377   |            |  |  | 0.1 | %   
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  Arizona |          |              |      |              |  |            |             |  |               |               | 2,340   |         |          |         | 2,105,384         |                  |  |                  | 96.9     | % |          |            | 790 |  |  |           | 3,640,082  |  |  |     | 1.3  | %
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Florida:                     |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|CG at Bayshore(7)            |                    |          | Bradenton    |      |              |  | 1997       |             |  |               | 376           |         |         |          | 368,900 |                   |                  |  | 98.9             | %        |   |          | 816        |     |  |  | 977,505   |            |  |  | 0.4 | %   
|CG at Cypress Crossing       |                    |          | Orlando      |      |              |  | 1999       |             |  |               | 250           |         |         |          | 314,596 |                   |                  |  | 98.4             | %        |   |          | 1,002      |     |  |  | 2,992,702 |            |  |  | 1.1 | %   
|Cypress Cove at Suntree(7)   |                    |          | Melbourne    |      |              |  | 1991       |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 151,038   | (8)        |  |  | 0.1 | %   
|CG at Gainesville            |                    |          | Gainesville  |      |              |  | 1989/93/94 |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 1,135,323 | (8)        |  |  | 0.4 | %   
|CG at Heather Glen           |                    |          | Orlando      |      |              |  | 2000       |             |  |               | 448           |         |         |          | 524,074 |                   |                  |  | 98.7             | %        |   |          | 929        |     |  |  | 4,893,309 |            |  |  | 1.8 | %   
|CG at Heathrow               |                    |          | Orlando      |      |              |  | 1997       |             |  |               | 312           |         |         |          | 370,028 |                   |                  |  | 100.0            | %        |   |          | 979        |     |  |  | 3,417,193 |            |  |  | 1.2 | %   
|CG at Hunters Creek         |                    |          | Orlando      |      |              |  | 1997       |             |  |               | 496           |         |         |          | 624,464 |                   |                  |  | 96.4             | %        |   |          | 951        |     |  |  | 5,601,577 |            |  |  | 2.0 | %   
|CG at Lakewood Ranch         |                    |          | Sarasota     |      |              |  | 1999       |             |  |               | 288           |         |         |          | 301,656 |                   |                  |  | 99.0             | %        |   |          | 991        |     |  |  | 3,580,415 |            |  |  | 1.3 | %   
|CG at Metrowest              |                    |          | Orlando      |      |              |  | 1997       |             |  |               | 311           |         |         |          | 313,500 |                   |                  |  | 96.8             | %        |   |          | 845        |     |  |  | 3,236,817 |            |  |  | 1.2 | %   
|CG at Palma Sola(7)(10)      |                    |          | Bradenton    |      |              |  | 1992       |             |  |               | 340           |         |         |          | 291,796 |                   |                  |  | 97.4             | %        |   |          | 796        |     |  |  | 803,206   |            |  |  | 0.3 | %   
|CG at River Hills(7)         |                    |          | Tampa        |      |              |  | 1991/97    |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 126,423   | (8)        |  |  | 0.0 | %   
|CG at Seven Oaks             |                    |          | Tampa        |      |              |  | 2004       |             |  |               | 318           |         |         |          | 301,131 |                   |                  |  | 94.3             | %        |   |          | 920        |     |  |  | 3,502,650 |            |  |  | 1.3 | %   
|CG at TownPark               |                    |          | Orlando      |      |              |  | 2002       |             |  |               | 456           |         |         |          | 584,664 |                   |                  |  | 98.0             | %        |   |          | 1,014      |     |  |  | 5,360,554 |            |  |  | 1.9 | %   
|CG at TownPark Reserve       |                    |          | Orlando      |      |              |  | 2004       |             |  |               | 80            |         |         |          | 64,900  |                   |                  |  | 100.0            | %        |   |          | 1,302      |     |  |  | 1,018,853 |            |  |  | 0.4 | %   
|CV at Lake Mary              |                    |          | Orlando      |      |              |  | 1991/95    |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 1,756,296 | (8)        |  |  | 0.6 | %   
|CV at TownPark               |                    |          | Sarasota     |      |              |  | 2002       |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 789,187   | (8)        |  |  | 0.3 | %   
|CV at Twin Lakes             |                    |          | Orlando      |      |              |  | 2004       |             |  |               | 460           |         |         |          | 138,200 |                   |                  |  | 97.4             | %        |   |          | 1,178      |     |  |  | 3,673,074 |            |  |  | 1.3 | %   
|St. Andrews                  |                    |          | Jensen Beach |      |              |  | 2002       |             |  |               | N/A           |         |         |          | N/A     |                   |                  |  | N/A              |          |   |          | N/A        |     |  |  | 1,249,943 |            |  |  | 0.5 | %   
|Mizner/ Delray Beach         |                    |          | Delray Beach |      |              |  | 2002       |             |  |               | N/A           |         |         |          | N/A     |                   |                  |  | N/A              |          |   |          | N/A        |     |  |  | 908,289   |            |  |  | 0.3 | %   
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  Florida |          |              |      |              |  |            |             |  |               |               | 4,135   |         |          |         | 4,197,909         |                  |  |                  | 97.8     | % |          |            | 960 |  |  |           | 45,174,354 |  |  |     | 16.3 | %
|                             |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Georgia:                     |                    |          |              |      |              |  |            |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|CG at Barrett Creek          |                    |          | Atlanta      |      |              |  | 1999       |             |  |               | 332           |         |         |          | 309,456 |                   |                  |  | 94.3             | %        |   |          | 728        |     |  |  | 1,046,471 | (6)        |  |  | 0.4 | %   
|CG at Barrington Club(7)(10) |                    |          | Macon        |      |              |  | 1996       |             |  |               | 176           |         |         |          | 191,940 |                   |                  |  | 98.9             | %        |   |          | 739        |     |  |  | 198,256   |            |  |  | 0.1 | %   
|CG at Berkeley Lake          |                    |          | Atlanta      |      |              |  | 1998       |             |  |               | 180           |         |         |          | 243,941 |                   |                  |  | 96.1             | %        |   |          | 1,016      |     |  |  | 1,979,314 |            |  |  | 0.7 | %   
|CG at Enclave                |                    |          | Atlanta      |      |              |  | 1995       |             |  |               | 200           |         |         |          | 296,000 |                   |                  |  | 94.5             | %        |   |          | 903        |     |  |  | 1,457,241 |            |  |  | 0.5 | %   
|CG at Hammocks               |                    |          | Savannah     |      |              |  | 1997       |             |  |               | 308           |         |         |          | 323,844 |                   |                  |  | 97.4             | %        |   |          | 845        |     |  |  | 2,437,184 | (6)        |  |  | 0.9 | %   
|CG at McGinnis Ferry         |                    |          | Atlanta      |      |              |  | 1997       |             |  |               | 434           |         |         |          | 510,000 |                   |                  |  | 96.3             | %        |   |          | 916        |     |  |  | 4,396,179 |            |  |  | 1.6 | %   
|CG at Mount Vernon           |                    |          | Atlanta      |      |              |  | 1997       |             |  |               | 213           |         |         |          | 257,180 |                   |                  |  | 97.2             | %        |   |          | 1,099      |     |  |  | 2,563,756 |            |  |  | 0.9 | %   
|CG at River Oaks             |                    |          | Atlanta      |      |              |  | 1992       |             |  |               | 216           |         |         |          | 276,208 |                   |                  |  | 94.4             | %        |   |          | 941        |     |  |  | 2,174,123 |            |  |  | 0.8 | %   
|CG at River Plantation       |                    |          | Atlanta      |      |              |  | 1994       |             |  |               | 232           |         |         |          | 311,000 |                   |                  |  | 93.5             | %        |   |          | 985        |     |  |  | 2,436,215 |            |  |  | 0.9 | %   
|CG at Sugarloaf              |                    |          | Atlanta      |      |              |  | 2002       |             |  |               | 250           |         |         |          | 329,600 |                   |                  |  | 90.4             | %        |   |          | 908        |     |  |  | 2,530,911 |            |  |  | 0.9 | %   
|CG at Wesleyan               |                    |          | Macon        |      |              |  | 1997       |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 590,850   | (8)        |  |  | 0.2 | %   
|CG at Whitemarsh(10)         |                    |          | Savannah     |      |              |  | 2002       |             |  |               | 352           |         |         |          | 347,707 |                   |                  |  | 92.9             | %        |   |          | 1,367      |     |  |  | 2,603,284 | (6)        |  |  | 0.9 | %   
|CV at Greentree              |                    |          | Savannah     |      |              |  | 1984       |             |  |               | 194           |         |         |          | 165,216 |                   |                  |  | 99.0             | %        |   |          | 691        |     |  |  | 1,116,253 | (6)        |  |  | 0.4 | %   
|CV at Huntington             |                    |          | Savannah     |      |              |  | 1986       |             |  |               | 147           |         |         |          | 121,112 |                   |                  |  | 96.6             | %        |   |          | 729        |     |  |  | 969,626   | (6)        |  |  | 0.3 | %   
|CV at Marsh Cove             |                    |          | Savannah     |      |              |  | 1983       |             |  |               | 188           |         |         |          | 412,041 |                   |                  |  | 92.0             | %        |   |          | 770        |     |  |  | 1,210,460 | (6)        |  |  | 0.4 | %   

35



---



##### 



|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |      |  
|---------------------------- | ---------------------- | -------- | -------------- | ---- | ------------ |  | --------- | ----------- |  | ------------- | ------------- | ------- | ------- | -------- | ------- | ----------------- | ---------------- |  | ---------------- | -------- | - | -------- | ---------- | --- |  |  | --------- | ---------- |  |  | --- | ---- | -
|                             |                        |          |                |      |              |  |           |             |  |               |               | Average |         |          |         |                   | Percent of Total | 
|                             |                        |          |                |      |              |  |           | Approximate |  |               |               |         | Rental  |          |         | Total Multifamily |                  |  | 2005 Multifamily |         
|Multifamily                  |                        |          |                | Year |              |  | Number of |             |  | Rentable Area |               |         | Percent |          |         | Rate              |                  |  | Property Revenue |          |   | Property |           
|Property(1)                  |                        | Location |                |      | Completed(2) |  |           | Units(3)    |  |               | (Square Feet) |         |         | Occupied |         |                   | per Unit         |  |                  | for 2005 |   |          | Revenue(4) |    
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|CV at Poplar Place           |                        |          | Atlanta        |      |              |  | 1989/95   |             |  |               | 324           |         |         |          | 269,377 |                   |                  |  | 92.6             | %        |   |          | 756        |     |  |  | 1,910,745 | (6)        |  |  | 0.7 | %   
|CV at Spring Lake            |                        |          | Atlanta        |      |              |  | 1986      |             |  |               | 188           |         |         |          | 189,712 |                   |                  |  | 94.7             | %        |   |          | 717        |     |  |  | 1,117,166 | (6)        |  |  | 0.4 | %   
|CV at Stockbridge(7)(10)     |                        |          | Stockbridge    |      |              |  | 1993/94   |             |  |               | 240           |         |         |          | 253,200 |                   |                  |  | 95.8             | %        |   |          | 764        |     |  |  | 272,479   |            |  |  | 0.1 | %   
|CV at Stone Brook(10)        |                        |          | Atlanta        |      |              |  | 1986      |             |  |               | 188           |         |         |          | 176,200 |                   |                  |  | 87.2             | %        |   |          | 714        |     |  |  | 1,050,819 | (6)        |  |  | 0.4 | %   
|CV at Timothy Woods          |                        |          | Athens         |      |              |  | 1996      |             |  |               | 204           |         |         |          | 211,444 |                   |                  |  | 95.6             | %        |   |          | 758        |     |  |  | 1,688,042 |            |  |  | 0.6 | %   
|Merritt at Godley Station(7) |                        |          | Savannah       |      |              |  | 2005      |             |  |               | 312           |         |         |          | 337,300 |                   |                  |  | LU               | (9)      |   |          | 698        |     |  |  | 477,491   | (6)        |  |  | 0.2 | %   
|Ashley Run                   |                        |          | Atlanta        |      |              |  | 1987      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 596,484   | (6)(8)     |  |  | 0.2 | %   
|Carlyle Club Apartments      |                        |          | Atlanta        |      |              |  | 1974      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 274,925   | (6)(8)     |  |  | 0.1 | %   
|Dunwoody Springs             |                        |          | Atlanta        |      |              |  | 1981      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 380,850   | (6)(8)     |  |  | 0.1 | %   
|CV at Walton Way             |                        |          | Augusta        |      |              |  | 1984      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 496,454   |            |  |  | 0.2 | %   
|CV at Vernon Marsh           |                        |          | Savannah       |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 2,076     |            |  |  | 0.0 | %   
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  Georgia     |          |                |      |              |  |           |             |  |               |               | 4,878   |         |          |         | 5,532,478         |                  |  |                  | 95.0     | % |          |            | 877 |  |  |           | 35,977,654 |  |  |     | 13.0 | %
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Mississippi:                 |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|CG at The Reservoir          |                        |          | Jackson        |      |              |  | 2000      |             |  |               | 170           |         |         |          | 195,605 |                   |                  |  | 100.0            | %        |   |          | 886        |     |  |  | 1,761,994 |            |  |  | 0.6 | %   
|CG at Natchez Trace          |                        |          | Jackson        |      |              |  | 1995/97   |             |  |               | 328           |         |         |          | 342,800 |                   |                  |  | 97.9             | %        |   |          | 741        |     |  |  | 2,761,039 |            |  |  | 1.0 | %   
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  Mississippi |          |                |      |              |  |           |             |  |               |               | 498     |         |          |         | 538,405           |                  |  |                  | 98.6     | % |          |            | 790 |  |  |           | 4,523,033  |  |  |     | 1.6  | %
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Nevada                       |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|Desert Lakes(7)              |                        |          | Las Vegas      |      |              |  | 1991      |             |  |               | 184           |         |         |          | 188,360 |                   |                  |  | 94.0             | %        |   |          | 977        |     |  |  | 403,810   |            |  |  | 0.1 | %   
|Pinnacle Flamingo West(7)    |                        |          | Las Vegas      |      |              |  | 1986      |             |  |               | 324           |         |         |          | 320,364 |                   |                  |  | 96.9             | %        |   |          | 831        |     |  |  | 689,691   |            |  |  | 0.2 | %   
|Talavera(7)                  |                        |          | Las Vegas      |      |              |  | 1995      |             |  |               | 350           |         |         |          | 353,724 |                   |                  |  | 96.0             | %        |   |          | 951        |     |  |  | 800,747   |            |  |  | 0.3 | %   
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  Nevada      |          |                |      |              |  |           |             |  |               |               | 858     |         |          |         | 862,448           |                  |  |                  | 95.9     | % |          |            | 911 |  |  |           | 1,894,248  |  |  |     | 0.7  | %
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|New Mexico                   |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|Pinnacle Estates(7)          |                        |          | Albuquerque    |      |              |  | 1998      |             |  |               | 294           |         |         |          | 313,420 |                   |                  |  | 93.5             | %        |   |          | 872        |     |  |  | 618,524   |            |  |  | 0.2 | %   
|Pinnacle High Desert(7)      |                        |          | Albuquerque    |      |              |  | 1986      |             |  |               | 430           |         |         |          | 478,036 |                   |                  |  | 95.6             | %        |   |          | 936        |     |  |  | 959,053   |            |  |  | 0.3 | %   
|Pinnacle High Resort(7)      |                        |          | Albuquerque    |      |              |  | 1998      |             |  |               | 301           |         |         |          | 322,770 |                   |                  |  | 93.7             | %        |   |          | 796        |     |  |  | 561,664   |            |  |  | 0.2 | %   
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                             | Subtotal  New Mexico  |          |                |      |              |  |           |             |  |               |               | 1,025   |         |          |         | 1,114,226         |                  |  |                  | 94.4     | % |          |            | 877 |  |  |           | 2,139,241  |  |  |     | 0.8  | %
|                             |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|North Carolina:              |                        |          |                |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|Autumn Park                  |                        |          | Greensboro     |      |              |  | 2001/04   |             |  |               | 402           |         |         |          | 350,395 |                   |                  |  | 92.8             | %        |   |          | 828        |     |  |  | 2,660,949 | (6)        |  |  | 1.0 | %   
|Beacon Hill                  |                        |          | Charlotte      |      |              |  | 1985      |             |  |               | 349           |         |         |          | 256,075 |                   |                  |  | 93.7             | %        |   |          | 652        |     |  |  | 1,677,853 | (6)        |  |  | 0.6 | %   
|Bridgetown Bay               |                        |          | Charlotte      |      |              |  | 1986      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 121,051   | (6)(8)     |  |  | 0.0 | %   
|CG at Arringdon              |                        |          | Raleigh/Durham |      |              |  | 2003      |             |  |               | 320           |         |         |          | 336,000 |                   |                  |  | 95.0             | %        |   |          | 892        |     |  |  | 2,703,208 |            |  |  | 1.0 | %   
|CG at Beverly Crest          |                        |          | Charlotte      |      |              |  | 1996      |             |  |               | 300           |         |         |          | 278,685 |                   |                  |  | 97.0             | %        |   |          | 824        |     |  |  | 2,532,283 |            |  |  | 0.9 | %   
|CG at Crabtree Valley        |                        |          | Raleigh        |      |              |  | 1997      |             |  |               | 210           |         |         |          | 209,670 |                   |                  |  | 94.8             | %        |   |          | 855        |     |  |  | 164,506   | (6)        |  |  | 0.1 | %   
|CG at Legacy Park            |                        |          | Charlotte      |      |              |  | 2001      |             |  |               | 288           |         |         |          | 289,080 |                   |                  |  | 94.1             | %        |   |          | 796        |     |  |  | 1,874,907 | (6)        |  |  | 0.7 | %   
|CG at Mallard Creek          |                        |          | Charlotte      |      |              |  | 2004      |             |  |               | 252           |         |         |          | 105,336 |                   |                  |  | 98.4             | %        |   |          | 860        |     |  |  | 859,059   |            |  |  | 0.3 | %   
|CG at Mallard Lake           |                        |          | Charlotte      |      |              |  | 1998      |             |  |               | 302           |         |         |          | 300,806 |                   |                  |  | 93.4             | %        |   |          | 807        |     |  |  | 226,953   | (6)        |  |  | 0.1 | %   
|CG at Patterson Place        |                        |          | Durham         |      |              |  | 1997      |             |  |               | 252           |         |         |          | 238,654 |                   |                  |  | 96.0             | %        |   |          | 883        |     |  |  | 2,293,057 |            |  |  | 0.8 | %   
|CG at Research Park(7)       |                        |          | Raleigh        |      |              |  | 2002      |             |  |               | 370           |         |         |          | 383,978 |                   |                  |  | 91.9             | %        |   |          | 805        |     |  |  | 277,654   | (6)        |  |  | 0.1 | %   
|CG at Trinity Commons        |                        |          | Raleigh        |      |              |  | 2000/02   |             |  |               | 462           |         |         |          | 277,212 |                   |                  |  | 97.0             | %        |   |          | 818        |     |  |  | 2,886,412 | (6)        |  |  | 1.0 | %   
|CG at Wilmington             |                        |          | Wilmington     |      |              |  | 1998/2002 |             |  |               | 390           |         |         |          | 351,936 |                   |                  |  | 95.9             | %        |   |          | 688        |     |  |  | 2,534,318 | (6)        |  |  | 0.9 | %   
|Clarion Crossing             |                        |          | Raleigh        |      |              |  | 1972      |             |  |               | 260           |         |         |          | 175,400 |                   |                  |  | 95.0             | %        |   |          | 711        |     |  |  | 1,354,585 | (6)        |  |  | 0.5 | %   
|CV at Charleston Place       |                        |          | Charlotte      |      |              |  | 1986      |             |  |               | 214           |         |         |          | 172,405 |                   |                  |  | 94.4             | %        |   |          | 645        |     |  |  | 1,027,616 | (6)        |  |  | 0.4 | %   
|CV at Deerfield              |                        |          | Raleigh        |      |              |  | 1985      |             |  |               | 204           |         |         |          | 181,112 |                   |                  |  | 90.2             | %        |   |          | 777        |     |  |  | 1,294,403 | (6)        |  |  | 0.5 | %   
|CV at Greystone              |                        |          | Charlotte      |      |              |  | 1998/2000 |             |  |               | 408           |         |         |          | 378,300 |                   |                  |  | 93.4             | %        |   |          | 723        |     |  |  | 2,228,789 | (6)        |  |  | 0.8 | %   
|CV at Highland Hills         |                        |          | Raleigh        |      |              |  | 1987      |             |  |               | 264           |         |         |          | 264,088 |                   |                  |  | 94.7             | %        |   |          | 871        |     |  |  | 1,632,841 | (6)        |  |  | 0.6 | %   
|CV at Meadow Creek           |                        |          | Charlotte      |      |              |  | 1984      |             |  |               | 250           |         |         |          | 214,920 |                   |                  |  | 92.0             | %        |   |          | 653        |     |  |  | 1,242,631 | (6)        |  |  | 0.4 | %   
|CV at Mill Creek             |                        |          | Greensboro     |      |              |  | 1984      |             |  |               | 220           |         |         |          | 197,320 |                   |                  |  | 91.4             | %        |   |          | 596        |     |  |  | 1,142,082 | (6)        |  |  | 0.4 | %   
|CV at Paces Glen(10)         |                        |          | Charlotte      |      |              |  | 1986      |             |  |               | 172           |         |         |          | 155,672 |                   |                  |  | 89.5             | %        |   |          | 593        |     |  |  | 799,713   | (6)        |  |  | 0.3 | %   
|CV at Pinnacle Ridge         |                        |          | Asheville      |      |              |  | 1951/85   |             |  |               | 166           |         |         |          | 146,856 |                   |                  |  | 97.0             | %        |   |          | 691        |     |  |  | 912,834   | (6)        |  |  | 0.3 | %   
|CV at Regency Place          |                        |          | Raleigh        |      |              |  | 1986      |             |  |               | 180           |         |         |          | 151,200 |                   |                  |  | 95.0             | %        |   |          | 708        |     |  |  | 988,761   | (6)        |  |  | 0.4 | %   
|CV at Remington Place(10)    |                        |          | Raleigh        |      |              |  | 1985      |             |  |               | 136           |         |         |          | 149,386 |                   |                  |  | 97.1             | %        |   |          | 795        |     |  |  | 811,740   | (6)        |  |  | 0.3 | %   
|CV at South Tryon            |                        |          | Charlotte      |      |              |  | 2002      |             |  |               | 216           |         |         |          | 230,533 |                   |                  |  | 98.6             | %        |   |          | 825        |     |  |  | 1,298,567 | (6)        |  |  | 0.5 | %   
|CV at Stone Point            |                        |          | Charlotte      |      |              |  | 1986      |             |  |               | 192           |         |         |          | 162,816 |                   |                  |  | 93.8             | %        |   |          | 703        |     |  |  | 1,020,446 | (6)        |  |  | 0.4 | %   

36



---



##### 



|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |      |  
|-------------------------------- | ------------------------- | -------- | ------------ | ---- | ------------ |  | --------- | ----------- |  | ------------- | ------------- | ------- | ------- | -------- | ------- | ----------------- | ---------------- |  | ---------------- | -------- | - | -------- | ---------- | --- |  |  | --------- | ---------- |  |  | --- | ---- | -
|                                 |                           |          |              |      |              |  |           |             |  |               |               | Average |         |          |         |                   | Percent of Total | 
|                                 |                           |          |              |      |              |  |           | Approximate |  |               |               |         | Rental  |          |         | Total Multifamily |                  |  | 2005 Multifamily |         
|Multifamily                      |                           |          |              | Year |              |  | Number of |             |  | Rentable Area |               |         | Percent |          |         | Rate              |                  |  | Property Revenue |          |   | Property |           
|Property(1)                      |                           | Location |              |      | Completed(2) |  |           | Units(3)    |  |               | (Square Feet) |         |         | Occupied |         |                   | per Unit         |  |                  | for 2005 |   |          | Revenue(4) |    
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|CV at Timber Crest               |                           |          | Charlotte    |      |              |  | 2000      |             |  |               | 282           |         |         |          | 277,116 |                   |                  |  | 94.0             | %        |   |          | 754        |     |  |  | 1,641,980 | (6)        |  |  | 0.6 | %   
|Glen Eagles I & II               |                           |          | Greensboro   |      |              |  | 1990/2000 |             |  |               | 310           |         |         |          | 158,028 |                   |                  |  | 90.0             | %        |   |          | 678        |     |  |  | 1,753,847 | (6)        |  |  | 0.6 | %   
|Heatherwood                      |                           |          | Charlotte    |      |              |  | 1980      |             |  |               | 476           |         |         |          | 432,274 |                   |                  |  | 91.6             | %        |   |          | 621        |     |  |  | 2,339,466 | (6)        |  |  | 0.8 | %   
|Parkside at Woodlake             |                           |          | Raleigh      |      |              |  | 1996      |             |  |               | 266           |         |         |          | 230,172 |                   |                  |  | 91.0             | %        |   |          | 721        |     |  |  | 1,490,615 | (6)        |  |  | 0.5 | %   
|Summerwalk(10)                   |                           |          | Charlotte    |      |              |  | 1983      |             |  |               | 160           |         |         |          | 154,000 |                   |                  |  | 98.1             | %        |   |          | 661        |     |  |  | 887,288   | (6)        |  |  | 0.3 | %   
|The Landing                      |                           |          | Raleigh      |      |              |  | 1984      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 1,128,103 | (6)(8)     |  |  | 0.4 | %   
|The Meadows I, II,
    & III(10) |                           |          | Asheville    |      |              |  | 1974/2001 |             |  |               | 392           |         |         |          | 187,628 |                   |                  |  | 94.4             | %        |   |          | 723        |     |  |  | 2,307,341 | (6)        |  |  | 0.8 | %   
|The Timbers(10)                  |                           |          | Raleigh      |      |              |  | 1983      |             |  |               | 176           |         |         |          | 131,120 |                   |                  |  | 93.2             | %        |   |          | 614        |     |  |  | 844,529   | (6)        |  |  | 0.3 | %   
|The Trestles                     |                           |          | Raleigh      |      |              |  | 1987      |             |  |               | 280           |         |         |          | 217,320 |                   |                  |  | 95.7             | %        |   |          | 668        |     |  |  | 1,306,738 | (6)        |  |  | 0.5 | %   
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                                 | Subtotal  North Carolina |          |              |      |              |  |           |             |  |               |               | 9,121   |         |          |         | 7,745,493         |                  |  |                  | 94.1     | % |          |            | 744 |  |  |           | 50,267,125 |  |  |     | 18.1 | %
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|South Carolina:                  |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|CV at Ashley Plantation          |                           |          | Bluffton     |      |              |  | 1998/2000 |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 729,142   | (8)        |  |  | 0.3 | %   
|Arbors at Windsor Lake(7)        |                           |          | Columbia     |      |              |  | 1991      |             |  |               | 228           |         |         |          | 216,240 |                   |                  |  | 93.4             | %        |   |          | 729        |     |  |  | 144,854   |            |  |  | 0.1 | %   
|Cape Landing                     |                           |          | Myrtle Beach |      |              |  | 1997/98   |             |  |               | 288           |         |         |          | 268,632 |                   |                  |  | 91.0             | %        |   |          | 673        |     |  |  | 1,806,626 | (6)        |  |  | 0.7 | %   
|CG at Quarterdeck                |                           |          | Charleston   |      |              |  | 1987      |             |  |               | 230           |         |         |          | 218,880 |                   |                  |  | 95.7             | %        |   |          | 823        |     |  |  | 1,767,538 | (6)        |  |  | 0.6 | %   
|CV at Caledon Wood(10)           |                           |          | Greenville   |      |              |  | 1995/96   |             |  |               | 350           |         |         |          | 348,305 |                   |                  |  | 97.7             | %        |   |          | 720        |     |  |  | 2,622,996 |            |  |  | 0.9 | %   
|CV at Hampton Pointe             |                           |          | Charleston   |      |              |  | 1986      |             |  |               | 304           |         |         |          | 314,600 |                   |                  |  | 93.1             | %        |   |          | 708        |     |  |  | 2,094,662 | (6)        |  |  | 0.8 | %   
|CV at Waters Edge                |                           |          | Charleston   |      |              |  | 1985      |             |  |               | 204           |         |         |          | 187,640 |                   |                  |  | 92.6             | %        |   |          | 675        |     |  |  | 1,413,832 | (6)        |  |  | 0.5 | %   
|CV at Westchase                  |                           |          | Charleston   |      |              |  | 1985      |             |  |               | 352           |         |         |          | 248,391 |                   |                  |  | 94.9             | %        |   |          | 626        |     |  |  | 2,103,932 | (6)        |  |  | 0.8 | %   
|CV at Windsor Place              |                           |          | Charleston   |      |              |  | 1985      |             |  |               | 224           |         |         |          | 213,440 |                   |                  |  | 92.9             | %        |   |          | 640        |     |  |  | 1,378,644 | (6)        |  |  | 0.5 | %   
|Merritt at James Island(10)      |                           |          | Charleston   |      |              |  | 2002      |             |  |               | 230           |         |         |          | 257,384 |                   |                  |  | 92.6             | %        |   |          | 1,075      |     |  |  | 2,301,570 | (6)        |  |  | 0.8 | %   
|Stone Ridge(7)                   |                           |          | Columbia     |      |              |  | 1972      |             |  |               | 191           |         |         |          | 196,170 |                   |                  |  | 92.7             | %        |   |          | 618        |     |  |  | 77,537    |            |  |  | 0.0 | %   
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                                 | Subtotal  South Carolina |          |              |      |              |  |           |             |  |               |               | 2,601   |         |          |         | 2,469,682         |                  |  |                  | 93.9     | % |          |            | 724 |  |  |           | 16,441,333 |  |  |     | 5.9  | %
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Tennessee                        |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|CG at Bellevue                   |                           |          | Nashville    |      |              |  | 1996      |             |  |               | 349           |         |         |          | 344,954 |                   |                  |  | 94.6             | %        |   |          | 844        |     |  |  | 314,322   | (6)        |  |  | 0.1 | %   
|CG at Brentwood(7)               |                           |          | Nashville    |      |              |  | 1995      |             |  |               | 254           |         |         |          | 242,155 |                   |                  |  | 95.3             | %        |   |          | 978        |     |  |  | 681,238   |            |  |  | 0.2 | %   
|CG at Shelby Farms               |                           |          | Memphis      |      |              |  | 1998      |             |  |               | 296           |         |         |          | 318,302 |                   |                  |  | 94.6             | %        |   |          | 768        |     |  |  | 235,983   | (6)        |  |  | 0.1 | %   
|CV at Hendersonville(7)          |                           |          | Nashville    |      |              |  | 1992      |             |  |               | 364           |         |         |          | 250,400 |                   |                  |  | 92.3             | %        |   |          | 666        |     |  |  | 668,759   |            |  |  | 0.2 | %   
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                                 | Subtotal  Tennessee      |          |              |      |              |  |           |             |  |               |               | 1,263   |         |          |         | 1,155,811         |                  |  |                  | 94.1     | % |          |            | 802 |  |  |           | 1,900,302  |  |  |     | 0.7  | %
|                                 |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Texas:                           |                           |          |              |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  |           |            |  |  |     |     
|The Cunningham Apartments(7)     |                           |          | Austin       |      |              |  | 2000      |             |  |               | 280           |         |         |          | 257,338 |                   |                  |  | 90.0             | %        |   |          | 765        |     |  |  | 451,062   |            |  |  | 0.2 | %   
|Aspen Hills                      |                           |          | Fort Worth   |      |              |  | 1979      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 178,930   | (6)(8)     |  |  | 0.1 | %   
|Brookfield(10)                   |                           |          | Dallas       |      |              |  | 1984      |             |  |               | 232           |         |         |          | 165,648 |                   |                  |  | 89.2             | %        |   |          | 563        |     |  |  | 1,072,243 | (6)        |  |  | 0.4 | %   
|CG at Bear Creek                 |                           |          | Fort Worth   |      |              |  | 1998      |             |  |               | 436           |         |         |          | 394,969 |                   |                  |  | 95.2             | %        |   |          | 931        |     |  |  | 1,455,724 | (6)        |  |  | 0.5 | %   
|CG at Round Rock                 |                           |          | Austin       |      |              |  | DEV       |             |  |               | N/A           |         |         |          | 433,816 |                   |                  |  | N/A              |          |   |          | N/A        |     |  |  | 4,247     |            |  |  | 0.0 | %   
|CG at Silverado Reserve          |                           |          | Austin       |      |              |  | DEV       |             |  |               | N/A           |         |         |          | 267,776 |                   |                  |  | N/A              |          |   |          | N/A        |     |  |  | 7,636     |            |  |  | 0.0 | %   
|CG at Valley Ranch               |                           |          | Dallas       |      |              |  | 1997      |             |  |               | 396           |         |         |          | 462,123 |                   |                  |  | 98.2             | %        |   |          | 1,081      |     |  |  | 3,601,741 | (6)        |  |  | 1.3 | %   
|Copper Crossing(10)              |                           |          | Fort Worth   |      |              |  | 1980/81   |             |  |               | 400           |         |         |          | 309,200 |                   |                  |  | 91.0             | %        |   |          | 525        |     |  |  | 1,867,044 | (6)        |  |  | 0.7 | %   
|Cottonwood Crossing              |                           |          | Fort Worth   |      |              |  | 1985      |             |  |               | 200           |         |         |          | 150,200 |                   |                  |  | 92.5             | %        |   |          | 544        |     |  |  | 914,182   | (6)        |  |  | 0.3 | %   
|Cutters Point                    |                           |          | Dallas       |      |              |  | 1978      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 779,311   | (6)(8)     |  |  | 0.3 | %   
|CV at Bear Creek                 |                           |          | Fort Worth   |      |              |  | 1984      |             |  |               | 120           |         |         |          | 90,600  |                   |                  |  | 98.3             | %        |   |          | 649        |     |  |  | 676,639   | (6)        |  |  | 0.2 | %   
|CV at Bedford                    |                           |          | Fort Worth   |      |              |  | 1983      |             |  |               | 238           |         |         |          | 153,986 |                   |                  |  | 96.6             | %        |   |          | 584        |     |  |  | 1,176,166 | (6)        |  |  | 0.4 | %   
|CV at Canyon Hills               |                           |          | Austin       |      |              |  | 1996      |             |  |               | 229           |         |         |          | 163,056 |                   |                  |  | 99.6             | %        |   |          | 748        |     |  |  | 1,338,125 | (6)        |  |  | 0.5 | %   
|CV at Estrada(10)                |                           |          | Dallas       |      |              |  | 1983      |             |  |               | 248           |         |         |          | 191,208 |                   |                  |  | 97.2             | %        |   |          | 628        |     |  |  | 1,237,382 | (6)        |  |  | 0.4 | %   
|CV at Haverhill                  |                           |          | San Antonio  |      |              |  | 1997      |             |  |               | 322           |         |         |          | 326,914 |                   |                  |  | 95.7             | %        |   |          | 953        |     |  |  | 3,144,274 |            |  |  | 1.1 | %   
|CV at Main Park                  |                           |          | Dallas       |      |              |  | 1984      |             |  |               | 192           |         |         |          | 226,944 |                   |                  |  | 92.7             | %        |   |          | 754        |     |  |  | 1,272,863 | (6)        |  |  | 0.5 | %   
|CV at North Arlington            |                           |          | Fort Worth   |      |              |  | 1985      |             |  |               | 240           |         |         |          | 190,560 |                   |                  |  | 95.8             | %        |   |          | 654        |     |  |  | 1,342,157 | (6)        |  |  | 0.5 | %   
|CV at Pear Ridge                 |                           |          | Dallas       |      |              |  | 1988      |             |  |               | 242           |         |         |          | 187,308 |                   |                  |  | 93.0             | %        |   |          | 665        |     |  |  | 1,440,618 | (6)        |  |  | 0.5 | %   
|CV at Quarry Oaks                |                           |          | Austin       |      |              |  | 1996      |             |  |               | 533           |         |         |          | 459,800 |                   |                  |  | 93.6             | %        |   |          | 748        |     |  |  | 4,174,753 |            |  |  | 1.5 | %   
|CV at Sierra Vista               |                           |          | Austin       |      |              |  | 1999      |             |  |               | 232           |         |         |          | 204,400 |                   |                  |  | 94.0             | %        |   |          | 694        |     |  |  | 1,760,923 |            |  |  | 0.6 | %   
|CV at Silverado                  |                           |          | Austin       |      |              |  | 2004      |             |  |               | 238           |         |         |          | 38,100  |                   |                  |  | 93.3             | %        |   |          | 948        |     |  |  | 1,504,199 |            |  |  | 0.5 | %   
|The Arbors at Forest Ridge       |                           |          | Fort Worth   |      |              |  | 1986      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 750,615   | (6)(8)     |  |  | 0.3 | %   
|The Meridian                     |                           |          | Austin       |      |              |  | 1988      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |  |  | 717,433   | (6)(8)     |  |  | 0.3 | %   

37



---



##### 



|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  |           |             |  |  |     |       |  
|---------------------------------- | ------------------- | -------- | --------------- | ---- | ------------ |  | --------- | ----------- |  | ------------- | ------------- | ------- | ------- | -------- | ------- | ----------------- | ---------------- |  | ---------------- | -------- | - | -------- | ---------- | --- | --- |  | --------- | ----------- |  |  | --- | ----- | -
|                                   |                     |          |                 |      |              |  |           |             |  |               |               | Average |         |          |         |                   | Percent of Total | 
|                                   |                     |          |                 |      |              |  |           | Approximate |  |               |               |         | Rental  |          |         | Total Multifamily |                  |  | 2005 Multifamily |         
|Multifamily                        |                     |          |                 | Year |              |  | Number of |             |  | Rentable Area |               |         | Percent |          |         | Rate              |                  |  | Property Revenue |          |   | Property |           
|Property(1)                        |                     | Location |                 |      | Completed(2) |  |           | Units(3)    |  |               | (Square Feet) |         |         | Occupied |         |                   | per Unit         |  |                  | for 2005 |   |          | Revenue(4) |    
|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Devonshire                         |                     |          | Dallas          |      |              |  | 1978      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 163,219   | (6)(8)      |  |  | 0.1 | %    
|Eagle Crest                        |                     |          | Dallas          |      |              |  | 1983      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 1,829,184 | (6)(8)      |  |  | 0.7 | %    
|Mill Crossing                      |                     |          | Fort Worth      |      |              |  | 1979      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 216,991   | (6)(8)      |  |  | 0.1 | %    
|Sierra Ridge                       |                     |          | San Antonio     |      |              |  | 1981      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 798,610   | (6)(8)      |  |  | 0.3 | %    
|Silverbrook I & II                 |                     |          | Fort Worth      |      |              |  | 1982/84   |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 2,152,272 | (6)(8)      |  |  | 0.8 | %    
|Timberglen                         |                     |          | Dallas          |      |              |  | 1984      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 1,065,013 | (6)(8)      |  |  | 0.4 | %    
|Toscana                            |                     |          | Dallas          |      |              |  | 1986      |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  | 548,538   | (6)(8)      |  |  | 0.2 | %    
|Grayson Square I & II              |                     |          | Fort Worth      |      |              |  | 1985/86   |             |  |               | 450           |         |         |          | 380,500 |                   |                  |  | 95.8             | %        |   |          | 718        |     |     |  | 2,733,150 | (6)         |  |  | 1.0 | %    
|Paces Cove                         |                     |          | Dallas          |      |              |  | 1982      |             |  |               | 328           |         |         |          | 219,760 |                   |                  |  | 100.0            | %        |   |          | 551        |     |     |  | 1,505,874 | (6)         |  |  | 0.5 | %    
|Paces Point                        |                     |          | Dallas          |      |              |  | 1985      |             |  |               | 300           |         |         |          | 228,600 |                   |                  |  | 95.3             | %        |   |          | 608        |     |     |  | 1,549,458 | (6)         |  |  | 0.6 | %    
|Remington Hills at Las Colinas(10) |                     |          | Dallas          |      |              |  | 1984      |             |  |               | 362           |         |         |          | 345,710 |                   |                  |  | 93.6             | %        |   |          | 818        |     |     |  | 2,395,681 | (6)         |  |  | 0.9 | %    
|Summer Tree                        |                     |          | Dallas          |      |              |  | 1980      |             |  |               | 232           |         |         |          | 133,400 |                   |                  |  | 94.4             | %        |   |          | 515        |     |     |  | 1,044,489 | (6)         |  |  | 0.4 | %    
|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                                   | Subtotal  Texas    |          |                 |      |              |  |           |             |  |               |               | 6,450   |         |          |         | 5,981,916         |                  |  |                  | 94.8     | % |          |            | 728 |     |  |           | 46,870,747  |  |  |     | 16.9  | %
|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|Virginia:                          |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |     |     |  |           |             |  |  |     |      
|Arbor Trace(10)                    |                     |          | Norfolk         |      |              |  | 1985      |             |  |               | 148           |         |         |          | 125,800 |                   |                  |  | 96.6             | %        |   |          | 890        |     |     |  | 1,249,441 | (6)         |  |  | 0.5 | %    
|Ashley Park(10)                    |                     |          | Richmond        |      |              |  | 1988      |             |  |               | 272           |         |         |          | 208,064 |                   |                  |  | 97.4             | %        |   |          | 736        |     |     |  | 1,703,067 | (6)         |  |  | 0.6 | %    
|CV at Chase Gayton                 |                     |          | Richmond        |      |              |  | 1984      |             |  |               | 328           |         |         |          | 311,196 |                   |                  |  | 95.7             | %        |   |          | 807        |     |     |  | 2,341,087 | (6)         |  |  | 0.8 | %    
|CV at Greenbrier                   |                     |          | Richmond        |      |              |  | 1980      |             |  |               | 258           |         |         |          | 219,460 |                   |                  |  | 97.7             | %        |   |          | 853        |     |     |  | 2,205,299 | (6)         |  |  | 0.8 | %    
|CV at Hampton Glen                 |                     |          | Richmond        |      |              |  | 1986      |             |  |               | 232           |         |         |          | 182,824 |                   |                  |  | 96.1             | %        |   |          | 808        |     |     |  | 1,696,663 | (6)         |  |  | 0.6 | %    
|CV at Harbour Club                 |                     |          | Norfolk         |      |              |  | 1988      |             |  |               | 214           |         |         |          | 173,972 |                   |                  |  | 97.7             | %        |   |          | 886        |     |     |  | 1,859,116 | (6)         |  |  | 0.7 | %    
|CV at Tradewinds                   |                     |          | Norfolk         |      |              |  | 1988      |             |  |               | 284           |         |         |          | 263,920 |                   |                  |  | 95.4             | %        |   |          | 861        |     |     |  | 2,165,823 | (6)         |  |  | 0.8 | %    
|CV at Waterford                    |                     |          | Richmond        |      |              |  | 1989      |             |  |               | 312           |         |         |          | 292,066 |                   |                  |  | 96.5             | %        |   |          | 834        |     |     |  | 2,280,221 | (6)         |  |  | 0.8 | %    
|Mayflower Seaside(10)              |                     |          | Norfolk         |      |              |  | 1950      |             |  |               | 265           |         |         |          | 183,542 |                   |                  |  | 95.8             | %        |   |          | 969        |     |     |  | 2,529,366 | (6)         |  |  | 0.9 | %    
|The Gables(10)                     |                     |          | Richmond        |      |              |  | 1987      |             |  |               | 224           |         |         |          | 156,332 |                   |                  |  | 98.2             | %        |   |          | 772        |     |     |  | 1,599,312 | (6)         |  |  | 0.6 | %    
|Trolley Square East & West(10)     |                     |          | Richmond        |      |              |  | 1964/65   |             |  |               | 328           |         |         |          | 180,372 |                   |                  |  | 97.9             | %        |   |          | 732        |     |     |  | 2,075,468 | (6)         |  |  | 0.7 | %    
|Trophy Chase I & II                |                     |          | Charlottesville |      |              |  | 1970      |             |  |               | 425           |         |         |          | 372,526 |                   |                  |  | 95.1             | %        |   |          | 728        |     |     |  | 2,474,529 | (6)         |  |  | 0.9 | %    
|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                                   | Subtotal  Virginia |          |                 |      |              |  |           |             |  |               |               | 3,290   |         |          |         | 2,670,074         |                  |  |                  | 96.6     | % |          |            | 814 |     |  |           | 24,179,392  |  |  |     | 8.7   | %
|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    
|                                   | TOTAL               |          |                 |      |              |  |           |             |  |               |               | 44,337  |         |          |         | 42,902,720        |                  |  |                  | 95.4     | % |          |            | 780 | (5) |  | $         | 279,744,040 |  |  |     | 100.0 | %
|                                   |                     |          |                 |      |              |  |           |             |  |               |               |         |         |          |         |                   |                  |  |                  |          |   |          |            |    






| |     |                                                                                                                                                                                                                                                                              
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | All multifamily properties are 100% owned by us with the
    exception of the properties noted in (7) below. In the
    listing of multifamily property names, CG has been used as an
    abbreviation for Colonial Grand and CV as an abbreviation for
    Colonial Village.
|
| | (2) | Year initially completed and, where applicable, year(s) in
    which additional phases were completed at the property.                                                                                                                                                       
|
| | (3) | Units (in this table only) refer to multifamily apartment
    units. Number of units includes all apartment units occupied or
    available for occupancy at December 31, 2005.                                                                                              
|
| | (4) | Percent of Total Multifamily 2005 Property Revenue represents
    each propertys proportionate share of revenue from our 151
    multifamily properties, including the partially-owned
    properties, as well as 26 properties sold during 2005.                           
|
| | (5) | Represents weighted average rental rate per unit of the 151
    multifamily properties at December 31, 2005.                                                                                                                                                                 
|
| | (6) | Represents revenues from the date of our acquisition of this
    property in 2005 through December 31, 2005.                                                                                                                                                                 
|
| | (7) | We hold a 10% - 35% non-controlling interest in these joint
    ventures.                                                                                                                                                                                                    
|
| | (8) | Represents revenues from January 1, 2005 through the
    date the properties were sold during 2005.                                                                                                                                                                          
|
| | (9) | These properties are currently in
    lease-up (LU) and
    are not included in the Percent Occupied and Average Rental Rate
    per Unit totals.                                                                                                                            



|     |                                                                                                                  
|---- | -----------------------------------------------------------------------------------------------------------------
|(10) | This property is classified as held for sale and is included
    as discontinued operations at December 31, 2005.



|                  |  |           |        |  |           |              |       |             |  |   |     | 
|----------------- |  | --------- | ------ |  | --------- | ------------ | ----- | ----------- |  | - | --- | 
|                  |  |           |        |  |           | Average Base |      
|                  |  | Number of |        |  | Percent   |              |       | Rental Rate | 
|Year-End          |  | Units(1)  |        |  | Leased(2) |              |       | per Unit    | 
|                  |  |           |        |  |           |              |       |             | 
|December 31, 2005 |  |           | 44,337 |  |           |              | 95.3% |             |  | $ | 771 | 
|December 31, 2004 |  |           | 25,009 |  |           |              | 94.6% |             |  | $ | 818 | 
|December 31, 2003 |  |           | 15,224 |  |           |              | 92.9% |             |  | $ | 794 | 
|December 31, 2002 |  |           | 14,556 |  |           |              | 88.1% |             |  | $ | 785 | 
|December 31, 2001 |  |           | 16,256 |  |           |              | 92.8% |             |  | $ | 752 | 

38



---



##### 








|    |                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Units (in this table only) refers to multifamily units owned
    at year end, which for the year ended December 31, 2005,
    includes 10,065 units that we partially owned at
    December 31, 2005.
|   
|(2) | Represents weighted average occupancy of the multifamily
    properties that had achieved stabilized occupancy at the end of
    the respective period.                                              

