SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

         (Mark One)
 X       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
--       EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2002
         or

         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 1-9997

                               KOGER EQUITY, INC.
             (Exact name of registrant as specified in its charter)

   FLORIDA                                                        59-2898045
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

433 PLAZA REAL, SUITE 335
  BOCA RATON, FLORIDA                                              33432
(Address of principal executive offices)                        (Zip Code)

       Registrant's telephone number, including area code: (561) 395-9666

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

Yes   X    No
    -----     -----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

          Class                              Outstanding at October 31, 2002
  Common Stock, $.01 par value                       21,295,290 shares


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                       KOGER EQUITY, INC. AND SUBSIDIARIES

                                      INDEX
                                                                                                              PAGE NO.

PART I.   FINANCIAL INFORMATION

<S>                                                                                                                <C>
            Independent Accountants' Report...............................................................         3

Item 1.  Financial Statements (Unaudited):

            Condensed Consolidated Balance Sheets--
               September 30, 2002 and December 31, 2001...................................................         4

            Condensed Consolidated Statements of Operations
               for the Three and Nine Months Ended
               September 30, 2002 and 2001................................................................         5

            Condensed Consolidated Statement of Changes in
               Shareholders' Equity for the Nine Months
               Ended September 30, 2002 ..................................................................         6

            Condensed Consolidated Statements of Cash Flows
               for the Nine Months Ended September 30, 2002 and 2001......................................         7

            Notes to Condensed Consolidated Financial
               Statements for the Three and Nine Months
               Ended September 30, 2002 and 2001..........................................................         8

    Item 2.  Management's Discussion and Analysis of Financial Condition
               and Results of Operations .................................................................        13

    Item 3. Quantitative and Qualitative Disclosures About Market Risk ...................................        17

    Item 4. Controls and Procedures.......................................................................        17

PART II. OTHER INFORMATION

    Item 1.  Legal Proceedings............................................................................        18

    Item 5.  Other Information............................................................................        18

    Item 6.  Exhibits and Reports on Form 8-K.............................................................        21

    Signatures and Certification..........................................................................    22, 23

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INDEPENDENT ACCOUNTANTS' REPORT

To the Board of Directors and Shareholders of
  Koger Equity, Inc.
Boca Raton, Florida:

We have reviewed the accompanying condensed consolidated balance sheet of Koger
Equity, Inc. and subsidiaries (the "Company") as of September 30, 2002, and the
related condensed consolidated statements of operations for the three-month and
nine-month periods ended September 30, 2002 and 2001, the condensed consolidated
statement of changes in shareholders' equity for the nine-month period ended
September 30, 2002 and the condensed consolidated statements of cash flows for
the nine-month periods ended September 30, 2002 and 2001. These financial
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with auditing standards generally accepted in the United States of America, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should
be made to such condensed consolidated financial statements for them to be in
conformity with accounting principles generally accepted in the United States of
America.

We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated balance sheet of the
Company as of December 31, 2001, and the related consolidated statements of
operations, changes in shareholders' equity, and cash flows for the year then
ended (not presented herein); and in our report dated February 22, 2002, we
expressed an unqualified opinion on those consolidated financial statements. In
our opinion, the information set forth in the accompanying condensed
consolidated balance sheet as of December 31, 2001 is fairly stated, in all
material respects, in relation to the consolidated balance sheet from which it
has been derived.




DELOITTE & TOUCHE LLP
Certified Public Accountants

West Palm Beach, Florida
October 25, 2002


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                       KOGER EQUITY, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                (Unaudited - See Independent Accountants' Report)
                        (In thousands, except share data)