Office Properties






Office Properties


|                                 |                  |          |            |      |              |              |               |      |  |         |         |           |            |           |              |            |             |            |             |            |  |                 |            |       |  |   |           |            |  |  |     |      |  
|-------------------------------- | ---------------- | -------- | ---------- | ---- | ------------ | ------------ | ------------- | ---- |  | ------- | ------- | --------- | ---------- | --------- | ------------ | ---------- | ----------- | ---------- | ----------- | ---------- |  | --------------- | ---------- | ----- |  | - | --------- | ---------- |  |  | --- | ---- | -
|                                 |                  |          |            |      |              |              |               |      |  |         |         | Average   |            |           | Total Office |            |             | Percent of |            
|                                 |                  |          |            |      |              | Net Rentable |               |      |  |         | Total   |           |            | Base Rent |              |            | Property    |            |             | Total 2005 | 
|                                 |                  |          |            | Year |              |              | Area Square   |      |  | Percent |         |           | Annualized |           |              | per Leased |             |            | Revenue for |            |  | Office Property |           
|Office Property(1)               |                  | Location |            |      | Completed(2) |              |               | Feet |  |         | Leased  |           |            | Base Rent |              |            | Square Foot |            |             | 2005(3)    |  |                 | Revenue(4) |      
|                                 |                  |          |            |      |              |              |               |      |  |         |         |           |            |           |              |            |             |            |             |            |  |                 |            |      
|Alabama:                         |                  |          |            |      |              |              |               |      |  |         |         |           |            |           |              |            |             |            |             |            |  |                 |            |       |  |   |           |            |  |  |     |     
|Colonial Center Blue Lake        |                  |          | Birmingham |      |              |              | 1982/95       |      |  |         | 166,554 |           |            |           | 98.3         | %          |             | $          | 2,912,770   |            |  | $               | 17.79      |       |  | $ | 3,057,460 |            |  |  | 2.3 | %   
|Colonial Center Colonnade        |                  |          | Birmingham |      |              |              | 1989/99       |      |  |         | 419,234 |           |            |           | 99.7         | %          |             |            | 7,010,124   |            |  |                 | 16.77      |       |  |   | 8,425,226 |            |  |  | 6.3 | %   
|Riverchase Center                |                  |          | Birmingham |      |              |              | 1984-88       |      |  |         | 305,204 |           |            |           | 97.8         | %          |             |            | 2,959,153   |            |  |                 | 9.91       |       |  |   | 3,737,907 |            |  |  | 2.8 | %   
|Land Title Bldg.(7)              |                  |          | Birmingham |      |              |              | 1975          |      |  |         | 29,988  |           |            |           | 100.0        | %          |             |            | 402,855     |            |  |                 | 13.43      |       |  |   | 184,603   |            |  |  | 0.1 | %   
|International Park               |                  |          | Birmingham |      |              |              | 1987/89/99    |      |  |         | 210,733 |           |            |           | 99.3         | %          |             |            | 3,777,856   |            |  |                 | 18.05      |       |  |   | 4,115,732 |            |  |  | 3.1 | %   
|Independence Plaza               |                  |          | Birmingham |      |              |              | 1979          |      |  |         | 106,216 |           |            |           | 99.7         | %          |             |            | 1,749,898   |            |  |                 | 16.52      |       |  |   | 1,782,068 |            |  |  | 1.3 | %   
|Colonial Plaza                   |                  |          | Birmingham |      |              |              | 1999          |      |  |         | 170,850 |           |            |           | 96.3         | %          |             |            | 2,884,979   |            |  |                 | 17.53      |       |  |   | 3,278,057 |            |  |  | 2.5 | %   
|Colonial Center Lakeside         |                  |          | Huntsville |      |              |              | 1989/90       |      |  |         | 121,513 |           |            |           | 100.0        | %          |             |            | 1,943,380   |            |  |                 | 15.99      |       |  |   | 2,169,865 |            |  |  | 1.6 | %   
|Colonial Center Research Park    |                  |          | Huntsville |      |              |              | 1999          |      |  |         | 133,482 |           |            |           | 100.0        | %          |             |            | 1,895,483   |            |  |                 | 14.20      |       |  |   | 2,132,560 |            |  |  | 1.6 | %   
|Colonial Center Research Park #4 |                  |          | Huntsville |      |              |              | 1999          |      |  |         | 59,883  |           |            |           | 100.0        | %          |             |            | 650,302     |            |  |                 | 10.86      |       |  |   | 651,065   | (5)        |  |  | 0.5 | %   
|Colonial Center Research Place   |                  |          | Huntsville |      |              |              | 1979/84/88    |      |  |         | 272,558 |           |            |           | 100.0        | %          |             |            | 3,535,847   |            |  |                 | 12.97      |       |  |   | 3,574,769 |            |  |  | 2.7 | %   
|DRS building                     |                  |          | Huntsville |      |              |              | 1972/86/90/03 |      |  |         | 215,485 |           |            |           | 100.0        | %          |             |            | 1,706,970   |            |  |                 | 7.92       |       |  |   | 1,776,305 |            |  |  | 1.3 | %   
|AmSouth Center                   |                  |          | Huntsville |      |              |              | 1990          |      |  |         | 154,521 |           |            |           | 96.9         | %          |             |            | 2,531,963   |            |  |                 | 16.91      |       |  |   | 3,043,054 |            |  |  | 2.3 | %   
|Perimeter Corporate Park         |                  |          | Huntsville |      |              |              | 1986/89       |      |  |         | 234,570 |           |            |           | 92.6         | %          |             |            | 3,382,369   |            |  |                 | 15.57      |       |  |   | 3,370,891 |            |  |  | 2.5 | %   
|Progress Center                  |                  |          | Huntsville |      |              |              | 1983-91       |      |  |         | 224,369 |           |            |           | 100.0        | %          |             |            | 2,481,037   |            |  |                 | 11.06      |       |  |   | 2,599,317 |            |  |  | 1.9 | %   
|Research Park Office Center      |                  |          | Huntsville |      |              |              | 1984/00       |      |  |         | 176,570 |           |            |           | 96.2         | %          |             |            | 1,768,663   |            |  |                 | 10.41      |       |  |   | 2,180,240 |            |  |  | 1.6 | %   
|Interstate Park                  |                  |          | Montgomery |      |              |              | 1982-85/89    |      |  |         | 226,961 |           |            |           | 89.8         | %          |             |            | 3,227,955   |            |  |                 | 15.84      |       |  |   | 3,379,705 |            |  |  | 2.5 | %   
|250 Commerce St                  |                  |          | Montgomery |      |              |              | 1904/81       |      |  |         | 37,447  |           |            |           | 97.1         | %          |             |            | 359,917     |            |  |                 | 9.90       |       |  |   | 491,934   |            |  |  | 0.4 | %   
|                                 |                  |          |            |      |              |              |               |      |  |         |         |           |            |           |              |            |             |            |             |            |  |                 |            |      
|                                 | Subtotal-Alabama |          |            |      |              |              |               |      |  |         |         | 3,266,138 |            |           |              | 96.9       | %           |            |             | 45,181,521 |  |                 |            | 14.28 |  |   |           | 49,950,758 |  |  |     | 37.3 | %
|                                 |                  |          |            |      |              |              |               |      |  |         |         |           |            |           |              |            |             |            |             |            |  |                 |            |      

39



---



##### 



|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |            |            |  |  |      |      |  
|--------------------------------------- | ----------------------- | -------- | -------------- | ---- | ------------ | ------------ | ------------- | ---- |  | ------- | --------- | --------- | ---------- | --------- | ------------ | ---------- | ----------- | ---------- | ----------- | ----------- |  | --------------- | ---------- | ----- |  |  | ---------- | ---------- |  |  | ---- | ---- | -
|                                        |                         |          |                |      |              |              |               |      |  |         |           | Average   |            |           | Total Office |            |             | Percent of |            
|                                        |                         |          |                |      |              | Net Rentable |               |      |  |         | Total     |           |            | Base Rent |              |            | Property    |            |             | Total 2005  | 
|                                        |                         |          |                | Year |              |              | Area Square   |      |  | Percent |           |           | Annualized |           |              | per Leased |             |            | Revenue for |             |  | Office Property |           
|Office Property(1)                      |                         | Location |                |      | Completed(2) |              |               | Feet |  |         | Leased    |           |            | Base Rent |              |            | Square Foot |            |             | 2005(3)     |  |                 | Revenue(4) |      
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|Florida:                                |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |            |            |  |  |      |     
|Baymeadows Way(7)                       |                         |          | Jacksonville   |      |              |              | 1993          |      |  |         | 224,281   |           |            |           | 100.0        | %          |             |            | 2,130,669   |             |  |                 | 9.50       |       |  |  | 104,219    | (5)        |  |  | 0.1  | %   
|Jacksonville Baymeadows(7)              |                         |          | Jacksonville   |      |              |              | 1999          |      |  |         | 751,295   |           |            |           | 97.1         | %          |             |            | 9,439,219   |             |  |                 | 12.94      |       |  |  | 466,950    | (5)        |  |  | 0.4  | %   
|Jacksonville JTB(7)                     |                         |          | Jacksonville   |      |              |              | 2001          |      |  |         | 416,773   |           |            |           | 100.0        | %          |             |            | 5,429,751   |             |  |                 | 13.03      |       |  |  | 281,363    | (5)        |  |  | 0.2  | %   
|901 Maitland Center                     |                         |          | Orlando        |      |              |              | 1985          |      |  |         | 155,730   |           |            |           | 76.5         | %          |             |            | 2,237,235   |             |  |                 | 18.78      |       |  |  | 2,298,706  |            |  |  | 1.7  | %   
|Colonial Center 100 at TownPark         |                         |          | Orlando        |      |              |              | 2001          |      |  |         | 153,569   |           |            |           | 100.0        | %          |             |            | 3,331,526   |             |  |                 | 21.69      |       |  |  | 3,438,006  |            |  |  | 2.6  | %   
|Colonial Center 200 at TownPark         |                         |          | Orlando        |      |              |              | 2003          |      |  |         | 155,203   |           |            |           | 100.0        | %          |             |            | 3,061,699   |             |  |                 | 19.73      |       |  |  | 3,084,030  |            |  |  | 2.3  | %   
|Colonial Center 600 at TownPark         |                         |          | Orlando        |      |              |              | 2002          |      |  |         | 199,585   |           |            |           | 100.0        | %          |             |            | 3,926,154   |             |  |                 | 19.67      |       |  |  | 4,046,492  |            |  |  | 3.0  | %   
|Colonial TownPark Office                |                         |          | Orlando        |      |              |              | 2004          |      |  |         | 33,423    |           |            |           | LU           | (6)        |             |            | 683,124     |             |  |                 | 20.44      |       |  |  | 662,620    | (5)        |  |  | 0.5  | %   
|Colonial Center Heathrow                |                         |          | Orlando        |      |              |              | 1988/96/00    |      |  |         | 807,052   |           |            |           | 92.1         | %          |             |            | 15,167,218  |             |  |                 | 20.41      |       |  |  | 16,817,149 |            |  |  | 12.6 | %   
|Heathrow 1001                           |                         |          | Orlando        |      |              |              | 2000          |      |  |         | 192,159   |           |            |           | 95.0         | %          |             |            | 3,419,702   |             |  |                 | 18.73      |       |  |  | 1,703,718  | (5)        |  |  | 1.3  | %   
|Orlando Central(7)                      |                         |          | Orlando        |      |              |              | 1980          |      |  |         | 615,601   |           |            |           | 86.0         | %          |             |            | 8,709,238   |             |  |                 | 16.45      |       |  |  | 353,929    | (5)        |  |  | 0.3  | %   
|Orlando Lake Mary(7)                    |                         |          | Orlando        |      |              |              | 1999          |      |  |         | 303,540   |           |            |           | 80.4         | %          |             |            | 4,107,562   |             |  |                 | 16.83      |       |  |  | 179,211    | (5)        |  |  | 0.1  | %   
|Orlando University(7)                   |                         |          | Orlando        |      |              |              | 2001          |      |  |         | 383,367   |           |            |           | 92.3         | %          |             |            | 6,693,225   |             |  |                 | 18.92      |       |  |  | 266,694    | (5)        |  |  | 0.2  | %   
|St. Petersburg Center(7)                |                         |          | St. Petersburg |      |              |              | 2000          |      |  |         | 673,899   |           |            |           | 87.4         | %          |             |            | 10,050,448  |             |  |                 | 17.06      |       |  |  | 403,294    | (5)        |  |  | 0.3  | %   
|Tallahassee Center(7)                   |                         |          | Tallahassee    |      |              |              | 1990          |      |  |         | 836,389   |           |            |           | 77.8         | %          |             |            | 10,707,151  |             |  |                 | 16.45      |       |  |  | 432,634    | (5)        |  |  | 0.3  | %   
|Colonial Place I & II                   |                         |          | Tampa          |      |              |              | 1984/1986     |      |  |         | 370,994   |           |            |           | 89.9         | %          |             |            | 7,872,624   |             |  |                 | 23.60      |       |  |  | 7,135,984  | (5)        |  |  | 5.4  | %   
|Colonial Center at Bayside              |                         |          | Tampa          |      |              |              | 1988/94/97    |      |  |         | 213,768   |           |            |           | 72.3         | %          |             |            | 1,992,733   |             |  |                 | 12.89      |       |  |  | 1,720,971  | (5)        |  |  | 1.3  | %   
|Concourse Center                        |                         |          | Tampa          |      |              |              | 1981/85       |      |  |         | 292,751   |           |            |           | 83.4         | %          |             |            | 4,336,721   |             |  |                 | 17.76      |       |  |  | 4,481,566  |            |  |  | 3.4  | %   
|Broward Financial Center(7)             |                         |          | South Florida  |      |              |              | 1986          |      |  |         | 325,583   |           |            |           | 79.2         | %          |             |            | 6,882,282   |             |  |                 | 26.69      |       |  |  | 299,502    | (5)        |  |  | 0.2  | %   
|Las Olas Centre(7)                      |                         |          | South Florida  |      |              |              | 1999          |      |  |         | 469,199   |           |            |           | 88.3         | %          |             |            | 9,088,117   |             |  |                 | 21.94      |       |  |  | 594,088    | (5)        |  |  | 0.4  | %   
|Colonial Bank Centre                    |                         |          | South Florida  |      |              |              | 1982/1996     |      |  |         | 235,532   |           |            |           | 86.0         | %          |             |            | 4,832,712   |             |  |                 | 23.86      |       |  |  | 4,051,447  | (5)        |  |  | 3.0  | %   
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|                                        | Subtotal-Florida        |          |                |      |              |              |               |      |  |         |           | 7,809,693 |            |           |              | 88.3       | %           |            |             | 124,099,111 |  |                 |            | 17.99 |  |  |            | 52,822,573 |  |  |      | 39.6 | %
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|Georgia:                                |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |            |            |  |  |      |     
|Colonial Center at Mansell Overlook     |                         |          | Atlanta        |      |              |              | 1987/96/97/00 |      |  |         | 652,542   |           |            |           | 99.2         | %          |             |            | 9,141,850   |             |  |                 | 14.12      |       |  |  | 14,859,293 |            |  |  | 11.1 | %   
|Colonial Center at Mansell Overlook 400 |                         |          | Atlanta        |      |              |              | 1987          |      |  |         | 188,478   |           |            |           | 87.1         | %          |             |            | 1,560,088   |             |  |                 | 9.50       |       |  |  | 2,134,078  |            |  |  | 1.6  | %   
|Shoppes at Mansell                      |                         |          | Atlanta        |      |              |              | 1996/97       |      |  |         | 20,868    |           |            |           | 100.0        | %          |             |            | 478,195     |             |  |                 | 22.92      |       |  |  | 726,119    |            |  |  | 0.5  | %   
|Lakeside at Mansell                     |                         |          | Atlanta        |      |              |              | 2005          |      |  |         | 14,817    |           |            |           | LU           | (6)        |             |            | 358,816     |             |  |                 | 24.22      |       |  |  | 200,797    |            |  |  | 0.2  | %   
|The Peachtree                           |                         |          | Atlanta        |      |              |              | 1989          |      |  |         | 260,932   |           |            |           | 76.9         | %          |             |            | 3,965,484   |             |  |                 | 19.76      |       |  |  | 2,248,245  | (5)        |  |  | 1.7  | %   
|Atlantic Center Plaza(7)                |                         |          | Atlanta        |      |              |              | 2001          |      |  |         | 501,185   |           |            |           | 88.9         | %          |             |            | 12,946,756  |             |  |                 | 29.06      |       |  |  | 563,873    | (5)        |  |  | 0.4  | %   
|Atlanta Chamblee(7)                     |                         |          | Atlanta        |      |              |              | 2000          |      |  |         | 1,129,607 |           |            |           | 91.3         | %          |             |            | 19,022,902  |             |  |                 | 18.44      |       |  |  | 784,666    | (5)        |  |  | 0.6  | %   
|Atlanta Gwinnett Place(7)               |                         |          | Atlanta        |      |              |              | 2000          |      |  |         | 262,806   |           |            |           | 81.8         | %          |             |            | 3,633,393   |             |  |                 | 16.90      |       |  |  | 153,800    | (5)        |  |  | 0.1  | %   
|Atlanta Perimeter(7)                    |                         |          | Atlanta        |      |              |              | 1985          |      |  |         | 181,862   |           |            |           | 83.0         | %          |             |            | 2,467,443   |             |  |                 | 16.35      |       |  |  | 95,964     | (5)        |  |  | 0.1  | %   
|McGinnis Park(7)                        |                         |          | Atlanta        |      |              |              | 2001          |      |  |         | 202,243   |           |            |           | 63.6         | %          |             |            | 2,306,498   |             |  |                 | 17.93      |       |  |  | 81,125     | (5)        |  |  | 0.1  | %   
|Ravinia 3(7)                            |                         |          | Atlanta        |      |              |              | 1991          |      |  |         | 804,876   |           |            |           | 76.2         | %          |             |            | 10,956,972  |             |  |                 | 17.87      |       |  |  | 642,300    | (5)        |  |  | 0.5  | %   
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|                                        | Subtotal-Georgia        |          |                |      |              |              |               |      |  |         |           | 4,220,216 |            |           |              | 85.7       | %           |            |             | 66,838,396  |  |                 |            | 18.48 |  |  |            | 22,490,260 |  |  |      | 16.9 | %
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|Maryland:                               |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |            |            |  |  |      |     
|Decoverly(7)                            |                         |          | Rockville      |      |              |              | 1989          |      |  |         | 154,787   |           |            |           | 98.8         | %          |             |            | 3,756,427   |             |  |                 | 24.56      |       |  |  | 261,058    | (5)        |  |  | 0.2  | %   
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|                                        | Subtotal-Maryland       |          |                |      |              |              |               |      |  |         |           | 154,787   |            |           |              | 98.8       | %           |            |             | 3,756,427   |  |                 |            | 24.56 |  |  |            | 261,058    |  |  |      | 0.2  | %
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|North Carolina:                         |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |            |            |  |  |      |     
|Esplanade                               |                         |          | Charlotte      |      |              |              | 1981          |      |  |         | 201,902   |           |            |           | 45.8         | %          |             |            | 1,263,492   |             |  |                 | 13.66      |       |  |  | 759,259    | (5)        |  |  | 0.6  | %   
|Charlotte University(7)                 |                         |          | Charlotte      |      |              |              | 1999          |      |  |         | 182,891   |           |            |           | 90.9         | %          |             |            | 2,998,272   |             |  |                 | 18.03      |       |  |  | 97,207     | (5)        |  |  | 0.1  | %   
|Charlotte Vanguard(7)                   |                         |          | Charlotte      |      |              |              | 1997          |      |  |         | 527,471   |           |            |           | 66.1         | %          |             |            | 5,184,427   |             |  |                 | 14.87      |       |  |  | 201,527    | (5)        |  |  | 0.2  | %   
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|                                        | Subtotal-North Carolina |          |                |      |              |              |               |      |  |         |           | 912,264   |            |           |              | 66.6       | %           |            |             | 9,446,191   |  |                 |            | 15.55 |  |  |            | 1,057,993  |  |  |      | 0.9  | %
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|Tennessee:                              |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |            |            |  |  |      |     
|Germantown Center(7)                    |                         |          | Memphis        |      |              |              | 1999          |      |  |         | 531,709   |           |            |           | 85.8         | %          |             |            | 8,041,121   |             |  |                 | 17.63      |       |  |  | 330,974    | (5)        |  |  | 0.2  | %   
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      
|                                        | Subtotal-Tennessee      |          |                |      |              |              |               |      |  |         |           | 531,709   |            |           |              | 85.8       | %           |            |             | 8,041,121   |  |                 |            | 17.63 |  |  |            | 330,974    |  |  |      | 0.2  | %
|                                        |                         |          |                |      |              |              |               |      |  |         |           |           |            |           |              |            |             |            |             |             |  |                 |            |      

40



---



##### 



|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |           |             |  |  |     |     |  
|------------------------------ | ----------------- | -------- | -------- | ---- | ------------ | ------------ | ----------- | ---- |  | ------- | --------- | ---------- | ---------- | --------- | ------------ | ---------- | ----------- | ---------- | ----------- | ----------- |  | --------------- | ---------- | ----- |  |  | --------- | ----------- |  |  | --- | --- | -
|                               |                   |          |          |      |              |              |             |      |  |         |           | Average    |            |           | Total Office |            |             | Percent of |            
|                               |                   |          |          |      |              | Net Rentable |             |      |  |         | Total     |            |            | Base Rent |              |            | Property    |            |             | Total 2005  | 
|                               |                   |          |          | Year |              |              | Area Square |      |  | Percent |           |            | Annualized |           |              | per Leased |             |            | Revenue for |             |  | Office Property |           
|Office Property(1)             |                   | Location |          |      | Completed(2) |              |             | Feet |  |         | Leased    |            |            | Base Rent |              |            | Square Foot |            |             | 2005(3)     |  |                 | Revenue(4) |      
|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |      
|Texas:                         |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |           |             |  |  |     |    
|Research Park Plaza III and IV |                   |          | Austin   |      |              |              | 2001        |      |  |         | 357,689   |            |            |           | 100.0        | %          |             |            | 7,222,735   |             |  |                 | 20.19      |       |  |  | 4,843,500 | (5)         |  |  | 3.6 | %  
|6600 Campus Circle(7)          |                   |          | Dallas   |      |              |              | 1998        |      |  |         | 127,226   |            |            |           | 96.8         | %          |             |            | 2,787,602   |             |  |                 | 22.63      |       |  |  | 109,494   | (5)         |  |  | 0.1 | %  
|Signature Place(7)             |                   |          | Dallas   |      |              |              | 1986        |      |  |         | 437,319   |            |            |           | 69.6         | %          |             |            | 5,935,948   |             |  |                 | 19.50      |       |  |  | 266,048   | (5)         |  |  | 0.2 | %  
|Tollway Crossing(7)            |                   |          | Dallas   |      |              |              | 1997        |      |  |         | 152,163   |            |            |           | 100.0        | %          |             |            | 3,374,096   |             |  |                 | 22.17      |       |  |  | 148,892   | (5)         |  |  | 0.1 | %  
|Post Oak(7)                    |                   |          | Houston  |      |              |              | 1982        |      |  |         | 1,200,925 |            |            |           | 94.0         | %          |             |            | 18,626,885  |             |  |                 | 16.50      |       |  |  | 847,781   | (5)         |  |  | 0.6 | %  
|Westchase(7)                   |                   |          | Houston  |      |              |              | 2000        |      |  |         | 184,259   |            |            |           | 81.8         | %          |             |            | 3,325,783   |             |  |                 | 22.07      |       |  |  | 123,476   | (5)         |  |  | 0.1 | %  
|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |      
|                               | Subtotal-Texas    |          |          |      |              |              |             |      |  |         |           | 2,459,581  |            |           |              | 90.1       | %           |            |             | 41,273,049  |  |                 |            | 18.62 |  |  |           | 6,339,191   |  |  |     | 4.7 | %
|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |      
|Virginia:                      |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |       |  |  |           |             |  |  |     |    
|Paragon Place 1(7)             |                   |          | Richmond |      |              |              | 1986        |      |  |         | 145,127   |            |            |           | 99.7         | %          |             |            | 2,716,127   |             |  |                 | 18.77      |       |  |  | 114,926   | (5)         |  |  | 0.1 | %  
|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |      
|                               | Subtotal-Virginia |          |          |      |              |              |             |      |  |         |           | 145,127    |            |           |              | 99.7       | %           |            |             | 2,716,127   |  |                 |            | 18.77 |  |  |           | 114,926     |  |  |     | 0.1 | %
|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |      
|                               | TOTAL             |          |          |      |              |              |             |      |  |         |           | 19,499,515 |            |           |              | 91.3       | %           |            | $           | 301,351,944 |  |                 | $          | 18.35 |  |  | $         | 133,367,733 |  |  |     | 100 | %
|                               |                   |          |          |      |              |              |             |      |  |         |           |            |            |           |              |            |             |            |             |             |  |                 |            |      






|    |                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All office properties are 100% owned by us with the exception
    of those noted in (7) below.                                                                                           
|   
|(2) | Year initially completed and, where applicable, most recent
    year in which the property was substantially renovated or in
    which an additional phase of the property was completed.
|   
|(3) | Total Office Property Revenue for 2005 is our share (based on
    our percentage ownership of the property) of the total office
    property revenue, unless otherwise noted.            
|   
|(4) | Percent of Total Office 2005 Property Revenue represents each
    propertys proportionate share of revenue from our 62
    office properties, including partially owned properties.     
|   
|(5) | Represents revenues from the date of our acquisition or
    completion of development of this property in 2005 through
    December 31, 2005.                                            
|   
|(6) | This property is currently in
    lease-up (LU) and
    is not included in the Percent Leased and Average Base Rent per
    Leased Square Foot property totals.                          
|   
|(7) | We hold a 15% - 33.33% non-controlling interest in these
    joint ventures.                                                                                                             



|                         |  |                 |       |              |                  |  |            |              |  |                  |                    |  |  |  |       |  
|------------------------ |  | --------------- | ----- | ------------ | ---------------- |  | ---------- | ------------ |  | ---------------- | ------------------ |  |  |  | ----- | -
|                         |  |                 |       | Net Rentable |                  |  | Annualized |              |  | Percent of Total |                   
|                         |  | Number of       |       |              | Area of Expiring |  |            | Base Rent of |  |                  | Annual Base Rent   | 
|                         |  | Tenants with    |       |              | Leases           |  |            | Expiring     |  |                  | Represented by     | 
|Year of Lease Expiration |  | Expiring Leases |       |              | (Square Feet)(1) |  |            | Leases(1)(2) |  |                  | Expiring Leases(1) | 
|                         |  |                 |       |              |                  |  |            |              |  |                  |                    | 
|2006                     |  |                 | 484   |              |                  |  | 2,378,163  |              |  | $                | 52,803,654         |  |  |  | 14.0  | %
|2007                     |  |                 | 402   |              |                  |  | 2,359,047  |              |  |                  | 50,216,795         |  |  |  | 13.3  | %
|2008                     |  |                 | 394   |              |                  |  | 2,309,535  |              |  |                  | 51,133,437         |  |  |  | 13.5  | %
|2009                     |  |                 | 307   |              |                  |  | 2,672,229  |              |  |                  | 78,468,768         |  |  |  | 20.8  | %
|2010                     |  |                 | 251   |              |                  |  | 1,741,382  |              |  |                  | 34,023,647         |  |  |  | 9.0   | %
|2011                     |  |                 | 134   |              |                  |  | 1,433,608  |              |  |                  | 23,476,253         |  |  |  | 6.2   | %
|2012                     |  |                 | 69    |              |                  |  | 1,455,519  |              |  |                  | 34,886,446         |  |  |  | 9.2   | %
|2013                     |  |                 | 36    |              |                  |  | 843,752    |              |  |                  | 15,186,617         |  |  |  | 4.0   | %
|2014                     |  |                 | 38    |              |                  |  | 826,994    |              |  |                  | 15,699,975         |  |  |  | 4.2   | %
|2015                     |  |                 | 37    |              |                  |  | 421,015    |              |  |                  | 7,686,522          |  |  |  | 2.0   | %
|Thereafter               |  |                 | 47    |              |                  |  | 840,380    |              |  |                  | 14,379,822         |  |  |  | 3.8   | %
|                         |  |                 |       |              |                  |  |            |              |  |                  |                    | 
|                         |  |                 | 2,199 |              |                  |  | 17,281,624 |              |  | $                | 377,961,936        |  |  |  | 100.0 | %
|                         |  |                 |       |              |                  |  |            |              |  |                  |                    | 






|    |                                                                                              
|--- | ---------------------------------------------------------------------------------------------
|(1) | Excludes approximately 2,217,891 square feet of space
    not leased as of December 31, 2005.
|   
|(2) | Annualized base rent is calculated using base rents as of
    December 31, 2005.             

41



---



##### 





|                  |  |                  |            |  |               |              |       |                 |  |   |       | 
|----------------- |  | ---------------- | ---------- |  | ------------- | ------------ | ----- | --------------- |  | - | ----- | 
|                  |  |                  |            |  |               | Average Base |      
|                  |  | Rentable Area    |            |  | Total Percent |              |       | Rent per Leased | 
|Year-End          |  | (Square Feet)(2) |            |  | Leased        |              |       | Square Foot(1)  | 
|                  |  |                  |            |  |               |              |       |                 | 
|December 31, 2005 |  |                  | 19,500,000 |  |               |              | 91.3% |                 |  | $ | 18.35 | 
|December 31, 2004 |  |                  | 5,870,000  |  |               |              | 92.2% |                 |  | $ | 17.48 | 
|December 31, 2003 |  |                  | 5,464,000  |  |               |              | 89.7% |                 |  | $ | 18.56 | 
|December 31, 2002 |  |                  | 5,185,000  |  |               |              | 91.0% |                 |  | $ | 18.24 | 
|December 31, 2001 |  |                  | 3,518,000  |  |               |              | 92.1% |                 |  | $ | 18.02 | 






|    |                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------
|(1) | Average base rent per leased square foot is calculated using
    base rents as of December 31 for each respective year.
|   
|(2) | Rentable square feet includes 11,756,400 square feet
    that is partially owned by us at December 31, 2005.           

Retail Properties




42



---



##### 





Retail Properties


|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |      |  
|----------------------------------- | ---------------- | -------- | ----------- | ---- | ------------ |  | ---------- | ---------------- |  | --------- | ------- | --------- | ------- | --------- | ------ | ---------- | ------------ | -------- | ------ | ---------- | ---------- | ----------- | ---------- | ---------- | --------------- | ---------- | ----- | ----- |  | - | ---------- | ---------- |  |  | --- | ---- | -
|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         | Average   |        |            |              |          |       
|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         | Base      |        |            |              |          |       
|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         | Rent per  |        |            | Total Retail |          |        | Percent of |           
|                                    |                  |          |             |      |              |  |            |                  |  |           |         | Total     |         |           | Leased |            |              | Property |        |            | Total 2005 |            
|                                    |                  |          |             | Year |              |  | GRA        |                  |  | Number of |         |           | Percent |           |        | Annualized |              |          | Square |            |            | Revenue for |            |            | Retail Property |           
|Retail Property(1)                  |                  | Location |             |      | Completed(2) |  |            | (Square Feet)(3) |  |           | Stores  |           |         | Leased(3) |        |            | Base Rent    |          |        | Foot(4)    |            |             | 2005       |            |                 | Revenue(5) |      
|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |      
|Alabama:                            |                  |          |             |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Brookwood Village Center            |                  |          | Birmingham  |      |              |  | 1973/91    |                  |  |           | 88,158  |           |         |           | 7      |            |              |          | 81.5   | %          |            | $           | 664,584    |            |                 | $          | 15.13 |       |  | $ | 1,086,251  |            |  |  | 0.7 | %   
|Colonial Brookwood Village          |                  |          | Birmingham  |      |              |  | 1973/91    |                  |  |           | 372,180 |           |         |           | 70     |            |              |          | 96.3   | %          |            |             | 6,438,138  |            |                 |            | 25.59 |       |  |   | 10,211,488 |            |  |  | 6.4 | %   
|Colonial Brookwood Village          |                  |          |             |      |              |  |            |                  |  |           | 231,953 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Mall Bel Air               |                  |          | Mobile      |      |              |  | 1966/90/97 |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   | 14,076,115 | (12)       |  |  | 8.8 | %   
|Bel Air Mall JV                     |                  |          | Mobile      |      |              |  | 1966/90/97 |                  |  |           | 999,799 |           |         |           | 115    |            |              |          | 97.5   | %          |            |             | 10,840,103 |            |                 |            | 21.39 |       |  |   | 179,199    | (12)       |  |  | 0.1 | %   
|Bel Air Mall JV                     |                  |          |             |      |              |  |            |                  |  |           | 333,990 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Mall Decatur               |                  |          | Decatur     |      |              |  | 1979/89    |                  |  |           | 495,232 |           |         |           | 52     |            |              |          | 89.0   | %          |            |             | 3,838,273  |            |                 |            | 18.88 |       |  |   | 5,063,326  |            |  |  | 3.2 | %   
|Colonial Mall Decatur               |                  |          |             |      |              |  |            |                  |  |           | 80,866  | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Mall Gadsden               |                  |          | Gadsden     |      |              |  | 1974/91    |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   | 1,735,643  | (8)        |  |  | 1.1 | %   
|Colonial Promenade Alabaster        |                  |          | Birmingham  |      |              |  | 2005       |                  |  |           | 218,681 |           |         |           | 31     |            |              |          | 100.0  | %          |            |             | 3,330,766  |            |                 |            | 18.67 |       |  |   | 1,452,926  |            |  |  |     |     
|Colonial Promenade Craft Farms      |                  |          | Gulf Shores |      |              |  | 2005       |                  |  |           | 53,170  |           |         |           | 1      |            |              |          | LU     |            |            |             | 850,720    |            |                 |            |       |       |  |   | 238,269    | (10)       |  |  |     |     
|Colonial Promenade Hoover           |                  |          | Birmingham  |      |              |  | 2002       |                  |  |           | 164,831 |           |         |           | 33     |            |              |          | 93.8   | %          |            |             | 1,944,291  |            |                 |            | 18.26 |       |  |   | 282,194    |            |  |  | 0.2 | %   
|Colonial Promenade Hoover           |                  |          |             |      |              |  |            |                  |  |           | 215,766 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Promenade Madison          |                  |          | Madison     |      |              |  | 2000       |                  |  |           | 110,712 |           |         |           | 13     |            |              |          | 95.7   | %          |            |             | 1,100,059  |            |                 |            | 14.81 |       |  |   | 367,900    |            |  |  | 0.2 | %   
|Colonial Promenade Montgomery       |                  |          | Montgomery  |      |              |  | 1990/97    |                  |  |           | 165,114 |           |         |           | 23     |            |              |          | 80.0   | %          |            |             | 1,276,911  |            |                 |            | 12.94 |       |  |   | 1,732,075  |            |  |  | 1.1 | %   
|Colonial Promenade Montgomery       |                  |          |             |      |              |  |            |                  |  |           | 44,000  | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Promenade Montgomery North |                  |          | Montgomery  |      |              |  | 1990/97    |                  |  |           | 108,082 |           |         |           | 9      |            |              |          | 97.9   | %          |            |             | 1,067,404  |            |                 |            | 16.45 |       |  |   | 1,219,565  |            |  |  | 0.8 | %   
|Colonial Promenade Montgomery North |                  |          |             |      |              |  |            |                  |  |           | 101,830 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Promenade Trussville       |                  |          | Birmingham  |      |              |  | 2000       |                  |  |           | 388,302 |           |         |           | 24     |            |              |          | 100.0  | %          |            |             | 3,369,730  |            |                 |            | 14.03 |       |  |   | 4,146,816  |            |  |  | 2.6 | %   
|Colonial Promenade Trussville II    |                  |          | Birmingham  |      |              |  | 2004       |                  |  |           | 58,182  |           |         |           | 18     |            |              |          | 100.0  | %          |            |             | 894,627    |            |                 |            | 16.43 |       |  |   | 1,114,725  |            |  |  | 0.7 | %   
|Colonial Promenade Trussville II    |                  |          |             |      |              |  |            |                  |  |           | 224,509 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Promenade Tutwiler Farm    |                  |          | Birmingham  |      |              |  | 2000       |                  |  |           | 340,112 |           |         |           | 19     |            |              |          | 99.4   | %          |            |             | 2,319,608  |            |                 |            | 15.23 |       |  |   | 3,404,096  |            |  |  | 2.1 | %   
|Colonial Promenade Tutwiler Farm    |                  |          |             |      |              |  |            |                  |  |           | 174,008 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Colonial Shoppes Colonnade          |                  |          | Birmingham  |      |              |  | 1989       |                  |  |           | 125,462 |           |         |           | 28     |            |              |          | 86.8   | %          |            |             | 1,305,059  |            |                 |            | 17.40 |       |  |   | 1,704,785  |            |  |  | 1.1 | %   
|Colonial Shoppes Bellwood           |                  |          | Montgomery  |      |              |  | 1988       |                  |  |           | 88,482  |           |         |           | 16     |            |              |          | 91.7   | %          |            |             | 701,755    |            |                 |            | 12.93 |       |  |   | 887,453    |            |  |  | 0.6 | %   
|Colonial Shoppes Clay               |                  |          | Birmingham  |      |              |  | 1982       |                  |  |           | 66,175  |           |         |           | 12     |            |              |          | 91.9   | %          |            |             | 712,776    |            |                 |            | 13.72 |       |  |   | 884,159    |            |  |  | 0.6 | %   
|Colonial Shoppes McGehee            |                  |          | Montgomery  |      |              |  | 1986       |                  |  |           | 98,255  |           |         |           | 15     |            |              |          | 88.0   | %          |            |             | 478,039    |            |                 |            | 7.54  |       |  |   | 613,902    |            |  |  | 0.4 | %   
|Colonial University Village         |                  |          | Auburn      |      |              |  | 1973/84/89 |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   | 3,410,388  | (12)       |  |  | 2.1 | %   
|Colonial University Village         |                  |          |             |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|University Village Mall JV          |                  |          | Auburn      |      |              |  | 1973/84/89 |                  |  |           | 401,515 |           |         |           | 49     |            |              |          | 87.2   | %          |            |             | 2,279,846  |            |                 |            | 20.16 |       |  |   | 53,114     | (12)       |  |  | 0.0 | %   
|University Village Mall JV          |                  |          |             |      |              |  |            |                  |  |           | 124,707 |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|Olde Town                           |                  |          | Montgomery  |      |              |  | 1978/90    |                  |  |           | 38,814  |           |         |           | 9      |            |              |          | 57.4   | %          |            |             | 181,733    |            |                 |            | 7.37  |       |  |   | 224,542    |            |  |  | 0.1 | %   
|Parkway Place                       |                  |          | Huntsville  |      |              |  | 1975       |                  |  |           | 287,556 |           |         |           | 74     |            |              |          | 85.0   | %          |            |             | 6,149,403  |            |                 |            | 27.39 |       |  |   | 4,765,507  |            |  |  | 3.0 | %   
|Parkway Place                       |                  |          |             |      |              |  |            |                  |  |           | 348,164 | (6)       |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |       |       |  |   |            |            |  |  |     |     
|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |      
|                                    | Subtotal-Alabama |          |             |      |              |  |            |                  |  |           |         | 6,548,607 |         |           |        | 618        |              |          |        | 93.2       | %          |             |            | 49,743,825 |                 |            |       | 20.40 |  |   |            | 58,854,437 |  |  |     | 36.9 | %
|                                    |                  |          |             |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |            |            |                 |            |      

43



---



##### 



|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |      |  
|----------------------------------- | ----------------------- | -------- | --------------- | ---- | ------------ |  | ---------- | ---------------- |  | --------- | ------- | --------- | ------- | --------- | ------ | ---------- | ------------ | -------- | ------ | ---------- | ---------- | ----------- | --------- | ---------- | --------------- | ---------- | ----- | ----- |  |  | --------- | ---------- |  |  | --- | ---- | -
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         | Average   |        |            |              |          |       
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         | Base      |        |            |              |          |       
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         | Rent per  |        |            | Total Retail |          |        | Percent of |           
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         | Total     |         |           | Leased |            |              | Property |        |            | Total 2005 |            
|                                    |                         |          |                 | Year |              |  | GRA        |                  |  | Number of |         |           | Percent |           |        | Annualized |              |          | Square |            |            | Revenue for |           |            | Retail Property |           
|Retail Property(1)                  |                         | Location |                 |      | Completed(2) |  |            | (Square Feet)(3) |  |           | Stores  |           |         | Leased(3) |        |            | Base Rent    |          |        | Foot(4)    |            |             | 2005      |            |                 | Revenue(5) |      
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|Florida:                            |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Promenade Bear Lake        |                         |          | Orlando         |      |              |  | 1990       |                  |  |           | 131,655 |           |         |           | 24     |            |              |          | 86.4   | %          |            |             | 1,296,538 |            |                 |            | 15.32 |       |  |  | 1,649,188 |            |  |  | 1.0 | %   
|Colonial Promenade Boulevard Square |                         |          | Pembroke Pines  |      |              |  | 2001       |                  |  |           | 220,656 |           |         |           | 37     |            |              |          | 100.0  | %          |            |             | 3,660,384 |            |                 |            | 20.01 |       |  |  | 4,909,302 |            |  |  | 3.1 | %   
|Colonial Promenade Burnt Store      |                         |          | Punta Gorda     |      |              |  | 1990       |                  |  |           | 95,023  |           |         |           | 25     |            |              |          | 98.9   | %          |            |             | 911,254   |            |                 |            | 15.36 |       |  |  | 1,256,025 |            |  |  | 0.8 | %   
|Colonial Promenade Deerfield        |                         |          | Deerfield Beach |      |              |  | 1988/2003  |                  |  |           | 378,747 |           |         |           | 60     |            |              |          | 99.3   | %          |            |             | 4,291,653 |            |                 |            | 17.04 |       |  |  | 5,824,143 |            |  |  | 3.7 | %   
|Colonial Promenade Hunters Creek   |                         |          | Orlando         |      |              |  | 1993/95    |                  |  |           | 227,536 |           |         |           | 27     |            |              |          | 52.6   | %          |            |             | 1,616,470 |            |                 |            | 19.21 |       |  |  | 2,295,202 |            |  |  | 1.4 | %   
|Colonial Promenade Lakewood         |                         |          | Jacksonville    |      |              |  | 1995       |                  |  |           | 195,159 |           |         |           | 51     |            |              |          | 83.0   | %          |            |             | 1,906,496 |            |                 |            | 13.75 |       |  |  | 2,595,266 |            |  |  | 1.6 | %   
|Colonial Promenade Northdale        |                         |          | Tampa           |      |              |  | 1988       |                  |  |           | 175,917 |           |         |           | 23     |            |              |          | 95.2   | %          |            |             | 1,702,491 |            |                 |            | 16.17 |       |  |  | 2,384,700 |            |  |  | 1.5 | %   
|Colonial Promenade Northdale        |                         |          |                 |      |              |  |            |                  |  |           | 55,000  | (6)       |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Promenade TownPark         |                         |          | Orlando         |      |              |  | 2003       |                  |  |           | 199,266 |           |         |           | 28     |            |              |          | 88.9   | %          |            |             | 2,268,813 |            |                 |            | 23.79 |       |  |  | 3,269,187 |            |  |  | 2.1 | %   
|Colonial Promenade Wekiva           |                         |          | Orlando         |      |              |  | 1990       |                  |  |           | 208,568 |           |         |           | 27     |            |              |          | 85.5   | %          |            |             | 1,815,334 |            |                 |            | 14.41 |       |  |  | 2,601,606 |            |  |  | 1.6 | %   
|Colonial Promenade Winter Haven     |                         |          | Orlando         |      |              |  | 1986       |                  |  |           | 161,559 |           |         |           | 19     |            |              |          | 87.2   | %          |            |             | 1,002,817 |            |                 |            | 12.68 |       |  |  | 1,399,564 |            |  |  | 0.9 | %   
|Colonial Shoppes College Parkway    |                         |          | Ft. Myers       |      |              |  | 1986       |                  |  |           | 78,879  |           |         |           | 15     |            |              |          | 100.0  | %          |            |             | 1,198,860 |            |                 |            | 16.26 |       |  |  | 1,807,064 |            |  |  | 1.1 | %   
|Colonial Shoppes Pines Plaza        |                         |          | Pembroke Pines  |      |              |  | 2002       |                  |  |           | 68,170  |           |         |           | 4      |            |              |          | 100.0  | %          |            |             | 1,187,014 |            |                 |            | 17.13 |       |  |  | 1,679,566 |            |  |  | 1.1 | %   
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|                                    | Subtotal-Florida        |          |                 |      |              |  |            |                  |  |           |         | 2,196,135 |         |           |        | 340        |              |          |        | 88.6       | %          |             |           | 22,858,124 |                 |            |       | 17.11 |  |  |           | 31,754,885 |  |  |     | 19.9 | %
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|Georgia:                            |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Britt David                         |                         |          | Columbus        |      |              |  | 1990       |                  |  |           | 109,630 |           |         |           | 12     |            |              |          | 75.9   | %          |            |             | 639,830   |            |                 |            | 12.04 |       |  |  | 803,723   |            |  |  | 0.5 | %   
|Colonial Mall Glynn Place           |                         |          | Brunswick       |      |              |  | 1986       |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  | 3,655,699 | (12)       |  |  | 2.3 | %   
|Glynn Place Mall JV                 |                         |          | Brunswick       |      |              |  | 1986       |                  |  |           | 282,342 |           |         |           | 52     |            |              |          | 86.5   | %          |            |             | 2,628,027 |            |                 |            | 17.85 |       |  |  | 47,701    | (12)       |  |  | 0.0 | %   
|Glynn Place Mall JV                 |                         |          |                 |      |              |  |            |                  |  |           | 225,558 | (6)       |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Mall Lakeshore             |                         |          | Gainesville     |      |              |  | 1984/97    |                  |  |           | 518,290 |           |         |           | 47     |            |              |          | 93.1   | %          |            |             | 2,780,759 |            |                 |            | 19.02 |       |  |  | 4,273,466 |            |  |  | 2.7 | %   
|Colonial Mall Macon                 |                         |          | Macon           |      |              |  | 1975/88/97 |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  | 8,995,934 | (8)        |  |  | 5.6 | %   
|Colonial Mall Valdosta              |                         |          | Valdosta        |      |              |  | 1982/85    |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  | 5,227,474 | (12)       |  |  | 3.3 | %   
|Valdosta Mall JV                    |                         |          | Valdosta        |      |              |  | 1982/85    |                  |  |           | 325,326 |           |         |           | 53     |            |              |          | 92.8   | %          |            |             | 3,231,998 |            |                 |            | 20.78 |       |  |  | 62,592    | (12)       |  |  | 0.0 | %   
|Valdosta Mall JV                    |                         |          |                 |      |              |  |            |                  |  |           | 73,723  | (6)       |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Promenade Beechwood        |                         |          | Athens          |      |              |  | 1963/92    |                  |  |           | 350,795 |           |         |           | 41     |            |              |          | 99.8   | %          |            |             | 3,624,285 |            |                 |            | 15.40 |       |  |  | 3,481,934 |            |  |  | 2.2 | %   
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|                                    | Subtotal-Georgia        |          |                 |      |              |  |            |                  |  |           |         | 1,885,664 |         |           |        | 205        |              |          |        | 92.2       | %          |             |           | 12,904,899 |                 |            |       | 17.89 |  |  |           | 26,548,522 |  |  |     | 16.6 | %
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|North Carolina:                     |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Mall Burlington            |                         |          | Burlington      |      |              |  | 1969/86/94 |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  | 2,582,899 | (8)        |  |  | 1.6 | %   
|Colonial Mall Greenville            |                         |          | Greenville      |      |              |  | 1965/89/99 |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  | 5,539,644 | (12)       |  |  | 3.5 | %   
|Greenville Mall JV                  |                         |          | Greenville      |      |              |  | 1965/89/99 |                  |  |           | 404,266 |           |         |           | 54     |            |              |          | 96.4   | %          |            |             | 3,554,555 |            |                 |            | 19.76 |       |  |  | 75,792    | (12)       |  |  | 0.0 | %   
|Greenville Mall JV                  |                         |          |                 |      |              |  |            |                  |  |           | 46,051  | (6)       |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Mayberry Mall              |                         |          | Mount Airy      |      |              |  | 1968/86    |                  |  |           | 149,097 |           |         |           | 18     |            |              |          | 94.5   | %          |            |             | 704,471   |            |                 |            | 12.95 |       |  |  | 1,105,016 |            |  |  | 0.7 | %   
|Colonial Mayberry Mall              |                         |          |                 |      |              |  |            |                  |  |           | 57,843  | (6)       |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Shoppes Quaker             |                         |          | Greensboro      |      |              |  | 1968/88/97 |                  |  |           | 102,223 |           |         |           | 27     |            |              |          | 78.0   | %          |            |             | 861,915   |            |                 |            | 13.93 |       |  |  | 1,226,366 |            |  |  | 0.8 | %   
|Colonial Shoppes Yadkinville        |                         |          | Yadkinville     |      |              |  | 1971/97    |                  |  |           | 90,917  |           |         |           | 16     |            |              |          | 100.0  | %          |            |             | 694,296   |            |                 |            | 8.17  |       |  |  | 850,023   |            |  |  | 0.5 | %   
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|                                    | Subtotal-North Carolina |          |                 |      |              |  |            |                  |  |           |         | 850,397   |         |           |        | 115        |              |          |        | 93.9       | %          |             |           | 5,815,237  |                 |            |       | 16.31 |  |  |           | 11,379,739 |  |  |     | 7.1  | %
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|South Carolina:                     |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Mall Myrtle Beach          |                         |          | Myrtle Beach    |      |              |  | 1986       |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  | 7,077,189 | (12)       |  |  | 4.4 | %   
|Myrtle Beach Mall JV                |                         |          | Myrtle Beach    |      |              |  | 1986       |                  |  |           | 474,218 |           |         |           | 60     |            |              |          | 91.6   | %          |            |             | 4,129,494 |            |                 |            | 21.88 |       |  |  | 88,306    | (12)       |  |  | 0.1 | %   
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|                                    | Subtotal-South Carolina |          |                 |      |              |  |            |                  |  |           |         | 474,218   |         |           |        | 60         |              |          |        | 91.6       | %          |             |           |           |                 |            |       | 21.88 |  |  |           | 7,165,494  |  |  |     | 4.5  | %
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|Tennessee:                          |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |       |       |  |  |           |            |  |  |     |     
|Colonial Pinnacle Turkey Creek(11)  |                         |          | Knoxville       |      |              |  | 2004       |                  |  |           | 82,733  |           |         |           | 1      |            |              |          | LU     |            |            |             | 1,571,927 |            |                 |            |       |       |  |  | 429,754   | (10)       |  |  | 0.3 | %   
|Rivermont Shopping Center           |                         |          | Chattanooga     |      |              |  | 1986/97    |                  |  |           | 73,481  |           |         |           | 10     |            |              |          | 100.0  | %          |            |             | 420,039   |            |                 |            | 7.30  |       |  |  | 537,962   | (9)        |  |  | 0.3 | %   
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      
|                                    | Subtotal-Tennessee      |          |                 |      |              |  |            |                  |  |           |         | 156,214   |         |           |        | 11         |              |          |        | 100.0      | %          |             |           | 1,991,966  |                 |            |       | 7.30  |  |  |           | 967,716    |  |  |     | 0.6  | %
|                                    |                         |          |                 |      |              |  |            |                  |  |           |         |           |         |           |        |            |              |          |        |            |            |             |           |            |                 |            |      

44



---



##### 



|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |       |       |  |  |           |             |  |  |     |       |  
|---------------------------------- | ----------------- | -------- | -------- | ---- | ------------ |  | ---------- | ---------------- |  | --------- | ------- | ---------- | ------- | --------- | ------ | ---------- | ------------ | -------- | ------ | ---------- | ---------- | ----------- | --------- | ----------- | --------------- | ---------- | ----- | ----- |  |  | --------- | ----------- |  |  | --- | ----- | -
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         | Average   |        |            |              |          |       
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         | Base      |        |            |              |          |       
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         | Rent per  |        |            | Total Retail |          |        | Percent of |           
|                                   |                   |          |          |      |              |  |            |                  |  |           |         | Total      |         |           | Leased |            |              | Property |        |            | Total 2005 |            
|                                   |                   |          |          | Year |              |  | GRA        |                  |  | Number of |         |            | Percent |           |        | Annualized |              |          | Square |            |            | Revenue for |           |             | Retail Property |           
|Retail Property(1)                 |                   | Location |          |      | Completed(2) |  |            | (Square Feet)(3) |  |           | Stores  |            |         | Leased(3) |        |            | Base Rent    |          |        | Foot(4)    |            |             | 2005      |             |                 | Revenue(5) |      
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |      
|Texas                              |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |       |       |  |  |           |             |  |  |     |      
|Colonial Mall Temple               |                   |          | Temple   |      |              |  | 1981/96    |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |       |       |  |  | 1,854,760 | (8)         |  |  | 1.2 | %    
|Colonial Pinnacle Kingwood Commons |                   |          | Houston  |      |              |  | 2003       |                  |  |           | 164,356 |            |         |           | 28     |            |              |          | 87.5   | %          |            |             | 2,386,708 |             |                 |            | 21.57 |       |  |  | 3,056,092 |             |  |  | 1.9 | %    
|Colonial Promenade Portofino       |                   |          | Houston  |      |              |  |            |                  |  |           | 372,502 |            |         |           | 37     |            |              |          | 82.9   | %          |            |             | 4,397,597 |             |                 |            | 21.52 |       |  |  | 6,152,294 | (7)         |  |  | 3.9 | %    
|Village on Parkway                 |                   |          | Dallas   |      |              |  | 1980       |                  |  |           | 381,166 |            |         |           | 45     |            |              |          | 94.7   | %          |            |             | 5,203,309 |             |                 |            | 18.82 |       |  |  | 8,001,508 |             |  |  | 5.0 | %    
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |      
|                                   | Subtotal-Texas    |          |          |      |              |  |            |                  |  |           |         | 918,024    |         |           |        | 110        |              |          |        | 88.6       | %          |             |           | 11,987,614  |                 |            |       | 19.36 |  |  |           | 19,064,654  |  |  |     | 12.0  | %
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |      
|Virginia:                          |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |       |       |  |  |           |             |  |  |     |      
|Colonial Mall Staunton             |                   |          | Staunton |      |              |  | 1969/86/97 |                  |  |           | 423,344 |            |         |           | 49     |            |              |          | 96.9   | %          |            |             | 2,272,856 |             |                 |            | 11.70 |       |  |  | 3,724,073 |             |  |  | 2.3 | %    
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |      
|                                   | Subtotal-Virginia |          |          |      |              |  |            |                  |  |           |         | 423,344    |         |           |        | 49         |              |          |        | 96.9       | %          |             |           | 2,272,856   |                 |            |       | 11.70 |  |  |           | 3,724,073   |  |  |     | 2.3   | %
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |      
|                                   | Total             |          |          |      |              |  |            |                  |  |           |         | 13,452,603 |         |           |        | 1,508      |              |          |        | 92.2       | %          |             | $         | 107,574,521 |                 |            | $     | 18.81 |  |  | $         | 159,459,520 |  |  |     | 100.0 | %
|                                   |                   |          |          |      |              |  |            |                  |  |           |         |            |         |           |        |            |              |          |        |            |            |             |           |             |                 |            |      






| |     |                                                                                                                                                                                                                                                                      
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | All retail properties are 100% owned by us, with the
    exception of Village on the Parkway, Parkway Place, Colonial
    Promenade Madison, and Colonial Promenade Hoover, which are
    owned 90%, 45%, 25%, and 10%, respectively, by us at
    December 31, 2005.
|
| | (2) | Year initially completed and, where applicable, year(s) in
    which the property was substantially renovated or an additional
    phase of the property was completed.                                                                                              
|
| | (3) | GRA refers to gross retail area, which includes gross
    leasable area and space owned by anchor tenants. Percent Leased
    excludes anchor owned space.                                                                                                           
|
| | (4) | Includes specialty store space only.                                                                                                                                                                                                                                 
|
| | (5) | Percent of Total Retail Property Revenue for 2005 represents
    each propertys proportionate share of revenue from our 48
    retail properties, including partially owned properties.                                                                             
|
| | (6) | Represents space owned by anchor tenants.                                                                                                                                                                                                                            
|
| | (7) | Represents revenues from the date of our acquisition or
    completion of development of the property in 2005 through
    December 31, 2005.                                                                                                                         
|
| | (8) | Represents revenues from January 1, 2005 through the
    date the property was sold during 2005.                                                                                                                                                                     
|
| | (9) | This property was reclassified to held for sale
    and is included as discontinued operations at December 31,
    2005.                                                                                                                                           



|     |                                                                                                                                                                            
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | This property is currently in
    lease-up and is not
    included in Percent Leased and Average Base Rent per Leased
    Square Foot property totals.                     
|    
|(11) | This property is a 50% joint venture and is currently under
    development.                                                                                               
|    
|(12) | These properties were transferred to the GPT Joint Venture.
    We retained a 10% interest in these properties through our
    ownership interest in the GPT Joint Venture.



|                         |  |                 |       |              |                  |  |            |              |  |                  |                    |  |  |  |       |  
|------------------------ |  | --------------- | ----- | ------------ | ---------------- |  | ---------- | ------------ |  | ---------------- | ------------------ |  |  |  | ----- | -
|                         |  |                 |       | Net Rentable |                  |  | Annualized |              |  | Percent of Total |                   
|                         |  | Number of       |       |              | Area of Expiring |  |            | Base Rent of |  |                  | Annual Base Rent   | 
|                         |  | Tenants with    |       |              | Leases           |  |            | Expiring     |  |                  | Represented by     | 
|Year of Lease Expiration |  | Expiring Leases |       |              | (Square Feet)(1) |  |            | Leases(1)(2) |  |                  | Expiring Leases(1) | 
|                         |  |                 |       |              |                  |  |            |              |  |                  |                    | 
|2006                     |  |                 | 232   |              |                  |  | 811,432    |              |  | $                | 10,312,618         |  |  |  | 9.3   | %
|2007                     |  |                 | 229   |              |                  |  | 1,077,198  |              |  |                  | 11,433,154         |  |  |  | 10.3  | %
|2008                     |  |                 | 220   |              |                  |  | 1,015,638  |              |  |                  | 10,812,247         |  |  |  | 9.7   | %
|2009                     |  |                 | 178   |              |                  |  | 1,092,931  |              |  |                  | 10,594,203         |  |  |  | 9.5   | %
|2010                     |  |                 | 192   |              |                  |  | 1,022,101  |              |  |                  | 13,325,185         |  |  |  | 12.0  | %
|2011                     |  |                 | 116   |              |                  |  | 969,934    |              |  |                  | 10,495,637         |  |  |  | 9.4   | %
|2012                     |  |                 | 88    |              |                  |  | 1,130,662  |              |  |                  | 10,851,195         |  |  |  | 9.8   | %
|2013                     |  |                 | 74    |              |                  |  | 403,273    |              |  |                  | 6,210,938          |  |  |  | 5.6   | %
|2014                     |  |                 | 47    |              |                  |  | 344,618    |              |  |                  | 3,830,451          |  |  |  | 3.4   | %
|2015                     |  |                 | 72    |              |                  |  | 590,412    |              |  |                  | 8,212,794          |  |  |  | 7.4   | %
|Thereafter               |  |                 | 60    |              |                  |  | 1,710,784  |              |  |                  | 15,118,930         |  |  |  | 13.6  | %
|                         |  |                 |       |              |                  |  |            |              |  |                  |                    | 
|                         |  |                 | 1,508 |              |                  |  | 10,168,983 |              |  | $                | 111,197,352        |  |  |  | 100.0 | %
|                         |  |                 |       |              |                  |  |            |              |  |                  |                    | 

45



---



##### 








|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|(1) | Excludes 945,700 square feet of space not leased as of
    December 31, 2005.   
|   
|(2) | Annualized base rent is calculated using base rents as of
    December 31, 2005.



|                  |  |                  |            |  |         |  |       |                       |  |   |       | 
|----------------- |  | ---------------- | ---------- |  | ------- |  | ----- | --------------------- |  | - | ----- | 
|                  |  | Gross Retail     |            |  |         |  |      
|                  |  | Area             |            |  | Percent |  |       | Average Base Rent per | 
|Year-End          |  | (Square Feet)(1) |            |  | Leased  |  |       | Leased Square Foot(2) | 
|                  |  |                  |            |  |         |  |       |                       | 
|December 31, 2005 |  |                  | 13,453,000 |  |         |  | 92.2% |                       |  | $ | 18.81 | 
|December 31, 2004 |  |                  | 15,294,000 |  |         |  | 91.4% |                       |  | $ | 19.45 | 
|December 31, 2003 |  |                  | 15,343,000 |  |         |  | 89.6% |                       |  | $ | 19.84 | 
|December 31, 2002 |  |                  | 15,475,000 |  |         |  | 89.2% |                       |  | $ | 18.36 | 
|December 31, 2001 |  |                  | 14,951,000 |  |         |  | 89.6% |                       |  | $ | 18.03 | 






|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(1) | Includes 4,901,300 square feet partially owned by us at
    December 31, 2005.                              
|   
|(2) | Average base rent per leased square foot is calculated using
    specialty store year-end base rent figures.

Undeveloped Land




Property Markets




Geographic Concentration of Properties


|               |       |                  |       |        |             |  |           |             |  |            |                |            |              |            |             |             |              |   |            |            |  |   |            |            |  |   |             |             |  |  |      |       |  
|-------------- | ----- | ---------------- | ----- | ------ | ----------- |  | --------- | ----------- |  | ---------- | -------------- | ---------- | ------------ | ---------- | ----------- | ----------- | ------------ | - | ---------- | ---------- |  | - | ---------- | ---------- |  | - | ----------- | ----------- |  |  | ---- | ----- | -
|               |       |                  |       |        |             |  |           |             |  |            |                | Total 2005 |              |            |             |             |             
|               |       |                  |       |        |             |  |           |             |  | Total 2005 |                |            | Discontinued |            |             | Total 2005  |              |   | Percent of |           
|               |       |                  |       |        |             |  |           | Total 2005  |  |            | Unconsolidated |            |              | Operations |             |             | Consolidated |   |            | Total 2005 | 
|               |       | Units            |       |        | NRA         |  |           | GRA         |  |            | Property       |            |              | Property   |             |             | Property     |   |            | Property   |  |   | Property   |           
|State          |       | (Multifamily)(1) |       |        | (Office)(2) |  |           | (Retail)(3) |  |            | Revenue(4)     |            |              | Revenue    |             |             | Revenue      |   |            | Revenue    |  |   | Revenue    |           
|               |       |                  |       |        |             |  |           |             |  |            |                |            |              |            |             |             |              |   |            |            |  |   |            |           
|Alabama        |       |                  | 7,878 |        |             |  | 3,266,138 |             |  |            | 6,548,607      |            |              | $          | 155,541,724 |             |              | $ | 8,377,314  |            |  | $ | 2,542,156  |            |  | $ | 144,622,254 |             |  |  | 30.1 | %    
|Arizona        |       |                  | 2,340 |        |             |  |          |             |  |            |               |            |              |            | 3,640,082   |             |              |   | 3,640,082  |            |  |   |           |            |  |   |            |             |  |  | 0.0  | %    
|Florida        |       |                  | 4,135 |        |             |  | 7,809,693 |             |  |            | 2,196,135      |            |              |            | 129,751,812 |             |              |   | 5,646,022  |            |  |   | 3,719,841  |            |  |   | 120,385,949 |             |  |  | 25.1 | %    
|Georgia        |       |                  | 4,878 |        |             |  | 4,220,216 |             |  |            | 1,885,664      |            |              |            | 85,016,436  |             |              |   | 3,362,148  |            |  |   | 13,880,133 |            |  |   | 67,774,155  |             |  |  | 14.1 | %    
|Maryland       |       |                  |      |        |             |  | 154,787   |             |  |            |               |            |              |            | 261,058     |             |              |   | 261,058    |            |  |   |           |            |  |   |            |             |  |  | 0.0  | %    
|Mississippi    |       |                  | 498   |        |             |  |          |             |  |            |               |            |              |            | 4,523,033   |             |              |   |           |            |  |   |           |            |  |   | 4,523,033   |             |  |  | 0.9  | %    
|Nevada         |       |                  | 858   |        |             |  |          |             |  |            |               |            |              |            | 1,894,248   |             |              |   | 1,894,248  |            |  |   |           |            |  |   |            |             |  |  | 0.0  | %    
|New Mexico     |       |                  | 1,025 |        |             |  |          |             |  |            |               |            |              |            | 2,139,241   |             |              |   | 2,139,241  |            |  |   |           |            |  |   |            |             |  |  | 0.0  | %    
|North Carolina |       |                  | 9,121 |        |             |  | 912,264   |             |  |            | 850,397        |            |              |            | 62,704,857  |             |              |   | 652,180    |            |  |   | 9,361,612  |            |  |   | 52,691,065  |             |  |  | 11.0 | %    
|South Carolina |       |                  | 2,601 |        |             |  |          |             |  |            | 474,218        |            |              |            | 23,606,827  |             |              |   | 310,697    |            |  |   | 5,653,709  |            |  |   | 17,642,421  |             |  |  | 3.7  | %    
|Tennessee      |       |                  | 1,263 |        |             |  | 531,709   |             |  |            | 156,214        |            |              |            | 3,198,992   |             |              |   | 2,110,725  |            |  |   | 590,894    |            |  |   | 497,374     |             |  |  | 0.1  | %    
|Texas          |       |                  | 6,450 |        |             |  | 2,459,581 |             |  |            | 918,024        |            |              |            | 72,274,592  |             |              |   | 1,823,278  |            |  |   | 17,068,085 |            |  |   | 53,383,229  |             |  |  | 11.1 | %    
|Virginia       |       |                  | 3,290 |        |             |  | 145,127   |             |  |            | 423,344        |            |              |            | 28,018,391  |             |              |   | 114,927    |            |  |   | 9,156,653  |            |  |   | 18,746,811  |             |  |  | 3.9  | %    
|               |       |                  |       |        |             |  |           |             |  |            |                |            |              |            |             |             |              |   |            |            |  |   |            |           
|               | Total |                  |       | 44,337 |             |  |           | 19,499,515  |  |            |                | 13,452,603 |              |            | $           | 572,571,293 |              |   | $          | 30,331,920 |  |   | $          | 61,973,083 |  |   | $           | 480,266,290 |  |  |      | 100.0 | %
|               |       |                  |       |        |             |  |           |             |  |            |                |            |              |            |             |             |              |   |            |            |  |   |            |           






|    |                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Units (in this table only) refer to multifamily apartment
    units.                                                                                                                                           
|   
|(2) | NRA refers to net rentable area of office space.                                                                                                                                                               
|   
|(3) | GRA refers to gross retail area, which includes gross
    leasable area and space owned by anchor tenants.                                                                                                     
|   
|(4) | Includes our proportionate share of revenue from those
    multifamily, office and retail properties accounted for under
    the equity method and our share of revenue of the properties
    disposed in 2005.

46



---



##### 





Mortgage Financing




Mortgage Debt and Notes Payable


|                       |                             |               |  |                   |                  |                    |              |                     |  |  |               |                |  |          |  |          |     |  |   |        | 
|---------------------- | --------------------------- | ------------- |  | ----------------- | ---------------- | ------------------ | ------------ | ------------------- |  |  | ------------- | -------------- |  | -------- |  | -------- | --- |  | - | ------ | 
|                       |                             |               |  |                   |                  | Anticipated Annual |              |                     |  |  |              
|                       |                             |               |  | Principal Balance |                  |                    | Debt Service |                     |  |  |               | Balance Due on | 
|Property(1)            |                             | Interest Rate |  |                   | (as of 12/31/05) |                    |              | (1/1/06 - 12/31/06) |  |  | Maturity Date |                |  | Maturity | 
|                       |                             |               |  |                   |                  |                    |              |                     |  |  |               |                |  |          | 
|Multifamily Properties |                             |               |  |                   |                  |                    |              |                     |  |  |               |                |  |          |  |          |     |  |   |       
|                       | CG at Berkeley Lake         |               |  | 7.150             | %                |                    | $            | 7,996               |  |  | $             | 572            |  |          |  | 06/15/08 |     |  | $ | 7,247  | 
|                       | CG at Edgewater             |               |  | 6.810             | %                |                    |              | 20,692              |  |  |               | 1,409          |  |          |  | 01/01/11 |     |  |   | 18,830 | 
|                       | CG at Galleria              |               |  | 4.450             | %(6)             |                    |              | 22,400              |  |  |               | 997            |  |          |  | 06/15/26 | (2) |  |   | 22,400 | 
|                       | CG at Galleria              |               |  | 5.160             | %(6)             |                    |              | 11,105              |  |  |               | 573            |  |          |  | 07/01/15 |     |  |   | 11,105 | 
|                       | CG at Hammocks(4)           |               |  | 7.990             | %                |                    |              | 19,231              |  |  |               | 1,537          |  |          |  | 09/01/11 |     |  |   | 16,195 | 
|                       | CG at Hunters Creek        |               |  | 7.980             | %                |                    |              | 18,999              |  |  |               | 1,516          |  |          |  | 06/30/10 |     |  |   | 18,999 | 
|                       | CG at Hunters Creek        |               |  | 6.590             | %(5)             |                    |              | 10,266              |  |  |               | 677            |  |          |  | 06/30/10 |     |  |   | 7,405  | 
|                       | CG at Madison               |               |  | 5.350             | %(6)             |                    |              | 16,157              |  |  |               | 864            |  |          |  | 08/01/11 |     |  |   | 13,742 | 
|                       | CG at Mt Vernon             |               |  | 7.180             | %                |                    |              | 12,542              |  |  |               | 901            |  |          |  | 02/01/08 |     |  |   | 11,624 | 
|                       | CG at Natchez Trace (Ph II) |               |  | 8.250             | %                |                    |              | 3,920               |  |  |               | 323            |  |          |  | 02/01/37 |     |  |   |       | 
|                       | CG at Promenade             |               |  | 6.810             | %                |                    |              | 21,586              |  |  |               | 1,470          |  |          |  | 01/01/11 |     |  |   | 19,643 | 
|                       | CG at Quarterdeck(4)        |               |  | 7.730             | %                |                    |              | 10,115              |  |  |               | 782            |  |          |  | 07/01/09 |     |  |   | 8,871  | 
|                       | CG at Reservoir             |               |  | 5.600             | %(6)             |                    |              | 8,015               |  |  |               | 449            |  |          |  | 04/01/12 |     |  |   | 6,782  | 
|                       | CG at River Oaks            |               |  | 5.540             | %                |                    |              | 10,500              |  |  |               | 582            |  |          |  | 09/01/13 |     |  |   | 8,903  | 
|                       | CG at River Plantation      |               |  | 7.090             | %                |                    |              | 11,423              |  |  |               | 810            |  |          |  | 10/15/08 |     |  |   | 10,252 | 
|                       | CG at Riverchase            |               |  | 5.350             | %(6)             |                    |              | 19,027              |  |  |               | 1,018          |  |          |  | 07/01/11 |     |  |   | 15,934 | 
|                       | CG at Trinity Commons(4)    |               |  | 6.750             | %                |                    |              | 18,073              |  |  |               | 1,220          |  |          |  | 05/01/11 |     |  |   | 15,584 | 
|                       | CG at Valley Ranch(4)       |               |  | 6.890             | %(6)             |                    |              | 24,971              |  |  |               | 1,720          |  |          |  | 09/01/14 |     |  |   | 21,971 | 
|                       | CG at Wilmington(4)         |               |  | 6.750             | %                |                    |              | 13,279              |  |  |               | 896            |  |          |  | 05/01/11 |     |  |   | 11,435 | 
|                       | CV at Bear Creek(4)         |               |  | 7.160             | %                |                    |              | 3,508               |  |  |               | 251            |  |          |  | 07/01/11 |     |  |   | 2,983  | 
|                       | CV at Bedford(4)            |               |  | 6.990             | %                |                    |              | 8,711               |  |  |               | 609            |  |          |  | 04/01/11 |     |  |   | 7,483  | 
|                       | CV at Canyon Hills(4)       |               |  | 6.990             | %                |                    |              | 12,989              |  |  |               | 908            |  |          |  | 04/01/11 |     |  |   | 12,989 | 
|                       | CV at Chase Gayton(4)       |               |  | 7.160             | %                |                    |              | 16,381              |  |  |               | 1,173          |  |          |  | 08/01/11 |     |  |   | 13,945 | 
|                       | CV at Deerfield(4)          |               |  | 7.160             | %                |                    |              | 10,536              |  |  |               | 754            |  |          |  | 07/01/11 |     |  |   | 8,966  | 
|                       | CV at Estrada(4)            |               |  | 6.420             | %                |                    |              | 9,430               |  |  |               | 605            |  |          |  | 11/01/11 |     |  |   | 8,115  | 
|                       | CV at Greenbrier(4)         |               |  | 6.990             | %                |                    |              | 13,065              |  |  |               | 913            |  |          |  | 04/01/11 |     |  |   | 11,224 | 
|                       | CV at Greentree(4)          |               |  | 7.730             | %                |                    |              | 6,822               |  |  |               | 527            |  |          |  | 07/01/09 |     |  |   | 5,982  | 
|                       | CV at Hampton Glen(4)       |               |  | 6.680             | %                |                    |              | 12,881              |  |  |               | 860            |  |          |  | 04/01/12 |     |  |   | 10,913 | 
|                       | CV at Harbour Club(4)       |               |  | 6.990             | %                |                    |              | 8,686               |  |  |               | 607            |  |          |  | 04/01/11 |     |  |   | 7,461  | 
|                       | CV at Highland Hills(4)     |               |  | 6.990             | %                |                    |              | 15,140              |  |  |               | 1,058          |  |          |  | 04/01/11 |     |  |   | 13,007 | 
|                       | CV at Huntington(4)         |               |  | 7.970             | %                |                    |              | 5,017               |  |  |               | 400            |  |          |  | 09/01/07 |     |  |   | 4,694  | 
|                       | CV at Inverness             |               |  | 4.440             | %(6)             |                    |              | 9,900               |  |  |               | 440            |  |          |  | 06/15/26 | (2) |  |   | 9,900  | 
|                       | CV at Inverness             |               |  | 5.160             | %(6)             |                    |              | 1,205               |  |  |               | 62             |  |          |  | 07/01/15 |     |  |   | 1,205  | 
|                       | CV at Main Park(4)          |               |  | 7.160             | %                |                    |              | 8,728               |  |  |               | 625            |  |          |  | 07/01/11 |     |  |   | 7,427  | 
|                       | CV at Marsh Cove(4)         |               |  | 7.730             | %                |                    |              | 8,298               |  |  |               | 641            |  |          |  | 08/01/09 |     |  |   | 7,265  | 
|                       | CV at Meadow Creek(4)       |               |  | 7.160             | %                |                    |              | 9,887               |  |  |               | 708            |  |          |  | 07/01/11 |     |  |   | 8,417  | 
|                       | CV at North Arlington(4)    |               |  | 7.100             | %                |                    |              | 8,800               |  |  |               | 625            |  |          |  | 07/01/11 |     |  |   | 7,468  | 

47



---



##### 



|                        |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          |  |          |     |   |           |         |  
|----------------------- | --------------------------------------- | ------------- | ----- | ----------------- | ---------------- | ------------------ | ------------ | ------------------- | - | - | ------------- | -------------- |  | -------- |  | -------- | --- | - | --------- | ------- | -
|                        |                                         |               |       |                   |                  | Anticipated Annual |              |                     |   |   |              
|                        |                                         |               |       | Principal Balance |                  |                    | Debt Service |                     |   |   |               | Balance Due on | 
|Property(1)             |                                         | Interest Rate |       |                   | (as of 12/31/05) |                    |              | (1/1/06 - 12/31/06) |   |   | Maturity Date |                |  | Maturity | 
|                        |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          | 
|                        | CV at Pear Ridge(4)                     |               |       | 6.990             | %                |                    |              | 10,837              |   |   |               | 758            |  |          |  | 04/01/11 |     |   |           | 9,308   |  
|                        | CV at Pinnacle Ridge(4)                 |               |       | 7.160             | %                |                    |              | 5,162               |   |   |               | 370            |  |          |  | 07/01/11 |     |   |           | 4,391   |  
|                        | CV at Research Park                     |               |       | 4.520             | %(6)             |                    |              | 12,775              |   |   |               | 577            |  |          |  | 06/15/26 | (2) |   |           | 12,775  |  
|                        | CV at Research Park                     |               |       | 5.160             | %(6)             |                    |              | 14,945              |   |   |               | 771            |  |          |  | 07/01/15 |     |   |           | 14,945  |  
|                        | CV at Timber Crest(4)                   |               |       | 6.750             | %                |                    |              | 15,481              |   |   |               | 1,045          |  |          |  | 05/01/11 |     |   |           | 13,349  |  
|                        | CV at Timothy Woods                     |               |       | 7.490             | %                |                    |              | 9,023               |   |   |               | 676            |  |          |  | 09/01/09 |     |   |           | 8,325   |  
|                        | CV at Tradewinds(4)                     |               |       | 7.160             | %                |                    |              | 11,443              |   |   |               | 819            |  |          |  | 07/01/11 |     |   |           | 9,739   |  
|                        | CV at Trussville                        |               |       | 5.600             | %(6)             |                    |              | 15,739              |   |   |               | 881            |  |          |  | 04/01/12 |     |   |           | 13,438  |  
|                        | CV at Waterford(4)                      |               |       | 6.980             | %                |                    |              | 17,440              |   |   |               | 1,217          |  |          |  | 01/01/12 |     |   |           | 14,728  |  
|                        | CV at Waters Edge(4)                    |               |       | 7.730             | %                |                    |              | 7,308               |   |   |               | 565            |  |          |  | 07/01/09 |     |   |           | 6,409   |  
|                        | CV at Windsor Place(4)                  |               |       | 7.990             | %                |                    |              | 9,173               |   |   |               | 733            |  |          |  | 09/01/11 |     |   |           | 7,448   |  
|                        | Ashley Park(4)                          |               |       | 7.000             | %                |                    |              | 9,000               |   |   |               | 630            |  |          |  | 10/04/10 |     |   |           | 9,000   |  
|                        | Cottonwood Crossing(4)                  |               |       | 7.160             | %                |                    |              | 6,244               |   |   |               | 447            |  |          |  | 07/01/11 |     |   |           | 5,312   |  
|                        | Paces Cove(4)                           |               |       | 7.160             | %                |                    |              | 11,510              |   |   |               | 824            |  |          |  | 07/01/11 |     |   |           | 9,796   |  
|                        | Summer Tree(4)                          |               |       | 6.990             | %                |                    |              | 7,943               |   |   |               | 555            |  |          |  | 04/01/11 |     |   |           | 6,823   |  
|Office Properties       |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          |  |          |     |   |           |        
|                        | Colonial Center 100 at Mansell Overlook |               |       | 8.250             | %                |                    |              | 15,924              |   |   |               | 1,314          |  |          |  | 01/10/08 |     |   |           | 15,314  |  
|Retail Properties       |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          |  |          |     |   |           |        
|                        | CP Montgomery                           |               |       | 7.490             | %                |                    |              | 11,617              |   |   |               | 12,487         |  |          |  | 09/01/09 |     |   |           | 11,489  |  
|                        | CP Boulevard Square                     |               |       | 7.220             | %                |                    |              | 30,787              |   |   |               | 2,223          |  |          |  | 08/01/32 |     |   |           | 5,832   |  
|                        | CS Pines Plaza                          |               |       | 5.420             | %                |                    |              | 9,218               |   |   |               | 500            |  |          |  | 10/01/10 |     |   |           | 8,497   |  
|                        | CP Deerfield                            |               |       | 5.900             | %                |                    |              | 32,101              |   |   |               | 1,894          |  |          |  | 02/01/13 |     |   |           | 27,658  |  
|                        | CS College Parkway                      |               |       | 7.100             | %                |                    |              | 7,636               |   |   |               | 542            |  |          |  | 07/01/09 |     |   |           | 6,694   |  
|                        | Village on the Parkway                  |               |       | 5.770             | %                |                    |              | 47,000              |   |   |               | 2,712          |  |          |  | 07/11/11 |     |   |           | 47,000  |  
|Other debt:             |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          |  |          |     |   |           |        
|                        | Land Loan                               |               |       | 3.720             | %(6)             |                    |              | 365                 |   |   |               | 379            |  |          |  | 09/30/06 |     |   |           | 305     |  
|                        | Unsecured Credit Facility(3)            |               |       | 5.190             | %                |                    |              | 110,228             |   |   |               | 5,721          |  |          |  | 03/22/08 |     |   |           | 110,228 |  
|                        | Term Loan                               |               |       | 5.470             | %(7)             |                    |              | 100,000             |   |   |               | 5,470          |  |          |  | 03/22/08 |     |   |           | 100,000 |  
|                        | Medium Term Notes                       |               |       | 7.460             | %                |                    |              | 10,000              |   |   |               | 10,746         |  |          |  | 12/20/06 |     |   |           | 10,000  |  
|                        | Medium Term Notes                       |               |       | 8.800             | %                |                    |              | 20,000              |   |   |               | 1,760          |  |          |  | 02/01/10 |     |   |           | 20,000  |  
|                        | Medium Term Notes                       |               |       | 8.800             | %                |                    |              | 5,000               |   |   |               | 440            |  |          |  | 03/15/10 |     |   |           | 5,000   |  
|                        | Medium Term Notes                       |               |       | 8.050             | %                |                    |              | 10,000              |   |   |               | 805            |  |          |  | 12/27/10 |     |   |           | 10,000  |  
|                        | Medium Term Notes                       |               |       | 8.080             | %                |                    |              | 10,000              |   |   |               | 808            |  |          |  | 12/24/10 |     |   |           | 10,000  |  
|                        | Senior Unsecured Notes                  |               |       | 8.050             | %                |                    |              | 65,000              |   |   |               | 70,233         |  |          |  | 07/15/06 |     |   |           | 65,000  |  
|                        | Senior Unsecured Notes                  |               |       | 7.000             | %                |                    |              | 175,000             |   |   |               | 12,250         |  |          |  | 07/14/07 |     |   |           | 175,000 |  
|                        | Senior Unsecured Notes                  |               |       | 6.875             | %                |                    |              | 100,000             |   |   |               | 6,875          |  |          |  | 08/15/12 |     |   |           | 100,000 |  
|                        | Senior Unsecured Notes                  |               |       | 6.150             | %                |                    |              | 125,000             |   |   |               | 7,688          |  |          |  | 04/15/13 |     |   |           | 125,000 |  
|                        | Senior Unsecured Notes                  |               |       | 4.800             | %                |                    |              | 100,000             |   |   |               | 4,800          |  |          |  | 04/01/11 |     |   |           | 100,000 |  
|                        | Senior Unsecured Notes                  |               |       | 6.250             | %                |                    |              | 300,000             |   |   |               | 18,750         |  |          |  | 06/15/14 |     |   |           | 300,000 |  
|                        | Senior Unsecured Notes                  |               |       | 4.750             | %                |                    |              | 275,000             |   |   |               | 13,063         |  |          |  | 02/01/10 |     |   |           | 275,000 |  
|                        | Senior Unsecured Notes                  |               |       | 5.500             | %                |                    |              | 325,000             |   |   |               | 17,875         |  |          |  | 10/01/15 |     |   |           | 325,000 |  
|                        | Unamortized Discounts                   |               |       |                   |                  |                    |              | (4,834              | ) |   |               |               |  |          |  |          |     |   |           | (4,834  | )
|                        |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          | 
|TOTAL CONSOLIDATED DEBT |                                         |               | 6.146 | %                 |                  | $                  | 2,494,350    |                     |   | $ | 240,284       |                |  |          |  |          |     | $ | 2,390,335 |        
|                        |                                         |               |       |                   |                  |                    |              |                     |   |   |               |                |  |          | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Certain of the properties were developed in phases and
    separate mortgage indebtedness may encumber each of the various
    phases. In the listing of property names, CG has been used as an
    abbreviation for Colonial Grand, CP as an abbreviation for
    Colonial Promenade, CS as an abbreviation for Colonial Shoppes
    and CV as an abbreviation for Colonial Village.                        
|   
|(2) | The maturity date noted represents the date on which credit
    enhancement expires for the tax-exempt municipal bonds put in
    place as part of the original financing for the property. The
    stated maturity date for the loans is August 1, 2022.                                                                                                                                                    
|   
|(3) | This unsecured credit facility bears interest at a variable
    rate, based on LIBOR plus a spread of 80 basis points. The
    facility also includes a competitive bid feature that allows us
    to convert up to $250 million under the line of credit to a
    fixed rate, for a fixed term not to exceed 90 days. At
    December 31, 2005, we had $0 outstanding under the
    competitive bid feature.
|   
|(4) | Represents mortgage or note payable assumed in the
    Cornerstone acquisition.                                                                                                                                                                                                                                                                                                                              
|   
|(5) | Represents floating rate debt that has been swapped to a
    fixed rate of 6.59%.                                                                                                                                                                                                                                                                                                                            
|   
|(6) | Represents variable rate debt.                                                                                                                                                                                                                                                                                                                                                                               
|   
|(7) | Represents floating rate debt that has been swapped to a
    fixed rate of 5.470%.                                                                                                                                                                                                                                                                                                                           

48



---



##### 





|                                   |  |            |       |                 |                  |   |           |          |  |  |          |      |  |  |          | 
|---------------------------------- |  | ---------- | ----- | --------------- | ---------------- | - | --------- | -------- |  |  | -------- | ---- |  |  | -------- | 
|                                   |  |            |       | Companys Share |                  |   |           |          | 
|                                   |  | Companys  |       |                 | of Principal     |   |           |          |  | 
|                                   |  | Percentage |       |                 | Balance          |   |           | Interest |  |  | Maturity |     
|Unconsolidated Entity              |  | Ownership  |       |                 | (as of 12/31/05) |   |           | Rate     |  |  | Date     |     
|                                   |  |            |       |                 |                  |   |           |          |  |  |          |     
|Multifamily Properties:            |  |            |       |                 |                  |   |           |          |  |  |          |      |  |  |          | 
|Barrington, LLC (CG)               |  |            | 15.0% |                 |                  | $ | 942,014   |          |  |  | 7.60     | %    |  |  | 10/01/09 | 
|Mountain Brook, LLC (CG)           |  |            | 15.0% |                 |                  |   | 2,334,888 |          |  |  | 7.60     | %    |  |  | 10/01/09 | 
|Stockbridge, LLC (CV)              |  |            | 15.0% |                 |                  |   | 1,481,357 |          |  |  | 7.60     | %    |  |  | 10/01/09 | 
|Hillwood, LLC (CV)                 |  |            | 15.0% |                 |                  |   | 499,500   |          |  |  | 4.87     | %(1) |  |  | 12/15/30 | 
|Hillwood, LLC (CV)                 |  |            | 15.0% |                 |                  |   | 283,067   |          |  |  | 7.80     | %    |  |  | 10/01/20 | 
|Inverness Lakes I, LLC (CV)        |  |            | 15.0% |                 |                  |   | 600,000   |          |  |  | 4.83     | %(1) |  |  | 12/15/30 | 
|Inverness Lakes I, LLC (CV)        |  |            | 15.0% |                 |                  |   | 311,343   |          |  |  | 7.80     | %    |  |  | 07/01/20 | 
|Inverness Lakes II, LLC (CV)       |  |            | 15.0% |                 |                  |   | 1,939,106 |          |  |  | 8.11     | %    |  |  | 05/01/10 | 
|Rocky Ridge, LLC (CV)              |  |            | 15.0% |                 |                  |   | 900,000   |          |  |  | 5.00     | %(1) |  |  | 12/15/30 | 
|Rocky Ridge, LLC (CV)              |  |            | 15.0% |                 |                  |   | 260,956   |          |  |  | 7.74     | %    |  |  | 10/01/16 | 
|Bayshore (CG)                      |  |            | 25.0% |                 |                  |   | 4,841,888 |          |  |  | 6.85     | %    |  |  | 11/01/11 | 
|Palma Sola (CG)                    |  |            | 25.0% |                 |                  |   | 3,886,195 |          |  |  | 7.03     | %    |  |  | 04/01/12 | 
|Cunningham                         |  |            | 20.0% |                 |                  |   | 2,800,000 |          |  |  | 5.18     | %    |  |  | 06/15/09 | 
|Colony Woods                       |  |            | 10.0% |                 |                  |   | 1,715,000 |          |  |  | 4.18     | %    |  |  | 11/04/08 | 
|Madison at Shoal Run               |  |            | 10.0% |                 |                  |   | 980,000   |          |  |  | 4.18     | %    |  |  | 11/04/08 | 
|Meadows at Brook Highland          |  |            | 10.0% |                 |                  |   | 1,536,000 |          |  |  | 4.18     | %    |  |  | 11/04/08 | 
|Stone Ridge                        |  |            | 10.0% |                 |                  |   | 500,000   |          |  |  | 5.50     | %    |  |  | 01/01/09 | 
|Arbors at Windsor Lake             |  |            | 10.0% |                 |                  |   | 892,500   |          |  |  | 5.50     | %    |  |  | 01/01/09 | 
|Merritt at Godley Station          |  |            | 35.0% |                 |                  |   | 6,903,543 |          |  |  | 5.50     | %    |  |  | 06/01/25 | 
|Brentwood (CG)                     |  |            | 25.0% |                 |                  |   | 3,693,788 |          |  |  | 7.22     | %    |  |  | 01/01/11 | 
|Hendersonville (CV)                |  |            | 25.0% |                 |                  |   | 3,620,885 |          |  |  | 7.22     | %    |  |  | 01/01/11 | 
|Pinnacle High Resort  Fixed       |  |            | 20.0% |                 |                  |   | 2,966,000 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Pinnacle High Resort  Floating    |  |            | 20.0% |                 |                  |   | 741,600   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Pinnacle Estates  Fixed           |  |            | 20.0% |                 |                  |   | 3,312,200 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Pinnacle Estates  Floating        |  |            | 20.0% |                 |                  |   | 828,000   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Hacienda Del Rio  Fixed           |  |            | 20.0% |                 |                  |   | 972,640   |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Hacienda Del Rio  Floating        |  |            | 20.0% |                 |                  |   | 243,160   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Pinnacle at High Desert  Fixed    |  |            | 20.0% |                 |                  |   | 5,535,000 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Pinnacle at High Desert  Floating |  |            | 20.0% |                 |                  |   | 1,383,800 |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Desert Lakes  Fixed               |  |            | 20.0% |                 |                  |   | 1,903,680 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Desert Lakes  Floating            |  |            | 20.0% |                 |                  |   | 475,920   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Flamingo West  Fixed              |  |            | 20.0% |                 |                  |   | 3,151,040 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Flamingo West  Floating           |  |            | 20.0% |                 |                  |   | 787,760   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Talavera  Fixed                   |  |            | 20.0% |                 |                  |   | 3,780,000 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Talavera  Floating                |  |            | 20.0% |                 |                  |   | 945,000   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Colonial Del Rio  Fixed           |  |            | 20.0% |                 |                  |   | 1,306,800 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Colonial Del Rio  Floating        |  |            | 20.0% |                 |                  |   | 326,800   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Fairway Crossings  Fixed          |  |            | 20.0% |                 |                  |   | 2,050,560 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Fairway Crossings  Floating       |  |            | 20.0% |                 |                  |   | 514,857   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Posada Del Este  Fixed            |  |            | 20.0% |                 |                  |   | 890,880   |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Posada Del Este  Floating         |  |            | 20.0% |                 |                  |   | 222,720   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Casalindas  Fixed                 |  |            | 20.0% |                 |                  |   | 990,880   |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Casalindas  Floating              |  |            | 20.0% |                 |                  |   | 247,720   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Pinnacle Heights  Fixed           |  |            | 20.0% |                 |                  |   | 2,775,040 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Pinnacle Heights  Floating        |  |            | 20.0% |                 |                  |   | 693,760   |          |  |  | 5.39     | %(1) |  |  | 11/01/11 | 
|Spring Hill  Fixed                |  |            | 20.0% |                 |                  |   | 1,301,000 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Spring Hill  Floating             |  |            | 20.0% |                 |                  |   | 325,200   |          |  |  | 5.69     | %(1) |  |  | 11/01/11 | 
|Rancho Viejo  Fixed               |  |            | 20.0% |                 |                  |   | 1,533,800 |          |  |  | 4.67     | %    |  |  | 11/01/11 | 
|Rancho Viejo  Floating            |  |            | 20.0% |                 |                  |   | 383,400   |          |  |  | 5.69     | %(1) |  |  | 11/01/11 | 

49



---



##### 



|                                 |                           |            |       |                 |                  |  |            |             |  |  |          |      |   |  |          |  | 
|-------------------------------- | ------------------------- | ---------- | ----- | --------------- | ---------------- |  | ---------- | ----------- |  |  | -------- | ---- | - |  | -------- |  | 
|                                 |                           |            |       | Companys Share |                  |  |            |             | 
|                                 |                           | Companys  |       |                 | of Principal     |  |            |             |  | 
|                                 |                           | Percentage |       |                 | Balance          |  |            | Interest    |  |  | Maturity |     
|Unconsolidated Entity            |                           | Ownership  |       |                 | (as of 12/31/05) |  |            | Rate        |  |  | Date     |     
|                                 |                           |            |       |                 |                  |  |            |             |  |  |          |     
|La Entrada  Fixed               |                           |            | 20.0% |                 |                  |  | 889,920    |             |  |  | 4.67     | %    |   |  | 11/01/11 | 
|La Entrada  Floating            |                           |            | 20.0% |                 |                  |  | 222,480    |             |  |  | 5.39     | %(1) |   |  | 11/01/11 | 
|Arabian Trails  Fixed           |                           |            | 20.0% |                 |                  |  | 3,043,680  |             |  |  | 4.67     | %    |   |  | 11/01/11 | 
|Arabian Trails  Floating        |                           |            | 20.0% |                 |                  |  | 760,920    |             |  |  | 5.39     | %(1) |   |  | 11/01/11 | 
|The Grove at Riverchase          |                           |            | 20.0% |                 |                  |  | 3,850,000  |             |  |  | 5.05     | %    |   |  | 10/01/10 | 
|CG at Research Park  Durham     |                           |            | 20.0% |                 |                  |  | 4,784,463  |             |  |  | 5.28     | %    |   |  | 10/01/13 | 
|Office Property:                 |                           |            |       |                 |                  |  |            |             |  |  |          |      |   |  |          | 
|Land Title Building              |                           |            | 33.3% |                 |                  |  | 446,820    |             |  |  | 8.10     | %    |   |  | 02/01/15 | 
|Orlando Central Center           |                           |            | 15.0% |                 |                  |  | 8,730,000  |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|St Petersburg Center             |                           |            | 15.0% |                 |                  |  | 11,985,000 |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Tallahassee Apal Pky Center      |                           |            | 15.0% |                 |                  |  | 14,385,000 |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Memphis Germantown Center        |                           |            | 15.0% |                 |                  |  | 7,665,000  |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|Atlantic Center Plaza  Fixed    |                           |            | 15.0% |                 |                  |  | 11,991,712 |             |  |  | 5.49     | %    |   |  | 01/01/15 | 
|Atlantic Center Plaza  Floating |                           |            | 15.0% |                 |                  |  | 1,875,000  |             |  |  | 6.44     | %(1) |   |  | 01/01/08 | 
|Atlanta Chamblee Center          |                           |            | 15.0% |                 |                  |  | 20,550,000 |             |  |  | 6.14     | %(1) |   |  | 09/30/07 | 
|Ravinia  Fixed                  |                           |            | 15.0% |                 |                  |  | 12,742,913 |             |  |  | 5.26     | %    |   |  | 01/01/08 | 
|Ravinia  Floating               |                           |            | 15.0% |                 |                  |  | 1,950,000  |             |  |  | 6.44     | %(1) |   |  | 01/01/08 | 
|Ravinia  Mezzanine              |                           |            | 15.0% |                 |                  |  | 2,917,500  |             |  |  | 8.14     | %(1) |   |  | 09/30/06 | 
|Atlanta Perimeter Center         |                           |            | 15.0% |                 |                  |  | 2,790,000  |             |  |  | 6.14     | %(1) |   |  | 09/30/07 | 
|Atlanta Gwinnett Center          |                           |            | 15.0% |                 |                  |  | 4,995,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Orlando University Center        |                           |            | 15.0% |                 |                  |  | 7,755,000  |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|Orlando Lake Mary Center         |                           |            | 15.0% |                 |                  |  | 6,060,000  |             |  |  | 6.14     | %(1) |   |  | 09/30/07 | 
|Richmond Paragon                 |                           |            | 15.0% |                 |                  |  | 3,480,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Decoverly  Fixed                |                           |            | 15.0% |                 |                  |  | 3,750,000  |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|Decoverly  Floating             |                           |            | 15.0% |                 |                  |  | 720,000    |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Broward Financial                |                           |            | 15.0% |                 |                  |  | 6,937,204  |             |  |  | 4.84     | %    |   |  | 02/10/08 | 
|Las Olas                         |                           |            | 15.0% |                 |                  |  | 14,720,384 |             |  |  | 5.32     | %    |   |  | 12/11/14 | 
|Charlotte University Center      |                           |            | 15.0% |                 |                  |  | 2,790,000  |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|Charlotte Vanguard Center        |                           |            | 15.0% |                 |                  |  | 6,810,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Jacksonville Baymeadows Center   |                           |            | 15.0% |                 |                  |  | 12,840,000 |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|Baymeadows                       |                           |            | 15.0% |                 |                  |  | 2,076,907  |             |  |  | 5.55     | %    |   |  | 06/11/14 | 
|Westchase                        |                           |            | 15.0% |                 |                  |  | 2,276,961  |             |  |  | 5.39     | %    |   |  | 09/11/14 | 
|Jacksonville JTB Center          |                           |            | 15.0% |                 |                  |  | 4,320,000  |             |  |  | 5.35     | %    |   |  | 09/30/10 | 
|Landstar                         |                           |            | 15.0% |                 |                  |  | 3,600,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|McGinnis Park  Fixed            |                           |            | 15.0% |                 |                  |  | 146,812    |             |  |  | 8.00     | %    |   |  | 04/09/07 | 
|McGinnis Park  Floating         |                           |            | 15.0% |                 |                  |  | 2,610,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Post Oak                         |                           |            | 15.0% |                 |                  |  | 17,205,000 |             |  |  | 6.14     | %(1) |   |  | 09/30/07 | 
|Dallas 6600 Campus Circle        |                           |            | 15.0% |                 |                  |  | 2,265,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Dallas Tollway Crossing          |                           |            | 15.0% |                 |                  |  | 3,360,000  |             |  |  | 6.64     | %(1) |   |  | 04/09/07 | 
|Signature Place                  |                           |            | 15.0% |                 |                  |  | 4,320,000  |             |  |  | 6.39     | %(1) |   |  | 02/10/08 | 
|Retail Properties:               |                           |            |       |                 |                  |  |            |             |  |  |          |      |   |  |          | 
|CP Hoover                        |                           |            | 10.0% |                 |                  |  | 1,713,967  |             |  |  | 5.94     | %    |   |  | 01/11/13 | 
|Glynn Place Mall JV              |                           |            | 10.0% |                 |                  |  | 2,300,000  |             |  |  | 5.25     | %    |   |  | 12/08/10 | 
|Valdosta Mall JV                 |                           |            | 10.0% |                 |                  |  | 5,160,000  |             |  |  | 5.27     | %    |   |  | 12/08/15 | 
|Bel Air Mall JV                  |                           |            | 10.0% |                 |                  |  | 12,240,000 |             |  |  | 5.30     | %    |   |  | 12/08/15 | 
|Myrtle Beach Mall JV             |                           |            | 10.0% |                 |                  |  | 5,020,000  |             |  |  | 6.09     | %(1) |   |  | 12/11/07 | 
|University Village Mall JV       |                           |            | 10.0% |                 |                  |  | 3,179,000  |             |  |  | 6.04     | %(1) |   |  | 12/11/07 | 
|Greenville Mall JV               |                           |            | 10.0% |                 |                  |  | 4,467,500  |             |  |  | 5.29     | %    |   |  | 12/08/15 | 
|Colonial Pinnacle Turkey Creek   |                           |            | 50.0% |                 |                  |  | 6,508,893  |             |  |  | 6.19     | %    |   |  | 12/20/06 | 
|Parkway Place                    |                           |            | 45.0% |                 |                  |  | 26,415,000 |             |  |  | 5.39     | %(1) |   |  | 06/28/08 | 
|                                 |                           |            |       |                 |                  |  |            |             |  |  |          |     
|                                 | Total Unconsolidated Debt |            |       |                 |                  |  | $          | 373,134,283 |  |  |          | 4.85 | % |  |          |  | 
|                                 |                           |            |       |                 |                  |  |            |             |  |  |          |     

50



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##### 








|    |                               
|--- | ------------------------------
|(1) | Represents variable rate debt.



|        |                   
|------- | ------------------
|Item 3. | Legal Proceedings.





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



51



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##### 



PART II




|        |                                                                           
|------- | --------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity and Related
    Shareholder Matters.



|                |                |      |   |       |     |  |   |              |  |  |   |      | 
|--------------- | -------------- | ---- | - | ----- | --- |  | - | ------------ |  |  | - | ---- | 
|Calendar Period |                | High |   |       | Low |  |   | Distribution | 
|                |                |      |   |       |     |  |   |              | 
|2005:           |                |      |   |       |     |  |   |              |  |  |   |     
|                | First Quarter  |      | $ | 39.15 |     |  | $ | 35.55        |  |  | $ | .675 | 
|                | Second Quarter |      | $ | 44.24 |     |  | $ | 37.45        |  |  | $ | .675 | 
|                | Third Quarter  |      | $ | 47.90 |     |  | $ | 42.02        |  |  | $ | .675 | 
|                | Fourth Quarter |      | $ | 44.63 |     |  | $ | 40.60        |  |  | $ | .675 | 
|2004:           |                |      |   |       |     |  |   |              |  |  |   |     
|                | First Quarter  |      | $ | 41.70 |     |  | $ | 37.93        |  |  | $ | .670 | 
|                | Second Quarter |      | $ | 41.22 |     |  | $ | 33.10        |  |  | $ | .670 | 
|                | Third Quarter  |      | $ | 42.00 |     |  | $ | 37.23        |  |  | $ | .670 | 
|                | Fourth Quarter |      | $ | 42.79 |     |  | $ | 38.63        |  |  | $ | .670 | 





52



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##### 





|        |                         
|------- | ------------------------
|Item 6. | Selected Financial Data.

10-K.