                                                                                        September 30,       December 31,
                                                                                             2002               2001
                                                                                         -----------        ----------
ASSETS
Real Estate Investments:
  Operating properties:
<S>                                                                                     <C>                   <C>
     Land                                                                               $    98,253           $    91,919
     Buildings                                                                              688,363               568,285
     Furniture and equipment                                                                  3,120                 3,082
     Accumulated depreciation                                                              (142,295)             (123,999)
                                                                                        ------------          -----------
          Operating properties, net                                                         647,441               539,287
   Undeveloped land held for investment                                                      11,015                13,779
   Undeveloped land held for sale, net of allowance                                           2,840                    76
Cash and cash equivalents                                                                    10,930               113,370
Accounts receivable, net of allowance for
   uncollectible accounts of $1,271 and $1,114                                               10,744                11,574
Cost in excess of fair value of net assets acquired,
   net of accumulated amortization of $683 and $683                                             595                   595
Other assets                                                                                 11,939                11,904
                                                                                        -----------           -----------
     TOTAL ASSETS                                                                       $   695,504           $   690,585
                                                                                        ===========           ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
   Mortgages and loans payable                                                          $   314,994           $   248,683
   Accounts payable                                                                           3,236                 4,962
   Accrued real estate taxes payable                                                          6,336                 1,007
   Other accrued liabilities                                                                  9,929                 9,206
   Dividends payable                                                                          7,453                44,159
   Advance rents and security deposits                                                        5,137                 5,103
                                                                                        -----------           -----------
     Total Liabilities                                                                      347,085               313,120
                                                                                        -----------           -----------

Minority interest                                                                                --                22,923
Commitments and contingencies                                                                    --                    --
                                                                                        -----------           -----------

Shareholders' equity:
   Preferred stock, $.01 par value; 50,000,000 shares
     authorized; no shares issued                                                                --                    --
   Common stock, $.01 par value; 100,000,000 shares
     authorized; 29,816,632 and 29,663,362 shares
     issued; 21,294,032 and 21,128,905 shares outstanding                                       298                   297
   Capital in excess of par value                                                           472,012               469,779
   Notes receivable from stock sales                                                         (5,066)               (5,066)
   Retained earnings                                                                         12,726                21,180
   Treasury stock, at cost; 8,522,600 and 8,534,457 shares                                 (131,551)             (131,648)
                                                                                        ------------          -----------
     Total Shareholders' Equity                                                             348,419               354,542
                                                                                        -----------           -----------
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                         $   695,504           $   690,585
                                                                                        ===========           ===========

See notes to unaudited condensed consolidated financial statements.
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<CAPTION>


                       KOGER EQUITY, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (Unaudited - See Independent Accountants' Report)
                      (In thousands, except per share data)

                                                                                Three Months                 Nine Months
                                                                              Ended September 30,         Ended September 30,
                                                                              -------------------         -------------------
                                                                              2002            2001         2002          2001
                                                                            ---------       --------     ---------     --------
REVENUES
<S>                                                                         <C>             <C>          <C>            <C>
   Rental and other rental services                                         $  31,836       $ 42,243     $  94,286      $125,462
   Management fees                                                                839          1,074         2,590         3,530
   Interest                                                                        98            154           329           596
   Other                                                                           --             --             2            81
                                                                            ---------       --------     ---------     ---------
       Total revenues                                                          32,773         43,471        97,207       129,669
                                                                            ---------       ---------    ---------     ---------

EXPENSES
   Property operations                                                         11,846         15,591        34,233        46,749
   Depreciation and amortization                                                6,663          9,617        19,915        27,154
   Mortgage and loan interest, including amortization
     of deferred loan costs of $303 and $227 for the three
     months and $891 and $680 for the nine months                               6,041          6,543        17,864        20,059
   General and administrative                                                   2,971          2,276         8,428         6,148
   Direct costs of management fees                                                797            798         2,630         2,658
   Other                                                                           43             60           125           171
                                                                            ---------       --------     ---------     ---------
       Total expenses                                                          28,361         34,885        83,195       102,939
                                                                            ---------       --------     ---------     ---------

INCOME BEFORE GAIN ON SALE OR DISPOSITION OF
  ASSETS, INCOME TAXES AND MINORITY INTEREST                                    4,412          8,586        14,012        26,730
Gain on sale or disposition of assets                                               1             --             2            --
                                                                            ---------       --------     ---------     ---------
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST                                4,413          8,586        14,014        26,730
Income taxes                                                                       19            257           112           449
                                                                            ---------       --------     ---------     ---------
INCOME BEFORE MINORITY INTEREST                                                 4,394          8,329        13,902        26,281
Minority interest                                                                  --            323            20           937
                                                                            ---------       --------     ---------     ---------
NET INCOME                                                                  $   4,394       $  8,006     $  13,882     $  25,344
                                                                            =========       ========     =========     =========

EARNINGS PER  SHARE:
   Basic                                                                    $    0.21       $   0.30     $    0.65     $    0.94
                                                                            =========       ========     =========     =========
   Diluted                                                                  $    0.21       $   0.30     $    0.65     $    0.94
                                                                            =========       ========     =========     =========