COLONIAL PROPERTIES TRUST


SELECTED FINANCIAL INFORMATION


|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |         |      | 
|------------------------------------------- | ----------------------------------- | ------------------------------------- | --------- | -------- | ---- | - | --------- | -------- | ---- | - | --------- | -------- | ---- | ---- | --------- | ------- | ---- | - | --------- | ------- | ---- | 
|                                            |                                     | 2005                                  |           |          | 2004 |   |           | 2003     |      |   | 2002      |          |      | 2001 |          
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|                                            |                                     | (In thousands, except per share data) |          
|OPERATING DATA                              |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|Total revenue                               |                                     | $                                     | 495,443   |          |      | $ | 317,630   |          |      | $ | 272,296   |          |      | $    | 262,016   |         |      | $ | 247,945   |        
|Expenses:                                   |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|                                            | Depreciation and amortization       |                                       |           | 181,723  |      |   |           | 88,025   |      |   |           | 74,338   |      |      |           | 67,961  |      |   |           | 58,131  |     
|                                            | Other operating                     |                                       |           | 207,814  |      |   |           | 126,031  |      |   |           | 103,753  |      |      |           | 93,253  |      |   |           | 83,061  |     
|Income from operations                      |                                     |                                       | 105,906   |          |      |   | 103,574   |          |      |   | 94,205    |          |      |      | 100,802   |         |      |   | 106,753   |        
|Interest expense                            |                                     |                                       | 130,636   |          |      |   | 77,743    |          |      |   | 61,896    |          |      |      | 59,071    |         |      |   | 65,614    |        
|Interest income                             |                                     |                                       | 4,460     |          |      |   | 1,064     |          |      |   | 792       |          |      |      | 1,299     |         |      |   | 1,049     |        
|Other income, net                           |                                     |                                       | 108,707   |          |      |   | 9,701     |          |      |   | 7,218     |          |      |      | 35,820    |         |      |   | 16,637    |        
|Income from continuing operations           |                                     |                                       | 63,551    |          |      |   | 24,942    |          |      |   | 27,984    |          |      |      | 51,945    |         |      |   | 37,146    |        
|Income from discontinued operations         |                                     |                                       | 156,090   |          |      |   | 29,676    |          |      |   | 24,281    |          |      |      | 21,432    |         |      |   | 18,463    |        
|Dividends to preferred shareholders         |                                     |                                       | 22,391    |          |      |   | 14,781    |          |      |   | 15,284    |          |      |      | 15,565    |         |      |   | 13,407    |        
|Distributions to preferred unitholders      |                                     |                                       | 7,250     |          |      |   | 7,494     |          |      |   | 8,875     |          |      |      | 8,873     |         |      |   | 8,873     |        
|Net income available to common shareholders |                                     |                                       | 197,250   |          |      |   | 39,837    |          |      |   | 32,530    |          |      |      | 57,812    |         |      |   | 42,202    |        
|Per share  basic:                          |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|                                            | Income from continuing operations   |                                       | $         | 1.08     |      |   | $         | 0.38     |      |   | $         | 0.33     |      |      | $         | 1.64    |      |   | $         | 1.14    |     
|                                            | Income from discontinued operations |                                       |           | 4.10     |      |   |           | 1.09     |      |   |           | 0.97     |      |      |           | 0.97    |      |   |           | 0.89    |     
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|                                            |                                     | Net income per share  basic          |           | $        | 5.18 |   |           | $        | 1.47 |   |           | $        | 1.30 |      |           | $       | 2.61 |   |           | $       | 2.03 | 
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|Per share  diluted:                        |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|                                            | Income from continuing operations   |                                       | $         | 1.07     |      |   | $         | 0.37     |      |   | $         | 0.33     |      |      | $         | 1.62    |      |   | $         | 1.14    |     
|                                            | Income from discontinued operations |                                       |           | 4.06     |      |   |           | 1.08     |      |   |           | 0.96     |      |      |           | 0.96    |      |   |           | 0.88    |     
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|                                            |                                     | Net income per share  diluted        |           | $        | 5.13 |   |           | $        | 1.45 |   |           | $        | 1.29 |      |           | $       | 2.58 |   |           | $       | 2.02 | 
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|Dividends declared per common share         |                                     | $                                     | 2.70      |          |      | $ | 2.68      |          |      | $ | 2.66      |          |      | $    | 2.64      |         |      | $ | 2.52      |        
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|BALANCE SHEET DATA                          |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|Land, buildings and equipment, net          |                                     | $                                     | 3,888,932 |          |      | $ | 2,426,381 |          |      | $ | 1,970,699 |          |      | $    | 1,947,078 |         |      | $ | 1,756,260 |        
|Total assets                                |                                     |                                       | 4,499,258 |          |      |   | 2,801,343 |          |      |   | 2,194,927 |          |      |      | 2,129,856 |         |      |   | 2,014,623 |        
|Total long-term liabilities                 |                                     |                                       | 2,494,350 |          |      |   | 1,855,787 |          |      |   | 1,267,865 |          |      |      | 1,262,193 |         |      |   | 1,191,791 |        
|                                            |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |          
|OTHER DATA                                  |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|Funds from operations(1)*                   |                                     | $                                     | 177,931   |          |      | $ | 137,610   |          |      | $ | 123,050   |          |      | $    | 128,110   | (2)     |      | $ | 120,402   | (2)    
|Total market capitalization(3)              |                                     |                                       | 5,242,012 |          |      |   | 3,621,947 |          |      |   | 2,998,390 |          |      |      | 2,679,607 |         |      |   | 2,466,524 |        
|Cash flow provided by (used in)             |                                     |                                       |           |          |      |   |           |          |      |   |           |          |      |      |           |         |      |   |           |        
|                                            | Operating activities                |                                       |           | 154,174  |      |   |           | 139,241  |      |   |           | 137,803  |      |      |           | 141,993 |      |   |           | 136,559 |     
|                                            | Investing activities                |                                       |           | (310     | )    |   |           | (446,035 | )    |   |           | (122,555 | )    |      |           | (99,861 | )    |   |           | (88,872 | )   
|                                            | Financing activities                |                                       |           | (133,974 | )    |   |           | 309,449  |      |   |           | (13,414  | )    |      |           | (46,025 | )    |   |           | (41,835 | )   
|Total properties (at end of year)           |                                     |                                       | 261       |          |      |   | 153       |          |      |   | 112       |          |      |      | 106       |         |      |   | 108       |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Pursuant to the definition of Funds from Operations
    (FFO) adopted by the Board of Governors of the National
    Association of Real Estate Investment Trusts (NAREIT), FFO is
    calculated by adjusting net income (loss) (computed in
    accordance with GAAP), excluding gains (or losses) from sales of
    depreciated property, plus depreciation and amortization, and
    after adjustments for unconsolidated partnerships and joint
    ventures. Adjustments for unconsolidated partnerships and joint
    ventures are calculated to reflect FFO on the same basis.



| |  |                                                                                                                                                                                                                                                                                           
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Company believes that FFO is useful to investors because
    it provides an additional indicator of the Companys
    financial and operating performance. This is because, by
    excluding the effect of real estate depreciation and gains (or
    losses) from sales of properties

53



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##### 



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (all of which are based on
    historical costs which may be of limited relevance in evaluating
    current performance), FFO can facilitate comparison of operating
    performance among equity REITs. FFO is a widely recognized
    measure in the Companys industry. FFO does not represent
    cash generated from operating activities determined in
    accordance with GAAP, and should not be considered as an
    alternative to net cash flows from operating activities
    (determined in accordance with GAAP), as a measure of our
    liquidity, or as an indicator of our ability to make cash
    distributions.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | FFO has been revised for years ended 2002 and 2001 to conform
    to NAREITs FFO definition. For more information, see
    Item 7 Managements Discussion and Analysis of
    Financial Condition and Results of Operations  Funds
    from Operations.                                                                                                                                                                                                                       
|   
|(3) | Total market capitalization is defined as the market value of
    outstanding common shares of the Company and operating
    partnership units of CRLP, plus preferred equity and
    consolidated debt of the Company. This amount was calculated
    assuming the conversion of 10,872,568, 10,372,650, 10,361,034,
    10,788,341 and 11,159,027 units of minority interest in
    CRLP into the Companys Common Shares for 2005, 2004, 2003,
    2002 and 2001, respectively.
|   
|*   | Non-GAAP financial measure. See Item 7
    Managements Discussion and Analysis of Financial
    Condition and Results of Operations - Funds from
    Operations for reconciliation.                                                                                                                                                                                                                                                                                            



|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations.

10-K.


General


build-to




54



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##### 





|                       |                                      |                         |                   |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |        |     |  | 
|---------------------- | ------------------------------------ | ----------------------- | ----------------- | ------ | ----------------- |  | - | ----------------- | --- |  | ---- | ------ | --- | ---- | - | ------ | ---- |  | - | ------ | --- |  | - | ------ | --- |  | 
|                       |                                      | Consolidated            |                   |        | Unconsolidated    |  |   |                  
|                       |                                      | Properties              |                   |        | Properties        |  |   | Total Properties  |    
|                       |                                      |                         |                   |        |                   |  |   |                   |    
|                       |                                      | As of and for the       |                   |        | As of and for the |  |   | As of and for the |    
|                       |                                      | Year Ended              |                   |        | Year Ended        |  |   | Year Ended        |    
|                       |                                      | December 31,            |                   |        | December 31,      |  |   | December 31,      |    
|                       |                                      |                         |                   |        |                   |  |   |                   |    
|                       |                                      | 2005                    |                   |        | 2004              |  |   | 2005              |     |  | 2004 |        |     | 2005 |   |        | 2004 | 
|                       |                                      |                         |                   |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      | 
|Multifamily Properties |                                      |                         |                   |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |       
|                       | Physical Occupancy                   |                         |                   | 95.3   | %                 |  |   | 94.7              | %   |  |      | 95.6   | %   |      |   | 92.9   | %    |  |   | 95.3   | %   |  |   | 94.6   | %  
|                       | Same-Property Economic Occupancy(1)  |                         |                   | 84.2   | %                 |  |   | 81.8              | %   |  |      | n/a    |     |      |   | n/a    |      |  |   | 84.2   | %   |  |   | 81.8   | %  
|                       | End of Month Scheduled Base          |                         |                   |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |        |    
|                       |                                      | Rent per Unit per Month |                   | $      | 817               |  |   | $                 | 851 |  |      | $      | 815 |      |   | $      | 782  |  |   | $      | 828 |  |   | $      | 844 | 
|                       | Capital Expenditures per Unit        |                         | $                 | 682    |                   |  | $ | 690               |     |  | $    | 853    |     |      | $ | 487    |      |  | $ | 710    |     |  | $ | 609    |    
|                       |                                      |                         | Office Properties |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |        |     |  | 
|                       | Physical Occupancy                   |                         |                   | 92.4   | %                 |  |   | 92.2              | %   |  |      | 86.4   | %   |      |   | 100.0  | %    |  |   | 91.3   | %   |  |   | 92.2   | %  
|                       | Base Rent per Square Foot            |                         | $                 | 19.25  |                   |  | $ | 18.28             |     |  | $    | 21.22  |     |      | $ | 14.86  |      |  | $ | 19.60  |     |  | $ | 17.48  |    
|                       | Capital Expenditures per Square Foot |                         | $                 | 3.53   |                   |  | $ | 2.48              |     |  | $    | 0.79   |     |      | $ |       |      |  | $ | 3.51   |     |  | $ | 2.48   |    
|                       |                                      |                         | Retail Properties |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |        |     |  | 
|Regional Malls:        |                                      |                         |                   |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |       
|                       | Physical Occupancy                   |                         |                   | 93.2   | %                 |  |   | 93.8              | %   |  |      | 93.3   | %   |      |   | 81.9   | %    |  |   | 93.4   | %   |  |   | 93.4   | %  
|                       | Base Rent per Square Foot            |                         | $                 | 20.76  |                   |  | $ | 22.25             |     |  | $    | 24.12  |     |      | $ | 22.86  |      |  | $ | 22.99  |     |  | $ | 22.86  |    
|                       | Tenant Gross Sales per Square Foot   |                         | $                 | 255.64 |                   |  | $ | 271.03            |     |  | $    | 287.69 |     |      | $ | 272.05 |      |  | $ | 276.43 |     |  | $ | 271.19 |    
|Shopping Centers:      |                                      |                         |                   |        |                   |  |   |                   |     |  |      |        |     |      |   |        |      |  |   |        |     |  |   |       
|                       | Physical Occupancy                   |                         |                   | 90.2   | %                 |  |   | 87.9              | %   |  |      | 94.6   | %   |      |   | 99.3   | %    |  |   | 91.0   | %   |  |   | 88.5   | %  
|                       | Base Rent per Square Foot            |                         | $                 | 17.20  |                   |  | $ | 16.61             |     |  | $    | 17.41  |     |      | $ | 17.23  |      |  | $ | 17.21  |     |  | $ | 16.65  |    
|                       | Tenant Gross Sales per Square Foot   |                         | $                 | 227.31 |                   |  | $ | 212.70            |     |  | $    | 274.29 |     |      | $ | 237.48 |      |  | $ | 229.55 |     |  | $ | 214.16 |    






|    |                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Economic Occupancy represents scheduled base rents, less
    vacancy loss, all concessions adjusted for straightline
    (including but not limited to: renewals, move-ins, models,
    employee units), and bad debts divided by scheduled base
    rents.





| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changes in job growth, household formation and population growth
    in our markets;                                                                        
|
| |  | changes in interest rates;                                                                                                                                  
|
| |  | supply and demand for apartment properties in our current
    markets; and                                                                                  
|
| |  | competition, which could limit our ability to secure attractive
    investment opportunities, lease apartment properties, or
    increase or maintain rents.



55



---



##### 











Merger with Cornerstone Realty Income Trust, Inc.




Recent Activity








56



---



##### 













10-K),


Comparison of the year ended December 31, 2005 to the
year ended December 31, 2004


Base rent


Percentage rent 10-K).


57



---



##### 



Tenant recoveries


Other property related revenue


Other non-property related revenue


General operating expenses


Salaries and benefits


Repairs and maintenance


Taxes, licenses and insurance


General and administrative 10-K).


Depreciation and amortization


Interest expense


58



---



##### 





Interest Income


Income from partially owned entities


Gains from sales of property


Income taxes


Other income (expense)


Income from discontinued operations 10-K).


Comparison of the year ended December 31, 2004 to the
year ended December 31, 2003


Base rent


Percentage rent


Tenant recoveries


Other property related revenue


59



---



##### 



Other non-property related revenue 10-K).


General operating expenses


Salaries and benefits


Repairs and maintenance


Taxes, licenses and insurance


General and administrative


Depreciation and amortization


Interest expense


Income from partially owned entities


Gains from sales of property


60



---



##### 



Income taxes


Other income (expense)


Summary of Critical Accounting Policies






| |                               
| | ------------------------------
| | Land, Buildings, and Equipment



|                       |  |              |                 | 
|---------------------- |  | ------------ | --------------- | 
|                       |  | Useful Lives |                
|                       |  |              |                
|Buildings              |  |              | 40 years        | 
|Furniture and fixtures |  |              | 5 or 7 years    | 
|Equipment              |  |              | 3 or 5 years    | 
|Land improvements      |  |              | 10 or 15  years | 
|Tenant improvements    |  |              | Life of lease   | 





| |                                  
| | ---------------------------------
| | Acquisition of Real Estate Assets



61



---



##### 



Determining Whether a Non-monetary Transaction Involves
Receipt of Productive Assets or of a Business.






lease-up lease-up










| |                        
| | -----------------------
| | Real Estate Development



62



---



##### 







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





| |                    
| | -------------------
| | Revenue Recognition









| |                 
| | ----------------
| | Notes Receivable





| |                         
| | ------------------------
| | Valuation of Receivables



63



---



##### 







| |                       
| | ----------------------
| | Derivative Instruments





Recent Pronouncements of the Financial Accounting Standards
Board (FASB)


Consolidation of Variable Interest
Entities.




Share Based
Payment


64



---



##### 





04-5, Investors Accounting for an Investment in a Limited
Partnership When the Investor is the Sole General Partner and
the Limited Partners Have Certain Rights. 04-5 04-5 04-5


Accounting for Conditional Asset
Retirement Obligations


Liquidity and Capital Resources




| |                           
| | --------------------------
| | Short-Term Liquidity Needs









| |                          
| | -------------------------
| | Long-Term Liquidity Needs



65



---



##### 

















66



---



##### 





| |                     
| | --------------------
| | Investing Activities









| |         
| | --------
| | Dividend





| |                       
| | ----------------------
| | Financing Transactions





67



---



##### 





10-K).


10-K).


10-K), 10-K).




Credit Ratings




|                  |  |           |      |  |             |                  
|----------------- |  | --------- | ---- |  | ----------- | -----------------
|Rating Agency     |  | Rating(1) |      |  | Last Update
|                  |  |           |      |  |            
|Standard & Poors |  |           | BBB- |  |             | December 27, 2004
|Moodys           |  |           | Baa3 |  |             | January 12, 2005 
|Fitch             |  |           | BBB- |  |             | November 15, 2005






|    |                             
|--- | ----------------------------
|(1) | Ratings outlook is stable.



68



---



##### 



Market Risk




|                                           |  |                        |        |  |      |   |         |      |  |   |         |  |  |      |        |           |            |   |         |       |  |   |            |  |  |   |           |  |  |   |           | 
|------------------------------------------ |  | ---------------------- | ------ |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------ | --------- | ---------- | - | ------- | ----- |  | - | ---------- |  |  | - | --------- |  |  | - | --------- | 
|                                           |  |                        |        |  |      |   |         |      |  |   |         |  |  |      |        | Estimated |           
|                                           |  | 2006                   |        |  | 2007 |   |         | 2008 |  |   | 2009    |  |  | 2010 |        |           | Thereafter |   |         | Total |  |   | Fair Value | 
|                                           |  |                        |        |  |      |   |         |      |  |   |         |  |  |      |        |           |            |   |         |       |  |   |            | 
|                                           |  | (Amounts in thousands) |        |  |     
|Fixed Rate Debt                            |  | $                      | 86,617 |  |      | $ | 180,017 |      |  | $ | 147,886 |  |  | $    | 49,203 |           |            | $ | 367,483 |       |  | $ | 1,396,312  |  |  | $ | 2,227,518 |  |  | $ | 2,312,155 | 
|Average interest rate at December 31, 2005 |  |                        | 7.9%   |  |      |   | 7.0%    |      |  |   | 5.7%    |  |  |      | 7.6%   |           |            |   | 5.5%    |       |  |   | 6.2%       |  |  |   | 6.0%      |  |  |   |           | 
|Variable Debt                              |  | $                      | 365    |  |      | $ |        |      |  | $ | 110,228 |  |  | $    |       |           |            | $ |        |       |  | $ | 156,239    |  |  | $ | 266,832   |  |  | $ | 266,832   | 
|Average interest rate at December 31, 2005 |  |                        | 3.7%   |  |      |   |         |      |  |   | 5.2%    |  |  |      |        |           |            |   |         |       |  |   | 5.4%       |  |  |   | 5.3%      |  |  |   |           | 







69



---



##### 





|                               |  |                |               |          |      |  |         |                |                      |  |                   |  |  |   |       |  
|------------------------------ |  | -------------- | ------------- | -------- | ---- |  | ------- | -------------- | -------------------- |  | ----------------- |  |  | - | ----- | -
|                               |  |                |               |          |      |  |         | Fair Value     |                     
|                               |  |                |               | Interest |      |  |         |                | at December 31, 2005 | 
|Product Type                   |  | Notional Value |               |          | Rate |  |         | Maturity       |                      |  | Asset (Liability) | 
|                               |  |                |               |          |      |  |         |                |                      |  |                   | 
|                               |  |                |               |          |      |  |         | (In thousands) |                     
|Interest Rate SWAP, Cash Flow  |  | $              | 11.2 million  |          |      |  | 5.932%  |                |                      |  | 1/1/06            |  |  | $ | (15   | )
|Interest Rate CAP, Cash Flow   |  | $              | 16.4 million  |          |      |  | 4.840%  |                |                      |  | 4/1/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $              | 25.9 million  |          |      |  | 4.840%  |                |                      |  | 4/1/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $              | 8.4 million   |          |      |  | 4.840%  |                |                      |  | 4/1/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $              | 30.4 million  |          |      |  | 11.200% |                |                      |  | 7/3/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $              | 19.7 million  |          |      |  | 6.850%  |                |                      |  | 6/29/07           |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $              | 16.7 million  |          |      |  | 6.850%  |                |                      |  | 7/3/07            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $              | 12.8 million  |          |      |  | 6.000%  |                |                      |  | 7/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $              | 22.4 million  |          |      |  | 6.000%  |                |                      |  | 7/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $              | 9.9 million   |          |      |  | 6.000%  |                |                      |  | 7/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $              | 10.0 million  |          |      |  | 8.373%  |                |                      |  | 8/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $              | 14.9 million  |          |      |  | 7.543%  |                |                      |  | 8/1/08            |  |  |   | 3     |  
|Interest Rate CAP, Cash Flow   |  | $              | 7.4 million   |          |      |  | 6.983%  |                |                      |  | 8/1/08            |  |  |   | 3     |  
|Interest Rate CAP, Cash Flow   |  | $              | 6.2 million   |          |      |  | 8.373%  |                |                      |  | 8/1/08            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $              | 13.3 million  |          |      |  | 6.786%  |                |                      |  | 9/1/08            |  |  |   | 8     |  
|Interest Rate CAP, Cash Flow   |  | $              | 5.5 million   |          |      |  | 7.900%  |                |                      |  | 2/1/09            |  |  |   | 2     |  
|Interest Rate CAP, Cash Flow   |  | $              | 17.6 million  |          |      |  | 8.100%  |                |                      |  | 2/1/09            |  |  |   | 4     |  
|Interest Rate SWAP, Fair Value |  | $              | 100.0 million |          |      |  | 4.803%  |                |                      |  | 4/1/11            |  |  |   | 325   |  
|Interest Rate SWAP, Cash Flow  |  | $              | 200.0 million |          |      |  | 4.830%  |                |                      |  | 2/15/16           |  |  |   | 1,532 |  
|Interest Rate SWAP, Cash Flow  |  | $              | 175.0 million |          |      |  | 4.877%  |                |                      |  | 7/13/17           |  |  |   | 1,153 |  







70



---



##### 



Contractual Obligations and Other Commercial Commitments






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

|                     |                             |                        |           |           |      |   |        |        |  |   |         |         |  |      |         |         |      |   |        |            |  |   |         |         |  |   |           |           | 
|-------------------- | --------------------------- | ---------------------- | --------- | --------- | ---- | - | ------ | ------ |  | - | ------- | ------- |  | ---- | ------- | ------- | ---- | - | ------ | ---------- |  | - | ------- | ------- |  | - | --------- | --------- | 
|                     |                             | Payments Due in Fiscal |          
|                     |                             |                        |          
|                     |                             | Total                  |           |           | 2006 |   |        | 2007   |  |   | 2008    |         |  | 2009 |         |         | 2010 |   |        | Thereafter | 
|                     |                             |                        |           |           |      |   |        |        |  |   |         |         |  |      |         |         |      |   |        |            | 
|                     |                             | (In thousands)         |          
|Long-Term Debt:      |                             |                        |           |           |      |   |        |        |  |   |         |         |  |      |         |         |      |   |        |            |  |   |         |         |  |   |           |          
|                     | Consolidated                |                        | $         | 2,494,351 |      |   | $      | 86,982 |  |   | $       | 180,017 |  |      | $       | 258,114 |      |   | $      | 49,203     |  |   | $       | 367,483 |  |   | $         | 1,552,552 | 
|                     | Partially Owned Entities(1) |                        |           | 373,134   |      |   |        | 9,426  |  |   |         | 109,161 |  |      |         | 58,471  |      |   |        | 8,951      |  |   |         | 55,939  |  |   |           | 131,186   | 
|                     |                             |                        |           |           |      |   |        |        |  |   |         |         |  |      |         |         |      |   |        |            | 
|Total Long-Term Debt |                             | $                      | 2,867,485 |           |      | $ | 96,408 |        |  | $ | 289,178 |         |  | $    | 316,585 |         |      | $ | 58,154 |            |  | $ | 423,422 |         |  | $ | 1,683,738 |          
|                     |                             |                        |           |           |      |   |        |        |  |   |         |         |  |      |         |         |      |   |        |            | 






|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(1) | Represents the Companys pro rata share of principal
    maturities and excludes net premiums and discounts.



| |                             
| | ----------------------------
| | Other Commercial Commitments

|                             |  |                |        |  |      |   |       |      |  |   |        |  |      |   |      |  |            |   |   |  |  |   |   |  |  |   |       | 
|---------------------------- |  | -------------- | ------ |  | ---- | - | ----- | ---- |  | - | ------ |  | ---- | - | ---- |  | ---------- | - | - |  |  | - | - |  |  | - | ----- | 
|                             |  | Total Amounts  |        |  |      |   |       |      |  |   |        |  |      |   |     
|                             |  | Committed      |        |  | 2006 |   |       | 2007 |  |   | 2008   |  | 2009 |   | 2010 |  | Thereafter |  
|                             |  |                |        |  |      |   |       |      |  |   |        |  |      |   |      |  |            |  
|                             |  | (In thousands) |       
|Standby Letters of Credit    |  | $              | 2,801  |  |      | $ | 2,801 |      |  | $ |       |  |      | $ |     |  |            | $ |  |  |  | $ |  |  |  | $ |      | 
|Guarantees                   |  |                | 51,000 |  |      |   |       |      |  |   | 50,000 |  |      |   |      |  |            |   |   |  |  |   |   |  |  |   | 1,000 | 
|                             |  |                |        |  |      |   |       |      |  |   |        |  |      |   |      |  |            |   |   |  | 
|Total Commercial Commitments |  | $              | 53,801 |  |      | $ | 2,801 |      |  | $ | 50,000 |  |      | $ |     |  |            | $ |  |  |  | $ |  |  |  | $ | 1,000 | 
|                             |  |                |        |  |      |   |       |      |  |   |        |  |      |   |      |  |            |   |   |  | 

Guarantees and Other Arrangements








71



---



##### 







Outlook








Inflation






Funds from Operations




72



---



##### 





73



---



##### 





|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |         |  
|------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ---------------------------------------------- | ------- | -------- | ---- | - | ------- | ------- | - | - | ------- | ------- | - | ---- | ------- | ------- | - | - | ------- | ------- | -
|                                                              |                                                                                                  | 2005                                           |         |          | 2004 |   |         | 2003    |   |   | 2002    |         |   | 2001 |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|                                                              |                                                                                                  | (In thousands, except per share and unit data) |        
|Net income available to common shareholders                   |                                                                                                  | $                                              | 197,250 |          |      | $ | 39,837  |         |   | $ | 32,530  |         |   | $    | 57,812  |         |   | $ | 42,202  |        
|Adjustments (consolidated):                                   |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|                                                              | Minority interest in CRLP                                                                        |                                                |         | 56,578   |      |   |         | 15,202  |   |   |         | 13,644  |   |      |         | 28,656  |   |   |         | 22,764  |  
|                                                              | Minority interest in gain/(loss) on sale of undepreciated
    property                           |                                                |         | 5,241    |      |   |         |        |   |   |         |        |   |      |         |        |   |   |         |        |  
|                                                              | Real estate depreciation                                                                         |                                                |         | 135,121  |      |   |         | 90,659  |   |   |         | 79,006  |   |      |         | 72,451  |   |   |         | 64,300  |  
|                                                              | Real estate amortization                                                                         |                                                |         | 58,029   |      |   |         | 9,482   |   |   |         | 4,367   |   |      |         | 4,957   |   |   |         | 4,451   |  
|                                                              | Consolidated gains/(losses) from sales of property, net of
    income tax                        |                                                |         | (288,621 | )    |   |         | (18,473 | ) |   |         | (17,418 | ) |      |         | (40,770 | ) |   |         | (15,674 | )
|                                                              | Gains/(losses) from sales of undepreciated property, net of
    income tax and minority interest |                                                |         | 8,063    |      |   |         | 3,313   |   |   |         | 6,995   |   |      |         | 2,814   |   |   |         |        |  
|                                                              | Marketing fees(prior to 2003)                                                                    |                                                |         |         |      |   |         |        |   |   |         |        |   |      |         | 1,658   |   |   |         | 2,562   |  
|                                                              | Straight-line rents(prior to 2003)                                                               |                                                |         |         |      |   |         |        |   |   |         |        |   |      |         | (2,079  | ) |   |         | (1,406  | )
|Adjustments (unconsolidated subsidiaries):                    |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|                                                              | Real estate depreciation                                                                         |                                                |         | 7,501    |      |   |         | 4,562   |   |   |         | 3,844   |   |      |         | 2,703   |   |   |         | 2,308   |  
|                                                              | Real estate amortization                                                                         |                                                |         | 969      |      |   |         | 89      |   |   |         | 82      |   |      |         | 67      |   |   |         | 31      |  
|                                                              | (Gains)/losses from sales of property                                                            |                                                |         | (2,200   | )    |   |         | (7,061  | ) |   |         |        |   |      |         | (580    | ) |   |         | 3       |  
|                                                              | Extraordinary loss                                                                               |                                                |         |         |      |   |         |        |   |   |         |        |   |      |         |        |   |   |         | 17      |  
|                                                              | Straight-line rents (prior to 2003)                                                              |                                                |         |         |      |   |         |        |   |   |         |        |   |      |         | (35     | ) |   |         | (50     | )
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Funds from operations                                         |                                                                                                  | $                                              | 177,931 |          |      | $ | 137,610 |         |   | $ | 123,050 |         |   | $    | 127,654 |         |   | $ | 121,508 |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Prior period revisions to conform to NAREIT FFO definition    |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|Consolidated adjustments                                      |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|                                                              | Marketing fees (prior to 2003)                                                                   |                                                | $       |         |      |   | $       |        |   |   | $       |        |   |      | $       | (1,658  | ) |   | $       | (2,562  | )
|                                                              | Straight-line rents (prior to 2003)                                                              |                                                |         |         |      |   |         |        |   |   |         |        |   |      |         | 2,079   |   |   |         | 1,406   |  
|Unconsolidated subsidiary adjustments                         |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|                                                              | Straight-line rents (prior to 2003)                                                              |                                                |         |         |      |   |         |        |   |   |         |        |   |      |         | 35      |   |   |         | 50      |  
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Funds from operations  as revised                            |                                                                                                  | $                                              | 177,931 |          |      | $ | 137,610 |         |   | $ | 123,050 |         |   | $    | 128,110 |         |   | $ | 120,402 |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|As previously reported                                        |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|Funds from operations per share and unit  basic              |                                                                                                  | $                                              | 3.65    |          |      | $ | 3.67    |         |   | $ | 3.47    |         |   | $    | 3.85    |         |   | $ | 3.80    |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Funds from operations per share and unit  diluted            |                                                                                                  | $                                              | 3.62    |          |      | $ | 3.64    |         |   | $ | 3.45    |         |   | $    | 3.82    |         |   | $ | 3.78    |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|As revised                                                    |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |         |         |   |   |         |        
|Funds from operations per share and unit  basic              |                                                                                                  | $                                              | 3.65    |          |      | $ | 3.67    |         |   | $ | 3.47    |         |   | $    | 3.86    |         |   | $ | 3.76    |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Funds from operations per share and unit  diluted            |                                                                                                  | $                                              | 3.62    |          |      | $ | 3.64    |         |   | $ | 3.45    |         |   | $    | 3.83    |         |   | $ | 3.75    |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Weighted average common shares outstanding  basic            |                                                                                                  |                                                | 38,071  |          |      |   | 27,121  |         |   |   | 24,965  |         |   |      | 22,154  |         |   |   | 20,792  |        
|Weighted average partnership units outstanding 
    basic(1) |                                                                                                  |                                                | 10,740  |          |      |   | 10,347  |         |   |   | 10,451  |         |   |      | 11,016  |         |   |   | 11,211  |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Weighted average shares and units outstanding  basic         |                                                                                                  |                                                | 48,811  |          |      |   | 37,468  |         |   |   | 35,416  |         |   |      | 33,170  |         |   |   | 32,003  |        
|Effect of diluted securities                                  |                                                                                                  |                                                | 391     |          |      |   | 341     |         |   |   | 267     |         |   |      | 254     |         |   |   | 111     |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        
|Weighted average shares and units outstanding  diluted       |                                                                                                  |                                                | 49,202  |          |      |   | 37,809  |         |   |   | 35,683  |         |   |      | 33,424  |         |   |   | 32,114  |        
|                                                              |                                                                                                  |                                                |         |          |      |   |         |         |   |   |         |         |   |      |        






|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(1) | Represents the weighted average of outstanding units of
    minority interest in CRLP.



|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures about Market
    Risk

Managements Discussion and
Analysis of Financial Condition and Results of
Operations  Market Risk.


74



---



##### 





|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data







| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Consolidated Balance Sheets as of December 31, 2005 and 2004                                                       
|
| | Consolidated Statements of Income and Comprehensive Income for
    the years ended December 31, 2005, 2004 and 2003
|
| | Consolidated Statements of Shareholders Equity for the
    years ended December 31, 2005, 2004 and 2003           
|
| | Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003                     
|
| | Notes to Consolidated Financial Statements                                                                         



75



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##### 



COLONIAL PROPERTIES TRUST




CONSOLIDATED BALANCE SHEETS


|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |   |           |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | --------- | --------- | ------------ | - | --------- | --------- | 
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 | December 31,          |           |           | December 31, |  
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 | 2005                  |           |           | 2004         |  
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 | (In thousands, except |          
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 | share data)           |          
|ASSETS                                                                                                                                                                              
|Land, buildings, & equipment                                                                                                                                                         |                                                                                                                                                                                                                                 | $                     | 3,974,925 |           |              | $ | 2,696,304 |          
|Undeveloped land and construction in progress                                                                                                                                        |                                                                                                                                                                                                                                 |                       | 202,052   |           |              |   | 158,954   |          
|Less: Accumulated depreciation                                                                                                                                                       |                                                                                                                                                                                                                                 |                       | (453,365  | )         |              |   | (437,635  | )        
|Real estate assets held for sale, net                                                                                                                                                |                                                                                                                                                                                                                                 |                       | 367,372   |           |              |   | 167,712   |          
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Net real estate assets                                                                                                                                                                                                          |                       |           | 4,090,984 |              |   |           | 2,585,335 | 
|Cash and equivalents                                                                                                                                                                 |                                                                                                                                                                                                                                 |                       | 30,615    |           |              |   | 10,725    |          
|Restricted cash                                                                                                                                                                      |                                                                                                                                                                                                                                 |                       | 8,142     |           |              |   | 2,333     |          
|Accounts receivable, net                                                                                                                                                             |                                                                                                                                                                                                                                 |                       | 28,543    |           |              |   | 20,642    |          
|Notes receivable                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       | 36,387    |           |              |   | 906       |          
|Prepaid expenses                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       | 19,549    |           |              |   | 11,238    |          
|Deferred debt and lease costs                                                                                                                                                        |                                                                                                                                                                                                                                 |                       | 50,436    |           |              |   | 36,750    |          
|Investment in partially owned entities                                                                                                                                               |                                                                                                                                                                                                                                 |                       | 123,700   |           |              |   | 65,472    |          
|Other assets                                                                                                                                                                         |                                                                                                                                                                                                                                 |                       | 110,902   |           |              |   | 67,942    |          
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Total assets                                                                                                                                                                                                                    |                       | $         | 4,499,258 |              |   | $         | 2,801,343 | 
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                    
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                                                                                
|Notes and mortgages payable                                                                                                                                                          |                                                                                                                                                                                                                                 | $                     | 2,274,620 |           |              | $ | 1,615,817 |          
|Unsecured credit facility                                                                                                                                                            |                                                                                                                                                                                                                                 |                       | 210,228   |           |              |   | 239,970   |          
|Mortgages payable related to real estate held for sale                                                                                                                               |                                                                                                                                                                                                                                 |                       | 9,502     |           |              |   |          |          
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Total long-term liabilities                                                                                                                                                                                                     |                       |           | 2,494,350 |              |   |           | 1,855,787 | 
|Accounts payable                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       | 74,474    |           |              |   | 30,665    |          
|Accrued interest                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       | 29,063    |           |              |   | 17,722    |          
|Accrued expenses                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       | 17,615    |           |              |   | 10,635    |          
|Tenant deposits                                                                                                                                                                      |                                                                                                                                                                                                                                 |                       | 7,251     |           |              |   | 4,455     |          
|Unearned rent                                                                                                                                                                        |                                                                                                                                                                                                                                 |                       | 9,722     |           |              |   | 9,334     |          
|Other liabilities                                                                                                                                                                    |                                                                                                                                                                                                                                 |                       | 736       |           |              |   | 1,737     |          
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Total liabilities                                                                                                                                                                                                               |                       |           | 2,633,211 |              |   |           | 1,930,335 | 
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|Minority interest:                                                                                                                                                                   |                                                                                                                                                                                                                                 |                       |           |           |              |   |           |          
|Preferred units                                                                                                                                                                      |                                                                                                                                                                                                                                 |                       | 100,000   |           |              |   | 100,000   |          
|Common units                                                                                                                                                                         |                                                                                                                                                                                                                                 |                       | 283,240   |           |              |   | 164,593   |          
|Limited partners interest in consolidated partnership                                                                                                                               |                                                                                                                                                                                                                                 |                       | 8,093     |           |              |   | 1,389     |          
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Total minority interest                                                                                                                                                                                                         |                       |           | 391,333   |              |   |           | 265,982   | 
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|Preferred shares of beneficial interest, $.01 par value,
    20,000,000 shares authorized:                                                                                           |                                                                                                                                                                                                                                 |                       |           |           |              |   |           |          
|                                                                                                                                                                                     | 91/4%
    Series C Cumulative Redeemable Preferred Shares of
    Beneficial Interest, liquidation preference $25 per share,
    2,000,000 shares issued and outstanding                                                         |                       |           | 20        |              |   |           | 20        | 
|                                                                                                                                                                                     | 81/8%
    Series D Cumulative Redeemable Preferred Shares of
    Beneficial Interest, liquidation preference $25 per
    depositary share, 5,000,000 depositary shares issued and
    outstanding at December 31, 2005 and 2004 |                       |           | 5         |              |   |           | 5         | 
|                                                                                                                                                                                     | 75/8%
    Series E Cumulative Redeemable Preferred Shares of
    Beneficial Interest, liquidation preference $25 per
    depositary share, 5,326,349 depositary shares issued and
    outstanding at December 31, 2005          |                       |           | 1         |              |   |           |          | 
|Common shares of beneficial interest, $.01 par value,
    125,000,000 shares authorized; 50,637,973 and
    33,222,559 shares issued at December 31, 2005 and
    2004, respectively |                                                                                                                                                                                                                                 |                       | 506       |           |              |   | 332       |          
|Additional paid-in capital                                                                                                                                                           |                                                                                                                                                                                                                                 |                       | 1,684,853 |           |              |   | 909,269   |          
|Cumulative earnings                                                                                                                                                                  |                                                                                                                                                                                                                                 |                       | 747,186   |           |              |   | 520,295   |          
|Cumulative distributions                                                                                                                                                             |                                                                                                                                                                                                                                 |                       | (803,133  | )         |              |   | (670,894  | )        
|Treasury shares, at cost; 5,623,150 shares at
    December 31, 2005 and 2004                                                                                                         |                                                                                                                                                                                                                                 |                       | (150,163  | )         |              |   | (150,163  | )        
|Accumulated other comprehensive loss                                                                                                                                                 |                                                                                                                                                                                                                                 |                       | (915      | )         |              |   | (1,966    | )        
|Deferred compensation on restricted shares                                                                                                                                           |                                                                                                                                                                                                                                 |                       | (3,646    | )         |              |   | (1,872    | )        
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Total shareholders equity                                                                                                                                                                                                      |                       |           | 1,474,714 |              |   |           | 605,026   | 
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  
|                                                                                                                                                                                     | Total liabilities and shareholders equity                                                                                                                                                                                      |                       | $         | 4,499,258 |              |   | $         | 2,801,343 | 
|                                                                                                                                                                                     |                                                                                                                                                                                                                                 |                       |           |           |              |  



76



---



##### 



COLONIAL PROPERTIES TRUST




CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |         |         |  
|------------------------------------------------------ | -------------------------------------------------------- | ------------------------------------------------------------------------------------ | ------- | -------- | ------------ | - | ------- | ------------ | ------- | - | ------- | ------- | ------- | -
|                                                       |                                                          | For the Year Ended                                                                   |        
|                                                       |                                                          |                                                                                      |        
|                                                       |                                                          | December 31,                                                                         |         |          | December 31, |   |         | December 31, |        
|                                                       |                                                          | 2005                                                                                 |         |          | 2004         |   |         | 2003         |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | (In thousands, except share                                                          |        
|                                                       |                                                          | and per share data)                                                                  |        
|Revenue:                                               |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |        
|                                                       | Base rent                                                |                                                                                      | $       | 407,649  |              |   | $       | 257,127      |         |   | $       | 218,572 |        
|                                                       | Base rent from affiliates                                |                                                                                      |         | 2,486    |              |   |         | 1,675        |         |   |         | 1,079   |        
|                                                       | Percentage rent                                          |                                                                                      |         | 3,801    |              |   |         | 2,960        |         |   |         | 2,731   |        
|                                                       | Tenant recoveries                                        |                                                                                      |         | 37,579   |              |   |         | 31,016       |         |   |         | 29,725  |        
|                                                       | Other property related revenue                           |                                                                                      |         | 28,752   |              |   |         | 17,531       |         |   |         | 16,363  |        
|                                                       | Other non-property related revenue                       |                                                                                      |         | 15,176   |              |   |         | 7,321        |         |   |         | 3,826   |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Total revenue                                                                        |         |          | 495,443      |   |         |              | 317,630 |   |         |         | 272,296 |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Property operating expenses:                           |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |        
|                                                       | General operating expenses                               |                                                                                      |         | 40,495   |              |   |         | 23,519       |         |   |         | 20,247  |        
|                                                       | Salaries and benefits                                    |                                                                                      |         | 29,937   |              |   |         | 15,468       |         |   |         | 12,663  |        
|                                                       | Repairs and maintenance                                  |                                                                                      |         | 43,557   |              |   |         | 30,080       |         |   |         | 26,380  |        
|                                                       | Taxes, licenses, and insurance                           |                                                                                      |         | 51,785   |              |   |         | 29,677       |         |   |         | 24,982  |        
|General and administrative                             |                                                          |                                                                                      | 42,040  |          |              |   | 27,287  |              |         |   | 19,481  |        
|Depreciation                                           |                                                          |                                                                                      | 129,954 |          |              |   | 79,344  |              |         |   | 66,982  |        
|Amortization                                           |                                                          |                                                                                      | 51,769  |          |              |   | 8,681   |              |         |   | 7,356   |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Total operating expenses                                                             |         |          | 389,537      |   |         |              | 214,056 |   |         |         | 178,091 |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Income from operations                                                               |         |          | 105,906      |   |         |              | 103,574 |   |         |         | 94,205  |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Other income (expense):                                |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |        
|                                                       | Interest expense                                         |                                                                                      |         | (130,636 | )            |   |         | (77,743      | )       |   |         | (61,896 | )      
|                                                       | Interest income                                          |                                                                                      |         | 4,460    |              |   |         | 1,064        |         |   |         | 792     |        
|                                                       | Income (loss) from partially owned entities              |                                                                                      |         | (886     | )            |   |         | 1,145        |         |   |         | 221     |        
|                                                       | Gains from sales of property                             |                                                                                      |         | 111,238  |              |   |         | 8,860        |         |   |         | 7,479   |        
|                                                       | Income taxes                                             |                                                                                      |         | (6,343   | )            |   |         | (691         | )       |   |         | (121    | )      
|                                                       | Other                                                    |                                                                                      |         | 4,698    |              |   |         | 387          |         |   |         | (361    | )      
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Total other expense                                                                  |         |          | (17,469      | ) |         |              | (66,978 | ) |         |         | (53,886 | )
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Income before extraordinary items, minority interest and
    discontinued operations |         |          | 88,437       |   |         |              | 36,596  |   |         |         | 40,319  |  
|Minority interest in CRLP  common unitholders         |                                                          |                                                                                      | (11,806 | )        |              |   | (3,879  | )            |         |   | (3,460  | )      
|Minority interest in CRLP  preferred unitholders      |                                                          |                                                                                      | (7,250  | )        |              |   | (7,494  | )            |         |   | (8,875  | )      
|Minority interest of limited partners                  |                                                          |                                                                                      | (5,830  | )        |              |   | (281    | )            |         |   |        |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Income from continuing operations                                                    |         |          | 63,551       |   |         |              | 24,942  |   |         |         | 27,984  |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Income from discontinued operations                    |                                                          |                                                                                      | 16,452  |          |              |   | 23,425  |              |         |   | 23,479  |        
|Gain on disposal of discontinued operations            |                                                          |                                                                                      | 184,410 |          |              |   | 17,574  |              |         |   | 10,986  |        
|Minority interest in CRLP from discontinued operations |                                                          |                                                                                      | (44,772 | )        |              |   | (11,323 | )            |         |   | (10,184 | )      
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Income from discontinued operations                                                  |         |          | 156,090      |   |         |              | 29,676  |   |         |         | 24,281  |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Net income                                                                           |         |          | 219,641      |   |         |              | 54,618  |   |         |         | 52,265  |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Dividends to preferred shareholders                    |                                                          |                                                                                      | (22,391 | )        |              |   | (14,781 | )            |         |   | (15,284 | )      
|Preferred share issuance costs                         |                                                          |                                                                                      |        |          |              |   |        |              |         |   | (4,451  | )      
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Net income available to common shareholders                                          |         | $        | 197,250      |   |         | $            | 39,837  |   |         | $       | 32,530  |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Net income per common share  basic:                   |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |        
|                                                       |                                                          | Income from continuing operations                                                    |         | $        | 1.08         |   |         | $            | 0.38    |   |         | $       | 0.33    |  
|                                                       |                                                          | Income from discontinued operations                                                  |         |          | 4.10         |   |         |              | 1.09    |   |         |         | 0.97    |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Net income per common share  basic                                                  |         | $        | 5.18         |   |         | $            | 1.47    |   |         | $       | 1.30    |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Net income per common share  diluted:                 |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |        
|                                                       |                                                          | Income from continuing operations                                                    |         | $        | 1.07         |   |         | $            | 0.37    |   |         | $       | 0.33    |  
|                                                       |                                                          | Income from discontinued operations                                                  |         |          | 4.06         |   |         |              | 1.08    |   |         |         | 0.96    |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|                                                       |                                                          | Net income per common share  diluted                                                |         | $        | 5.13         |   |         | $            | 1.45    |   |         | $       | 1.29    |  
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Weighted average common shares outstanding  basic     |                                                          |                                                                                      | 38,071  |          |              |   | 27,121  |              |         |   | 24,965  |        
|Weighted average common shares outstanding  diluted   |                                                          |                                                                                      | 38,462  |          |              |   | 27,462  |              |         |   | 25,232  |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Net income                                             |                                                          | $                                                                                    | 219,641 |          |              | $ | 54,618  |              |         | $ | 52,265  |        
|Other comprehensive income (loss):                     |                                                          |                                                                                      |         |          |              |   |         |              |         |   |         |        
|                                                       | Unrealized income (loss) on cash flow hedging activities |                                                                                      |         | 812      |              |   |         | (245         | )       |   |         | 1,866   |        
|                                                       | Change in additional minimum pension liability           |                                                                                      |         | 239      |              |   |         |             |         |   |         |        |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        
|Comprehensive income                                   |                                                          | $                                                                                    | 220,692 |          |              | $ | 54,373  |              |         | $ | 54,131  |        
|                                                       |                                                          |                                                                                      |         |          |              |   |         |              |        



77



---



##### 



COLONIAL PROPERTIES TRUST




CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY


|                          |                                                                                                                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           |          |  
|------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------- | ----- | ------ | ------------- | - | -- | ---------- | - | -------- | ---------- | ------ | ------------ | ---------- | --- | ----- | -------- | - | --------- | ------------- | - | - | ------------- | ------- |  | ------------- | -------- | -------- | ---- | - | -------- | ------ |  | - | ------ | ------ | - | - | ------ | ----- | - | - | --------- | -------- | -
|                          |                                                                                                                                            | For the Years Ended December 31, 2005, 2004, 2003 |      
|                          |                                                                                                                                            |                                                   |      
|                          |                                                                                                                                            | Preferred Shares                                  |       |        | Common Shares |   |    |           
|                          |                                                                                                                                            | of Beneficial                                     |       |        | of Beneficial |   |    |            |   | Deferred |            |        | Accumulated  |            |     |      
|                          |                                                                                                                                            | Interest                                          |       |        | Interest      |   |    | Additional |   |          |            |        | Compensation |            |     | Other |          |   | Total     |              
|                          |                                                                                                                                            |                                                   |       |        |               |   |    | Paid-In    |   |          | Cumulative |        |              | Cumulative |     |       | Treasury |   |           | on Restricted |   |   | Comprehensive |         |  | Shareholders |         
|                          |                                                                                                                                            | Shares                                            |       |        | Par Value     |   |    | Shares     |   |          | Par Value  |        |              | Capital    |     |       | Earnings |   |           | Distributions |   |   | Shares        |         |  | Shares        |          |          | Loss |   |          | Equity | 
|                          |                                                                                                                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        | 
|                          |                                                                                                                                            | (In thousands, except per share data)             |      
|Balance December 31, 2002 |                                                                                                                                            |                                                   | 7,000 |        |               | $ | 70 |            |   |          | 28,474     |        |              | $          | 285 |       |          | $ | 778,062   |               |   | $ | 401,497       |         |  | $             | (486,208 | )        |      | $ | (150,163 | )      |  | $ | (2,153 | )      |   | $ | (3,587 | )     |   | $ | 537,803   |         
|                          | Distributions on common shares ($2.66 per share)                                                                                           |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (65,730  | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (65,730  | )
|                          | Distributions on preferred shares                                                                                                          |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (15,284  | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (15,284  | )
|                          | Distributions on preferred units of Colonial Realty Limited
    Partnership                                                                |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (8,873   | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (8,873   | )
|                          | Income before preferred unit distributions                                                                                                 |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               | 56,687  |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 56,687   |  
|                          | Issuance of Restricted Common Shares of Beneficial Interest                                                                                |                                                   |       |        |               |   |    |            |   |          |            | 41     |              |            |     |      |          |   |           | 1,335         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        | (1,336 | ) |   |        |       |   |   |           |         |  
|                          | Amortization of deferred compensation                                                                                                      |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        | 1,330  |   |   |        |       |   |   |           | 1,330    |  
|                          | Public offering of common shares of beneficial interest, net of
    offering costs of $2,738                                               |                                                   |       |        |               |   |    |            |   |          |            | 2,110  |              |            |     | 21    |          |   |           | 72,420        |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 72,441   |  
|                          | Public offering of preferred shares of beneficial interest, net
    of offering costs of $4,422                                            |                                                   |       | 500    |               |   |    | 5          |   |          |            |        |              |            |     |       |          |   |           | 120,573       |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 120,578  |  
|                          | Redemption of Series A preferred shares of beneficial
    Interest                                                                         |                                                   |       | (5,000 | )             |   |    | (50        | ) |          |            |        |              |            |     |       |          |   |           | (120,499      | ) |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (120,549 | )
|                          | Issuance of common shares of beneficial interest through the
    Companys dividend reinvestment plan and Employee Stock
    Purchase Plan |                                                   |       |        |               |   |    |            |   |          |            | 842    |              |            |     | 8     |          |   |           | 27,976        |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 27,985   |  
|                          | Issuance of common shares of beneficial interest through options
    exercised                                                             |                                                   |       |        |               |   |    |            |   |          |            | 128    |              |            |     | 1     |          |   |           | 3,467         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 3,468    |  
|                          | Issuance of common shares of beneficial interest through
    conversion of units from Colonial Realty Limited Partnership                  |                                                   |       |        |               |   |    |            |   |          |            | 423    |              |            |     | 4     |          |   |           | 7,333         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 7,337    |  
|                          | Unrealized Gain on derivative financial instruments                                                                                        |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        | 1,866 |   |   |           | 1,866    |  
|                          | Adjustments to minority interest in Colonial Realty Limited
    Partnership at dates of capital transactions                               |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           | (17,325       | ) |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (17,325  | )
|                          |                                                                                                                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        | 
|Balance December 31, 2003 |                                                                                                                                            |                                                   | 2,500 |        |               | $ | 25 |            |   |          | 32,017     |        |              | $          | 320 |       |          | $ | 873,342   |               |   | $ | 458,184       |         |  | $             | (576,095 | )        |      | $ | (150,163 | )      |  | $ | (2,159 | )      |   | $ | (1,721 | )     |   | $ | 601,733   |         
|                          | Distributions on common shares ($2.68 per share)                                                                                           |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (72,524  | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (72,524  | )
|                          | Distributions on preferred shares                                                                                                          |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (14,781  | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (14,781  | )
|                          | Distributions on preferred units of Colonial Realty Limited
    Partnership                                                                |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (7,493   | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (7,493   | )
|                          | Income before preferred unit distributions                                                                                                 |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               | 62,111  |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 62,111   |  
|                          | Issuance of Restricted Common Shares of Beneficial Interest                                                                                |                                                   |       |        |               |   |    |            |   |          |            | 28     |              |            |     |      |          |   |           | 1,061         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        | (1,061 | ) |   |        |       |   |   |           |         |  
|                          | Amortization of deferred compensation                                                                                                      |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        | 1,348  |   |   |        |       |   |   |           | 1,348    |  
|                          | Public offering of common shares of beneficial interest, net of
    offering costs of $2,738                                               |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           |          |  
|                          | Public offering of preferred shares of beneficial interest, net
    of offering costs of $4,422                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           |          |  
|                          | Redemption of Series A preferred shares of beneficial
    Interest                                                                         |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           |          |  
|                          | Issuance of common shares of beneficial interest through the
    Companys dividend reinvestment plan and Employee Stock
    Purchase Plan |                                                   |       |        |               |   |    |            |   |          |            | 789    |              |            |     | 8     |          |   |           | 29,383        |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 29,391   |  
|                          | Issuance of common shares of beneficial interest through options
    exercised                                                             |                                                   |       |        |               |   |    |            |   |          |            | 344    |              |            |     | 3     |          |   |           | 10,350        |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 10,353   |  
|                          | Issuance of common shares of beneficial interest through
    conversion of units from Colonial Realty Limited Partnership                  |                                                   |       |        |               |   |    |            |   |          |            | 45     |              |            |     | 1     |          |   |           | 995           |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 997      |  
|                          | Unrealized Loss on derivative financial instruments                                                                                        |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        | (245  | ) |   |           | (245     | )
|                          | Adjustments to minority interest in Colonial Realty Limited
    Partnership at dates of capital transactions                               |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           | (5,863        | ) |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (5,863   | )
|                          |                                                                                                                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        | 
|Balance December 31, 2004 |                                                                                                                                            |                                                   | 2,500 |        |               | $ | 25 |            |   |          | 33,223     |        |              | $          | 332 |       |          | $ | 909,269   |               |   | $ | 520,295       |         |  | $             | (670,894 | )        |      | $ | (150,163 | )      |  | $ | (1,872 | )      |   | $ | (1,966 | )     |   | $ | 605,026   |         
|                          | Distributions on common shares ($2.70 per share)                                                                                           |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (102,597 | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (102,597 | )
|                          | Distributions on preferred shares                                                                                                          |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (22,391  | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (22,391  | )
|                          | Distributions on preferred units of Colonial Realty Limited
    Partnership                                                                |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          | (7,251   | )    |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (7,251   | )
|                          | Income before preferred unit distributions                                                                                                 |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               | 226,891 |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 226,891  |  
|                          | Issuance of Restricted Common Shares of Beneficial Interest                                                                                |                                                   |       |        |               |   |    |            |   |          |            | 153    |              |            |     | 2     |          |   |           | 4,317         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        | (4,319 | ) |   |        |       |   |   |           |         |  
|                          | Amortization of deferred compensation                                                                                                      |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        | 2,545  |   |   |        |       |   |   |           | 2,545    |  
|                          | Public offering of common shares of beneficial interest, net of
    offering costs of $9,457                                               |                                                   |       |        |               |   |    |            |   |          |            | 4,500  |              |            |     | 45    |          |   |           | 187,370       |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 187,415  |  
|                          | Issuance of common shares of beneficial interest 
    Cornerstone Merger, net of issuance costs of $1,491                                 |                                                   |       |        |               |   |    |            |   |          |            | 11,277 |              |            |     | 113   |          |   |           | 462,234       |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 462,347  |  
|                          | Issuance of preferred shares of beneficial interest 
    Cornerstone Merger, net of issuance costs of $412                                |                                                   |       | 53     |               |   |    | 1          |   |          |            |        |              |            |     |       |          |   |           | 132,746       |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 132,747  |  
|                          | Issuance of common shares of beneficial interest through the
    Companys dividend reinvestment plan and Employee Stock
    Purchase Plan |                                                   |       |        |               |   |    |            |   |          |            | 1,143  |              |            |     | 11    |          |   |           | 51,187        |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 51,198   |  
|                          | Issuance of common shares of beneficial interest through options
    exercised                                                             |                                                   |       |        |               |   |    |            |   |          |            | 264    |              |            |     | 2     |          |   |           | 4,983         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 4,985    |  
|                          | Issuance of common shares of beneficial interest through
    conversion of units from Colonial Realty Limited Partnership                  |                                                   |       |        |               |   |    |            |   |          |            | 78     |              |            |     | 1     |          |   |           | 1,987         |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | 1,988    |  
|                          | Unrealized gain on derivative financial instruments                                                                                        |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        | 812   |   |   |           | 812      |  
|                          | Change in the additional minimum pension liability                                                                                         |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        | 239   |   |   |           | 239      |  
|                          | Adjustments to minority interest in Colonial Realty Limited
    Partnership at dates of capital transactions                               |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           | (69,240       | ) |   |               |         |  |               |          |          |      |   |          |        |  |   |        |        |   |   |        |       |   |   |           | (69,240  | )
|                          |                                                                                                                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        | 
|Balance December 31, 2005 |                                                                                                                                            |                                                   | 2,553 |        |               | $ | 26 |            |   |          | 50,638     |        |              | $          | 506 |       |          | $ | 1,684,853 |               |   | $ | 747,186       |         |  | $             | (803,133 | )        |      | $ | (150,163 | )      |  | $ | (3,646 | )      |   | $ | (915   | )     |   | $ | 1,474,714 |         
|                          |                                                                                                                                            |                                                   |       |        |               |   |    |            |   |          |            |        |              |            |     |       |          |   |           |               |   |   |               |         |  |               |          |          |      |   |          |        | 



78



---



##### 



COLONIAL PROPERTIES TRUST




CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |         |          |       |          |         |          |  
|-------------------------------------------------- | --------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | --------------------------------------------------- | --------- | -------- | -------- | ------ | -------- | ------- | -------- | ----- | -------- | ------- | -------- | -
|                                                   |                                                                                                     | For the Years Ended                                      |                                                    
|                                                   |                                                                                                     | December 31, 2005, 2004, 2003                            |                                                    
|                                                   |                                                                                                     |                                                          |                                                    
|                                                   |                                                                                                     | 2005                                                     |                                                     |           | 2004     |          |        | 2003     |        
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|                                                   |                                                                                                     | (In thousands)                                           |                                                    
|Cash flows from operating activities:              |                                                                                                     |                                                          |                                                     |           |          |          |        |          |         |          |       |         
|                                                   | Net income                                                                                          |                                                          | $                                                   | 219,641   |          |          | $      | 54,618   |         |          | $     | 52,265   |        
|                                                   | Adjustments to reconcile net income to net cash provided by
    operating activities:               |                                                          |                                                     |           |          |          |        |          |         |          |       |          |        
|                                                   |                                                                                                     | Depreciation and amortization                            |                                                     |           | 194,300  |          |        |          | 105,333 |          |       |          | 88,814  |         
|                                                   |                                                                                                     | Income (loss) from partially owned entities              |                                                     |           | 1,695    |          |        |          | (7,898  | )        |       |          | (608    | )       
|                                                   |                                                                                                     | Distributions of income from unconsolidated subsidiaries |                                                     |           | 3,942    |          |        |          |        |          |       |          |        |         
|                                                   |                                                                                                     | Minority interest in CRLP                                |                                                     |           | 59,975   |          |        |          | 15,202  |          |       |          | 13,644  |         
|                                                   |                                                                                                     | Gains from sales of property                             |                                                     |           | (295,648 | )        |        |          | (20,308 | )        |       |          | (18,463 | )       
|                                                   |                                                                                                     | Distributions on preferred units of CRLP                 |                                                     |           | 7,251    |          |        |          | 7,493   |          |       |          | 8,873   |         
|                                                   |                                                                                                     | Other, net                                               |                                                     |           | (5,942   | )        |        |          | 1,193   |          |       |          |        |         
|                                                   |                                                                                                     | Decrease (increase) in:                                  |                                                     |           |          |          |        |          |         |          |       |          |         |         
|                                                   |                                                                                                     |                                                          | Restricted cash                                     |           |          | (5,809   | )      |          |         | (454     | )     |          |         | (398     | )
|                                                   |                                                                                                     |                                                          | Accounts receivable                                 |           |          | (5,485   | )      |          |         | (9,027   | )     |          |         | 126      |  
|                                                   |                                                                                                     |                                                          | Prepaid expenses                                    |           |          | (4,864   | )      |          |         | 1,940    |       |          |         | 994      |  
|                                                   |                                                                                                     |                                                          | Other assets                                        |           |          | (25,333  | )      |          |         | (19,563  | )     |          |         | (7,920   | )
|                                                   |                                                                                                     | Increase (decrease) in:                                  |                                                     |           |          |          |        |          |         |          |       |          |         |         
|                                                   |                                                                                                     |                                                          | Accounts payable                                    |           |          | 19,575   |        |          |         | 8,358    |       |          |         | 212      |  
|                                                   |                                                                                                     |                                                          | Accrued interest                                    |           |          | 7,619    |        |          |         | 2,889    |       |          |         | 942      |  
|                                                   |                                                                                                     |                                                          | Accrued expenses and other                          |           |          | (16,743  | )      |          |         | (535     | )     |          |         | (678     | )
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|                                                   |                                                                                                     |                                                          | Net cash provided by operating activities           |           |          | 154,174  |        |          |         | 139,241  |       |          |         | 137,803  |  
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|Cash flows from investing activities:              |                                                                                                     |                                                          |                                                     |           |          |          |        |          |         |          |       |         
|                                                   | Acquisition of properties                                                                           |                                                          |                                                     | (655,356  | )        |          |        | (325,748 | )       |          |       | (77,472  | )      
|                                                   | Development expenditures paid to non-affiliates                                                     |                                                          |                                                     | (164,948  | )        |          |        | (89,847  | )       |          |       | (42,275  | )      
|                                                   | Development expenditures paid to affiliates                                                         |                                                          |                                                     | (41,597   | )        |          |        | (23,331  | )       |          |       | (30,242  | )      
|                                                   | Tenant improvements                                                                                 |                                                          |                                                     | (27,373   | )        |          |        | (22,991  | )       |          |       | (14,002  | )      
|                                                   | Capital expenditures                                                                                |                                                          |                                                     | (42,468   | )        |          |        | (17,656  | )       |          |       | (12,445  | )      
|                                                   | Proceeds from (issuance of) notes receivable                                                        |                                                          |                                                     | (31,321   | )        |          |        | 1,598    |         |          |       | (1,197   | )      
|                                                   | Proceeds from sales of property, net of selling costs                                               |                                                          |                                                     | 1,053,043 |          |          |        | 59,702   |         |          |       | 55,701   |        
|                                                   | Direct costs of Cornerstone Merger                                                                  |                                                          |                                                     | (35,016   | )        |          |        |         |         |          |       |         |        
|                                                   | Distributions from partially owned entities                                                         |                                                          |                                                     | 6,536     |          |          |        | 35,026   |         |          |       | 3,743    |        
|                                                   | Capital contributions to partially owned entities                                                   |                                                          |                                                     | (61,810   | )        |          |        | (62,788  | )       |          |       | (4,366   | )      
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|                                                   |                                                                                                     |                                                          | Net cash (used in) investing activities             |           |          | (310     | )      |          |         | (446,035 | )     |          |         | (122,555 | )
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|Cash flows from financing activities:              |                                                                                                     |                                                          |                                                     |           |          |          |        |          |         |          |       |         
|                                                   | Proceeds from common shares issuances, net of expenses paid                                         |                                                          |                                                     | 187,415   |          |          |        |         |         |          |       | 72,441   |        
|                                                   | Proceeds from Series D preferred shares, net of expenses
    paid                                   |                                                          |                                                     |          |          |          |        |         |         |          |       | 120,578  |        
|                                                   | Redemption of Series A preferred shares                                                             |                                                          |                                                     |          |          |          |        |         |         |          |       | (125,000 | )      
|                                                   | Principal reductions of debt                                                                        |                                                          |                                                     | (852,189  | )        |          |        | (151,151 | )       |          |       | (175,964 | )      
|                                                   | Proceeds from additional borrowings                                                                 |                                                          |                                                     | 634,260   |          |          |        | 516,794  |         |          |       | 186,470  |        
|                                                   | Net change in revolving credit balances and overdrafts                                              |                                                          |                                                     | (16,851   | )        |          |        | 34,035   |         |          |       | (2,279   | )      
|                                                   | Dividends paid to common and preferred shareholders, and
    distributions to preferred unitholders |                                                          |                                                     | (132,239  | )        |          |        | (94,799  | )       |          |       | (89,887  | )      
|                                                   | Distributions to common unitholders minority interest partners                                      |                                                          |                                                     | (30,067   | )        |          |        | (27,950  | )       |          |       | (27,873  | )      
|                                                   | Distributions of debt proceeds from partially owned entities                                        |                                                          |                                                     | 28,003    |          |          |        |         |         |          |       |         |        
|                                                   | Payment of mortgage financing cost                                                                  |                                                          |                                                     | (8,491    | )        |          |        | (7,225   | )       |          |       | (3,353   | )      
|                                                   | Proceeds from dividend reinvestments, including stock options
    exercised                         |                                                          |                                                     | 56,185    |          |          |        | 39,745   |         |          |       | 31,453   |        
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|                                                   |                                                                                                     |                                                          | Net cash provided by (used in) financing activities |           |          | (133,974 | )      |          |         | 309,449  |       |          |         | (13,414  | )
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|Increase in cash and cash equivalents              |                                                                                                     |                                                          | 19,890                                              |           |          |          | 2,655  |          |         |          | 1,834 |         
|Cash and cash equivalents, beginning of period     |                                                                                                     |                                                          | 10,725                                              |           |          |          | 8,070  |          |         |          | 6,236 |         
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|Cash and cash equivalents, end of period           |                                                                                                     | $                                                        | 30,615                                              |           |          | $        | 10,725 |          |         | $        | 8,070 |         
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|Supplemental disclosures of cash flow information: |                                                                                                     |                                                          |                                                     |           |          |          |        |          |         |          |       |         
|                                                   | Cash paid during the year for interest, net of amounts
    capitalized                              |                                                          | $                                                   | 130,737   |          |          | $      | 83,237   |         |          | $     | 66,614   |        
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        
|Supplemental disclosure of non cash transactions:  |                                                                                                     |                                                          |                                                     |           |          |          |        |          |         |          |       |         
|                                                   | Real estate assets acquired                                                                         |                                                          | $                                                   | 1,460,380 |          |          |        |         |         |          |       |         |        
|                                                   | Assumption of notes and mortgages                                                                   |                                                          |                                                     | 836,985   |          |          |        |         |         |          |       |         |        
|                                                   | Operating assets acquired                                                                           |                                                          |                                                     | 21,121    |          |          |        |         |         |          |       |         |        
|                                                   | Operating liabilities acquired                                                                      |                                                          |                                                     | 34,380    |          |          |        |         |         |          |       |         |        
|                                                   | Fair value of adjustments on notes and mortgages                                                    |                                                          |                                                     | 50,880    |          |          |        |         |         |          |       |         |        
|                                                   | Investments in partially owned entities acquired                                                    |                                                          |                                                     | 8,901     |          |          |        |         |         |          |       |         |        
|                                                   | Intangible assets acquired                                                                          |                                                          |                                                     | 50,726    |          |          |        |         |         |          |       |         |        
|                                                   | Issuance of common shares of beneficial interest                                                    |                                                          |                                                     | 462,347   |          |          |        |         |         |          |       |         |        
|                                                   | Issuance of preferred shares of beneficial interest                                                 |                                                          |                                                     | 132,747   |          |          |        |         |         |          |       |         |        
|                                                   | Issuance of common units of operating partnership                                                   |                                                          |                                                     | 23,788    |          |          |        |         |         |          |       |         |        
|                                                   | Cash flow hedging activities                                                                        |                                                          |                                                     | 812       |          |          |        | (245     | )       |          |       | 1,866    |        
|                                                   |                                                                                                     |                                                          |                                                     |           |          |          |        |          |        



79



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##### 



COLONIAL PROPERTIES TRUST




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003




|   |                                       
|-- | --------------------------------------
|1. | Organization and Basis of Presentation

Organization


Federal Income Tax Status


|     |  |              |      |  |          |  |        |           |  |  |              |  |  |                 |        |  |  |  |        | 
|---- |  | ------------ | ---- |  | -------- |  | ------ | --------- |  |  | ------------ |  |  | --------------- | ------ |  |  |  | ------ | 
|     |  | Distribution |      |  | Ordinary |  |        | Return of |  |  | Long-Term    |  |  | Unrecaptured    |       
|     |  | per Share    |      |  | Income   |  |        | Capital   |  |  | Capital Gain |  |  | Sec. 1250 Gains |       
|     |  |              |      |  |          |  |        |           |  |  |              |  |  |                 |       
|2005 |  | $            | 2.70 |  |          |  | 25.30% |           |  |  | 0.00%        |  |  |                 | 39.34% |  |  |  | 35.36% | 
|2004 |  | $            | 2.68 |  |          |  | 53.09% |           |  |  | 45.26%       |  |  |                 | 1.51%  |  |  |  | 0.14%  | 
|2003 |  | $            | 2.66 |  |          |  | 58.34% |           |  |  | 33.85%       |  |  |                 | 5.42%  |  |  |  | 2.39%  | 



Principles Of Consolidation


Investments In Partially Owned Entities


80



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                           
|-- | ------------------------------------------
|2. | Summary of Significant Accounting Policies

Land, Buildings, and Equipment


|                       |  |              |                 | 
|---------------------- |  | ------------ | --------------- | 
|                       |  | Useful Lives |                
|                       |  |              |                
|Buildings              |  |              | 20 - 40 years   | 
|Furniture and fixtures |  |              | 5 or 7 years    | 
|Equipment              |  |              | 3 or 5 years    | 
|Land improvements      |  |              | 10 or 15  years | 
|Tenant improvements    |  |              | Life of lease   | 

Accounting for the Impairment or
Disposal of Long-Lived Assets. Accounting for Sales of
Real Estate.


Acquisition of Real Estate Assets Business
Combinations Determining Whether a
Non-monetary Transaction Involves Receipt of Productive Assets
or of a Business.


81



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






lease-up lease-up










82



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Undeveloped Land and Construction in Progress




out-of


Cash and Equivalents




Restricted Cash


Valuation of Receivables




Notes Receivable


83



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Deferred Debt and Lease Costs


Derivative Instruments Accounting for Derivative
Instruments and Hedging Activities




Stock-Based Compensation Accounting for
Stock-Based Compensation. Accounting for Stock-Based
Compensation Transition and
Disclosure.


Deferred Compensation on Restricted Shares


Revenue Recognition


84



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Net Income Per Share


Self Insurance Accruals




Use of Estimates


Segment Reporting Disclosures about Segments of an
Enterprise and Related Information.


Recent Pronouncements of the Financial Accounting Standards
Board (FASB) Consolidation of Variable Interest Entities.


85



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Share Based
Payment


04-5, Investors Accounting for an Investment in a Limited
Partnership When the Investor is the Sole General Partner and
the Limited Partners Have Certain Rights. 04-5 04-5 04-5


Accounting for Conditional Asset
Retirement Obligations




|   |                                            
|-- | -------------------------------------------
|3. | Merger with Cornerstone Realty Income Trust



86



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |   |                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a number of Colonial common shares equal to the common share
    conversion rate, which was calculated as 0.2581; or                                                                                                         
|
| |  | a number of Colonial
    75/8%
    Series E preferred depositary shares, $25.00 liquidation
    preference per depositary share, equal to the preferred
    depositary share conversion rate, which was calculated as 0.4194;

S-4 333-121675).




|                                                                                                    |                                              |                |         |           | 
|--------------------------------------------------------------------------------------------------- | -------------------------------------------- | -------------- | ------- | --------- | 
|                                                                                                    |                                              | (In thousands) |        
|Issuance of 11,277,358 Colonial common shares to Cornerstone
    shareholders                       |                                              | $              | 462,347 |          
|Issuance of 5,326,349 Colonial Series E preferred
    depository shares to Cornerstone shareholders |                                              |                | 132,747 |          
|Issuance of 578,358 CRLP common units                                                               |                                              |                | 23,788  |          
|Fees and other expenses related to the merger                                                       |                                              |                | 35,016  |          
|                                                                                                    |                                              |                |        
|                                                                                                    | Total purchase price                         |                |         | 653,898   | 
|Assumption of Cornerstones notes and mortgages payable at
    book value                           |                                              |                | 836,985 |          
|Adjustment to record Cornerstones notes and mortgages at
    fair value                            |                                              |                | 50,880  | (1)      
|Assumption of Cornerstones accounts payable and other
    liabilities at fair value                |                                              |                | 34,380  |          
|                                                                                                    |                                              |                |        
|                                                                                                    | Total purchase price and assumed liabilities |                | $       | 1,576,143 | 
|                                                                                                    |                                              |                |        






|    |                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The fair value adjustment of $50.9 million to account
    for the difference between the fixed rates and market rates for
    the Cornerstone borrowings includes $26.8 million for
    prepayment penalties on debt retired during 2005.



87



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                               |                                              |                |           |           | 
|-------------------------------------------------------------- | -------------------------------------------- | -------------- | --------- | --------- | 
|                                                               |                                              | (In thousands) |          
|Buildings                                                      |                                              | $              | 1,246,019 |          
|Furniture and fixtures                                         |                                              |                | 14,613    |          
|                                                               |                                              |                |          
|                                                               | Fair value of depreciable real estate assets |                |           | 1,260,632 | 
|Land                                                           |                                              |                | 230,768   |          
|Undeveloped land and construction in progress                  |                                              |                | 3,995     |          
|In place lease value                                           |                                              |                | 45,658    |          
|Customer relationships                                         |                                              |                | 5,068     |          
|Other assets, including cash (excluding in-place lease values) |                                              |                | 21,121    |          
|Investments in partially owned entities                        |                                              |                | 8,901     |          
|                                                               |                                              |                |          
|                                                               | Total purchase price                         |                | $         | 1,576,143 | 
|                                                               |                                              |                |          





|                                            |  |                                     |         |  |                    |   |         |  
|------------------------------------------- |  | ----------------------------------- | ------- |  | ------------------ | - | ------- | -
|                                            |  | ***** Pro Forma (Unaudited) *****   |        
|                                            |  |                                     |        
|                                            |  | Twelve Months                       |         |  | Twelve Months      |  
|                                            |  | Ended December 31,                  |         |  | Ended December 31, |  
|                                            |  | 2005(1)                             |         |  | 2004               |  
|                                            |  |                                     |         |  |                    |  
|                                            |  | In thousands, except per share data |        
|Total revenue                               |  | $                                   | 528,224 |  |                    | $ | 447,843 |  
|Net income available to common shareholders |  | $                                   | 240,393 |  |                    | $ | (17,264 | )
|Net income per common share  dilutive      |  | $                                   | 5.86    |  |                    | $ | (0.45   | )






|    |                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | One time merger costs of $9.1 million expensed by
    Cornerstone, have been excluded from the pro forma net income to
    common shareholders for the twelve months ended
    December 31, 2005.



|   |                                       
|-- | --------------------------------------
|4. | Property Acquisitions and Dispositions



| |                      
| | ---------------------
| | Property Acquisitions



88



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                    |  |          |                     |           |                  |  |                    |                   |  |  |         | 
|----------------------------------- |  | -------- | ------------------- | --------- | ---------------- |  | ------------------ | ----------------- |  |  | ------- | 
|                                    |  |          |                     | Effective |                  |  |                   
|                                    |  | Location |                     |           | Acquisition Date |  |                    | Units/Square Feet | 
|                                    |  |          |                     |           |                  |  |                    |                   | 
|Multifamily Properties:             |  |          |                     |           |                  |  |                    |                   |  |  |         | 
|Colonial Grand at Barrett Creek     |  |          | Atlanta, GA         |           |                  |  | August 31, 2005    |                   |  |  | 332     | 
|Colonial Grand at Bear Creek        |  |          | Fort Worth, TX      |           |                  |  | August 18, 2005    |                   |  |  | 436     | 
|Colonial Grand at Bellevue          |  |          | Nashville, TN       |           |                  |  | November 29, 2005  |                   |  |  | 349     | 
|Colonial Grand at Crabtree Valley   |  |          | Raleigh, NC         |           |                  |  | November 29, 2005  |                   |  |  | 210     | 
|Colonial Grand at Mallard Lake      |  |          | Charlotte, NC       |           |                  |  | November 29, 2005  |                   |  |  | 302     | 
|Colonial Grand at Shelby Farms      |  |          | Memphis, TN         |           |                  |  | November 29, 2005  |                   |  |  | 296     | 
|Colonial Grand at Arringdon         |  |          | Raleigh, NC         |           |                  |  | February 12, 2004  |                   |  |  | 320     | 
|Colonial Grand at Berkeley Lake     |  |          | Atlanta, GA         |           |                  |  | June 1, 2004       |                   |  |  | 180     | 
|Colonial Grand at Mt. Vernon        |  |          | Atlanta, GA         |           |                  |  | June 1, 2004       |                   |  |  | 213     | 
|Colonial Grand at River Oaks        |  |          | Atlanta, GA         |           |                  |  | June 1, 2004       |                   |  |  | 216     | 
|Colonial Grand at River Plantation  |  |          | Atlanta, GA         |           |                  |  | June 1, 2004       |                   |  |  | 232     | 
|Colonial Grand at Sugarloaf         |  |          | Atlanta, GA         |           |                  |  | June 1, 2004       |                   |  |  | 250     | 
|Colonial Village at Sierra Vista    |  |          | Austin, TX          |           |                  |  | September 10, 2004 |                   |  |  | 232     | 
|Colonial Grand at Seven Oaks        |  |          | Tampa, FL           |           |                  |  | September 30, 2004 |                   |  |  | 318     | 
|Colonial Grand at Beverly Crest     |  |          | Charlotte, NC       |           |                  |  | October 29, 2004   |                   |  |  | 300     | 
|Colonial Grand at Patterson Place   |  |          | Durham, NC          |           |                  |  | October 29, 2004   |                   |  |  | 252     | 
|Colonial Grand at McGinnis Ferry    |  |          | Atlanta, GA         |           |                  |  | December 7, 2004   |                   |  |  | 434     | 
|Colonial Grand at Metrowest         |  |          | Orlando, FL         |           |                  |  | December 30, 2003  |                   |  |  | 311     | 
|Colonial Village at Quarry Oaks     |  |          | Austin, TX          |           |                  |  | December 30, 2003  |                   |  |  | 533     | 
|Office Properties:                  |  |          |                     |           |                  |  |                    |                   |  |  |         | 
|Colonial Place I & II               |  |          | Tampa, FL           |           |                  |  | January 31, 2005   |                   |  |  | 371,000 | 
|Research Park Office Center IV      |  |          | Huntsville, AL      |           |                  |  | February 1, 2005   |                   |  |  | 59,900  | 
|Colonial Center at Bayside          |  |          | Tampa, FL           |           |                  |  | April 15, 2005     |                   |  |  | 213,800 | 
|Colonial Bank Centre                |  |          | Miami, FL           |           |                  |  | April 27, 2005     |                   |  |  | 235,500 | 
|Research Park Plaza III & IV        |  |          | Austin, TX          |           |                  |  | June 30, 2005      |                   |  |  | 357,700 | 
|Esplanade                           |  |          | Charlotte, NC       |           |                  |  | July 14, 2005      |                   |  |  | 201,900 | 
|Colonial Center Heathrow 1001       |  |          | Orlando, FL         |           |                  |  | July 20, 2005      |                   |  |  | 192,200 | 
|The Peachtree                       |  |          | Atlanta, GA         |           |                  |  | August 31, 2005    |                   |  |  | 260,900 | 
|DRS Building                        |  |          | Huntsville, AL      |           |                  |  | February 12, 2004  |                   |  |  | 215,500 | 
|Research Park Office Center         |  |          | Huntsville, AL      |           |                  |  | October 22, 2004   |                   |  |  | 176,600 | 
|Colonial Center Research Place      |  |          | Huntsville, AL      |           |                  |  | December 15, 2003  |                   |  |  | 272,558 | 
|Retail Properties:                  |  |          |                     |           |                  |  |                    |                   |  |  |         | 
|Colonial Promenade Portofino        |  |          | Houston, TX         |           |                  |  | January 13, 2005   |                   |  |  | 372,500 | 
|Colonial Pinnacle Kingwood Commons  |  |          | Houston, TX         |           |                  |  | April 8, 2004      |                   |  |  | 164,356 | 
|Village on the Parkway(1)           |  |          | Dallas, TX          |           |                  |  | June 18, 2004      |                   |  |  | 381,166 | 
|Colonial Shoppes College Parkway    |  |          | Ft. Myers, FL       |           |                  |  | August 2, 2004     |                   |  |  | 78,879  | 
|Colonial Promenade Deerfield Mall   |  |          | Deerfield Beach, FL |           |                  |  | August 2, 2004     |                   |  |  | 378,745 | 
|Colonial Shoppes Pines Plaza        |  |          | Pembroke Pines, FL  |           |                  |  | August 2, 2004     |                   |  |  | 68,170  | 
|Colonial Promenade Boulevard Square |  |          | Pembroke Pines, FL  |           |                  |  | September 10, 2004 |                   |  |  | 220,656 | 






|    |                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------
|(1) | All acquisitions are 100% owned by the Company, with the
    exception of Village on the Parkway, which is 90% owned by the
    Company.



89



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |                                |                |         |         |      |   |          |         |  |   |        |        | 
|------------------------------------- | ------------------------------ | -------------- | ------- | ------- | ---- | - | -------- | ------- |  | - | ------ | ------ | 
|                                      |                                | 2005           |         |         | 2004 |   |          | 2003    | 
|                                      |                                |                |         |         |      |   |          |         | 
|                                      |                                | (In thousands) |        
|Assets purchased:                     |                                |                |         |         |      |   |          |         |  |   |        |       
|                                      | Land, buildings, and equipment |                | $       | 625,616 |      |   | $        | 481,890 |  |   | $      | 74,399 | 
|                                      | Other assets                   |                |         | 43,054  |      |   |          | 38,818  |  |   |        | 4,080  | 
|                                      |                                |                |         |         |      |   |          |         | 
|                                      |                                |                | 668,670 |         |      |   | 520,708  |         |  |   | 78,479 |       
|Notes and mortgages assumed           |                                |                | (5,415  | )       |      |   | (186,265 | )       |  |   |       |       
|Other liabilities assumed or recorded |                                |                | (7,899  | )       |      |   | (8,695   | )       |  |   | (1,007 | )     
|                                      |                                |                |         |         |      |   |          |         | 
|Cash paid                             |                                | $              | 655,356 |         |      | $ | 325,748  |         |  | $ | 77,472 |       
|                                      |                                |                |         |         |      |   |          |         | 





|                                            |  |                                     |         |  |                    |   |         | 
|------------------------------------------- |  | ----------------------------------- | ------- |  | ------------------ | - | ------- | 
|                                            |  | ***** Pro Forma (Unaudited) *****   |        
|                                            |  |                                     |        
|                                            |  | Twelve Months                       |         |  | Twelve Months      |  
|                                            |  | Ended December 31,                  |         |  | Ended December 31, |  
|                                            |  | 2005                                |         |  | 2004               |  
|                                            |  |                                     |         |  |                    |  
|                                            |  | In thousands, except per share data |        
|Total revenue                               |  | $                                   | 505,353 |  |                    | $ | 359,559 | 
|Net income available to common shareholders |  | $                                   | 199,073 |  |                    | $ | 46,443  | 
|Net income per common share  dilutive      |  | $                                   | 5.18    |  |                    | $ | 1.69    | 



| |                                                  
| | -------------------------------------------------
| | Property Dispositions  Continuing
    Operations





| |                  
| | -----------------
| | For Sale Projects



90



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                    
| | ---------------------------------------------------
| | Property Dispositions  Discontinued
    Operations







91



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|            |                                       |          |  |                    |      |              |  |                 |  |  |  |           | 
|----------- | ------------------------------------- | -------- |  | ------------------ | ---- | ------------ |  | --------------- |  |  |  | --------- | 
|            |                                       |          |  |                    |      | Units/Square | 
|Property    |                                       | Location |  |                    | Date |              |  | Feet            | 
|            |                                       |          |  |                    |      |              |  |                 | 
|Multifamily |                                       |          |  |                    |      |              |  |                 |  |  |  |          
|            | Colonial Village at Cahaba Heights(1) |          |  | Birmingham, AL     |      |              |  | February 2005   |  |  |  | 125       | 
|            | Colonial Grand at Riverhills(1)       |          |  | Tampa, FL          |      |              |  | February 2005   |  |  |  | 776       | 
|            | Colonial Village at Ashley Plantation |          |  | Bluffton, SC       |      |              |  | March 2005      |  |  |  | 414       | 
|            | Colonial Village at Gainesville       |          |  | Gainesville, FL    |      |              |  | March 2005      |  |  |  | 560       | 
|            | Colonial Grand at Galleria Woods      |          |  | Birmingham, AL     |      |              |  | March 2005      |  |  |  | 244       | 
|            | Colonial Village at TownPark          |          |  | Sarasota, FL       |      |              |  | March 2005      |  |  |  | 272       | 
|            | Colonial Village at Walton Way        |          |  | Augusta, GA        |      |              |  | March 2005      |  |  |  | 256       | 
|            | Colonial Grand at Wesleyan            |          |  | Macon, GA          |      |              |  | March 2005      |  |  |  | 328       | 
|            | Colonial Village at Lake Mary         |          |  | Orlando, FL        |      |              |  | May 2005        |  |  |  | 504       | 
|            | Bridgetown Bay                        |          |  | Charlotte, NC      |      |              |  | May 2005        |  |  |  | 120       | 
|            | Devonshire                            |          |  | Dallas, TX         |      |              |  | May 2005        |  |  |  | 144       | 
|            | Dunwoody Springs                      |          |  | Atlanta, GA        |      |              |  | May 2005        |  |  |  | 350       | 
|            | Caryle Club                           |          |  | Atlanta, GA        |      |              |  | May 2005        |  |  |  | 243       | 
|            | Aspen Hills                           |          |  | Dallas, TX         |      |              |  | May 2005        |  |  |  | 240       | 
|            | Ashley Run                            |          |  | Atlanta, GA        |      |              |  | June 2005       |  |  |  | 348       | 
|            | Mill Crossing                         |          |  | Dallas, TX         |      |              |  | June 2005       |  |  |  | 184       | 
|            | Arbors on Forest Ridge                |          |  | Fort Worth, TX     |      |              |  | October 2005    |  |  |  | 210       | 
|            | Cutters Point                         |          |  | Dallas, TX         |      |              |  | October 2005    |  |  |  | 196       | 
|            | Eagle Crest                           |          |  | Dallas, TX         |      |              |  | October 2005    |  |  |  | 484       | 
|            | Sierra Ridge                          |          |  | San Antonio, TX    |      |              |  | October 2005    |  |  |  | 230       | 
|            | Timberglen                            |          |  | Dallas, TX         |      |              |  | October 2005    |  |  |  | 304       | 
|            | Toscana                               |          |  | Dallas, TX         |      |              |  | October 2005    |  |  |  | 192       | 
|            | Silverbrook                           |          |  | Fort Worth, TX     |      |              |  | October 2005    |  |  |  | 642       | 
|            | The Meridian                          |          |  | Austin, TX         |      |              |  | October 2005    |  |  |  | 200       | 
|            | The Landing                           |          |  | Raleigh, NC        |      |              |  | December 2005   |  |  |  | 200       | 
|            | Cypress Cove at Suntree               |          |  | Melbourne, FL      |      |              |  | December 2005   |  |  |  | 326       | 
|            | Colonial Village at Vernon Marsh      |          |  | Savannah, GA       |      |              |  | October 2004    |  |  |  | 178       | 
|            | Colonial Grand at Ponte Vedra(1)      |          |  | Jacksonville, FL   |      |              |  | May 2004        |  |  |  | 240       | 
|            | Colonial Grand at Citrus Park         |          |  | Tampa, FL          |      |              |  | March 2003      |  |  |  | 176       | 
|Office      |                                       |          |  |                    |      |              |  |                 |  |  |  |          
|            | Village at Roswell Summit             |          |  | Atlanta, GA        |      |              |  | July 2004       |  |  |  | 25,500    | 
|            | 2100 International Park               |          |  | Birmingham, AL     |      |              |  | September  2003 |  |  |  | 29,000    | 
|Retail(2)   |                                       |          |  |                    |      |              |  |                 |  |  |  |          
|            | Colonial Mall Gadsden                 |          |  | Gadsden, AL        |      |              |  | March 2005      |  |  |  | 517,000   | 
|            | Colonial Mall Temple                  |          |  | Temple, TX         |      |              |  | April 2005      |  |  |  | 555,600   | 
|            | Colonial Mall Macon                   |          |  | Macon, GA          |      |              |  | July 2005       |  |  |  | 1,446,600 | 
|            | Colonial Mall Burlington              |          |  | Burlington, NC     |      |              |  | July 2005       |  |  |  | 419,200   | 
|            | Colonial Promenade University Park I  |          |  | Orlando, FL        |      |              |  | March 2004      |  |  |  | 215,600   | 
|            | Colonial Shoppes at Stanley           |          |  | Locust, NC         |      |              |  | July 2004       |  |  |  | 47,100    | 
|            | Colonial Shoppes at Inverness         |          |  | Birmingham, AL     |      |              |  | September  2004 |  |  |  | 28,200    | 
|            | Orlando Fashion Square(1)             |          |  | Orlando, FL        |      |              |  | December 2004   |  |  |  | 1,041,700 | 
|            | Colonial Promenade Bardmoor           |          |  | St. Petersburg, FL |      |              |  | March 2003      |  |  |  | 152,700   | 






|    |                                                                                              
|--- | ---------------------------------------------------------------------------------------------
|(1) | Properties were partially owned entities accounted for on the
    equity basis of accounting.
|   
|(2) | Square footage includes anchor-owned square footage.                                         

92



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






Accounting for the
Impairment or Disposal of Long-Lived Assets




93



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                  |                                            |                         |         |        |      |   |         |        |  |   |         |        | 
|------------------------------------------------------------------------------------------------- | ------------------------------------------ | ----------------------- | ------- | ------ | ---- | - | ------- | ------ |  | - | ------- | ------ | 
|                                                                                                  |                                            | Year Ended December 31, |        
|                                                                                                  |                                            |                         |        
|                                                                                                  |                                            | 2005                    |         |        | 2004 |   |         | 2003   | 
|                                                                                                  |                                            |                         |         |        |      |   |         |        | 
|                                                                                                  |                                            | (Amounts in thousands)  |        
|Property revenues:                                                                                |                                            |                         |         |        |      |   |         |        |  |   |         |       
|                                                                                                  | Base rent                                  |                         | $       | 52,056 |      |   | $       | 47,068 |  |   | $       | 47,241 | 
|                                                                                                  | Percentage rent                            |                         |         | 506    |      |   |         | 1,035  |  |   |         | 1,053  | 
|                                                                                                  | Tenant recoveries                          |                         |         | 4,318  |      |   |         | 10,215 |  |   |         | 10,892 | 
|                                                                                                  | Other property revenue                     |                         |         | 5,093  |      |   |         | 4,381  |  |   |         | 5,315  | 
|                                                                                                  |                                            |                         |         |        |      |   |         |        | 
|Total property revenues                                                                           |                                            |                         | 61,973  |        |      |   | 62,699  |        |  |   | 64,501  |       
|                                                                                                  | Property operating and maintenance expense |                         |         | 25,280 |      |   |         | 21,201 |  |   |         | 21,282 | 
|                                                                                                  | Depreciation                               |                         |         | 5,975  |      |   |         | 12,276 |  |   |         | 13,779 | 
|                                                                                                  | Amortization                               |                         |         | 6,089  |      |   |         | 766    |  |   |         | 697    | 
|                                                                                                  |                                            |                         |         |        |      |   |         |        | 
|Total operating expenses                                                                          |                                            |                         | 37,344  |        |      |   | 34,243  |        |  |   | 35,758  |       
|Interest expense                                                                                  |                                            |                         | (7,555  | )      |      |   | (5,660  | )      |  |   | (5,659  | )     
|Interest income                                                                                   |                                            |                         | 4       |        |      |   | 2       |        |  |   | 9       |       
|Income (loss) from investments                                                                    |                                            |                         | (626    | )      |      |   | 627     |        |  |   | 386     |       
|Income from discontinued operations before net gain on
    disposition of discontinued operations |                                            |                         | 16,452  |        |      |   | 23,425  |        |  |   | 23,479  |       
|Net gain on disposition of discontinued operations                                                |                                            |                         | 184,410 |        |      |   | 17,574  |        |  |   | 10,986  |       
|Minority interest in CRLP from discontinued operations                                            |                                            |                         | (44,772 | )      |      |   | (11,323 | )      |  |   | (10,184 | )     
|                                                                                                  |                                            |                         |         |        |      |   |         |        | 
|Income from discontinued operations                                                               |                                            | $                       | 156,090 |        |      | $ | 29,676  |        |  | $ | 24,281  |       
|                                                                                                  |                                            |                         |         |        |      |   |         |        | 

5.     Land, Buildings, and
Equipment




|                                      |  |              |                 |                |      |   |           |      |  |   |           |  
|------------------------------------- |  | ------------ | --------------- | -------------- | ---- | - | --------- | ---- |  | - | --------- | -
|                                      |  | Useful Lives |                 |                | 2005 |   |           | 2004 | 
|                                      |  |              |                 |                |      |   |           |      | 
|                                      |  |              |                 | (In thousands) |     
|Buildings                             |  |              | 20 to 40  years |                |      | $ | 3,001,370 |      |  | $ | 2,031,570 |  
|Furniture and fixtures                |  |              | 5 or 7 years    |                |      |   | 78,094    |      |  |   | 73,508    |  
|Equipment                             |  |              | 3 or 5 years    |                |      |   | 33,603    |      |  |   | 27,945    |  
|Land improvements                     |  |              | 10 or 15  years |                |      |   | 172,953   |      |  |   | 83,184    |  
|Tenant improvements                   |  |              | Life of lease   |                |      |   | 177,938   |      |  |   | 156,929   |  
|                                      |  |              |                 |                |      |   |           |      | 
|                                      |  |              |                 |                |      |   | 3,463,958 |      |  |   | 2,373,136 |  
|Accumulated depreciation              |  |              |                 |                |      |   | (453,365  | )    |  |   | (437,635  | )
|                                      |  |              |                 |                |      |   |           |      | 
|                                      |  |              |                 |                |      |   | 3,010,593 |      |  |   | 1,935,501 |  
|Real estate assets held for sale, net |  |              |                 |                |      |   | 367,372   |      |  |   | 167,712   |  
|Land                                  |  |              |                 |                |      |   | 510,967   |      |  |   | 323,168   |  
|                                      |  |              |                 |                |      |   |           |      | 
|                                      |  |              |                 |                |      | $ | 3,888,932 |      |  | $ | 2,426,381 |  
|                                      |  |              |                 |                |      |   |           |      | 



|   |                                              
|-- | ---------------------------------------------
|6. | Undeveloped Land and Construction in Progress



94



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                    |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   |        |         | 
|----------------------------------- | ------------------------------------------- | ------- | ------- |  | ---------- | -------------- | ---- | ----------- | -------------- | - | -------------- |  |  | - | ------ | ------- | 
|                                    |                                             | Total   |         |  |            |                |      |             |               
|                                    |                                             | Units/  |         |  |            |                |      |             | Costs          |  
|                                    |                                             | Square  |         |  | Estimated  |                |      | Estimated   |                |   | Capitalized to | 
|                                    |                                             | Feet(1) |         |  | Completion |                |      | Total Costs |                |   | Date           | 
|                                    |                                             |         |         |  |            |                |      |             |                |   |                | 
|                                    |                                             |         |         |  |            | (In thousands) |      |             | (In thousands) |  
|Multifamily Projects:               |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   |        |        
|Colonial Grand at Silverado Reserve |                                             |         | 238     |  |            |                | 2006 |             |                | $ | 23,200         |  |  | $ | 19,760 |        
|Colonial Grand at Round Rock        |                                             |         | 422     |  |            |                | 2006 |             |                |   | 34,500         |  |  |   | 20,305 |        
|Colonial Grand at Canyon Creek      |                                             |         | 336     |  |            |                | 2006 |             |                |   | 29,100         |  |  |   | 6,568  |        
|Colonial Grand at Double Creek      |                                             |         | 300     |  |            |                | 2007 |             |                |   | 27,300         |  |  |   | 3,882  |        
|Colonial Grand at Ayrsley           |                                             |         | 365     |  |            |                | 2007 |             |                |   | 33,100         |  |  |   | 178    |        
|Colonial Grand at Traditions        |                                             |         | 320     |  |            |                | 2007 |             |                |   | 30,800         |  |  |   | 2,800  |        
|Office Projects:                    |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   |        |        
|Northrop Grumman                    |                                             |         | 110,000 |  |            |                | 2006 |             |                |   | 17,300         |  |  |   | 1,478  |        
|Colonial Center TownPark 300        |                                             |         | 150,000 |  |            |                | 2006 |             |                |   | 20,600         |  |  |   | 3,760  |        
|Retail Projects:                    |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   |        |        
|Colonial Pinnacle Tutwiler Farm     |                                             |         | 450,000 |  |            |                | 2006 |             |                |   | 36,000         |  |  |   | 17,473 |        
|Colonial Pinnacle Craft Farms       |                                             |         | 440,000 |  |            |                | 2007 |             |                |   | 50,800         |  |  |   | 14,264 |        
|Colonial Promenade Fultondale       |                                             |         | 257,000 |  |            |                | 2007 |             |                |   | 26,300         |  |  |   | 1,985  |        
|Colonial Promenade Alabaster II     |                                             |         | 127,000 |  |            |                | 2007 |             |                |   | 21,600         |  |  |   | 387    |        
|For Sale Projects:                  |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   |        |        
|Central Park                        |                                             |         | 212     |  |            |                | 2006 |             |                |   | 22,300         |  |  |   | 5,133  |        
|Colonial Traditions at Gulf Shores  |                                             |         | 371     |  |            |                | 2006 |             |                |   | 20,000         |  |  |   | 15,363 |        
|Colonial Traditions at South Park   |                                             |         | 48      |  |            |                | 2007 |             |                |   | 11,500         |  |  |   | 2,014  |        
|The Renwick                         |                                             |         | 85      |  |            |                | 2007 |             |                |   | 17,700         |  |  |   | 4,075  |        
|Other Projects and Undeveloped Land |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   |        |        
|Mansell Land and Infrastructure     |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   | 9,306  |        
|TownPark Land and Infrastructure    |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   | 14,852 |        
|Heathrow Land and Infrastructure    |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   | 13,914 |        
|Canal Place Land and Infrastructure |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   | 10,952 |        
|Land                                |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   | 16,168 |        
|Other                               |                                             |         |         |  |            |                |      |             |                |   |                |  |  |   | 17,435 |        
|                                    |                                             |         |         |  |            |                |      |             |                |   |                | 
|                                    | Total Consolidated Construction in Progress |         |         |  |            |                |      |             |                |   |                |  |  |   | $      | 202,052 | 
|                                    |                                             |         |         |  |            |                |      |             |                |   |                | 
|Colonial Pinnacle Turkey Creek(2)   |                                             |         | 520,000 |  |            |                | 2006 |             |                |   | 37,900         |  |  |   | 25,949 |        
|                                    |                                             |         |         |  |            |                |      |             |                |   |                | 
|                                    | Total Construction in Progress              |         |         |  |            |                |      |             |                |   |                |  |  |   | $      | 228,001 | 
|                                    |                                             |         |         |  |            |                |      |             |                |   |                | 






|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | Square footage includes anchor-owned square footage.                                     
|   
|(2) | Represents 50% of the costs. The Company is a 50% equity
    partner in this development.

95



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                                                                  
|-- | -----------------------------------------------------------------
|7. | Investment in Partially Owned Entities and Other
    Arrangements



| |                                                         
| | --------------------------------------------------------
| | Investments in Consolidated Partially Owned
    Entities

384-unit 273-unit






96



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                           
| | ----------------------------------------------------------
| | Investments in Unconsolidated Partially Owned
    Entities



|                                                       |  |         |       |                |      |   |         |      |  |   |        |  
|------------------------------------------------------ |  | ------- | ----- | -------------- | ---- | - | ------- | ---- |  | - | ------ | -
|                                                       |  | Percent |       |                |      |   |        
|                                                       |  | Owned   |       |                | 2005 |   |         | 2004 | 
|                                                       |  |         |       |                |      |   |         |      | 
|                                                       |  |         |       | (In thousands) |     
|Multifamily:                                           |  |         |       |                |      |   |         |      |  |   |        |  
|Arbors at Windsor Lake, Columbia, SC                   |  |         | 10.00 | %              |      | $ | 716     |      |  | $ |       |  
|CMS/ Colonial Joint Venture I                          |  |         | 15.00 | %              |      |   | 944     |      |  |   | 1,435  |  
|CMS/ Colonial Joint Venture II                         |  |         | 15.00 | %              |      |   | 597     |      |  |   | 670    |  
|CMS Florida                                            |  |         | 25.00 | %              |      |   | 2,721   |      |  |   | 2,925  |  
|CMS Tennessee                                          |  |         | 25.00 | %              |      |   | 2,377   |      |  |   | 2,727  |  
|DRA Alabama                                            |  |         | 10.00 | %              |      |   | 2,403   |      |  |   | 2,500  |  
|DRA Cunningham, Austin, TX                             |  |         | 20.00 | %              |      |   | 1,111   |      |  |   | 1,266  |  
|DRA Southwest Partnership                              |  |         | 20.00 | %              |      |   | 18,044  |      |  |   | 19,022 |  
|DRA The Grove at Riverchase, Birmingham, AL            |  |         | 20.00 | %              |      |   | 1,788   |      |  |   |       |  
|CG at Research Park, Durham, NC                        |  |         | 20.00 | %              |      |   | 1,570   |      |  |   |       |  
|Carter Regents Park (Development), Atlanta, GA         |  |         | 40.00 | %              |      |   | 3,000   |      |  |   |       |  
|Merritt at Godley Station, Pooler, GA                  |  |         | 35.00 | %              |      |   | 3,188   |      |  |   |       |  
|Stone Ridge, Columbia, SC                              |  |         | 10.00 | %              |      |   | 497     |      |  |   |       |  
|                                                       |  |         |       |                |      |   |         |      | 
|                                                       |  |         |       |                |      |   | 38,956  |      |  |   | 30,545 |  
|Office:                                                |  |         |       |                |      |   |         |      |  |   |        |  
|DRA/ Colonial Office JV                                |  |         | 15.00 | %              |      |   | 46,896  |      |  |   |       |  
|600 Building Partnership, Birmingham, AL               |  |         | 33.33 | %              |      |   | 11      |      |  |   | (16    | )
|Douglas HCI                                            |  |         | 25.00 | %              |      |   | 5,807   |      |  |   | 6,457  |  
|                                                       |  |         |       |                |      |   |         |      | 
|                                                       |  |         |       |                |      |   | 52,714  |      |  |   | 6,441  |  
|Retail:                                                |  |         |       |                |      |   |         |      |  |   |        |  
|Colonial Promenade Madison, Huntsville, AL             |  |         | 25.00 | %              |      |   | 2,255   |      |  |   | 2,298  |  
|GPT/ Colonial Retail JV                                |  |         | 10.00 | %              |      |   | (2,311  | )(1) |  |   |       |  
|Highway 150, LLC, Birmingham, AL                       |  |         | 10.00 | %              |      |   | 80      |      |  |   | 94     |  
|Parkway Place Limited Partnership, Huntsville, AL      |  |         | 45.00 | %              |      |   | 12,984  |      |  |   | 12,554 |  
|Turkey Creek, Parkside Drive LLC Partnership           |  |         | 50.00 | %              |      |   | 18,987  |      |  |   | 13,502 |  
|                                                       |  |         |       |                |      |   |         |      | 
|                                                       |  |         |       |                |      |   | 31,995  |      |  |   | 28,448 |  
|Other:                                                 |  |         |       |                |      |   |         |      |  |   |        |  
|Colonial/ Polar-BEK Management Company, Birmingham, AL |  |         | 50.00 | %              |      |   | 30      |      |  |   | 32     |  
|Other                                                  |  |         |       |                |      |   | 5       |      |  |   | 6      |  
|                                                       |  |         |       |                |      |   |         |      | 
|                                                       |  |         |       |                |      |   | 35      |      |  |   | 38     |  
|                                                       |  |         |       |                |      |   |         |      | 
|                                                       |  |         |       |                |      | $ | 123,700 |      |  | $ | 65,472 |  
|                                                       |  |         |       |                |      |   |         |      | 






|    |                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amount represents the value of the Companys investment
    of approximately $8.0 million, offset by the excess basis
    difference on the transaction of approximately
    $10.3 million, which will be amortized over the life of the
    investment.

125-unit 776-unit




370-unit


97



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






345-unit






326-unit


98



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


240-unit


280-unit


376-unit 340-unit


364-unit










99



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |                                  |                                         |   |           |           |  |   |         |         | 
|-------------------------------- | -------------------------------- | --------------------------------------- | - | --------- | --------- |  | - | ------- | ------- | 
|                                 |                                  | December 31,                            |  
|                                 |                                  |                                         |  
|                                 |                                  | 2005                                    |   |           | 2004      | 
|                                 |                                  |                                         |   |           |           | 
|                                 |                                  | (In thousands)                          |  
|Balance Sheet                    |                                  |                                         |   |           |           |  |   |        
|Assets                           |                                  |                                         |   |           |           |  |   |        
|                                 | Land, building, & equipment, net |                                         | $ | 2,631,923 |           |  | $ | 723,370 |        
|                                 | Construction in progress         |                                         |   | 40,762    |           |  |   | 17,728  |        
|                                 | Other assets                     |                                         |   | 364,214   |           |  |   | 78,722  |        
|                                 |                                  |                                         |   |           |           | 
|                                 |                                  | Total assets                            |   | $         | 3,036,899 |  |   | $       | 819,820 | 
|                                 |                                  |                                         |   |           |           | 
|                                
|Liabilities and Partners Equity |                                  |                                         |   |           |           |  |   |        
|                                 | Notes payable(1)                 |                                         | $ | 2,312,003 |           |  | $ | 613,062 |        
|                                 | Other liabilities                |                                         |   | 62,184    |           |  |   | 24,766  |        
|                                 | Partners Equity                 |                                         |   | 662,712   |           |  |   | 181,992 |        
|                                 |                                  |                                         |   |           |           | 
|                                 |                                  | Total liabilities and partners capital |   | $         | 3,036,899 |  |   | $       | 819,820 | 
|                                 |                                  |                                         |   |           |           | 

|                                            |            |      |         |        |      |   |         |        |  |   |         |       | 
|------------------------------------------- | ---------- | ---- | ------- | ------ | ---- | - | ------- | ------ |  | - | ------- | ----- | 
|                                            |            | 2005 |         |        | 2004 |   |         | 2003   | 
|                                            |            |      |         |        |      |   |         |        | 
|Statement of Operations(For the year ended) |            |      |         |        |      |   |         |        |  |   |         |      
|Revenues                                    |            | $    | 168,108 |        |      | $ | 72,187  |        |  | $ | 51,571  |      
|Operating expenses                          |            |      | (70,155 | )      |      |   | (30,055 | )      |  |   | (21,742 | )    
|Interest expense                            |            |      | (55,886 | )      |      |   | (20,323 | )      |  |   | (15,938 | )    
|Depreciation, amortization and other        |            |      | (49,711 | )      |      |   | (3,319  | )      |  |   | (12,472 | )    
|                                            |            |      |         |        |      |   |         |        | 
|                                            | Net income |      | $       | (7,644 | )    |   | $       | 18,490 |  |   | $       | 1,419 | 
|                                            |            |      |         |        |      |   |         |        | 






|    |                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Companys portion of indebtedness, as calculated
    based on ownership percentage, at December 31, 2005 and
    2004 is $373.1 million and $111.6 million,
    respectively.

100



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                    
|-- | -------------------
|8. | Segment Information



|          |                                  |                    |                              |         |         |         |  |         |         |         |  |         |         |         | 
|--------- | -------------------------------- | ------------------ | ---------------------------- | ------- | ------- | ------- |  | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|          |                                  | For the Year Ended |                             
|          |                                  |                    |                             
|          |                                  | 2005               |                              |         | 2004    |         |  | 2003    |        
|          |                                  |                    |                              |         |         |         |  |         |        
|          |                                  | (In thousands)     |                             
|Revenues: |                                  |                    |                              |         |         |         |  |         |         |         |  |        
|          | Divisional Revenues              |                    |                              |         |         |         |  |         |         |         |  |         |        
|          |                                  | Multifamily        |                              | $       | 279,744 |         |  | $       | 123,396 |         |  | $       | 98,929  |        
|          |                                  | Office             |                              |         | 133,368 |         |  |         | 98,680  |         |  |         | 93,501  |        
|          |                                  | Retail             |                              |         | 159,460 |         |  |         | 169,126 |         |  |         | 156,799 |        
|          |                                  |                    |                              |         |         |         |  |         |        
|          |                                  |                    | Total Divisional Revenues:   |         |         | 572,572 |  |         |         | 391,202 |  |         |         | 349,229 | 
|          | Partially-owned subsidiaries     |                    |                              | (30,332 | )       |         |  | (18,194 | )       |         |  | (16,258 | )      
|          | Unallocated corporate revenues   |                    |                              | 15,176  |         |         |  | 7,321   |         |         |  | 3,826   |        
|          | Discontinued operations revenues |                    |                              | (61,973 | )       |         |  | (62,699 | )       |         |  | (64,501 | )      
|          |                                  |                    |                              |         |         |         |  |         |        
|          |                                  |                    | Total Consolidated Revenues: |         | $       | 495,443 |  |         | $       | 317,630 |  |         | $       | 272,296 | 
|          |                                  |                    |                              |         |         |         |  |         |        

101



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|        |                                     |                                                                                      |                          |          |           |           |           |         |           |           |  |         |         |         | 
|------- | ----------------------------------- | ------------------------------------------------------------------------------------ | ------------------------ | -------- | --------- | --------- | --------- | ------- | --------- | --------- |  | ------- | ------- | ------- | 
|        |                                     | For the Year Ended                                                                   |                         
|        |                                     |                                                                                      |                         
|        |                                     | 2005                                                                                 |                          |          | 2004      |           |           | 2003    |          
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        |                                     | (In thousands)                                                                       |                         
|NOI:    |                                     |                                                                                      |                          |          |           |           |           |         |           |           |  |        
|        | Divisional NOI                      |                                                                                      |                          |          |           |           |           |         |           |           |  |         |        
|        |                                     | Multifamily                                                                          |                          | $        | 166,972   |           |           | $       | 75,280    |           |  | $       | 61,870  |        
|        |                                     | Office                                                                               |                          |          | 90,275    |           |           |         | 69,947    |           |  |         | 65,820  |        
|        |                                     | Retail                                                                               |                          |          | 112,103   |           |           |         | 118,366   |           |  |         | 109,158 |        
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        |                                     |                                                                                      | Total Divisional NOI:    |          |           | 369,350   |           |         |           | 263,593   |  |         |         | 236,848 | 
|        | Partially-owned subsidiaries        |                                                                                      |                          | (17,784  | )         |           |           | (10,611 | )         |           |  | (9,420  | )      
|        | Unallocated corporate revenues      |                                                                                      |                          | 15,176   |           |           |           | 7,321   |           |           |  | 3,826   |        
|        | Discontinued operations NOI         |                                                                                      |                          | (36,693  | )         |           |           | (41,498 | )         |           |  | (43,219 | )      
|        | General and administrative expenses |                                                                                      |                          | (42,040  | )         |           |           | (27,287 | )         |           |  | (19,481 | )      
|        | Depreciation                        |                                                                                      |                          | (129,954 | )         |           |           | (79,344 | )         |           |  | (66,982 | )      
|        | Amortization                        |                                                                                      |                          | (51,769  | )         |           |           | (8,681  | )         |           |  | (7,356  | )      
|        | Other                               |                                                                                      |                          | (380     | )         |           |           | 81      |           |           |  | (11     | )      
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        |                                     | Income from operations                                                               |                          |          | 105,906   |           |           |         | 103,574   |           |  |         | 94,205  |        
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        | Total other expense                 |                                                                                      |                          | (17,469  | )         |           |           | (66,978 | )         |           |  | (53,886 | )      
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        |                                     | Income before extraordinary items, minority interest and
    discontinued operations |                          | $        | 88,437    |           |           | $       | 36,596    |           |  | $       | 40,319  |        
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|Assets: |                                     |                                                                                      |                          |          |           |           |           |         |           |           |  |        
|        | Divisional Assets                   |                                                                                      |                          |          |           |           |           |         |           |           |  |         |        
|        |                                     | Multifamily                                                                          |                          | $        | 2,374,650 |           |           | $       | 937,935   |           |  |         |         |        
|        |                                     | Office                                                                               |                          |          | 958,131   |           |           |         | 632,010   |           |  |         |         |        
|        |                                     | Retail                                                                               |                          |          | 790,827   |           |           |         | 1,082,517 |           |  |         |         |        
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        |                                     |                                                                                      | Total Divisional Assets: |          |           | 4,123,608 |           |         |           | 2,652,462 |  |         |         |         | 
|        | Unallocated corporate assets(1)     |                                                                                      |                          | 375,650  |           |           |           | 148,881 |           |           |  |         |        
|        |                                     |                                                                                      |                          |          |           |           |           |         |          
|        |                                     | $                                                                                    | 4,499,258                |          |           | $         | 2,801,343 |         |           |           |  |        
|        |                                     |                                                                                      |                          |          |           |           |           |         |          






|    |                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes the Companys investment in joint ventures of
    $123,700 and $65,472 as of December 31, 2005 and 2004,
    respectively (see Note 7).



|   |                            
|-- | ---------------------------
|9. | Notes and Mortgages Payable



|                           |                |                |           |           |      |   |           |         | 
|-------------------------- | -------------- | -------------- | --------- | --------- | ---- | - | --------- | ------- | 
|                           |                | 2005           |           |           | 2004 |  
|                           |                |                |           |           |      |  
|                           |                | (In thousands) |          
|Unsecured credit facility  |                | $              | 210,228   |           |      | $ | 239,970   |        
|Bridge credit facility     |                |                |          |           |      |   | 119,000   |        
|Mortgages and other notes: |                |                |           |           |      |   |           |        
|                           | 2.00% to 6.00% |                |           | 930,453   |      |   |           | 329,835 | 
|                           | 6.01% to 7.50% |                |           | 1,143,695 |      |   |           | 957,519 | 
|                           | 7.51% to 9.00% |                |           | 209,974   |      |   |           | 209,463 | 
|                           |                |                |           |           |      |  
|                           |                | $              | 2,494,350 |           |      | $ | 1,855,787 |        
|                           |                |                |           |           |      |  



102



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














|               |  |         |        |  |          |  |               |                |       |  |          |  |  |   |           | 
|-------------- |  | ------- | ------ |  | -------- |  | ------------- | -------------- | ----- |  | -------- |  |  | - | --------- | 
|               |  | Type of |        |  |          |  |               |                | Gross | 
|Issue Date     |  | Note    |        |  | Maturity |  |               | Rate           |       |  | Proceeds | 
|               |  |         |        |  |          |  |               |                |       |  |          | 
|               |  |         |        |  |          |  |               | (In thousands) |      
|January 2005   |  |         | Senior |  |          |  | February 2010 |                |       |  | 4.75%    |  |  | $ | 275,000   | 
|September 2005 |  |         | Senior |  |          |  | October 2015  |                |       |  | 5.50%    |  |  |   | 325,000   | 
|April 2004     |  |         | Senior |  |          |  | April 2011    |                |       |  | 4.80%    |  |  |   | 100,000   | 
|June 2004      |  |         | Senior |  |          |  | June 2014     |                |       |  | 6.25%    |  |  |   | 300,000   | 
|               |  |         |        |  |          |  |               |                |       |  |          | 
|               |  |         |        |  |          |  |               |                |       |  |          |  |  | $ | 1,000,000 | 
|               |  |         |        |  |          |  |               |                |       |  |          | 

103



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|           |  |                |           | 
|---------- |  | -------------- | --------- | 
|           |  | (In thousands) |          
|2006       |  | $              | 86,982    | 
|2007       |  |                | 180,017   | 
|2008       |  |                | 258,114   | 
|2009       |  |                | 49,203    | 
|2010       |  |                | 367,483   | 
|Thereafter |  |                | 1,552,552 | 
|           |  |                |          
|           |  | $              | 2,494,350 | 
|           |  |                |          







|    |                       
|--- | ----------------------
|10. | Derivative Instruments

Accounting for Derivative Instruments
and Hedging Activities






104



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








105



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |  |          |                |  |          |  |        |                |  |                      |                   |  |  |   |       |  
|------------------------------ |  | -------- | -------------- |  | -------- |  | ------ | -------------- |  | -------------------- | ----------------- |  |  | - | ----- | -
|                               |  |          |                |  |          |  |        | Fair Value     | 
|                               |  | Notional |                |  | Interest |  |        |                |  | At December 31, 2005 |                  
|Product Type                   |  | Value    |                |  | Rate     |  |        | Maturity       |  |                      | Asset (Liability) | 
|                               |  |          |                |  |          |  |        |                |  |                      |                   | 
|                               |  |          |                |  |          |  |        | (In thousands) | 
|Interest Rate SWAP, Cash Flow  |  | $        | 11.2 million   |  |          |  | 5.932  | %              |  |                      | 1/1/06            |  |  | $ | (15   | )
|Interest Rate CAP, Cash Flow   |  | $        | 16.4 million   |  |          |  | 4.840  | %              |  |                      | 4/1/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $        | 25.9 million   |  |          |  | 4.840  | %              |  |                      | 4/1/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $        | 8.4 million    |  |          |  | 4.840  | %              |  |                      | 4/1/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $        | 30.4 million   |  |          |  | 11.200 | %              |  |                      | 7/3/06            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $        | 19.7 million   |  |          |  | 6.850  | %              |  |                      | 6/29/07           |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $        | 16.7 million   |  |          |  | 6.850  | %              |  |                      | 7/3/07            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $        | 12.8 million   |  |          |  | 6.000  | %              |  |                      | 7/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $        | 22.4 million   |  |          |  | 6.000  | %              |  |                      | 7/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $        | 9.9 million    |  |          |  | 6.000  | %              |  |                      | 7/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $        | 10.0 million   |  |          |  | 8.373  | %              |  |                      | 8/1/08            |  |  |   | 1     |  
|Interest Rate CAP, Cash Flow   |  | $        | 14.9 million   |  |          |  | 7.543  | %              |  |                      | 8/1/08            |  |  |   | 3     |  
|Interest Rate CAP, Cash Flow   |  | $        | 7.4 million    |  |          |  | 6.983  | %              |  |                      | 8/1/08            |  |  |   | 3     |  
|Interest Rate CAP, Cash Flow   |  | $        | 6.2 million    |  |          |  | 8.373  | %              |  |                      | 8/1/08            |  |  |   |      |  
|Interest Rate CAP, Cash Flow   |  | $        | 13.3 million   |  |          |  | 6.786  | %              |  |                      | 9/1/08            |  |  |   | 8     |  
|Interest Rate CAP, Cash Flow   |  | $        | 5.5 million    |  |          |  | 7.900  | %              |  |                      | 2/1/09            |  |  |   | 2     |  
|Interest Rate CAP, Cash Flow   |  | $        | 17.6 million   |  |          |  | 8.100  | %              |  |                      | 2/1/09            |  |  |   | 4     |  
|Interest Rate SWAP, Fair Value |  | $        | 100.0  million |  |          |  | 4.803  | %              |  |                      | 4/1/11            |  |  |   | 325   |  
|Interest Rate SWAP, Cash Flow  |  | $        | 200.0  million |  |          |  | 4.830  | %              |  |                      | 2/15/16           |  |  |   | 1,532 |  
|Interest Rate SWAP, Cash Flow  |  | $        | 175.0  million |  |          |  | 4.877  | %              |  |                      | 7/13/17           |  |  |   | 1,153 |  







|    |                  
|--- | -----------------
|11. | Capital Structure



106



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|    |                 
|--- | ----------------
|12. | Equity Offerings



107



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


1 1000




1 10 The Effect on the Calculation of Earnings
per Share for the Redemption or Induced Conversion of Preferred
Stock.






|    |                                        
|--- | ---------------------------------------
|13. | Share Option and Restricted Share Plans





108



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Accounting for Stock-Based Compensation 
Transition and Disclosure  an amendment of
SFAS No. 123 7.5-year


Accounting for Stock-Based
Compensation,


|                                             |  |                           |         |  |      |   |        |      |  |   |        | 
|-------------------------------------------- |  | ------------------------- | ------- |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                             |  | For the Year Ending       |        
|                                             |  | December 31,              |        
|                                             |  |                           |        
|                                             |  | 2005                      |         |  | 2004 |   |        | 2003 | 
|                                             |  |                           |         |  |      |   |        |      | 
|                                             |  | (In thousands, except per |        
|                                             |  | share data)               |        
|Net income available to common shareholders: |  |                           |         |  |      |   |        |      |  |   |        | 
|As reported                                  |  | $                         | 197,250 |  |      | $ | 39,837 |      |  | $ | 32,530 | 
|Pro forma                                    |  | $                         | 196,888 |  |      | $ | 39,482 |      |  | $ | 32,104 | 
|                                             |  |                           |         |  |      |   |        |      | 
|Net income per share  basic:                |  |                           |         |  |      |   |        |      |  |   |        | 
|As reported                                  |  | $                         | 5.18    |  |      | $ | 1.47   |      |  | $ | 1.30   | 
|Pro forma                                    |  | $                         | 5.17    |  |      | $ | 1.46   |      |  | $ | 1.29   | 
|Net income per share  diluted:              |  |                           |         |  |      |   |        |      |  |   |        | 
|As reported                                  |  | $                         | 5.13    |  |      | $ | 1.45   |      |  | $ | 1.29   | 
|Pro forma                                    |  | $                         | 5.12    |  |      | $ | 1.44   |      |  | $ | 1.27   | 



109



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                           |  |                  |           |                     |        |  |                  |                 |  |   |       | 
|-------------------------- |  | ---------------- | --------- | ------------------- | ------ |  | ---------------- | --------------- |  | - | ----- | 
|                           |  |                  |           | Options Outstanding |       
|                           |  | Shares Available |           |                     |        | 
|                           |  | for Future       |           |                     |        |  | Weighted-Average |                
|                           |  | Option Grant     |           |                     | Shares |  |                  | Price per Share | 
|                           |  |                  |           |                     |        |  |                  |                 | 
|Balance, December 31, 2002 |  |                  | 1,836,544 |                     |        |  | 1,541,270        |                 |  | $ | 28.88 | 
|Options granted            |  |                  | (514,592  | )                   |        |  | 514,592          |                 |  | $ | 33.46 | 
|Options terminated         |  |                  | 80,043    |                     |        |  | (80,043          | )               |  | $ | 29.65 | 
|Options exercised          |  |                  |           |                     |        |  | (83,861          | )               |  | $ | 27.84 | 
|                           |  |                  |           |                     |        |  |                  |                 | 
|Balance, December 31, 2003 |  |                  | 1,401,995 |                     |        |  | 1,891,958        |                 |  | $ | 27.86 | 
|Options granted            |  |                  | (99,960   | )                   |        |  | 99,960           |                 |  | $ | 36.24 | 
|Options terminated         |  |                  | 72,770    |                     |        |  | (72,770          | )               |  | $ | 32.09 | 
|Options exercised          |  |                  |           |                     |        |  | (344,377         | )               |  | $ | 29.38 | 
|                           |  |                  |           |                     |        |  |                  |                 | 
|Balance, December 31, 2004 |  |                  | 1,374,805 |                     |        |  | 1,574,771        |                 |  | $ | 30.66 | 
|Options granted            |  |                  | (156,832  | )                   |        |  | 156,832          |                 |  | $ | 38.05 | 
|Options terminated         |  |                  | 49,052    |                     |        |  | (49,052          | )               |  | $ | 27.14 | 
|Options exercised          |  |                  |           |                     |        |  | (115,103         | )               |  | $ | 30.85 | 
|                           |  |                  |           |                     |        |  |                  |                 | 
|Balance, December 31, 2005 |  |                  | 1,267,025 | (1)                 |        |  | 1,567,448        |                 |  | $ | 31.49 | 
|                           |  |                  |           |                     |        |  |                  |                 | 






|    |                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The balance available for future grant as of
    December 31, 2005 does not include an additional
    2.6 million shares available to be issued based on the
    Companys Employee Plan which authorizes the issuance of
    shares up to 10% of the number of common shares and Operating
    Partnership units outstanding.

3-5




|    |                  
|--- | -----------------
|14. | Employee Benefits



| |                                             
| | --------------------------------------------
| | Noncontributory Defined Benefit Pension Plan



110



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                             |                                                |                                         |   |            |            |   |   |            |            |  
|---------------------------- | ---------------------------------------------- | --------------------------------------- | - | ---------- | ---------- | - | - | ---------- | ---------- | -
|                             |                                                | 2005                                    |   |            | 2004       |  
|                             |                                                |                                         |   |            |            |  
|Change in benefit obligation |                                                |                                         |   |            |            |   |   |           
|                             |                                                | Benefit obligation at beginning of year |   | $          | 11,436,525 |   |   | $          | 9,280,600  |  
|                             |                                                | Service cost                            |   |            | 994,596    |   |   |            | 887,521    |  
|                             |                                                | Interest cost                           |   |            | 683,001    |   |   |            | 590,066    |  
|                             |                                                | Plan amendments                         |   |            |           |   |   |            |           |  
|                             |                                                | Benefits paid                           |   |            | (117,515   | ) |   |            | (77,776    | )
|                             |                                                | Actuarial (gain) loss                   |   |            | 1,879,527  |   |   |            | 756,114    |  
|                             |                                                |                                         |   |            |            |  
|                             | Benefit obligation at end of year              |                                         | $ | 14,876,134 |            |   | $ | 11,436,525 |           
|                             |                                                |                                         |   |            |            |  
|Change in plan assets        |                                                |                                         |   |            |            |   |   |           
|                             | Fair value of plan assets at beginning of year |                                         | $ | 7,525,075  |            |   | $ | 5,053,759  |           
|                             |                                                | Actual return on plan assets            |   |            | 438,994    |   |   |            | 567,982    |  
|                             |                                                | Employer contributions                  |   |            | 884,888    |   |   |            | 1,981,110  |  
|                             |                                                | Benefits paid                           |   |            | (117,515   | ) |   |            | (77,776    | )
|                             |                                                |                                         |   |            |            |  
|                             | Fair value of plan assets at end of year       |                                         | $ | 8,731,442  |            |   | $ | 7,525,075  |           
|                             |                                                |                                         |   |            |            |  
|                             | Fair value of plan assets                      |                                         | $ | 8,731,442  |            |   | $ | 7,525,075  |           
|                             | Benefit obligation                             |                                         |   | 14,876,134 |            |   |   | 11,436,525 |           
|                             |                                                |                                         |   |            |            |  
|                             |                                                | Funded status                           |   |            | (6,144,692 | ) |   |            | (3,911,450 | )
|                             | Unrecognized net (gain) loss                   |                                         |   | 4,031,516  |            |   |   | 2,028,776  |           
|                             | Unrecognized prior service cost                |                                         |   | 42,178     |            |   |   | 50,175     |           
|                             |                                                |                                         |   |            |            |  
|                             |                                                | Net amount recognized                   |   | $          | (2,070,998 | ) |   | $          | (1,832,499 | )
|                             |                                                |                                         |   |            |            |  



|                                       |                       |      |            |            |      |   |            |            |  
|-------------------------------------- | --------------------- | ---- | ---------- | ---------- | ---- | - | ---------- | ---------- | -
|                                       |                       | 2005 |            |            | 2004 |  
|                                       |                       |      |            |            |      |  
|Prepaid benefit cost                   |                       | $    |           |            |      | $ |           |           
|Accrued benefit cost                   |                       |      | (2,352,313 | )          |      |   | (1,832,499 | )         
|Intangible Asset                       |                       |      | 42,178     |            |      |   |           |           
|Accumulated other comprehensive income |                       |      | 239,137    |            |      |   |           |           
|                                       |                       |      |            |            |      |  
|                                       | Net amount recognized |      | $          | (2,070,998 | )    |   | $          | (1,832,499 | )
|                                       |                       |      |            |            |      |  



|                                        |                                    |                           |   |            |           |  |   |           |           | 
|--------------------------------------- | ---------------------------------- | ------------------------- | - | ---------- | --------- |  | - | --------- | --------- | 
|                                        |                                    | 2005                      |   |            | 2004      | 
|                                        |                                    |                           |   |            |           | 
|Components of net periodic benefit cost |                                    |                           |   |            |           |  |   |          
|                                        | Service cost                       |                           | $ | 994,596    |           |  | $ | 887,521   |          
|                                        | Interest cost                      |                           |   | 683,001    |           |  |   | 590,066   |          
|                                        | Expected return on plan assets     |                           |   | (642,673   | )         |  |   | (475,074  | )        
|                                        | Amortization of prior service cost |                           |   | 7,997      |           |  |   | 7,997     |          
|                                        | Amortization of net (gain) loss    |                           |   | 80,466     |           |  |   | 62,717    |          
|                                        |                                    |                           |   |            |           | 
|                                        |                                    | Net periodic benefit cost |   | $          | 1,123,387 |  |   | $         | 1,073,227 | 
|                                        |                                    |                           |   |            |           | 
|Additional information                  |                                    |                           |   |            |           |  |   |          
|                                        | Accumulated benefit obligation     |                           | $ | 11,083,755 |           |  | $ | 8,748,637 |          

111



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                        |                                                  |      |  |      |      |  |  |      |  
|--------------------------------------------------------------------------------------- | ------------------------------------------------ | ---- |  | ---- | ---- |  |  | ---- | -
|                                                                                        |                                                  | 2005 |  |      | 2004 | 
|                                                                                        |                                                  |      |  |      |      | 
|Weighted-average assumptions used to determine benefit
    obligations at December 31   |                                                  |      |  |      |      |  |  |     
|                                                                                        | Discount rate                                    |      |  | 5.50 | %    |  |  | 6.00 | %
|                                                                                        | Rate of compensation increase                    |      |  | 3.00 | %    |  |  | 3.00 | %
|Weighted-average assumptions used to determine net cost for
    years ended December 31 |                                                  |      |  |      |      |  |  |     
|                                                                                        | Discount rate                                    |      |  | 6.00 | %    |  |  | 6.25 | %
|                                                                                        | Expected long-term rate of return on plan assets |      |  | 8.00 | %    |  |  | 8.00 | %
|                                                                                        | Rate of compensation increase                    |      |  | 3.00 | %    |  |  | 3.00 | %



|                  |       |              |    |     |      |  |    |     |  
|----------------- | ----- | ------------ | -- | --- | ---- |  | -- | --- | -
|                  |       | Percentage   |   
|                  |       | of Plan      |   
|                  |       | Assets at    |   
|                  |       | December 31, |   
|                  |       |              |   
|Asset Category    |       | 2005         |    |     | 2004 | 
|                  |       |              |    |     |      | 
|Equity Securities |       |              | 57 | %   |      |  | 51 | %  
|Debt Securities   |       |              | 33 | %   |      |  | 47 | %  
|Real estate       |       |              | 5  | %   |      |  | 0  | %  
|Other             |       |              | 5  | %   |      |  | 2  | %  
|                  |       |              |    |     |      | 
|                  | Total |              |    | 100 | %    |  |    | 100 | %
|                  |       |              |    |     |      | 





|                 |      |          |   |           |          |  |   |   | 
|---------------- | ---- | -------- | - | --------- | -------- |  | - | - | 
|                 |      | Employer |   |           | Employee
|                 |      |          |   |           |         
|Contributions    |      |          |   |           |          |  |   |  
|                 | 2004 |          | $ | 1,981,110 |          |  | $ |  | 
|                 | 2005 |          | $ | 884,888   |          |  | $ |  | 
|Benefit payments |      |          |   |           |          |  |   |  
|                 | 2004 |          | $ | 77,776    |          |  |   |   | 
|                 | 2005 |          | $ | 117,515   |          |  |   |   | 



|                                  |            |  |   |           | 
|--------------------------------- | ---------- |  | - | --------- | 
|Estimated Future Benefit Payments |            |  |   |          
|                                  | 2006       |  | $ | 107,915   | 
|                                  | 2007       |  |   | 112,306   | 
|                                  | 2008       |  |   | 127,285   | 
|                                  | 2009       |  |   | 162,077   | 
|                                  | 2010       |  |   | 194,540   | 
|                                  | Thereafter |  |   | 2,922,646 | 



| |          
| | ---------
| | 401k Plan



112



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                   
|--- | ------------------
|15. | Leasing Operations



|           |  |                |           | 
|---------- |  | -------------- | --------- | 
|           |  | (In thousands) |          
|2006       |  | $              | 224,942   | 
|2007       |  |                | 202,007   | 
|2008       |  |                | 174,743   | 
|2009       |  |                | 149,003   | 
|2010       |  |                | 123,400   | 
|Thereafter |  |                | 340,458   | 
|           |  |                |          
|           |  | $              | 1,214,553 | 
|           |  |                |          





16.     Commitments, Contingencies,
Guarantees and Other Arrangements




| |                              
| | -----------------------------
| | Commitments and Contingencies





| |                                  
| | ---------------------------------
| | Guarantees and Other Arrangements



113



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|    |                           
|--- | --------------------------
|17. | Related Party Transactions





114



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












115



---



##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                     
|--- | --------------------
|18. | Net Income Per Share



|             |                                                                                            |                                 |   |         |      |  |   |         |   |  |   |         |  
|------------ | ------------------------------------------------------------------------------------------ | ------------------------------- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|             |                                                                                            | 2005                            |   |         | 2004 |  |   | 2003    |  
|             |                                                                                            |                                 |   |         |      |  |   |         |  
|             |                                                                                            | (In thousands, except per share |  
|             |                                                                                            | data)                           |  
|Numerator:   |                                                                                            |                                 |   |         |      |  |   |         |   |  |   |        
|             | Net Income                                                                                 |                                 | $ | 219,641 |      |  | $ | 54,618  |   |  | $ | 52,265  |  
|             | Less: Preferred share dividends                                                            |                                 |   | (22,391 | )    |  |   | (14,781 | ) |  |   | (15,284 | )
|             | Less: Redemption of preferred share issuance costs                                         |                                 |   |        |      |  |   |        |   |  |   | (4,451  | )
|             |                                                                                            |                                 |   |         |      |  |   |         |  
|             | Net income available to common shareholders                                                |                                 | $ | 197,250 |      |  | $ | 39,837  |   |  | $ | 32,530  |  
|             |                                                                                            |                                 |   |         |      |  |   |         |  
|Denominator: |                                                                                            |                                 |   |         |      |  |   |         |   |  |   |        
|             | Denominator for basic net income per share  weighted
    average common shares            |                                 |   | 38,071  |      |  |   | 27,121  |   |  |   | 24,965  |  
|             | Effect of dilutive securities:                                                             |                                 |   |         |      |  |   |         |   |  |   |         |  
|             | Stock options and restricted stock                                                         |                                 |   | 391     |      |  |   | 341     |   |  |   | 267     |  
|             |                                                                                            |                                 |   |         |      |  |   |         |  
|             | Denominator for diluted net income per share 
    adjusted weighted average common shares |                                 |   | 38,462  |      |  |   | 27,462  |   |  |   | 25,232  |  
|             |                                                                                            |                                 |   |         |      |  |   |         |  
|             | Basic net income per share, before extraordinary items                                     |                                 | $ | 5.18    |      |  | $ | 1.47    |   |  | $ | 1.30    |  
|             |                                                                                            |                                 |   |         |      |  |   |         |  
|             | Diluted net income per share, before extraordinary items                                   |                                 | $ | 5.13    |      |  | $ | 1.45    |   |  | $ | 1.29    |  
|             |                                                                                            |                                 |   |         |      |  |   |         |  





|    |                  
|--- | -----------------
|19. | Subsequent Events



| |             
| | ------------
| | Acquisitions



358-unit




116



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                      
| | ---------------------
| | Property Dispositions



|                      |  |          |                |  |       |               |     |             |  |   |       | 
|--------------------- |  | -------- | -------------- |  | ----- | ------------- | --- | ----------- |  | - | ----- | 
|Property Name         |  | Location |                |  | Units |               |     | Sales Price | 
|                      |  |          |                |  |       |               |     |             | 
|                      |  |          |                |  |       | (In millions) |    
|The Timbers           |  |          | Raleigh, NC    |  |       |               | 176 |             |  | $ | 7.6   | 
|CV at Remington Place |  |          | Raleigh, NC    |  |       |               | 136 |             |  |   | 7.9   | 
|Summerwalk            |  |          | Charlotte, NC  |  |       |               | 160 |             |  |   | 8.2   | 
|CV at Paces Glen      |  |          | Charlotte, NC  |  |       |               | 172 |             |  |   | 6.0   | 
|CV at Stone Brook     |  |          | Atlanta, GA    |  |       |               | 188 |             |  |   | 9.4   | 
|CG at Whitemarsh      |  |          | Savannah, GA   |  |       |               | 352 |             |  |   | 38.7  | 
|CV at Caledon Woods   |  |          | Greenville, SC |  |       |               | 350 |             |  |   | 22.9  | 
|                      |  |          |                |  |       |               |     |             | 
|                      |  |          |                |  |       |               |     |             |  | $ | 100.7 | 
|                      |  |          |                |  |       |               |     |             | 









| |                   
| | ------------------
| | Financing activity





| |             
| | ------------
| | Distribution





| |                        
| | -----------------------
| | Preferred Share Buyback

1 100


117



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##### 



COLONIAL PROPERTIES TRUST


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                                            
|--- | -------------------------------------------
|20. | Quarterly Financial Information (Unaudited)



|                                            |         |                                       |        |        |         |   |         |         |  |   |         |        |  |   |         |        | 
|------------------------------------------- | ------- | ------------------------------------- | ------ | ------ | ------- | - | ------- | ------- |  | - | ------- | ------ |  | - | ------- | ------ | 
|                                            |         | 2005                                  |       
|                                            |         |                                       |       
|                                            |         | First                                 |        |        | Second  |   |         | Third   |  |   | Fourth  |       
|                                            |         | Quarter                               |        |        | Quarter |   |         | Quarter |  |   | Quarter |       
|                                            |         |                                       |        |        |         |   |         |         |  |   |         |       
|                                            |         | (In thousands, except per share data) |       
|Revenues                                    |         | $                                     | 90,818 |        |         | $ | 129,182 |         |  | $ | 135,025 |        |  | $ | 140,418 |       
|Income (loss) from continuing operations    |         |                                       | 2,260  |        |         |   | (9,771  | )       |  |   | (7,839  | )      |  |   | 78,901  |       
|Income from discontinuing operations        |         |                                       | 71,340 |        |         |   | 23,825  |         |  |   | 57,247  |        |  |   | 3,678   |       
|Net income                                  |         |                                       | 73,600 |        |         |   | 14,054  |         |  |   | 49,408  |        |  |   | 82,579  |       
|Preferred dividends                         |         |                                       | (3,695 | )      |         |   | (6,232  | )       |  |   | (6,232  | )      |  |   | (6,232  | )     
|Net income available to common shareholders |         |                                       | 69,905 |        |         |   | 7,822   |         |  |   | 43,176  |        |  |   | 76,347  |       
|Net income per share:                       |         |                                       |        |        |         |   |         |         |  |   |         |        |  |   |         |       
|                                            | Basic   |                                       | $      | 2.51   |         |   | $       | 0.20    |  |   | $       | 1.07   |  |   | $       | 1.71   | 
|                                            | Diluted |                                       | $      | 2.51   |         |   | $       | 0.20    |  |   | $       | 1.07   |  |   | $       | 1.69   | 
|Weighted average common shares outstanding: |         |                                       |        |        |         |   |         |         |  |   |         |        |  |   |         |       
|                                            | Basic   |                                       |        | 27,824 |         |   |         | 39,657  |  |   |         | 40,289 |  |   |         | 44,696 | 
|                                            | Diluted |                                       |        | 27,824 |         |   |         | 39,657  |  |   |         | 40,289 |  |   |         | 45,140 | 

|                                            |         |                                       |        |        |         |   |        |         |  |   |         |        |  |   |        |        | 
|------------------------------------------- | ------- | ------------------------------------- | ------ | ------ | ------- | - | ------ | ------- |  | - | ------- | ------ |  | - | ------ | ------ | 
|                                            |         | 2004                                  |       
|                                            |         |                                       |       
|                                            |         | First                                 |        |        | Second  |   |        | Third   |  |   | Fourth  |       
|                                            |         | Quarter                               |        |        | Quarter |   |        | Quarter |  |   | Quarter |       
|                                            |         |                                       |        |        |         |   |        |         |  |   |         |       
|                                            |         | (In thousands, except per share data) |       
|Revenues                                    |         | $                                     | 70,576 |        |         | $ | 74,017 |         |  | $ | 81,751  |        |  | $ | 91,286 |       
|Income from continuing operations           |         |                                       | 6,462  |        |         |   | 6,244  |         |  |   | 3,821   |        |  |   | 8,415  |       
|Income from discontinuing operations        |         |                                       | 10,622 |        |         |   | 3,892  |         |  |   | 4,834   |        |  |   | 10,328 |       
|Net income                                  |         |                                       | 17,084 |        |         |   | 10,136 |         |  |   | 8,655   |        |  |   | 18,743 |       
|Preferred dividends                         |         |                                       | (3,695 | )      |         |   | (3,695 | )       |  |   | (3,695  | )      |  |   | (3,696 | )     
|Net income available to common shareholders |         |                                       | 13,389 |        |         |   | 6,441  |         |  |   | 4,960   |        |  |   | 15,047 |       
|Net income per share:                       |         |                                       |        |        |         |   |        |         |  |   |         |        |  |   |        |       
|                                            | Basic   |                                       | $      | 0.50   |         |   | $      | 0.24    |  |   | $       | 0.18   |  |   | $      | 0.55   | 
|                                            | Diluted |                                       | $      | 0.50   |         |   | $      | 0.24    |  |   | $       | 0.18   |  |   | $      | 0.54   | 
|Weighted average common shares outstanding: |         |                                       |        |        |         |   |        |         |  |   |         |        |  |   |        |       
|                                            | Basic   |                                       |        | 26,670 |         |   |        | 27,089  |  |   |         | 27,252 |  |   |        | 27,467 | 
|                                            | Diluted |                                       |        | 27,045 |         |   |        | 27,382  |  |   |         | 27,615 |  |   |        | 27,839 | 

118



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##### 



Report of Independent Registered Public Accounting Firm








Consolidated financial statements and financial statement
schedules




Internal control over financial reporting


Internal Control  Integrated Framework Internal Control 
Integrated Framework




119



---



##### 













120



---



##### 





|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure.





|         |                         
|-------- | ------------------------
|Item 9A. | Controls and Procedures.

Evaluation of Disclosure Controls and Procedure


13a-15


Changes in Internal Control Over Financial Reporting


13a-15)


Managements Report on Internal Control Over Financial
Reporting


13a-15(f)










Item 9B.     Other
Information.




121



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##### 



PART III




|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Trustees and Executive Officers of the Registrant.





|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.





|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters





|                                                           |       |                            |           |           |                               |                                |                               |                             |  |  |           |           | 
|---------------------------------------------------------- | ----- | -------------------------- | --------- | --------- | ----------------------------- | ------------------------------ | ----------------------------- | --------------------------- |  |  | --------- | --------- | 
|                                                           |       |                            |           |           |                               | Number of Securities Remaining |                              
|                                                           |       | Number of Securities to be |           |           |                               |                                | Available for Future Issuance |                            
|                                                           |       | Issued Upon Exercise of    |           |           | Weighted-Average Exercise     |                                |                               | Under Equity Compensation   | 
|                                                           |       | Outstanding Options,       |           |           | Price of Outstanding Options, |                                |                               | Plans (Excluding Securities | 
|Plan Category                                              |       | Warrants and Rights(a)     |           |           | Warrants and Rights(b)        |                                |                               | Reflected in Column(a))     | 
|                                                           |       |                            |           |           |                               |                                |                               |                             | 
|Equity compensation plans approved by security holders(1)  |       |                            | 1,725,280 | (2)       |                               | $                              | 31.49                         | (3)                         |  |  | 3,863,459 |          
|Equity compensation plans not approved by security holders |       |                            |          |           |                               |                                |                              |                             |  |  |          |          
|                                                           |       |                            |           |           |                               |                                |                               |                             | 
|                                                           | Total |                            |           | 1,725,280 |                               |                                | $                             | 31.49                       |  |  |           | 3,863,459 | 
|                                                           |       |                            |           |           |                               |                                |                               |                             | 






|    |                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These plans include our second Amended and Restated Employee
    Share Option and Restricted Share Plan, as amended in 1998, our
    Non-Employee Trustee Share Plan, as amended in 1997, and our
    Trustee Share Option Plan, as amended in 1997.
|   
|(2) | Includes 157,832 restricted shares and performance-based
    restricted shares that had not vested as of December 31,
    2005.                                                                                                                     
|   
|(3) | Weighted-average exercise price of outstanding options;
    excludes value of outstanding restricted shares.                                                                                                                                        



|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.





|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accountant Fees and Services.



122



---



##### 



Part IV




|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

Financial Statements






| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | Consolidated Balance Sheets as of December 31, 2005 and 2004                                                       
|
| | Consolidated Statements of Income and Comprehensive Income for
    the years ended December 31, 2005, 2004 and 2003
|
| | Consolidated Statements of Shareholders Equity for the
    years ended December 31, 2005, 2004 and 2003           
|
| | Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2004 and 2003                     
|
| | Notes to Consolidated Financial Statements                                                                         
|
| | Report of Independent Registered Public Accounting Firm                                                            

Financial Statement Schedules






Exhibits


|        |   |    |         |                                                                                                                                                                                                                       |           |                                                                                                                                                 
|------- | - | -- | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |    |         |                                                                                                                                                                                                                       |          
|No.     |   |    | Exhibit |                                                                                                                                                                                                                       | Reference
|        |   |    |         |                                                                                                                                                                                                                       |          
|        | 2 | .1 |         | Agreement and Plan of Merger by and among the Company, CLNL
    Acquisition Sub LLC and Cornerstone Realty Income Trust, Inc.                                                                                         |           | Incorporated by reference to Exhibit 2.1 to the
    Companys Current Report on Form 8-K filed with the
    SEC on October 28, 2004             
|       
|        | 2 | .2 |         | Form of Plan of Merger merging Cornerstone Realty Income Trust,
    Inc. into CLNL Acquisition Sub LLC                                                                                                                |           | Incorporated by reference to Exhibit B to Exhibit 2.2
    to the Companys Current Report on Form 8-K filed with
    the SEC on January 25, 2005
|       
|        | 2 | .3 |         | Amendment No. 1 to Agreement and Plan of Merger by and
    among the Company, CLNL Acquisition Sub LLC and Cornerstone
    Realty Income Trust, Inc.                                                                  |           | Incorporated by reference to Exhibit 2.2 to the
    Companys Current Report on Form 8-K filed with the
    SEC on January 25, 2005             
|       
|        | 2 | .4 |         | Acquisition and Contribution Agreement and Joint Escrow
    Instructions dated September 16, 2005 by and among Marelda
    Retail Development LLC and CRLP, and amendments thereto                                    |           | Incorporated by reference to Exhibit 2.1 to CRLPs
    Current Report on Form 8-K filed with the SEC on
    November 30, 2005                   
|       
|        | 2 | .5 |         | Acquisition and Contribution Agreement and Joint Escrow
    Instructions dated September 16, 2005 by and among Marelda
    Retail Development LLC and Colonial Realty Limited Partnership,
    and amendments thereto |           | Incorporated by reference to Exhibit 2.2 to CRLPs
    Current Report on Form 8-K filed with the SEC on
    November 30, 2005                   
|       
|        | 3 | .1 |         | Declaration of Trust of Company                                                                                                                                                                                       |           | Incorporated by reference to Exhibit 3 to the
    Companys Current Report on Form 8-K filed with the
    SEC on November 5, 1997               
|       
|        | 3 | .2 |         | Articles Supplementary of
    83/4%
    Series A Cumulative Redeemable Preferred Shares of
    Beneficial Interest of the Company                                                                                     |           | Incorporated by reference to Exhibit 3 to the
    Companys Current Report on Form 8-K filed with the
    SEC on November 5, 1997               
|       
|        | 3 | .3 |         | Articles Supplementary of Series 1998 Junior Participating
    Preferred Shares of Beneficial Interest of the Company                                                                                                 |           | Incorporated by reference to Exhibit 4.2 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998            
|       
|        | 3 | .4 |         | Articles Supplementary of 8.875% Series B Cumulative
    Redeemable Perpetual Preferred Shares of the Company                                                                                                         |           | Incorporated by reference to Exhibit 4.3 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998            
|       
|        | 3 | .5 |         | Articles Supplementary of 7.25% Series B Cumulative
    Redeemable Perpetual Preferred Shares of the Company                                                                                                          |           | Incorporated by reference to Exhibit 3.5 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003.           

123



---



##### 



|        |    |      |         |                                                                                                                                                                                    |           |                                                                                                                                                                  
|------- | -- | ---- | ------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |      |         |                                                                                                                                                                                    |          
|No.     |    |      | Exhibit |                                                                                                                                                                                    | Reference
|        |    |      |         |                                                                                                                                                                                    |          
|       
|        | 3  | .6   |         | Articles Supplementary of 9.25% Series C Cumulative
    Redeemable Preferred Shares of Beneficial Interest of the Company                                                          |           | Incorporated by reference to Exhibit 3 to the
    Companys Current Report on Form 8-K filed with the
    SEC on June 19, 2001                                   
|       
|        | 3  | .7   |         | Articles Supplementary of
    81/8%
    Series D Cumulative Redeemable Preferred Shares of
    Beneficial Interest of the Company                                                  |           | Incorporated by reference to Exhibit 3.1 to the
    Companys Current Report on Form 8-K filed with the
    SEC on April 29, 2003                                
|       
|        | 3  | .8   |         | Articles of Amendment to Declaration of Trust of the Company,
    dated May 11, 2004                                                                                               |           | Incorporated by reference to Exhibit 3.8 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2004                             
|       
|        | 3  | .9   |         | Articles Supplementary Reclassifying Preferred Shares                                                                                                                              |           | Incorporated by reference to Exhibit 3.9 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2004                             
|       
|        | 3  | .10  |         | Form of Articles Supplementary of 7.62% Series E Cumulative
    Preferred Shares of Beneficial Interest of the Company                                                             |           | Incorporated by reference to Exhibit 3.1 to the
    Companys Registration Statement on Form 8-A filed
    with the SEC on February 7, 2005                      
|       
|        | 3  | .11  |         | Articles of Amendment to Declaration of Trust of the Company,
    dated April 5, 2005                                                                                              |           | Incorporated by reference to Exhibit 3.1 to the
    Companys Current Report on Form 8-K filed with the
    SEC on April 7, 2005                                 
|       
|        | 3  | .12  |         | Bylaws of the Company                                                                                                                                                              |           | Incorporated by reference to Exhibit 4.2 to the
    Companys Registration Statement on Form S-3,
    No. 333-55078, filed with the SEC on February 6, 2001      
|       
|        | 4  | .1   |         | Indenture dated as of July 22, 1996, by and between CRLP
    and Deutsche Bank Trust Company Americas (formerly Bankers Trust
    Company)                                         |           | Incorporated by reference to Exhibit 4.1 to the CRLPs
    Annual Report on Form 10-K/ A filed with the SEC on
    October 10, 2003                              
|       
|        | 4  | .2   |         | First Supplemental Indenture dated as of December 31, 1998,
    by and between CRLP and Deutsche Bank Trust Company Americas
    (formerly Bankers Trust Company)                  |           | Incorporated by reference to Exhibit 10.13.1 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998                         
|       
|        | 4  | .3   |         | Rights Agreement dated as of November 2, 1998 between
    Colonial Properties Trust and BankBoston, N.A.                                                                           |           | Incorporated by reference to Exhibit 10.14 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998                           
|       
|        | 4  | .4   |         | First Amendment to Rights Agreement, dated as of August 29,
    2005, between the Company and EquiServe Trust Company, N.A., as
    successor to BankBoston, N.A., as Rights Agent |           | Incorporated by reference to Exhibit 4.2 to the
    Companys Current Report on Form 8-K filed with the
    SEC on September 1, 2005                             
|       
|        | 4  | .5   |         | Deposit Agreement for Series D depository shares by and
    among the Company and Equiserve Trust Company, N.A. and
    Equiserve, Inc.                                            |           | Incorporated by reference to Exhibit 4.4 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                             
|       
|        | 4  | .6   |         | Form of Deposit Agreement for Series E depository shares by
    and among the Company and Equiserve Trust Company, N.A. and
    Equiserve, Inc.                                    |           | Incorporated by reference to Exhibit 4.1 to the
    Companys Registration Statement on Form 8-A filed
    with the SEC on February 7, 2005                      
|       
|        | 10 | .1   |         | Third Amended and Restated Agreement of Limited Partnership of
    CRLP, as amended                                                                                                |           | Incorporated by reference to Exhibit 10.1 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1999                            
|       
|        | 10 | .2   |         | Fifth Amendment to Third Amended and Restated Agreement of
    Limited Partnership of CRLP                                                                                         |           | Incorporated by reference to Exhibit 10.2 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                            
|       
|        | 10 | .3   |         | Sixth Amendment to Third Amended and Restated Agreement of
    Limited Partnership of CRLP                                                                                         |           | Incorporated by reference to Exhibit 10.3 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                            
|       
|        | 10 | .4   |         | Seventh Amendment to Third Amended and Restated Agreement of
    Limited Partnership of CRLP                                                                                       |           | Incorporated by reference to Exhibit 10.4 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                            
|       
|        | 10 | .4.1 |         | Eighth Amendment to Third Amended and Restated Agreement of
    Limited Partnership of CRLP.                                                                                       |           | Incorporated by reference to Exhibit 10.4.1 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2004.                         
|       
|        | 10 | .4.2 |         | Ninth Amendment to Third Amended and Restated Agreement of
    Limited Partnership of CRLP, dated April 1, 2005                                                                    |           | Incorporated by reference to Exhibit 10.2 to the
    Companys Current Report on Form 8-K filed with the
    SEC on April 7, 2005                                
|       
|        | 10 | .5   |         | Registration Rights and Lock-Up Agreement dated
    September 29, 1993, among the Company and the persons named
    therein                                                        |           | Incorporated by reference to Exhibit 10.2 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed with the SEC on September 21, 1993

124



---



##### 



|        |    |       |         |                                                                                                                                                           |           |                                                                                                                                             
|------- | -- | ----- | ------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | --------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |       |         |                                                                                                                                                           |          
|No.     |    |       | Exhibit |                                                                                                                                                           | Reference
|        |    |       |         |                                                                                                                                                           |          
|       
|        | 10 | .6    |         | Registration Rights and Lock-Up Agreement dated March 25,
    1997, among the Company and the persons named therein                                       |           | Incorporated by reference to Exhibit 10.2.2 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1997     
|       
|        | 10 | .7    |         | Registration Rights and Lock-Up Agreement dated November 4,
    1994, among the Company and the persons named therein                                     |           | Incorporated by reference to Exhibit 10.2.3 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1997     
|       
|        | 10 | .8    |         | Supplemental Registration Rights and Lock-Up Agreement dated
    August 20, 1997, among the Company and the persons named
    therein                     |           | Incorporated by reference to Exhibit 10.2.4 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1997     
|       
|        | 10 | .9    |         | Supplemental Registration Rights and Lock-Up Agreement dated
    November 1, 1997, among the Company, CRLP and B&G
    Properties Company LLP             |           | Incorporated by reference to Exhibit 10.2.5 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1997     
|       
|        | 10 | .10   |         | Supplemental Registration Rights and Lock-Up Agreement dated
    July 1, 1997, among the Company, CRLP and Colonial
    Commercial Investments, Inc.      |           | Incorporated by reference to Exhibit 10.2.6 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1997     
|       
|        | 10 | .11   |         | Supplemental Registration Rights and Lock-Up Agreement dated
    July 1, 1996, among the Company and the persons named
    therein                        |           | Incorporated by reference to Exhibit 10.2.7 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1997     
|       
|        | 10 | .12   |         | Registration Rights Agreement dated February 23, 1999,
    among the Company, Belcrest Realty Corporation, and Belair Real
    Estate Corporation         |           | Incorporated by reference to Exhibit 10.2.8 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998     
|       
|        | 10 | .13   |         | Registration Rights and Lock-Up Agreement dated July 1,
    1998, among the Company and the persons named therein                                         |           | Incorporated by reference to Exhibit 10.2.9 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998     
|       
|        | 10 | .14   |         | Registration Rights and Lock-Up Agreement dated July 31,
    1997, among the Company and the persons named therein                                        |           | Incorporated by reference to Exhibit 10.2.10 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998    
|       
|        | 10 | .15   |         | Supplemental Registration Rights and Lock-Up Agreement dated
    November 18, 1998, among the Company, CRLP and Colonial
    Commercial Investments, Inc. |           | Incorporated by reference to Exhibit 10.2.11 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998    
|       
|        | 10 | .16   |         | Registration Rights and Lock-Up Agreement dated
    December 29, 1994, among the Company and the persons named
    therein                                |           | Incorporated by reference to Exhibit 10.2.12 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1998    
|       
|        | 10 | .17   |         | Registration Rights and Lock-Up Agreement dated April 30,
    1999, among the Company, CRLP and MJE, L.L.C.                                               |           | Incorporated by reference to Exhibit 10.2.13 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1999    
|       
|        | 10 | .18   |         | Second Amended and Restated Employee Share Option and Restricted
    Share Plan                                                                          |           | Incorporated by reference to Exhibit 10.18 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003      
|       
|        | 10 | .18.1 |         | Form of Employee Share Option and Restricted Share Plan
    Agreement  2 Year Vesting                                                                   |           | Incorporated by reference to Exhibit 10.18.1 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending September 30, 2004
|       
|        | 10 | .18.2 |         | Form of Employee Share Option and Restricted Shares Plan
    Agreement  3 Year Vesting                                                                  |           | Incorporated by reference to Exhibit 10.18.2 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending September 30, 2004
|       
|        | 10 | .18.3 |         | Form of Employee Share Option and Restricted Shares Plan
    Agreement  5 Year Vesting                                                                  |           | Incorporated by reference to Exhibit 10.18.3 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending September 30, 2004
|       
|        | 10 | .18.4 |         | Form of Employee Share Option and Restricted Shares Plan
    Agreement  8 Year Vesting                                                                  |           | Incorporated by reference to Exhibit 10.18.4 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending September 30, 2004
|       
|        | 10 | .18.5 |         | Amended and Restated Trustee Restricted Share
    Agreement  1 Year Vesting                                                                             |           | Incorporated by reference to Exhibit 10.18.5 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending September 30, 2004
|       
|        | 10 | .18.6 |         | Amended and Restated Trustee Non-Incentive Share Option
    Agreement                                                                                    |           | Incorporated by reference to Exhibit 10.18.6 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending September 30, 2004
|       
|        | 10 | .19   |         | Non-employee Trustee Share Option Plan                                                                                                                   |           | Incorporated by reference to the Companys Registration
    Statement on Form S-8, No. 333-27203, filed with the
    SEC on May 15, 1997    

125



---



##### 



|        |    |       |         |                                                                                                                                                                                                          |           |                                                                                                                                                                  
|------- | -- | ----- | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |       |         |                                                                                                                                                                                                          |          
|No.     |    |       | Exhibit |                                                                                                                                                                                                          | Reference
|        |    |       |         |                                                                                                                                                                                                          |          
|       
|        | 10 | .20   |         | Non-employee Trustee Share Plan                                                                                                                                                                         |           | Incorporated by reference to the Companys Registration
    Statement on Form S-8, No. 333-27205, filed with the
    SEC on May 15, 1997                         
|       
|        | 10 | .21   |         | Employee Share Purchase Plan                                                                                                                                                                            |           | Incorporated by reference to Exhibit 10.21 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                           
|       
|        | 10 | .22   |         | Annual Incentive Plan                                                                                                                                                                                   |           | Incorporated by reference to Exhibit 10.16 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed with the SEC on September 3, 1993
|       
|        | 10 | .23   |         | Executive Unit Purchase Program  Program
    Summary                                                                                                                                                   |           | Incorporated by reference to Exhibit 10.15 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1999                           
|       
|        | 10 | .24   |         | Non-employee Trustee Option Agreement                                                                                                                                                                   |           | Incorporated by reference to Exhibit 10.5 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed with the SEC on September 3, 1993 
|       
|        | 10 | .25   |         | Employment Agreement between the Company and Thomas H.
    Lowder                                                                                                                                       |           | Incorporated by reference to Exhibit 10.6 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed with the SEC on September 21, 1993
|       
|        | 10 | .26   |         | Retirement Agreement between the Company and Howard B.
    Nelson, Jr.                                                                                                                                  |           | Incorporated by reference to Exhibit 10.26 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                           
|       
|        | 10 | .27   |         | Officers and Trustees Indemnification Agreement                                                                                                                                                         |           | Incorporated by reference to Exhibit 10.7 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed with the SEC on September 21, 1993
|       
|        | 10 | .28   |         | Partnership Agreement of CPSLP                                                                                                                                                                           |           | Incorporated by reference to Exhibit 10.8 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed September 21, 1993                
|       
|        | 10 | .28.1 |         | First Amendment to Partnership Agreement of CPSLP                                                                                                                                                        |           | Filed herewith                                                                                                                                                   
|       
|        | 10 | .29   |         | Articles of Incorporation of Colonial Real Estate Services,
    Inc., predecessor of CPSI, as amended                                                                                                    |           | Incorporated by reference to Exhibit 10.9 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1994                            
|       
|        | 10 | .30   |         | Bylaws of predecessor of Colonial Real Estate Services, Inc.,
    predecessor of CPSI                                                                                                                    |           | Incorporated by reference to Exhibit 10.10 to the
    Companys Registration Statement on Form S-11/ A,
    No. 33-65954, filed September 3, 1993                
|       
|        | 10 | .31   |         | Credit Agreement dated as of March 22, 2005, by and among
    CRLP, as Borrower, Colonial Properties Trust, as Guarantor,
    Wachovia Bank, as Agent for the Lenders, and the Lenders named
    therein |           | Incorporated by reference to Exhibit 10.38 to the
    Companys Current Report on Form 8-K filed with the
    SEC on March 25, 2005                              
|       
|        | 10 | .32   |         | Contribution Agreement, dated April 1, 2005                                                                                                                                                              |           | Incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K filed with the
    SEC on April 7, 2005                                
|       
|        | 10 | .33   |         | Bridge Credit Agreement dated October 28, 2004, by and
    among CRLP, as Borrower, and the Company, as Guarantor,
    SouthTrust Bank, as Agent for Lenders, and the Lenders names
    therein          |           | Incorporated by reference to Exhibit 10.37 to the
    Companys Current Report on Form 8-K filed with the
    SEC on November 3, 2004                            
|       
|        | 10 | .34   |         | Facility and Guaranty Agreement among the Company, CRLP, Bank
    One, N.A. and the Lenders named therein dated as of
    December 17, 1999                                                              |           | Incorporated by reference to Exhibit 10.34 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 2003                           
|       
|        | 10 | .35   |         | Form of Promissory Note under Facility and Guarantee Agreement
    dated as of December 17, 1999 among the Company, CRLP, Bank
    One, N.A. and certain lenders                                         |           | Incorporated by reference to Exhibit 10.16 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1999                           
|       
|        | 10 | .36   |         | Form of Reimbursement Agreement dated January 25, 2000 by
    Employee Unit Purchase Plan participants in favor of CRLP                                                                                  |           | Incorporated by reference to Exhibit 10.17 to the
    Companys Annual Report on Form 10-K for the period
    ending December 31, 1999                           
|       
|        | 10 | .37   |         | Employment Agreement dated October 1, 2001 between
    Cornerstone and Glade M. Knight                                                                                                                  |           | Incorporated by reference to Exhibit 10.6 to
    Cornerstones Form 10-K filed April 1, 2002                                                                     
|       
|        | 10 | .38   |         | First Amendment to Employment Agreement dated September 21,
    2004 between Cornerstone and Glade M. Knight                                                                                            |           | Incorporated by reference to Exhibit 10.3 to
    Cornerstones Annual Report on Form 10-K filed with
    the SEC on March 16, 2005                               

126



---



##### 



|        |    |     |         |                                                                                                                                                                                                                                                                                                  |           |                                                                                                                                                                                             
|------- | -- | --- | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |         |                                                                                                                                                                                                                                                                                                  |          
|No.     |    |     | Exhibit |                                                                                                                                                                                                                                                                                                  | Reference
|        |    |     |         |                                                                                                                                                                                                                                                                                                  |          
|       
|        | 10 | .39 |         | Amendment No 2 to Employment Agreement dated February 8,
    2005 between Cornerstone and Glade M. Knight                                                                                                                                                                                       |           | Incorporated by reference to Exhibit 10.1 to
    Cornerstones Current Report on Form 8-K filed with
    the SEC on February 9, 2005                                                        
|       
|        | 10 | .40 |         | Stock Option Agreement dated July 23, 1999 between
    Cornerstone and Glade M. Knight                                                                                                                                                                                                          |           | Incorporated by reference to Exhibit 10.50 to
    Cornerstones Annual Report on Form 10-K filed with
    the SEC on March 27, 2000                                                         
|       
|        | 10 | .41 |         | Amendment No. 1 to Stock Option Agreement dated
    February 8, 2005 between Cornerstone and Glade M.
    Knight                                                                                                                                                                                |           | Incorporated by reference to Exhibit 10.7 to
    Cornerstones Current Report on Form 8-K filed with
    the SEC on February 9, 2005                                                        
|       
|        | 10 | .42 |         | Change in Control Agreement dated August 1, 2000 between
    Cornerstone and Glade M. Knight                                                                                                                                                                                                    |           | Incorporated by reference to Exhibit 10.48 to
    Cornerstones Annual Report on Form 10-K filed with
    the SEC on April 2, 2001                                                          
|       
|        | 10 | .43 |         | Amendment No. 1 to Change in Control Agreement dated
    February 8, 2005 between Cornerstone and Glade M.
    Knight                                                                                                                                                                           |           | Incorporated by reference to Exhibit 10.3 to
    Cornerstones Current Report on Form 8-K filed with
    the SEC on February 9, 2005                                                        
|       
|        | 10 | .44 |         | Cornerstone 1992 Incentive Plan Amended and Restated Effective
    July 1, 2002                                                                                                                                                                                                                 |           | Incorporated by reference to Exhibit 10.2 to
    Cornerstones Quarterly Report on Form 10-Q filed with
    the SEC on August 9, 2002)                                                      
|       
|        | 10 | .45 |         | First Amendment to Cornerstone 1992 Incentive Plan Amended and
    Restated Effective July 1, 2002                                                                                                                                                                                              |           | Incorporated by reference to Exhibit 10.2 to
    Cornerstones Quarterly Report on Form 10-Q filed with
    the SEC on August 9, 2004                                                       
|       
|        | 10 | .46 |         | Agreement Evidencing Waiver of Performance Bonus dated
    February 25, 2005 between Cornerstone and Glade M.
    Knight                                                                                                                                                                        |           | Incorporated by reference to Exhibit 10.64 to
    Cornerstones Annual Report on Form 10-K filed with
    the SEC on March 16, 2005                                                         
|       
|        | 10 | .47 |         | Form of Stock Option Agreement between Glade M. Knight and
    Cornerstone                                                                                                                                                                                                                      |           | Incorporated by reference to Exhibit 10.13 to the
    Companys Current Report on Form 8-K filed with the
    SEC on April 7, 2005                                                          
|       
|        | 10 | .48 |         | Cornerstone Realty Income Trust, Inc. 1992 Non-Employee
    Directors Stock Option Plan, as amended                                                                                                                                                                                             |           | Incorporated by reference to Exhibit 99.1 in Cornerstone
    Realty Income Trust, Inc.s Registration Statement on
    Form S-8 filed with the SEC on April 9, 1997 (File
    No. 333-24875)
|       
|        | 10 | .49 |         | Form of Restricted Share Agreement (20% per year
    vesting)                                                                                                                                                                                                                                   |           | Incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K filed with the
    SEC on May 3, 2005                                                             
|       
|        | 10 | .50 |         | Form of Restricted Share Agreement (50%/25%/25% vesting)                                                                                                                                                                                                                                        |           | Incorporated by reference to Exhibit 10.2 to the
    Companys Current Report on Form 8-K filed with the
    SEC on May 3, 2005                                                             
|       
|        | 10 | .51 |         | Form of Restricted Share Agreement
    (331/3% per
    year vesting)                                                                                                                                                                                                                            |           | Incorporated by reference to Exhibit 10.3 to the
    Companys Current Report on Form 8-K filed with the
    SEC on May 3, 2005                                                             
|       
|        | 10 | .52 |         | Form of Restricted Share Agreement (60%/40% vesting)                                                                                                                                                                                                                                            |           | Incorporated by reference to Exhibit 10.4 to the
    Companys Current Report on Form 8-K filed with the
    SEC on May 3, 2005                                                             
|       
|        | 10 | .53 |         | Form of Restricted Share Agreement (eighth anniversary
    vesting)                                                                                                                                                                                                                             |           | Incorporated by reference to Exhibit 10.5 to the
    Companys Current Report on Form 8-K filed with the
    SEC on May 3, 2005                                                             
|       
|        | 10 | .54 |         | Form of Share Option Agreement (20% per year vesting)                                                                                                                                                                                                                                           |           | Incorporated by reference to Exhibit 10.6 to the
    Companys Current Report on Form 8-K filed with the
    SEC on May 3, 2005                                                             
|       
|        | 10 | .55 |         | Underwriting Agreement, dated September 15, 2005, by and
    among the Company, CRLP, Merrill Lynch & Co., Merrill
    Lynch, Pierce, Fenner & Smith Incorporated and Wachovia
    Capital Markets, LLC, as representatives of the several
    underwriters named in the related Terms Agreement |           | Incorporated by reference to Exhibit 1.1 to the
    Companys Current Report on Form 8-K filed with the
    SEC on September 21, 2005                                                       
|       
|        | 10 | .56 |         | Terms Agreement, dated September 15, 2005, by and among the
    Company, CRLP, Merrill Lynch & Co., Merrill Lynch,
    Pierce, Fenner & Smith Incorporated and Wachovia
    Capital Markets, LLC, as representatives of the several
    underwriters named therein                               |           | Incorporated by reference to Exhibit 1.2 to the
    Companys Current Report on Form 8-K filed with the
    SEC on September 21, 2005                                                       
|       
|        | 10 | .57 |         | Amended and Restated Limited Liability Company Agreement of CRTP
    OP LLC, dated as of September 27, 2005, between DRA CRT
    Acquisition Corp and Colonial Office JV LLC                                                                                                                     |           | Incorporated by reference to Exhibit 10.3 to the
    Companys Quarterly Report on Form 10-Q for the period
    ended September 30, 2005                                                    

127



---



##### 



|        |    |     |         |                                                                                                              |           |                                                                                                                                         
|------- | -- | --- | ------- | ------------------------------------------------------------------------------------------------------------ | --------- | ----------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |         |                                                                                                              |          
|No.     |    |     | Exhibit |                                                                                                              | Reference
|        |    |     |         |                                                                                                              |          
|       
|        | 10 | .58 |         | Trustee Compensation Policy for 2005                                                                        |           | Incorporated by reference to Exhibit 10.22.1 to the
    Companys Quarterly Report on Form 10-Q for the period
    ending March 31, 2005
|       
|        | 10 | .59 |         | Trustee Compensation Policy for 2006                                                                        |           | Filed herewith                                                                                                                          
|       
|        | 12 | .1  |         | Ratio of Earnings to Fixed Charges and Ratio of Combined Fixed
    Charges and Preferred Share Distributions |           | Filed herewith                                                                                                                          
|       
|        | 21 | .1  |         | List of Subsidiaries                                                                                         |           | Filed herewith                                                                                                                          
|       
|        | 23 | .1  |         | Consent of PricewaterhouseCoopers LLP                                                                        |           | Filed herewith                                                                                                                          
|       
|        | 31 | .1  |         | CEO Certification pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002                              |           | Filed herewith                                                                                                                          
|       
|        | 31 | .2  |         | CFO Certification pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002                              |           | Filed herewith                                                                                                                          
|       
|        | 32 | .1  |         | CEO Certification pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002                              |           | Filed herewith                                                                                                                          
|       
|        | 32 | .2  |         | CFO Certification pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002                              |           | Filed herewith                                                                                                                          




 Denotes a management contract or compensatory
plan, contract or arrangement.


Exhibits




Financial Statements




| |      
| | -----
| | None.

128



---



##### 



SIGNATURES






| |                          
| | -------------------------
| | Colonial Properties Trust



| |     |                     
| | --- | --------------------
| | By: | /s/ Thomas H. Lowder

| | 
| | 
| | 



| |                                      
| | -------------------------------------
| | Thomas H. Lowder                     
| | Chairman of the Board,               
| | President and Chief Executive Officer



|                                         |  |                                                                          |  | 
|---------------------------------------- |  | ------------------------------------------------------------------------ |  | 
|Signature                                |  |                                                                         
|                                         |  |                                                                         
|                                        
|/s/ Thomas H. LowderThomas H. Lowder     |  | Chairman of the Board, President and Chief Executive Officer            
|                                        
|/s/ Weston M. AndressWeston M. Andress   |  | Chief Financial and Investment Officer (Principal Financial
    Officer)
|                                        
|/s/ John E. TomlinsonJohn E. Tomlinson   |  | Executive Vice President and Chief Accounting Officer                   
|                                        
|/s/ Carl F. BaileyCarl F. Bailey         |  | Trustee                                                                 
|                                        
|/s/ M. Miller GorrieM. Miller Gorrie     |  | Trustee                                                                 
|                                        
|/s/ William M. JohnsonWilliam M. Johnson |  | Trustee                                                                 
|                                        
|/s/ Glade M. KnightGlade M. Knight       |  | Trustee                                                                 
|                                        
|/s/ James K. LowderJames K. Lowder       |  | Trustee                                                                 
|                                        
|/s/ Herbert A. MeislerHerbert A. Meisler |  | Trustee                                                                 
|                                        
|/s/ Claude B. NielsenClaude B. Nielsen   |  | Trustee                                                                 

129



---



##### 



|                                             |  |         |  | 
|-------------------------------------------- |  | ------- |  | 
|Signature                                    |  |        
|                                             |  |        
|                                            
|/s/ Harold W. RippsHarold W. Ripps           |  | Trustee
|                                            
|/s/ Donald T. SenterfittDonald T. Senterfitt |  | Trustee
|                                            
|/s/ John W. SpiegelJohn W. Spiegel           |  | Trustee

130



---



##### 





SCHEDULE III


COLONIAL PROPERTIES TRUST


REAL ESTATE INVESTMENTS AND ACCUMULATED DEPRECIATION


December 31, 2005


|             |                                    |              |   |                 |      |               |             |              |    |                            |             |            |  |               |   |            |              |  |             |              |  |      |              |               |           |           |   |               |         |  |   |             |  |  |  |         |  |  |  |         |  |  |  |            | 
|------------ | ---------------------------------- | ------------ | - | --------------- | ---- | ------------- | ----------- | ------------ | -- | -------------------------- | ----------- | ---------- |  | ------------- | - | ---------- | ------------ |  | ----------- | ------------ |  | ---- | ------------ | ------------- | --------- | --------- | - | ------------- | ------- |  | - | ----------- |  |  |  | ------- |  |  |  | ------- |  |  |  | ---------- | 
|             |                                    |              |   | Initial Cost to |      |               | Cost        |              |    | Gross Amount at Which      |             |            |  |               |   |            |              |  |            
|             |                                    |              |   | Company         |      |               | Capitalized |              |    | Carried at Close of Period |             |            |  |               |   |            | Date         |  |             |             
|             |                                    |              |   |                 |      |               | Subsequent  |              |    |                            |             |            |  |               |   |            | Acquired/    |  |             |             
|             |                                    |              |   |                 |      | Buildings and |             |              | to |                            |             |            |  | Buildings and |   |            |              |  | Accumulated |              |  | Date |              |               | Placed in |           |   | Depreciable   |        
|Description  |                                    | Encumbrances |   |                 | Land |               |             | Improvements |    |                            | Acquisition |            |  | Land          |   |            | Improvements |  |             | Total        |  |      | Depreciation |               |           | Completed |   |               | Service |  |   | Lives-Years | 
|             |                                    |              |   |                 |      |               |             |              |    |                            |             |            |  |               |   |            |              |  |             |              |  |      |              |               |           |           |   |               |         |  |   |             | 
|Multifamily: |                                    |              |   |                 |      |               |             |              |    |                            |             |            |  |               |   |            |              |  |             |              |  |      |              |               |           |           |   |               |         |  |   |             |  |  |  |         |  |  |  |         |  |  |  |           
|             | Arbor Trace                        |              | $ |                |      |               | $           | 3,367,063    |    |                            | $           | 10,369,060 |  |               | $ | 54,913     |              |  | $           | 3,367,062.79 |  |      | $            | 10,423,973.45 |           |           | $ | 13,791,036.24 |         |  | $ | 196,930.61  |  |  |  | 1985    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Ashley Park                        |              |   | 9,000,000       |      |               |             | 3,702,098    |    |                            |             | 15,332,923 |  |               |   | 124,186    |              |  |             | 3,702,098    |  |      |              | 15,457,109    |           |           |   | 19,159,207    |         |  |   | 477,707     |  |  |  | 1988    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Autumn Park I & II                 |              |   |                |      |               |             | 4,407,166    |    |                            |             | 35,387,619 |  |               |   | 84,671     |              |  |             | 4,407,166    |  |      |              | 35,472,290    |           |           |   | 39,879,457    |         |  |   | 716,734     |  |  |  | 2001/04 |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Beacon Hill                        |              |   |                |      |               |             | 2,840,084    |    |                            |             | 13,927,943 |  |               |   | 412,178    |              |  |             | 2,840,084    |  |      |              | 14,340,121    |           |           |   | 17,180,205    |         |  |   | 376,074     |  |  |  | 1985    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Brookfield                         |              |   |                |      |               |             | 1,541,108    |    |                            |             | 6,022,656  |  |               |   | 469,884    |              |  |             | 1,541,108    |  |      |              | 6,492,540     |           |           |   | 8,033,648     |         |  |   | 238,405     |  |  |  | 1984    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Cape Landing                       |              |   |                |      |               |             | 1,942,826    |    |                            |             | 14,989,387 |  |               |   | 173,419    |              |  |             | 1,942,826    |  |      |              | 15,162,806    |           |           |   | 17,105,631    |         |  |   | 438,260     |  |  |  | 1997/98 |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Arringdon        |              |   |                |      |               |             | 3,016,358    |    |                            |             | 23,295,172 |  |               |   | 263,420    |              |  |             | 3,016,358    |  |      |              | 23,558,592    |           |           |   | 26,574,950    |         |  |   | 1,524,729   |  |  |  | 2003    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Barrett Creek    |              |   |                |      |               |             | 3,320,000    |    |                            |             | 27,237,381 |  |               |   | 28,892     |              |  |             | 3,320,000    |  |      |              | 27,266,273    |           |           |   | 30,586,273    |         |  |   | 354,703     |  |  |  | 1999    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Bear Creek       |              |   |                |      |               |             | 4,360,000    |    |                            |             | 32,029,388 |  |               |   | 364,118    |              |  |             | 4,360,000    |  |      |              | 32,393,506    |           |           |   | 36,753,506    |         |  |   | 417,149     |  |  |  | 1998    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Bellevue         |              |   |                |      |               |             | 3,490,000    |    |                            |             | 31,544,370 |  |               |   |           |              |  |             | 3,490,000    |  |      |              | 31,544,370    |           |           |   | 35,034,370    |         |  |   | 102,515     |  |  |  | 1996    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Berkeley Lake    |              |   | 7,995,525       |      |               |             | 1,800,000    |    |                            |             | 16,551,734 |  |               |   | 187,172    |              |  |             | 1,800,000    |  |      |              | 16,738,906    |           |           |   | 18,538,906    |         |  |   | 970,863     |  |  |  | 1998    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Beverly Crest    |              |   |                |      |               |             | 2,400,000    |    |                            |             | 20,718,143 |  |               |   | 358,737    |              |  |             | 2,400,000    |  |      |              | 21,076,881    |           |           |   | 23,476,881    |         |  |   | 959,927     |  |  |  | 1996    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Crabtree Valley  |              |   |                |      |               |             | 2,100,000    |    |                            |             | 15,272,196 |  |               |   |           |              |  |             | 2,100,000    |  |      |              | 15,272,196    |           |           |   | 17,372,196    |         |  |   | 49,634      |  |  |  | 1997    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Cypress Crossing |              |   |                |      |               |             | 8,781,859    |    |                            |             |           |  |               |   | 13,795,476 |              |  |             | 2,125,136    |  |      |              | 20,452,199    |           |           |   | 22,577,335    |         |  |   | 5,735,390   |  |  |  | 1999    |  |  |  | 1998    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Edgewater        |              |   | 20,692,483      |      |               |             | 1,540,000    |    |                            |             | 12,671,606 |  |               |   | 14,466,623 |              |  |             | 2,602,325    |  |      |              | 26,075,904    |           |           |   | 28,678,229    |         |  |   | 9,186,326   |  |  |  | 1990    |  |  |  | 1994    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Enclave          |              |   |                |      |               |             | 2,283,407    |    |                            |             | 14,374,986 |  |               |   | 1,305,336  |              |  |             | 2,427,705    |  |      |              | 15,536,024    |           |           |   | 17,963,729    |         |  |   | 402,286     |  |  |  | 1995    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Galleria         |              |   | 33,505,000      |      |               |             | 5,358,439    |    |                            |             | 46,981,307 |  |               |   | 7,486,757  |              |  |             | 5,358,439    |  |      |              | 54,468,064    |           |           |   | 59,826,503    |         |  |   | 17,822,612  |  |  |  | 1986    |  |  |  | 1994/96 |  |  |  | 3-40 Years | 
|             | Colonial Grand at Hammocks         |              |   | 19,230,825      |      |               |             | 3,437,247    |    |                            |             | 26,514,000 |  |               |   | 378,141    |              |  |             | 3,437,247    |  |      |              | 26,892,142    |           |           |   | 30,329,388    |         |  |   | 777,104     |  |  |  | 1997    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Heather Glen     |              |   |                |      |               |             | 3,800,000    |    |                            |             |           |  |               |   | 31,827,259 |              |  |             | 4,134,235    |  |      |              | 31,493,025    |           |           |   | 35,627,259    |         |  |   | 7,687,630   |  |  |  | 2000    |  |  |  | 1998    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Heathrow         |              |   |                |      |               |             | 2,560,661    |    |                            |             | 17,612,990 |  |               |   | 1,036,991  |              |  |             | 2,560,661    |  |      |              | 18,649,980    |           |           |   | 21,210,642    |         |  |   | 6,304,360   |  |  |  | 1997    |  |  |  | 1994/97 |  |  |  | 3-40 Years | 
|             | Colonial Grand at Hunters Creek   |              |   | 29,264,701      |      |               |             | 33,264,022   |    |                            |             |           |  |               |   | 1,683,894  |              |  |             | 5,308,112    |  |      |              | 29,639,804    |           |           |   | 34,947,916    |         |  |   | 10,423,281  |  |  |  | 1996    |  |  |  | 1996    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Lakewood Ranch   |              |   |                |      |               |             | 2,320,442    |    |                            |             |           |  |               |   | 21,012,337 |              |  |             | 2,148,814    |  |      |              | 21,183,964    |           |           |   | 23,332,779    |         |  |   | 5,622,250   |  |  |  | 1999    |  |  |  | 1997    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Legacy Park      |              |   |                |      |               |             | 2,212,005    |    |                            |             | 23,076,117 |  |               |   | 192,059    |              |  |             | 2,212,005    |  |      |              | 23,268,176    |           |           |   | 25,480,181    |         |  |   | 566,214     |  |  |  | 2001    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Liberty Park     |              |   |                |      |               |             | 2,296,019    |    |                            |             |           |  |               |   | 25,490,998 |              |  |             | 2,296,019    |  |      |              | 25,490,998    |           |           |   | 27,787,017    |         |  |   | 5,966,409   |  |  |  | 2000    |  |  |  | 1998    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Madison          |              |   | 16,156,614      |      |               |             | 1,689,400    |    |                            |             |           |  |               |   | 21,926,452 |              |  |             | 1,831,550    |  |      |              | 21,784,301    |           |           |   | 23,615,852    |         |  |   | 5,368,006   |  |  |  | 2000    |  |  |  | 1998    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Mallard Creek    |              |   |                |      |               |             | 2,911,443    |    |                            |             | 1,277,575  |  |               |   | 19,161,005 |              |  |             | 2,911,443    |  |      |              | 20,438,580    |           |           |   | 23,350,023    |         |  |   | 186,262     |  |  |  | 2005    |  |  |  | 2003    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Mallard Lake     |              |   |                |      |               |             | 3,020,000    |    |                            |             | 24,070,350 |  |               |   |           |              |  |             | 3,020,000    |  |      |              | 24,070,350    |           |           |   | 27,090,350    |         |  |   | 78,228      |  |  |  | 1998    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at McGinnis Ferry   |              |   |                |      |               |             | 5,000,114    |    |                            |             | 34,600,386 |  |               |   | 400,435    |              |  |             | 5,000,114    |  |      |              | 35,000,821    |           |           |   | 40,000,935    |         |  |   | 1,371,091   |  |  |  | 1997    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Metrowest        |              |   |                |      |               |             | 3,421,000    |    |                            |             | 22,592,957 |  |               |   | 523,678    |              |  |             | 3,421,000    |  |      |              | 23,116,635    |           |           |   | 26,537,635    |         |  |   | 1,821,822   |  |  |  | 1997    |  |  |  | 2003    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Mount Vernon     |              |   | 12,542,407      |      |               |             | 2,130,000    |    |                            |             | 24,943,402 |  |               |   | 243,802    |              |  |             | 2,130,000    |  |      |              | 25,187,204    |           |           |   | 27,317,204    |         |  |   | 1,458,111   |  |  |  | 1997    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Natchez Trace    |              |   | 3,920,167       |      |               |             | 1,312,000    |    |                            |             | 16,568,050 |  |               |   | 1,085,156  |              |  |             | 1,224,499    |  |      |              | 17,740,707    |           |           |   | 18,965,206    |         |  |   | 5,228,357   |  |  |  | 1995/97 |  |  |  | 1997    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Patterson Place  |              |   |                |      |               |             | 2,016,000    |    |                            |             | 19,060,725 |  |               |   | 248,495    |              |  |             | 2,016,000    |  |      |              | 19,309,220    |           |           |   | 21,325,220    |         |  |   | 877,586     |  |  |  | 1997    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Promenade        |              |   | 21,586,022      |      |               |             | 1,479,352    |    |                            |             |           |  |               |   | 26,810,617 |              |  |             | 1,668,104    |  |      |              | 26,621,865    |           |           |   | 28,289,969    |         |  |   | 6,575,931   |  |  |  | 1992    |  |  |  | 1992    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Quarry Oaks      |              |   |                |      |               |             | 5,063,500    |    |                            |             | 27,767,505 |  |               |   | 963,695    |              |  |             | 5,063,500    |  |      |              | 28,731,200    |           |           |   | 33,794,700    |         |  |   | 1,609,674   |  |  |  | 1996    |  |  |  | 2003    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Quarterdeck      |              |   | 10,114,792      |      |               |             | 9,123,452    |    |                            |             | 12,297,699 |  |               |   | 372,914    |              |  |             | 9,123,452    |  |      |              | 12,670,613    |           |           |   | 21,794,065    |         |  |   | 377,428     |  |  |  | 1987    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Reservoir        |              |   | 8,015,300       |      |               |             | 1,020,000    |    |                            |             |           |  |               |   | 13,569,575 |              |  |             | 1,122,893    |  |      |              | 13,466,682    |           |           |   | 14,589,575    |         |  |   | 3,217,350   |  |  |  | 2000    |  |  |  | 1998    |  |  |  | 3-40 Years | 
|             | Colonial Grand at River Oaks       |              |   | 10,500,281      |      |               |             | 2,160,000    |    |                            |             | 17,424,336 |  |               |   | 1,145,335  |              |  |             | 2,160,000    |  |      |              | 18,569,671    |           |           |   | 20,729,671    |         |  |   | 1,062,055   |  |  |  | 1992    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at River Plantation |              |   | 11,423,401      |      |               |             | 2,320,000    |    |                            |             | 19,669,298 |  |               |   | 593,238    |              |  |             | 2,320,000    |  |      |              | 20,262,536    |           |           |   | 22,582,536    |         |  |   | 1,196,068   |  |  |  | 1994    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Riverchase       |              |   | 19,027,305      |      |               |             | 2,340,000    |    |                            |             | 25,248,548 |  |               |   | 4,949,519  |              |  |             | 2,340,000    |  |      |              | 30,198,067    |           |           |   | 32,538,067    |         |  |   | 9,964,302   |  |  |  | 1984/91 |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Seven Oaks       |              |   |                |      |               |             | 3,439,125    |    |                            |             | 19,943,544 |  |               |   | 1,159,612  |              |  |             | 3,439,125    |  |      |              | 21,103,156    |           |           |   | 24,542,281    |         |  |   | 1,261,420   |  |  |  | 2004    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Shelby Farms     |              |   |                |      |               |             | 2,960,000    |    |                            |             | 21,897,855 |  |               |   |           |              |  |             | 2,960,000    |  |      |              | 21,897,855    |           |           |   | 24,857,855    |         |  |   | 71,151      |  |  |  | 1998    |  |  |  | 2005    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Silverado        |              |   |                |      |               |             | 2,375,425    |    |                            |             | 17,744,643 |  |               |   | 268,479    |              |  |             | 2,375,425    |  |      |              | 18,013,122    |           |           |   | 20,388,547    |         |  |   | 607,065     |  |  |  | 2005    |  |  |  | 2003    |  |  |  | 3-40 Years | 
|             | Colonial Grand at Sugarloaf        |              |   |                |      |               |             | 2,500,000    |    |                            |             | 21,811,418 |  |               |   | 936,717    |              |  |             | 2,500,000    |  |      |              | 22,748,135    |           |           |   | 25,248,135    |         |  |   | 1,290,320   |  |  |  | 2002    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|             | Colonial Grand at TownPark         |              |   |                |      |               |             | 1,391,500    |    |                            |             |           |  |               |   | 8,351,750  |              |  |             | 867,929      |  |      |              | 8,875,320     |           |           |   | 9,743,250     |         |  |   | 440,562     |  |  |  | 2002    |  |  |  | 2000    |  |  |  | 3-40 Years | 

S-1



---



##### 



|                                       |  |              |            |                 |      |               |              |              |    |                            |               |  |  |               |            |  |              |  |             |       |  |      |              |  |           |           |            |             |         |  |            |             |  |  |               |  |  |  |               |  |  |  |            | 
|-------------------------------------- |  | ------------ | ---------- | --------------- | ---- | ------------- | ------------ | ------------ | -- | -------------------------- | ------------- |  |  | ------------- | ---------- |  | ------------ |  | ----------- | ----- |  | ---- | ------------ |  | --------- | --------- | ---------- | ----------- | ------- |  | ---------- | ----------- |  |  | ------------- |  |  |  | ------------- |  |  |  | ---------- | 
|                                       |  |              |            | Initial Cost to |      |               | Cost         |              |    | Gross Amount at Which      |               |  |  |               |            |  |              |  |            
|                                       |  |              |            | Company         |      |               | Capitalized  |              |    | Carried at Close of Period |               |  |  |               |            |  | Date         |  |             |      
|                                       |  |              |            |                 |      |               | Subsequent   |              |    |                            |               |  |  |               |            |  | Acquired/    |  |             |      
|                                       |  |              |            |                 |      | Buildings and |              |              | to |                            |               |  |  | Buildings and |            |  |              |  | Accumulated |       |  | Date |              |  | Placed in |           |            | Depreciable |        
|Description                            |  | Encumbrances |            |                 | Land |               |              | Improvements |    |                            | Acquisition   |  |  | Land          |            |  | Improvements |  |             | Total |  |      | Depreciation |  |           | Completed |            |             | Service |  |            | Lives-Years | 
|                                       |  |              |            |                 |      |               |              |              |    |                            |               |  |  |               |            |  |              |  |             |       |  |      |              |  |           |           |            |             |         |  |            |             | 
|Colonial Grand at TownPark  Lake Mary |  |              |           |                 |      |               | 2,647,374    |              |    |                            |              |  |  |               | 34,859,735 |  |              |  | 2,647,374   |       |  |      | 34,859,735   |  |           |           | 37,507,109 |             |         |  | 6,797,814  |             |  |  | 2005          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Grand at Trinity Commons      |  |              | 18,072,636 |                 |      |               | 5,333,807    |              |    |                            | 35,815,269    |  |  |               | 219,616    |  |              |  | 5,333,807   |       |  |      | 36,034,885   |  |           |           | 41,368,692 |             |         |  | 831,129    |             |  |  | 2000/02       |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Grand at Twin Lakes           |  |              |           |                 |      |               | 4,966,922    |              |    |                            | 29,925,363    |  |  |               | 92,502     |  |              |  | 5,624,063   |       |  |      | 29,360,724   |  |           |           | 34,984,787 |             |         |  | 1,212,906  |             |  |  | 2005          |  |  |  | 2001          |  |  |  | 3-40 Years | 
|Colonial Grand at Valley Ranch         |  |              | 24,970,926 |                 |      |               | 2,805,241    |              |    |                            | 38,037,251    |  |  |               | 748,989    |  |              |  | 2,805,241   |       |  |      | 38,786,239   |  |           |           | 41,591,480 |             |         |  | 921,509    |             |  |  | 1997          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Grand at Whitemarsh           |  |              |           |                 |      |               | 3,797,600    |              |    |                            | 34,351,276    |  |  |               | 584,152    |  |              |  | 4,513,974   |       |  |      | 34,219,054   |  |           |           | 38,733,027 |             |         |  | N/A        |             |  |  | 2003          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Grand at Wilmington           |  |              | 13,279,255 |                 |      |               | 3,344,408    |              |    |                            | 30,554,367    |  |  |               | 427,421    |  |              |  | 3,344,408   |       |  |      | 30,981,788   |  |           |           | 34,326,196 |             |         |  | 753,922    |             |  |  | 1998/2002     |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Clarion Crossing                       |  |              |           |                 |      |               | 2,727,410    |              |    |                            | 12,339,859    |  |  |               | 144,528    |  |              |  | 2,727,410   |       |  |      | 12,484,387   |  |           |           | 15,211,796 |             |         |  | 457,590    |             |  |  | 1972          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Copper Crossing                        |  |              |           |                 |      |               | 3,064,199    |              |    |                            | 10,090,736    |  |  |               | 597,641    |  |              |  | 3,064,199   |       |  |      | 10,688,377   |  |           |           | 13,752,576 |             |         |  | 490,333    |             |  |  | 1980/81       |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Cottonwood Crossing                    |  |              | 6,243,802  |                 |      |               | 922,398      |              |    |                            | 6,127,804     |  |  |               | 225,423    |  |              |  | 922,398     |       |  |      | 6,353,227    |  |           |           | 7,275,625  |             |         |  | 267,956    |             |  |  | 1985          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Bear Creek         |  |              | 3,507,514  |                 |      |               | 1,028,887    |              |    |                            | 4,357,339     |  |  |               | 294,359    |  |              |  | 1,028,887   |       |  |      | 4,651,698    |  |           |           | 5,680,585  |             |         |  | 185,209    |             |  |  | 1984          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Ashford Place      |  |              |           |                 |      |               | 537,600      |              |    |                            | 5,839,838     |  |  |               | 814,283    |  |              |  | 537,600     |       |  |      | 6,654,121    |  |           |           | 7,191,721  |             |         |  | 1,837,925  |             |  |  | 1983          |  |  |  | 1996          |  |  |  | 3-40 Years | 
|Colonial Village at Bedford            |  |              | 8,711,441  |                 |      |               | 2,403,988    |              |    |                            | 8,732,353     |  |  |               | 555,058    |  |              |  | 2,403,988   |       |  |      | 9,287,412    |  |           |           | 11,691,400 |             |         |  | 282,532    |             |  |  | 1983          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Caledon Wood       |  |              |           |                 |      |               | 2,100,000    |              |    |                            | 19,482,210    |  |  |               | 1,155,833  |  |              |  | 2,088,949   |       |  |      | 20,649,095   |  |           |           | 22,738,043 |             |         |  | 5,951,141  |             |  |  | 1995/96       |  |  |  | 1997          |  |  |  | 3-40 Years | 
|Colonial Village at Canyon Hills       |  |              | 12,988,636 |                 |      |               | 2,345,191    |              |    |                            | 11,274,917    |  |  |               | 549,539    |  |              |  | 2,345,191   |       |  |      | 11,824,456   |  |           |           | 14,169,647 |             |         |  | 332,247    |             |  |  | 1996          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Charleston Place   |  |              |           |                 |      |               | 1,124,924    |              |    |                            | 7,367,718     |  |  |               | 423,871    |  |              |  | 1,124,924   |       |  |      | 7,791,589    |  |           |           | 8,916,513  |             |         |  | 299,553    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Chase Gayton       |  |              | 16,381,289 |                 |      |               | 3,270,754    |              |    |                            | 26,910,024    |  |  |               | 372,531    |  |              |  | 3,270,754   |       |  |      | 27,282,555   |  |           |           | 30,553,310 |             |         |  | 1,058,772  |             |  |  | 1984          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Deerfield          |  |              | 10,536,358 |                 |      |               | 2,032,054    |              |    |                            | 14,584,057    |  |  |               | 237,131    |  |              |  | 2,032,054   |       |  |      | 14,821,189   |  |           |           | 16,853,243 |             |         |  | 421,426    |             |  |  | 1985          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Estrada            |  |              | 9,429,880  |                 |      |               | 1,689,249    |              |    |                            | 7,401,941     |  |  |               | 267,043    |  |              |  | 1,689,249   |       |  |      | 7,668,984    |  |           |           | 9,358,233  |             |         |  | 300,988    |             |  |  | 1983          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Greenbrier         |  |              | 13,065,252 |                 |      |               | 2,620,216    |              |    |                            | 25,498,161    |  |  |               | 292,803    |  |              |  | 2,620,216   |       |  |      | 25,790,964   |  |           |           | 28,411,180 |             |         |  | 594,819    |             |  |  | 1980          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Greentree          |  |              | 6,822,488  |                 |      |               | 1,920,436    |              |    |                            | 10,288,950    |  |  |               | 486,557    |  |              |  | 1,920,436   |       |  |      | 10,775,507   |  |           |           | 12,695,943 |             |         |  | 276,353    |             |  |  | 1984          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Greystone          |  |              |           |                 |      |               | 3,155,483    |              |    |                            | 28,875,949    |  |  |               | 469,113    |  |              |  | 3,155,483   |       |  |      | 29,345,061   |  |           |           | 32,500,544 |             |         |  | 668,717    |             |  |  | 1998/2000     |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Hampton Glen       |  |              | 12,881,063 |                 |      |               | 3,428,098    |              |    |                            | 17,966,469    |  |  |               | 370,107    |  |              |  | 3,428,098   |       |  |      | 18,336,576   |  |           |           | 21,764,674 |             |         |  | 638,404    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Hampton Pointe     |  |              |           |                 |      |               | 8,875,840    |              |    |                            | 15,359,217    |  |  |               | 332,700    |  |              |  | 8,875,840   |       |  |      | 15,691,917   |  |           |           | 24,567,757 |             |         |  | 476,509    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Harbour Club       |  |              | 8,685,607  |                 |      |               | 3,209,585    |              |    |                            | 20,094,356    |  |  |               | 660,887    |  |              |  | 3,209,585   |       |  |      | 20,755,243   |  |           |           | 23,964,828 |             |         |  | 600,669    |             |  |  | 1988          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Haverhill          |  |              |           |                 |      |               | 1,771,000    |              |    |                            | 17,869,452    |  |  |               | 3,194,620  |  |              |  | 1,771,000   |       |  |      | 21,064,072   |  |           |           | 22,835,072 |             |         |  | 5,296,422  |             |  |  | 1998          |  |  |  | 1998          |  |  |  | 3-40 Years | 
|Colonial Village at Highland Hills     |  |              | 15,140,005 |                 |      |               | 1,981,613    |              |    |                            | 17,112,176    |  |  |               | 282,741    |  |              |  | 1,981,613   |       |  |      | 17,394,916   |  |           |           | 19,376,530 |             |         |  | 656,421    |             |  |  | 1987          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Huntington         |  |              | 5,017,102  |                 |      |               | 1,315,930    |              |    |                            | 7,605,360     |  |  |               | 102,327    |  |              |  | 1,315,930   |       |  |      | 7,707,687    |  |           |           | 9,023,617  |             |         |  | 201,165    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Huntleigh Woods    |  |              |           |                 |      |               | 745,600      |              |    |                            | 4,908,990     |  |  |               | 1,383,751  |  |              |  | 730,688     |       |  |      | 6,307,653    |  |           |           | 7,038,341  |             |         |  | 2,113,382  |             |  |  | 1978          |  |  |  | 1994          |  |  |  | 3-40 Years | 
|Colonial Village at Inverness          |  |              | 11,105,000 |                 |      |               | 2,349,487    |              |    |                            | 16,279,416    |  |  |               | 11,708,169 |  |              |  | 2,936,991   |       |  |      | 27,400,081   |  |           |           | 30,337,072 |             |         |  | 10,853,125 |             |  |  | 1986/87/90/97 |  |  |  | 1986/87/90/97 |  |  |  | 3-40 Years | 
|Colonial Village at Main Park          |  |              | 8,727,503  |                 |      |               | 1,208,434    |              |    |                            | 10,235,978    |  |  |               | 417,323    |  |              |  | 1,208,434   |       |  |      | 10,653,300   |  |           |           | 11,861,735 |             |         |  | 324,908    |             |  |  | 1984          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Marsh Cove         |  |              | 8,297,775  |                 |      |               | 2,023,460    |              |    |                            | 11,095,073    |  |  |               | 700,849    |  |              |  | 2,023,460   |       |  |      | 11,795,922   |  |           |           | 13,819,382 |             |         |  | 385,958    |             |  |  | 1983          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Meadow Creek       |  |              | 9,887,077  |                 |      |               | 1,548,280    |              |    |                            | 11,293,190    |  |  |               | 468,526    |  |              |  | 1,548,280   |       |  |      | 11,761,717   |  |           |           | 13,309,997 |             |         |  | 394,442    |             |  |  | 1984          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Mill Creek         |  |              |           |                 |      |               | 2,153,567    |              |    |                            | 9,331,910     |  |  |               | 2,734,026  |  |              |  | 2,153,567   |       |  |      | 12,065,937   |  |           |           | 14,219,504 |             |         |  | 531,934    |             |  |  | 1984          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at North Arlington    |  |              | 8,799,964  |                 |      |               | 2,439,102    |              |    |                            | 10,804,027    |  |  |               | 433,706    |  |              |  | 2,439,102   |       |  |      | 11,237,734   |  |           |           | 13,676,836 |             |         |  | 361,253    |             |  |  | 1985          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Paces Glen         |  |              |           |                 |      |               | 908,672      |              |    |                            | 5,013,745     |  |  |               | 223,822    |  |              |  | 908,672     |       |  |      | 5,237,567    |  |           |           | 6,146,239  |             |         |  | 313,739    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Pear Ridge         |  |              | 10,837,370 |                 |      |               | 3,329,377    |              |    |                            | 11,311,073    |  |  |               | 242,579    |  |              |  | 3,329,377   |       |  |      | 11,553,651   |  |           |           | 14,883,028 |             |         |  | 317,016    |             |  |  | 1988          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Pinnacle Ridge     |  |              | 5,161,623  |                 |      |               | 1,212,917    |              |    |                            | 8,499,638     |  |  |               | 92,550     |  |              |  | 1,212,917   |       |  |      | 8,592,187    |  |           |           | 9,805,104  |             |         |  | 313,385    |             |  |  | 1951/85       |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Poplar Place       |  |              |           |                 |      |               | 2,209,209    |              |    |                            | 13,932,821    |  |  |               | 643,061    |  |              |  | 2,209,209   |       |  |      | 14,575,883   |  |           |           | 16,785,092 |             |         |  | 377,292    |             |  |  | 1989/95       |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Regency Place      |  |              |           |                 |      |               | 1,726,498    |              |    |                            | 8,748,067     |  |  |               | 379,209    |  |              |  | 1,726,498   |       |  |      | 9,127,276    |  |           |           | 10,853,774 |             |         |  | 274,377    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Remington Place    |  |              |           |                 |      |               | 1,009,327    |              |    |                            | 5,950,650     |  |  |               | 40,262     |  |              |  | 1,009,327   |       |  |      | 5,990,913    |  |           |           | 7,000,240  |             |         |  | 244,206    |             |  |  | 1988          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Research Park      |  |              | 27,720,000 |                 |      |               | 3,680,000.00 |              |    |                            | 29,322,067.00 |  |  |               | 4,824,803  |  |              |  | 3,680,000   |       |  |      | 34,146,870   |  |           |           | 37,826,870 |             |         |  | 11,951,590 |             |  |  | 1987/94       |  |  |  | 1994          |  |  |  | 3-40 Years | 
|Colonial Village at Sierra Vista       |  |              |           |                 |      |               | 2,320,000    |              |    |                            | 11,370,600    |  |  |               | 792,753    |  |              |  | 2,308,949   |       |  |      | 12,174,404   |  |           |           | 14,483,353 |             |         |  | 621,602    |             |  |  | 1999          |  |  |  | 2004          |  |  |  | 3-40 Years | 
|Colonial Village at South Tryon        |  |              |           |                 |      |               | 1,510,535    |              |    |                            | 14,696,088    |  |  |               | 374,359    |  |              |  | 1,510,535   |       |  |      | 15,070,448   |  |           |           | 16,580,982 |             |         |  | 327,985    |             |  |  | 2002          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Spring Lake        |  |              |           |                 |      |               | 1,409,195    |              |    |                            | 9,917,923     |  |  |               | 197,133    |  |              |  | 1,409,195   |       |  |      | 10,115,055   |  |           |           | 11,524,250 |             |         |  | 408,908    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Stone Brook        |  |              |           |                 |      |               | 1,733,073    |              |    |                            | 7,033,805     |  |  |               | 244,455    |  |              |  | 1,733,073   |       |  |      | 7,278,259    |  |           |           | 9,011,332  |             |         |  | 302,106    |             |  |  | 1987          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Stone Point        |  |              |           |                 |      |               | 1,417,658    |              |    |                            | 9,291,464     |  |  |               | 219,625    |  |              |  | 1,417,658   |       |  |      | 9,511,088    |  |           |           | 10,928,747 |             |         |  | 349,543    |             |  |  | 1986          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Timber Crest       |  |              | 15,481,367 |                 |      |               | 2,284,812    |              |    |                            | 19,010,168    |  |  |               | 369,560    |  |              |  | 2,284,812   |       |  |      | 19,379,728   |  |           |           | 21,664,540 |             |         |  | 462,562    |             |  |  | 2000          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Timothy Woods      |  |              | 9,023,098  |                 |      |               | 1,020,000    |              |    |                            | 11,910,546    |  |  |               | 747,423    |  |              |  | 1,024,347   |       |  |      | 12,653,622   |  |           |           | 13,677,969 |             |         |  | 3,695,728  |             |  |  | 1996          |  |  |  | 1997          |  |  |  | 3-40 Years | 
|Colonial Village at Tradewinds         |  |              | 11,443,131 |                 |      |               | 5,220,717    |              |    |                            | 22,479,977    |  |  |               | 485,142    |  |              |  | 5,220,717   |       |  |      | 22,965,119   |  |           |           | 28,185,836 |             |         |  | 580,159    |             |  |  | 1988          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Trussville         |  |              | 15,739,270 |                 |      |               | 1,504,000    |              |    |                            | 18,800,253    |  |  |               | 1,620,070  |  |              |  | 1,510,409   |       |  |      | 20,413,914   |  |           |           | 21,924,323 |             |         |  | 6,510,897  |             |  |  | 1996/97       |  |  |  | 1997          |  |  |  | 3-40 Years | 
|Colonial Village at Waterford          |  |              | 17,440,160 |                 |      |               | 3,321,325    |              |    |                            | 26,345,195    |  |  |               | 424,383    |  |              |  | 3,321,325   |       |  |      | 26,769,579   |  |           |           | 30,090,904 |             |         |  | 794,189    |             |  |  | 1989          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Waters Edge        |  |              | 7,308,468  |                 |      |               | 888,386      |              |    |                            | 13,215,381    |  |  |               | 495,886    |  |              |  | 888,386     |       |  |      | 13,711,267   |  |           |           | 14,599,653 |             |         |  | 573,983    |             |  |  | 1985          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Westchase          |  |              |           |                 |      |               | 10,418,496   |              |    |                            | 10,348,047    |  |  |               | 657,481    |  |              |  | 10,418,496  |       |  |      | 11,005,528   |  |           |           | 21,424,024 |             |         |  | 522,826    |             |  |  | 1985          |  |  |  | 2005          |  |  |  | 3-40 Years | 
|Colonial Village at Windsor Place      |  |              | 9,173,431  |                 |      |               | 1,274,885    |              |    |                            | 15,017,745    |  |  |               | 854,273    |  |              |  | 1,274,885   |       |  |      | 15,872,017   |  |           |           | 17,146,902 |             |         |  | 494,680    |             |  |  | 1985          |  |  |  | 2005          |  |  |  | 3-40 Years | 

S-2



---



##### 



|            |                                           |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |            |              |  |             |            |  |      |              |             |           |           |  |             |         |  |  |             |  |  |  |               |  |  |  |            |  |  |  |            | 
|----------- | ----------------------------------------- | ------------ |  | --------------- | ---- | ------------- | ----------- | ------------ | -- | -------------------------- | ----------- | ---------- |  | ------------- |  | ---------- | ------------ |  | ----------- | ---------- |  | ---- | ------------ | ----------- | --------- | --------- |  | ----------- | ------- |  |  | ----------- |  |  |  | ------------- |  |  |  | ---------- |  |  |  | ---------- | 
|            |                                           |              |  | Initial Cost to |      |               | Cost        |              |    | Gross Amount at Which      |             |            |  |               |  |            |              |  |            
|            |                                           |              |  | Company         |      |               | Capitalized |              |    | Carried at Close of Period |             |            |  |               |  |            | Date         |  |             |           
|            |                                           |              |  |                 |      |               | Subsequent  |              |    |                            |             |            |  |               |  |            | Acquired/    |  |             |           
|            |                                           |              |  |                 |      | Buildings and |             |              | to |                            |             |            |  | Buildings and |  |            |              |  | Accumulated |            |  | Date |              |             | Placed in |           |  | Depreciable |        
|Description |                                           | Encumbrances |  |                 | Land |               |             | Improvements |    |                            | Acquisition |            |  | Land          |  |            | Improvements |  |             | Total      |  |      | Depreciation |             |           | Completed |  |             | Service |  |  | Lives-Years | 
|            |                                           |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |            |              |  |             |            |  |      |              |             |           |           |  |             |         |  |  |             | 
|            | Glen Eagles I & II                        |              |  |                |      |               |             | 2,028,204    |    |                            |             | 17,424,915 |  |               |  | 87,459     |              |  |             | 2,028,204  |  |      |              | 17,512,374  |           |           |  | 19,540,579  |         |  |  | 518,334     |  |  |  | 1990/2000     |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Grayson Square I & II                     |              |  |                |      |               |             | 6,221,164    |    |                            |             | 24,463,050 |  |               |  | 483,491    |              |  |             | 6,221,164  |  |      |              | 24,946,541  |           |           |  | 31,167,705  |         |  |  | 713,314     |  |  |  | 1985/86       |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Heatherwood                               |              |  |                |      |               |             | 3,550,362    |    |                            |             | 23,731,531 |  |               |  | 128,050    |              |  |             | 3,550,362  |  |      |              | 23,859,581  |           |           |  | 27,409,943  |         |  |  | 773,352     |  |  |  | 1980          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Merritt at James Island                   |              |  |                |      |               |             | 9,175,719    |    |                            |             | 17,462,810 |  |               |  | 77,926     |              |  |             | 9,175,719  |  |      |              | 17,540,736  |           |           |  | 26,716,455  |         |  |  |            |  |  |  | 2002          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Paces Cove                                |              |  | 11,510,344      |      |               |             | 1,509,933    |    |                            |             | 11,127,122 |  |               |  | 98,903     |              |  |             | 1,509,933  |  |      |              | 11,226,025  |           |           |  | 12,735,957  |         |  |  | 445,263     |  |  |  | 1982          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Paces Point                               |              |  |                |      |               |             | 2,003,172    |    |                            |             | 11,186,878 |  |               |  | 94,252     |              |  |             | 2,003,172  |  |      |              | 11,281,130  |           |           |  | 13,284,301  |         |  |  | 362,107     |  |  |  | 1985          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Parkside at Woodlake                      |              |  |                |      |               |             | 2,781,279    |    |                            |             | 17,694,376 |  |               |  | 146,699    |              |  |             | 2,781,279  |  |      |              | 17,841,075  |           |           |  | 20,622,354  |         |  |  | 474,867     |  |  |  | 1996          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Remington Hills at Las Colinas            |              |  |                |      |               |             | 2,520,011    |    |                            |             | 22,451,151 |  |               |  | 145,022    |              |  |             | 2,520,011  |  |      |              | 22,596,173  |           |           |  | 25,116,184  |         |  |  | 189         |  |  |  | 1984          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Summer Tree                               |              |  | 7,943,084       |      |               |             | 2,319,541    |    |                            |             | 5,975,472  |  |               |  | 62,475     |              |  |             | 2,319,541  |  |      |              | 6,037,947   |           |           |  | 8,357,487   |         |  |  | 302,764     |  |  |  | 1980          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Summerwalk                                |              |  |                |      |               |             | 1,040,769    |    |                            |             | 6,872,638  |  |               |  | 72,906     |              |  |             | 1,040,769  |  |      |              | 6,945,544   |           |           |  | 7,986,314   |         |  |  | 322         |  |  |  | 1983          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | The Gables                                |              |  |                |      |               |             | 2,436,588    |    |                            |             | 14,800,444 |  |               |  | 85,723     |              |  |             | 2,436,588  |  |      |              | 14,886,167  |           |           |  | 17,322,754  |         |  |  | 396         |  |  |  | 1987          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | The Meadows I, II, & III                  |              |  |                |      |               |             | 3,322,195    |    |                            |             | 24,192,374 |  |               |  | 104,454    |              |  |             | 3,322,195  |  |      |              | 24,296,829  |           |           |  | 27,619,024  |         |  |  | 454         |  |  |  | 1974/2001     |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | The Timbers                               |              |  |                |      |               |             | 1,602,524    |    |                            |             | 5,877,106  |  |               |  | 781,670    |              |  |             | 1,602,524  |  |      |              | 6,658,776   |           |           |  | 8,261,300   |         |  |  | 258,622     |  |  |  | 1983          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | The Trestles                              |              |  |                |      |               |             | 2,238,067    |    |                            |             | 9,392,154  |  |               |  | 578,083    |              |  |             | 2,238,067  |  |      |              | 9,970,237   |           |           |  | 12,208,304  |         |  |  | 391,748     |  |  |  | 1987          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Trolley Square East & West                |              |  |                |      |               |             | 4,743,279    |    |                            |             | 14,416,319 |  |               |  | 172,178    |              |  |             | 4,743,279  |  |      |              | 14,588,497  |           |           |  | 19,331,776  |         |  |  | 330,782     |  |  |  | 1964/65       |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Trophy Chase I & II                       |              |  |                |      |               |             | 7,146,496    |    |                            |             | 24,811,026 |  |               |  | 523,365    |              |  |             | 7,146,496  |  |      |              | 25,334,391  |           |           |  | 32,480,888  |         |  |  | 767,499     |  |  |  | 1970          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|Office:     |                                           |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |            |              |  |             |            |  |      |              |             |           |           |  |             |         |  |  |             |  |  |  |               |  |  |  |            |  |  |  |           
|            | 250 Commerce Street                       |              |  |                |      |               |             | 25,000       |    |                            |             | 200,200    |  |               |  | 2,770,742  |              |  |             | 25,000     |  |      |              | 2,970,942   |           |           |  | 2,995,942   |         |  |  | 2,626,598   |  |  |  | 1904/81       |  |  |  | 1980       |  |  |  | 3-40 Years | 
|            | 901 Maitland Center                       |              |  |                |      |               |             | 2,335,035    |    |                            |             | 14,398,193 |  |               |  | 1,282,944  |              |  |             | 2,335,035  |  |      |              | 15,681,137  |           |           |  | 18,016,172  |         |  |  | 1,943,700   |  |  |  | 1985          |  |  |  | 2002       |  |  |  | 3-40 Years | 
|            | AmSouth Center                            |              |  |                |      |               |             | 764,961      |    |                            |             |           |  |               |  | 20,868,396 |              |  |             | 764,961    |  |      |              | 20,868,395  |           |           |  | 21,633,357  |         |  |  | 10,925,025  |  |  |  | 1990          |  |  |  | 1990       |  |  |  | 3-40 Years | 
|            | Colonial Bank Centre                      |              |  |                |      |               |             | 6,911,461    |    |                            |             | 32,714,386 |  |               |  | 161,768    |              |  |             | 6,911,461  |  |      |              | 32,876,154  |           |           |  | 39,787,615  |         |  |  | 890,802     |  |  |  | 1982          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Colonial Center at Bayside                |              |  |                |      |               |             | 1,507,665    |    |                            |             | 15,902,388 |  |               |  | 2,450,323  |              |  |             | 1,507,665  |  |      |              | 18,352,711  |           |           |  | 19,860,376  |         |  |  | 500,261     |  |  |  | 1997          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Colonial Center at Blue Lake              |              |  |                |      |               |             | 1,794,672    |    |                            |             | 14,615,335 |  |               |  | 4,714,884  |              |  |             | 1,779,230  |  |      |              | 19,345,661  |           |           |  | 21,124,892  |         |  |  | 3,794,784   |  |  |  | 1982/95       |  |  |  | 1999       |  |  |  | 3-40 Years | 
|            | Colonial Center at Mansell Overlook       |              |  | 15,924,309      |      |               |             | 4,540,000    |    |                            |             | 44,012,971 |  |               |  | 92,653,106 |              |  |             | 9,673,627  |  |      |              | 131,532,450 |           |           |  | 141,206,077 |         |  |  | 27,329,735  |  |  |  | 1987/96/97/00 |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Colonial Center at Research Office Center |              |  |                |      |               |             | 1,745,672    |    |                            |             | 12,909,263 |  |               |  | 454,321    |              |  |             | 1,745,672  |  |      |              | 13,363,584  |           |           |  | 15,109,256  |         |  |  | 1,018,395   |  |  |  | 1984/00       |  |  |  | 2004       |  |  |  | 3-40 Years | 
|            | Colonial Center at Research Place         |              |  |                |      |               |             | 2,763,900    |    |                            |             | 12,790,254 |  |               |  | 2,069,783  |              |  |             | 1,202,170  |  |      |              | 16,421,767  |           |           |  | 17,623,937  |         |  |  | 1,268,246   |  |  |  | 1979/84/88    |  |  |  | 2003       |  |  |  | 3-40 Years | 
|            | Colonial Center Colonnade                 |              |  |                |      |               |             | 6,299,310    |    |                            |             | 40,485,721 |  |               |  | 6,599,215  |              |  |             | 6,299,310  |  |      |              | 47,084,936  |           |           |  | 53,384,246  |         |  |  | 4,580,337   |  |  |  | 1989/99       |  |  |  | 2002       |  |  |  | 3-40 Years | 
|            | Colonial Center Heathrow                  |              |  |                |      |               |             | 13,548,715   |    |                            |             | 97,256,123 |  |               |  | 3,670,018  |              |  |             | 13,548,715 |  |      |              | 100,926,141 |           |           |  | 114,474,856 |         |  |  | 9,000,407   |  |  |  | 1988/96-00    |  |  |  | 2002       |  |  |  | 3-40 Years | 
|            | Colonial Center Heathrow 1001             |              |  |                |      |               |             | 2,384,904    |    |                            |             | 16,859,972 |  |               |  | 194,237    |              |  |             | 2,384,904  |  |      |              | 17,054,209  |           |           |  | 19,439,113  |         |  |  | 325,840     |  |  |  | 2001          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Colonial Center Lakeside                  |              |  |                |      |               |             | 423,451      |    |                            |             | 8,313,291  |  |               |  | 2,422,088  |              |  |             | 425,255    |  |      |              | 10,733,575  |           |           |  | 11,158,830  |         |  |  | 2,984,067   |  |  |  | 1989/90       |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Colonial Center Research Park             |              |  |                |      |               |             | 1,373,238    |    |                            |             |           |  |               |  | 12,558,996 |              |  |             | 1,003,865  |  |      |              | 12,928,369  |           |           |  | 13,932,234  |         |  |  | 3,761,453   |  |  |  | 1999          |  |  |  | 1998       |  |  |  | 3-40 Years | 
|            | Colonial Place I & II                     |              |  |                |      |               |             | 4,851,165    |    |                            |             | 43,534,087 |  |               |  | 2,734,819  |              |  |             | 4,851,165  |  |      |              | 46,268,906  |           |           |  | 51,120,071  |         |  |  | 1,717,742   |  |  |  | 1984/86       |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Colonial Plaza                            |              |  |                |      |               |             | 1,001,375    |    |                            |             | 12,381,023 |  |               |  | 6,428,356  |              |  |             | 1,005,642  |  |      |              | 18,805,112  |           |           |  | 19,810,754  |         |  |  | 4,199,848   |  |  |  | 1982          |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Concourse Center                          |              |  |                |      |               |             | 4,875,000    |    |                            |             | 25,702,552 |  |               |  | 10,190,190 |              |  |             | 4,875,000  |  |      |              | 35,892,742  |           |           |  | 40,767,742  |         |  |  | 6,469,487   |  |  |  | 1981/85       |  |  |  | 1998       |  |  |  | 3-40 Years | 
|            | DRS Building                              |              |  |                |      |               |             | 610,000      |    |                            |             | 12,089,992 |  |               |  | 122,007    |              |  |             | 610,000    |  |      |              | 12,211,999  |           |           |  | 12,821,999  |         |  |  | 751,052     |  |  |  | 1972/86/90/03 |  |  |  | 2004       |  |  |  | 3-40 Years | 
|            | Esplanade                                 |              |  |                |      |               |             | 4,211,670    |    |                            |             | 16,231,315 |  |               |  | 560,902    |              |  |             | 1,512,667  |  |      |              | 19,491,220  |           |           |  | 21,003,887  |         |  |  | 340,849     |  |  |  | 1981          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Independence Plaza                        |              |  |                |      |               |             | 1,505,000    |    |                            |             | 6,018,476  |  |               |  | 4,025,635  |              |  |             | 1,505,000  |  |      |              | 10,044,111  |           |           |  | 11,549,111  |         |  |  | 2,382,818   |  |  |  | 1981/92       |  |  |  | 1998       |  |  |  | 3-40 Years | 
|            | International Park                        |              |  |                |      |               |             | 1,279,355    |    |                            |             | 5,668,186  |  |               |  | 17,740,102 |              |  |             | 2,740,276  |  |      |              | 21,947,367  |           |           |  | 24,687,643  |         |  |  | 5,623,952   |  |  |  | 1987/89       |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Interstate Park                           |              |  |                |      |               |             | 1,125,990    |    |                            |             | 7,113,558  |  |               |  | 13,490,489 |              |  |             | 1,125,988  |  |      |              | 20,604,049  |           |           |  | 21,730,037  |         |  |  | 10,412,270  |  |  |  | 1982-85/89    |  |  |  | 1982-85/89 |  |  |  | 3-40 Years | 
|            | Perimeter Corporate Park                  |              |  |                |      |               |             | 1,422,169    |    |                            |             | 18,377,648 |  |               |  | 5,529,736  |              |  |             | 1,422,169  |  |      |              | 23,907,384  |           |           |  | 25,329,553  |         |  |  | 6,252,775   |  |  |  | 1986/89       |  |  |  | 1998       |  |  |  | 3-40 Years | 
|            | Progress Center                           |              |  |                |      |               |             | 521,037      |    |                            |             | 14,710,851 |  |               |  | 5,564,345  |              |  |             | 523,258    |  |      |              | 20,272,975  |           |           |  | 20,796,233  |         |  |  | 6,017,977   |  |  |  | 1983-91       |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Research Park Office Center IV            |              |  |                |      |               |             | 994,058      |    |                            |             | 3,644,740  |  |               |  | 49,068     |              |  |             | 550,349    |  |      |              | 4,137,517   |           |           |  | 4,687,866   |         |  |  | 140,443     |  |  |  | 1998          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Research Park Plaza III & IV              |              |  |                |      |               |             | 3,060,363    |    |                            |             | 73,120,000 |  |               |  | 384,773    |              |  |             | 3,060,363  |  |      |              | 73,504,773  |           |           |  | 76,565,136  |         |  |  | 953,516     |  |  |  | 2001          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Riverchase Center                         |              |  |                |      |               |             | 1,916,727    |    |                            |             | 22,091,651 |  |               |  | 6,939,510  |              |  |             | 1,924,895  |  |      |              | 29,022,994  |           |           |  | 30,947,888  |         |  |  | 8,103,704   |  |  |  | 1984-88       |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Shoppes at Mansell                        |              |  |                |      |               |             | 600,000      |    |                            |             | 3,089,565  |  |               |  | 120,708    |              |  |             | 600,000    |  |      |              | 3,210,273   |           |           |  | 3,810,273   |         |  |  | 634,697     |  |  |  | 1996/97       |  |  |  | 1998       |  |  |  | 3-40 Years | 
|            | The Peachtree                             |              |  |                |      |               |             | 8,410,000    |    |                            |             | 33,640,000 |  |               |  | 5,055,403  |              |  |             | 10,868,412 |  |      |              | 36,236,991  |           |           |  | 47,105,403  |         |  |  | 371,304     |  |  |  | 1989          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|            | Town Park-Office over Retail              |              |  |                |      |               |             | 443,535      |    |                            |             |           |  |               |  | 6,500,012  |              |  |             | 442,772    |  |      |              | 6,500,775   |           |           |  | 6,943,547   |         |  |  | 764,945     |  |  |  | 2004          |  |  |  | 2004       |  |  |  | 3-40 Years | 
|            | Lakeside at Mansell                       |              |  |                |      |               |             | 1,300,000    |    |                            |             |           |  |               |  | 839,456    |              |  |             | 1,300,000  |  |      |              | 839,456     |           |           |  | 2,139,456   |         |  |  |            |  |  |  | 2005          |  |  |  | 2005       |  |  |  | 3-40 Years | 
|Retail:     |                                           |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |            |              |  |             |            |  |      |              |             |           |           |  |             |         |  |  |             |  |  |  |               |  |  |  |            |  |  |  |           
|            | Britt David Shopping Center               |              |  |                |      |               |             | 1,755,000    |    |                            |             | 4,951,852  |  |               |  | 609,921    |              |  |             | 1,755,000  |  |      |              | 5,561,773   |           |           |  | 7,316,773   |         |  |  | 1,637,689   |  |  |  | 1990          |  |  |  | 1994       |  |  |  | 3-40 Years | 
|            | Colonial Brookwood Village                |              |  |                |      |               |             | 8,136,700    |    |                            |             | 24,435,002 |  |               |  | 68,067,676 |              |  |             | 8,171,373  |  |      |              | 92,468,004  |           |           |  | 100,639,378 |         |  |  | 21,611,693  |  |  |  | 1973/91/00    |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Colonial Mall Decatur                     |              |  |                |      |               |             | 3,262,800    |    |                            |             | 23,636,229 |  |               |  | 5,032,598  |              |  |             | 3,262,800  |  |      |              | 28,668,827  |           |           |  | 31,931,627  |         |  |  | 9,340,998   |  |  |  | 1979/89       |  |  |  | 1993       |  |  |  | 3-40 Years | 
|            | Colonial Mall Lakeshore                   |              |  |                |      |               |             | 4,646,300    |    |                            |             | 30,973,239 |  |               |  | 4,518,387  |              |  |             | 4,666,100  |  |      |              | 35,471,827  |           |           |  | 40,137,926  |         |  |  | 8,974,695   |  |  |  | 1984-87       |  |  |  | 1997       |  |  |  | 3-40 Years | 
|            | Colonial Mall Staunton                    |              |  |                |      |               |             | 2,895,000    |    |                            |             | 15,083,542 |  |               |  | 6,818,360  |              |  |             | 2,907,337  |  |      |              | 21,889,566  |           |           |  | 24,796,902  |         |  |  | 5,502,656   |  |  |  | 1969/86/97    |  |  |  | 1997       |  |  |  | 3-40 Years | 

S-3



---



##### 



|                                   |                                     |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |             |              |  |             |            |  |      |              |            |           |           |  |             |         |  |  |             |  |  |  |            |  |  |  |         |  |  |  |            | 
|---------------------------------- | ----------------------------------- | ------------ |  | --------------- | ---- | ------------- | ----------- | ------------ | -- | -------------------------- | ----------- | ---------- |  | ------------- |  | ----------- | ------------ |  | ----------- | ---------- |  | ---- | ------------ | ---------- | --------- | --------- |  | ----------- | ------- |  |  | ----------- |  |  |  | ---------- |  |  |  | ------- |  |  |  | ---------- | 
|                                   |                                     |              |  | Initial Cost to |      |               | Cost        |              |    | Gross Amount at Which      |             |            |  |               |  |             |              |  |            
|                                   |                                     |              |  | Company         |      |               | Capitalized |              |    | Carried at Close of Period |             |            |  |               |  |             | Date         |  |             |           
|                                   |                                     |              |  |                 |      |               | Subsequent  |              |    |                            |             |            |  |               |  |             | Acquired/    |  |             |           
|                                   |                                     |              |  |                 |      | Buildings and |             |              | to |                            |             |            |  | Buildings and |  |             |              |  | Accumulated |            |  | Date |              |            | Placed in |           |  | Depreciable |        
|Description                        |                                     | Encumbrances |  |                 | Land |               |             | Improvements |    |                            | Acquisition |            |  | Land          |  |             | Improvements |  |             | Total      |  |      | Depreciation |            |           | Completed |  |             | Service |  |  | Lives-Years | 
|                                   |                                     |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |             |              |  |             |            |  |      |              |            |           |           |  |             |         |  |  |             | 
|                                   | Colonial Mayberry Mall              |              |  |                |      |               |             | 862,500      |    |                            |             | 3,778,590  |  |               |  | 1,140,377   |              |  |             | 866,175    |  |      |              | 4,915,291  |           |           |  | 5,781,467   |         |  |  | 1,299,131   |  |  |  | 1968/86    |  |  |  | 1997    |  |  |  | 3-40 Years | 
|                                   | Colonial Pinnacle Kingwood Commons  |              |  |                |      |               |             | 6,100,000    |    |                            |             | 23,223,232 |  |               |  | 749,205     |              |  |             | 6,100,000  |  |      |              | 23,972,437 |           |           |  | 30,072,437  |         |  |  | 1,341,012   |  |  |  | 2003/04    |  |  |  | 2004    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Alabaster        |              |  |                |      |               |             | 7,540,689    |    |                            |             |           |  |               |  | 20,654,295  |              |  |             | 5,990,280  |  |      |              | 22,204,704 |           |           |  | 28,194,985  |         |  |  | 386,279     |  |  |  | 2005       |  |  |  | 2004    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Beechwood        |              |  |                |      |               |             | 2,565,550    |    |                            |             | 19,647,875 |  |               |  | 17,888,570  |              |  |             | 2,576,483  |  |      |              | 37,525,512 |           |           |  | 40,101,995  |         |  |  | 7,308,489   |  |  |  | 1963/92/05 |  |  |  | 1997    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Boulevard Square |              |  | 30,787,488      |      |               |             | 13,719,799   |    |                            |             | 24,723,406 |  |               |  | 4,367,849   |              |  |             | 13,772,107 |  |      |              | 29,038,947 |           |           |  | 42,811,054  |         |  |  | 1,038,923   |  |  |  | 2001       |  |  |  | 2004    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Burnt Store      |              |  |                |      |               |             | 2,707,798    |    |                            |             | 5,557,430  |  |               |  | 1,611,943   |              |  |             | 2,707,798  |  |      |              | 7,169,373  |           |           |  | 9,877,171   |         |  |  | 1,843,566   |  |  |  | 1990       |  |  |  | 1994    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Deerfield        |              |  | 32,101,028      |      |               |             | 13,000,000   |    |                            |             | 26,680,451 |  |               |  | 5,258,861   |              |  |             | 13,000,000 |  |      |              | 31,939,312 |           |           |  | 44,939,312  |         |  |  | 1,535,365   |  |  |  | 1988/2003  |  |  |  | 2004    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Hunters Creek   |              |  |                |      |               |             | 4,181,760    |    |                            |             | 13,023,401 |  |               |  | 1,388,424   |              |  |             | 4,181,760  |  |      |              | 14,411,825 |           |           |  | 18,593,585  |         |  |  | 3,419,371   |  |  |  | 1993/95    |  |  |  | 1996    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Lakewood         |              |  |                |      |               |             | 2,984,522    |    |                            |             | 11,482,512 |  |               |  | 3,486,872   |              |  |             | 3,018,135  |  |      |              | 14,935,772 |           |           |  | 17,953,906  |         |  |  | 3,656,806   |  |  |  | 1995       |  |  |  | 1997    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Montgomery       |              |  | 11,616,748      |      |               |             | 3,788,913    |    |                            |             | 11,346,754 |  |               |  | 1,831,908   |              |  |             | 4,332,432  |  |      |              | 12,635,143 |           |           |  | 16,967,575  |         |  |  | 5,115,003   |  |  |  | 1990       |  |  |  | 1993    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Montgomery North |              |  |                |      |               |             | 2,400,000    |    |                            |             | 5,664,858  |  |               |  | 630,951     |              |  |             | 2,401,182  |  |      |              | 6,294,627  |           |           |  | 8,695,809   |         |  |  | 1,298,811   |  |  |  | 1997       |  |  |  | 1995    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Northdale        |              |  |                |      |               |             | 3,059,760    |    |                            |             | 8,054,090  |  |               |  | 7,023,256   |              |  |             | 2,835,571  |  |      |              | 15,301,535 |           |           |  | 18,137,106  |         |  |  | 3,207,821   |  |  |  | 1988/00    |  |  |  | 1995    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Portofino        |              |  |                |      |               |             | 11,148,386   |    |                            |             | 44,295,771 |  |               |  | 0           |              |  |             | 11,148,386 |  |      |              | 44,295,771 |           |           |  | 55,444,157  |         |  |  | 1,515,013   |  |  |  | 2000       |  |  |  | 2005    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Town Park        |              |  | 405,889         |      |               |             | 3,916,001    |    |                            |             |           |  |               |  | 25,790,149  |              |  |             | 3,953,828  |  |      |              | 25,752,322 |           |           |  | 29,706,150  |         |  |  | 2,252,860   |  |  |  | 2005       |  |  |  | 2005    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Trussville       |              |  |                |      |               |             | 4,201,186    |    |                            |             |           |  |               |  | 28,244,944  |              |  |             | 3,868,278  |  |      |              | 28,577,852 |           |           |  | 32,446,130  |         |  |  | 4,113,363   |  |  |  | 2000       |  |  |  | 1998    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Trussville II    |              |  |                |      |               |             | 1,476,871    |    |                            |             |           |  |               |  | 5,400,416   |              |  |             | 802,784    |  |      |              | 6,074,502  |           |           |  | 6,877,286   |         |  |  | 282,392     |  |  |  | 2004       |  |  |  | 2003    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Tutwiler Farm    |              |  |                |      |               |             | 13,202,493   |    |                            |             |           |  |               |  | 11,699,706  |              |  |             | 7,037,894  |  |      |              | 17,864,305 |           |           |  | 24,902,199  |         |  |  | 2,437,149   |  |  |  | 2000       |  |  |  | 1999    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Wekiva           |              |  |                |      |               |             | 2,817,788    |    |                            |             | 15,302,375 |  |               |  | 742,378     |              |  |             | 2,817,788  |  |      |              | 16,044,753 |           |           |  | 18,862,541  |         |  |  | 3,943,147   |  |  |  | 1990       |  |  |  | 1996    |  |  |  | 3-40 Years | 
|                                   | Colonial Promenade Winter Haven     |              |  |                |      |               |             | 1,768,586    |    |                            |             | 3,928,903  |  |               |  | 5,011,907   |              |  |             | 4,045,045  |  |      |              | 6,664,351  |           |           |  | 10,709,396  |         |  |  | 2,038,686   |  |  |  | 1986       |  |  |  | 1995    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes Bear Lake          |              |  |                |      |               |             | 2,134,440    |    |                            |             | 6,551,683  |  |               |  | 1,825,031   |              |  |             | 2,134,440  |  |      |              | 8,376,714  |           |           |  | 10,511,154  |         |  |  | 2,212,782   |  |  |  | 1990       |  |  |  | 1995    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes Bellwood           |              |  |                |      |               |             | 330,000      |    |                            |             |           |  |               |  | 5,440,472   |              |  |             | 330,000    |  |      |              | 5,440,472  |           |           |  | 5,770,472   |         |  |  | 2,364,496   |  |  |  | 1988       |  |  |  | 1988    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes Clay               |              |  |                |      |               |             | 272,594      |    |                            |             |           |  |               |  | 7,635,715   |              |  |             | 277,975    |  |      |              | 7,630,334  |           |           |  | 7,908,309   |         |  |  | 3,269,687   |  |  |  | 1982/2004  |  |  |  | 1982    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes College Parkway    |              |  | 7,636,490       |      |               |             | 2,700,000    |    |                            |             | 10,792,000 |  |               |  | 1,172,993   |              |  |             | 2,700,000  |  |      |              | 11,964,993 |           |           |  | 14,664,993  |         |  |  | 466,495     |  |  |  | 1970/2000  |  |  |  | 2004    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes McGehee            |              |  |                |      |               |             | 197,152      |    |                            |             |           |  |               |  | 6,424,623   |              |  |             | 197,152    |  |      |              | 6,424,623  |           |           |  | 6,621,775   |         |  |  | 2,709,456   |  |  |  | 1986       |  |  |  | 1986    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes Pines Plaza        |              |  | 9,218,302       |      |               |             | 2,000,000    |    |                            |             | 9,641,999  |  |               |  | 505,806     |              |  |             | 2,000,000  |  |      |              | 10,147,805 |           |           |  | 12,147,805  |         |  |  | 401,775     |  |  |  | 2002       |  |  |  | 2004    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes Quaker Village     |              |  |                |      |               |             | 931,000      |    |                            |             | 7,901,874  |  |               |  | 1,376,391   |              |  |             | 934,967    |  |      |              | 9,274,298  |           |           |  | 10,209,265  |         |  |  | 2,185,541   |  |  |  | 1968/88/97 |  |  |  | 1997    |  |  |  | 3-40 Years | 
|                                   | Colonial Shoppes Yadkinville        |              |  |                |      |               |             | 1,080,000    |    |                            |             | 1,224,136  |  |               |  | 3,658,893   |              |  |             | 1,084,602  |  |      |              | 4,878,427  |           |           |  | 5,963,029   |         |  |  | 1,063,735   |  |  |  | 1971/97    |  |  |  | 1997    |  |  |  | 3-40 Years | 
|                                   | Colonial Shops Colonnade            |              |  |                |      |               |             | 2,468,092    |    |                            |             | 4,034,205  |  |               |  | 5,936,247   |              |  |             | 4,827,330  |  |      |              | 7,611,214  |           |           |  | 12,438,544  |         |  |  | 529,375     |  |  |  | 1989/2005  |  |  |  | 2002    |  |  |  | 3-40 Years | 
|                                   | Olde Town Shopping Center           |              |  |                |      |               |             | 343,325      |    |                            |             |           |  |               |  | 2,921,439   |              |  |             | 343,325    |  |      |              | 2,921,439  |           |           |  | 3,264,764   |         |  |  | 1,433,573   |  |  |  | 1978/90    |  |  |  | 1978/90 |  |  |  | 3-40 Years | 
|                                   | Rivermont Shopping Center           |              |  |                |      |               |             | 515,250      |    |                            |             | 2,332,486  |  |               |  | 369,555     |              |  |             | 517,446    |  |      |              | 2,699,845  |           |           |  | 3,217,291   |         |  |  | 709,175     |  |  |  | 1986/97    |  |  |  | 1997    |  |  |  | 3-40 Years | 
|                                   | Village on Parkway                  |              |  | 47,000,000      |      |               |             | 16,940,000   |    |                            |             | 30,852,577 |  |               |  | 3,093,113   |              |  |             | 16,940,000 |  |      |              | 33,945,690 |           |           |  | 50,885,690  |         |  |  | 1,726,948   |  |  |  | 1980       |  |  |  | 2004    |  |  |  | 3-40 Years | 
|Active Development Projects:       |                                     |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |             |              |  |             |            |  |      |              |            |           |           |  |             |         |  |  |             |  |  |  |            |  |  |  |         |  |  |  |           
|                                   | Central Park                        |              |  |                |      |               |             | 1,437,374    |    |                            |             |           |  |               |  | 3,695,878   |              |  |             | 1,437,374  |  |      |              | 3,695,878  |           |           |  | 5,133,252   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Grand at Canyon Creek      |              |  |                |      |               |             | 3,255,045    |    |                            |             |           |  |               |  | 3,312,505   |              |  |             | 3,255,045  |  |      |              | 3,312,505  |           |           |  | 6,567,550   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Grand at Double Creek      |              |  |                |      |               |             | 3,505,449    |    |                            |             |           |  |               |  | 376,192     |              |  |             | 3,505,449  |  |      |              | 376,192    |           |           |  | 3,881,641   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Grand at Round Rock        |              |  |                |      |               |             | 2,403,869    |    |                            |             |           |  |               |  | 17,901,001  |              |  |             | 2,403,869  |  |      |              | 17,901,001 |           |           |  | 20,304,870  |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Grand at Silverado Reserve |              |  |                |      |               |             | 2,297,761    |    |                            |             |           |  |               |  | 17,462,548  |              |  |             | 2,297,761  |  |      |              | 17,462,548 |           |           |  | 19,760,309  |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Center TownPark 300        |              |  |                |      |               |             | 2,392,000    |    |                            |             |           |  |               |  | 7,397,563   |              |  |             | 2,392,000  |  |      |              | 7,397,563  |           |           |  | 9,789,563   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Pinnacle Craft Farms       |              |  |                |      |               |             | 7,059,359    |    |                            |             |           |  |               |  | 9,119,303   |              |  |             | 7,059,359  |  |      |              | 9,119,303  |           |           |  | 16,178,662  |         |  |  |            |  |  |  | N/A        |  |  |  | 2004    |  |  |  | N/A        | 
|                                   | Colonial Pinnacle Tutwiler Farm     |              |  |                |      |               |             | 2,915,467    |    |                            |             |           |  |               |  | 14,557,669  |              |  |             | 2,915,467  |  |      |              | 14,557,669 |           |           |  | 17,473,136  |         |  |  |            |  |  |  | N/A        |  |  |  | 2004    |  |  |  | N/A        | 
|                                   | Colonial Promenade Fultondale       |              |  |                |      |               |             | 1,984,971    |    |                            |             |           |  |               |  |            |              |  |             | 1,984,971  |  |      |              |           |           |           |  | 1,984,971   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Traditions at Gulf Shores  |              |  |                |      |               |             | 17,894,246   |    |                            |             |           |  |               |  | 268,736     |              |  |             | 17,894,246 |  |      |              | 268,736    |           |           |  | 18,162,982  |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Colonial Traditions at South Park   |              |  |                |      |               |             | 1,993,941    |    |                            |             |           |  |               |  | 19,688      |              |  |             | 1,993,941  |  |      |              | 19,688     |           |           |  | 2,013,629   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Northrop Grumman                    |              |  |                |      |               |             | 1,477,946    |    |                            |             |           |  |               |  |            |              |  |             | 1,477,946  |  |      |              |           |           |           |  | 1,477,946   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | The Renwick                         |              |  |                |      |               |             | 3,578,796    |    |                            |             |           |  |               |  | 496,027     |              |  |             | 3,578,796  |  |      |              | 496,027    |           |           |  | 4,074,823   |         |  |  |            |  |  |  | N/A        |  |  |  | 2005    |  |  |  | N/A        | 
|Condominium Conversion Properties: |                                     |              |  |                 |      |               |             |              |    |                            |             |            |  |               |  |             |              |  |             |            |  |      |              |            |           |           |  |             |         |  |  |             |  |  |  |            |  |  |  |         |  |  |  |           
|                                   | Murano at Delray Beach              |              |  |                |      |               |             |             |    |                            |             | 56,238,824 |  |               |  | (20,526,387 | )            |  |             |           |  |      |              | 35,712,437 |           |           |  | 35,712,437  |         |  |  | N/A         |  |  |  | 2002       |  |  |  | 2005    |  |  |  | N/A        | 
|                                   | Portofino at Jensen Beach           |              |  |                |      |               |             |             |    |                            |             | 63,094,381 |  |               |  | (32,120,255 | )            |  |             |           |  |      |              | 30,974,126 |           |           |  | 30,974,126  |         |  |  | N/A         |  |  |  | 2002       |  |  |  | 2005    |  |  |  | N/A        | 

S-4



---



##### 



|                 |                                     |              |                |                 |      |               |                |              |    |                            |                  |   |  |               |             |            |              |   |                |            |  |      |                  |            |           |           |                  |             |         |   |                |             |  |  |  |     |  |  |  |      |  |  |  |           | 
|---------------- | ----------------------------------- | ------------ | -------------- | --------------- | ---- | ------------- | -------------- | ------------ | -- | -------------------------- | ---------------- | - |  | ------------- | ----------- | ---------- | ------------ | - | -------------- | ---------- |  | ---- | ---------------- | ---------- | --------- | --------- | ---------------- | ----------- | ------- | - | -------------- | ----------- |  |  |  | --- |  |  |  | ---- |  |  |  | --------- | 
|                 |                                     |              |                | Initial Cost to |      |               | Cost           |              |    | Gross Amount at Which      |                  |   |  |               |             |            |              |   |               
|                 |                                     |              |                | Company         |      |               | Capitalized    |              |    | Carried at Close of Period |                  |   |  |               |             |            | Date         |   |                |           
|                 |                                     |              |                |                 |      |               | Subsequent     |              |    |                            |                  |   |  |               |             |            | Acquired/    |   |                |           
|                 |                                     |              |                |                 |      | Buildings and |                |              | to |                            |                  |   |  | Buildings and |             |            |              |   | Accumulated    |            |  | Date |                  |            | Placed in |           |                  | Depreciable |        
|Description      |                                     | Encumbrances |                |                 | Land |               |                | Improvements |    |                            | Acquisition      |   |  | Land          |             |            | Improvements |   |                | Total      |  |      | Depreciation     |            |           | Completed |                  |             | Service |   |                | Lives-Years | 
|                 |                                     |              |                |                 |      |               |                |              |    |                            |                  |   |  |               |             |            |              |   |                |            |  |      |                  |            |           |           |                  |             |         |   |                |             | 
|Unimproved Land: |                                     |              |                |                 |      |               |                |              |    |                            |                  |   |  |               |             |            |              |   |                |            |  |      |                  |            |           |           |                  |             |         |   |                |             |  |  |  |     |  |  |  |      |  |  |  |          
|                 | Bellevue Land                       |              |                |                |      |               |                | 4,922,729    |    |                            |                  |  |  |               |             |           |              |   |                | 4,922,729  |  |      |                  |           |           |           |                  | 4,922,729   |         |   |                |            |  |  |  | N/A |  |  |  | 2005 |  |  |  | N/A       | 
|                 | Canal Place Land and Infrastructure |              |                |                |      |               |                | 10,951,968   |    |                            |                  |  |  |               |             |           |              |   |                | 10,951,968 |  |      |                  |           |           |           |                  | 10,951,968  |         |   |                |            |  |  |  | N/A |  |  |  | 2005 |  |  |  | N/A       | 
|                 | Corporate Assets                    |              |                |                |      |               |                |             |    |                            |                  |  |  |               |             | 12,758,240 |              |   |                |           |  |      |                  | 12,758,240 |           |           |                  | 12,758,240  |         |   |                | 6,444,943   |  |  |  | N/A |  |  |  | N/A  |  |  |  | 3-7 Years | 
|                 | Heathrow Land and Infrastructure    |              |                |                |      |               |                | 12,250,568   |    |                            |                  |  |  |               |             | 1,663,187  |              |   |                | 13,913,755 |  |      |                  |           |           |           |                  | 13,913,755  |         |   |                |            |  |  |  | N/A |  |  |  | 2002 |  |  |  | N/A       | 
|                 | Lakewood Ranch                      |              |                |                |      |               |                | 47,990       |    |                            |                  |  |  |               |             | 1,211,704  |              |   |                | 1,184,814  |  |      |                  | 74,880     |           |           |                  | 1,259,694   |         |   |                |            |  |  |  | N/A |  |  |  | 1999 |  |  |  | N/A       | 
|                 | Mansell Land and Infrastructure     |              |                |                |      |               |                | 2,664,265    |    |                            |                  |  |  |               |             | 724,609    |              |   |                | 3,388,874  |  |      |                  |           |           |           |                  | 3,388,874   |         |   |                |            |  |  |  | N/A |  |  |  | 1997 |  |  |  | N/A       | 
|                 | TownPark Land and Infrastructure    |              |                |                |      |               |                | 8,902,943    |    |                            |                  |  |  |               |             | 1,442,923  |              |   |                | 10,345,866 |  |      |                  |           |           |           |                  | 10,345,866  |         |   |                |            |  |  |  | N/A |  |  |  | 1999 |  |  |  | N/A       | 
|                 | Other Miscellaneous Projects        |              |                |                |      |               |                | 1,143,896    |    |                            |                  |  |  |               |             | 6,155,674  |              |   |                |           |  |      |                  | 7,299,570  |           |           |                  | 7,299,570   |         |   |                | 800,549     |  |  |  | N/A |  |  |  | 2002 |  |  |  | N/A       | 
|                 |                                     |              |                |                 |      |               |                |              |    |                            |                  |   |  |               |             |            |              |   |                |            |  |      |                  |            |           |           |                  |             |         |   |                |             | 
|                 |                                     | $            | 768,996,994.33 |                 |      | $             | 690,001,905.75 |              |    | $                          | 2,930,893,601.76 |   |  | $             | 933,197,718 |            |              | $ | 666,306,441.53 |            |  | $    | 3,887,786,783.66 |            |           | $         | 4,554,093,225.19 |             |         | $ | 463,109,241.66 |             |  |  |  |     |  |  |  |      |  |  |  |          
|                 |                                     |              |                |                 |      |               |                |              |    |                            |                  |   |  |               |             |            |              |   |                |            |  |      |                  |            |           |           |                  |             |         |   |                |             | 

S-5



---



##### 



NOTES TO SCHEDULE III


COLONIAL PROPERTIES TRUST


December 31, 2005


(1) The aggregate cost for Federal Income Tax purposes
was approximately $3.4 billion at December 31,
2005.


(2) See description of mortgage notes payable in
Note 9 of Notes to Consolidated Financial Statements.


(3) The following is a reconciliation of real estate to
balances reported at the beginning of the year:


(4) Amounts include real estate assets classified as
held for sale at December 31, 2005.


|                         |                              |                               |   |               |               |   |   |               |             |   |   |               |             |  
|------------------------ | ---------------------------- | ----------------------------- | - | ------------- | ------------- | - | - | ------------- | ----------- | - | - | ------------- | ----------- | -
|                         |                              | Reconciliation of Real Estate |  
|                         |                              |                               |  
|                         |                              | 2005                          |   |               | 2004          |   |   | 2003          |            
|                         |                              |                               |   |               |               |   |   |               |            
|Real estate investments: |                              |                               |   |               |               |   |   |               |             |   |   |              
|                         | Balance at beginning of year |                               | $ | 3,091,323,963 |               |   | $ | 2,510,449,263 |             |   | $ | 2,380,762,598 |            
|                         |                              | Acquisitions of new property  |   |               | 2,150,264,089 |   |   |               | 478,208,477 |   |   |               | 78,742,469  |  
|                         |                              | Improvements and development  |   |               | 254,999,732   |   |   |               | 143,497,725 |   |   |               | 87,675,381  |  
|                         |                              | Dispositions of property      |   |               | (942,494,559  | ) |   |               | (40,831,502 | ) |   |               | (36,731,185 | )
|                         |                              |                               |   |               |               |   |   |               |            
|                         | Balance at end of year       |                               | $ | 4,554,093,225 |               |   | $ | 3,091,323,963 |             |   | $ | 2,510,449,263 |            
|                         |                              |                               |   |               |               |   |   |               |            

|                          |                              |                                            |   |             |              |   |   |             |             |   |   |             |             |  
|------------------------- | ---------------------------- | ------------------------------------------ | - | ----------- | ------------ | - | - | ----------- | ----------- | - | - | ----------- | ----------- | -
|                          |                              | Reconciliation of Accumulated Depreciation |  
|                          |                              |                                            |  
|                          |                              | 2005                                       |   |             | 2004         |   |   | 2003        |            
|                          |                              |                                            |   |             |              |   |   |             |            
|Accumulated depreciation: |                              |                                            |   |             |              |   |   |             |             |   |   |            
|                          | Balance at beginning of year |                                            | $ | 505,988,402 |              |   | $ | 425,487,601 |             |   | $ | 351,163,907 |            
|                          |                              | Depreciation                               |   |             | 135,929,433  |   |   |             | 104,935,782 |   |   |             | 88,562,633  |  
|                          |                              | Depreciation of disposition of property    |   |             | (178,808,593 | ) |   |             | (24,434,981 | ) |   |             | (14,238,939 | )
|                          |                              |                                            |   |             |              |   |   |             |            
|                          | Balance at end of year       |                                            | $ | 463,109,242 |              |   | $ | 505,988,402 |             |   | $ | 425,487,601 |            
|                          |                              |                                            |   |             |              |   |   |             |            

S-6