WEIGHTED AVERAGE SHARES:
   Basic                                                                       21,293         26,865        21,258        26,872
                                                                            =========       ========     =========     =========
   Diluted                                                                     21,410         26,912        21,407        26,888
                                                                            =========       ========     =========     =========

See Notes to unaudited condensed consolidated financial statements.
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                       KOGER EQUITY, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
                              SHAREHOLDERS' EQUITY
                (Unaudited - See Independent Accountants' Report)
                                 (In thousands)

                                                                            Notes
                                     Common Stock         Capital in      Receivable                                   Total
                                    Shares      Par        Excess of      from Stock     Retained    Treasury      Shareholders'
                                    Issued     Value       Par Value         Sales       Earnings      Stock           Equity
                                    ------     -----       ---------      ----------     --------    ---------     -------------
<S>                                 <C>        <C>         <C>             <C>            <C>        <C>              <C>
Balance, December 31, 2001          29,663     $297        $469,779        $(5,066)       $21,180    $(131,648)       $354,542
Common stock sold                                               113                                         97             210
Options exercised                      154        1           2,120                                                      2,121
Dividends declared                                                                        (22,336)                     (22,336)
Net Income                                                                                 13,882                       13,882
                                    ------     ----        --------        --------       -------    ---------       ---------
Balance, September 30, 2002         29,817     $298        $472,012        $(5,066)       $12,726    $(131,551)       $348,419
                                    ======     ====        ========        ========       =======    =========       =========

See notes to unaudited condensed consolidated financial statements.
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                       KOGER EQUITY, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                (Unaudited - See Independent Accountants' Report)
                                 (In thousands)

                                                                                                   Nine Months
                                                                                               Ended September 30,
                                                                                             2002              2001
                                                                                         -----------        ----------
OPERATING ACTIVITIES
<S>                                                                                      <C>                <C>
   Net income                                                                            $  13,882          $  25,344
   Adjustments to reconcile net income to net cash
     provided by operating activities:
     Depreciation and amortization                                                          19,915             27,154
     Amortization of deferred loan costs                                                       588                680
     Income from Koger Realty Services, Inc.                                                    --                (81)
     Provision for uncollectible accounts                                                      430              1,108
     Minority interest                                                                          20                937
     Gain on sale or disposition of assets                                                      (2)                --
     Changes in assets and liabilities:
       Decrease (increase) in receivables and other assets                                     301             (1,305)
       Increase in accounts payable, accrued liabilities
         and other liabilities                                                               4,361                395
                                                                                         ---------          ---------
       Net cash provided by operating activities                                            39,495             54,232
                                                                                         ---------          ---------
INVESTING ACTIVITIES
   Property acquisitions                                                                  (125,478)                --
   Building construction expenditures                                                           --             (2,025)
   Tenant improvements to first generation space                                            (1,224)            (3,734)
   Tenant improvements to existing properties                                               (3,743)            (4,979)
   Building improvements                                                                    (2,582)            (3,283)
   Deferred tenant costs                                                                    (1,382)            (1,568)
   Additions to furniture and equipment                                                        (38)              (147)
   Cash acquired in purchase of assets from KRSI                                                --              2,535
   Purchase of limited partner interests in Koger-Vanguard Partnership, L.P.               (16,465)                --
   Proceeds from sale of assets                                                                  2                 15
                                                                                         ---------          ---------
       Net cash used in investing activities                                              (150,910)           (13,186)
                                                                                         ----------         ----------
FINANCING ACTIVITIES
   Collection of notes receivable from stock sales                                              --                174
   Proceeds from exercise of stock options                                                   2,121                634
   Proceeds from sales of common stock                                                         210                199
   Proceeds from mortgages and loans                                                        88,000             32,500
   Dividends paid                                                                          (59,043)           (28,156)
   Distributions paid to limited partners                                                     (398)              (943)
   Principal payments on mortgages and loans payable                                       (21,689)           (37,908)
   Financing costs                                                                            (226)               (21)
                                                                                         ----------         ----------
       Net cash provided by (used in) financing activities                                   8,975            (33,521)
                                                                                         ---------          ----------
Net (decrease) increase in cash and cash equivalents                                      (102,440)             7,525
Cash and cash equivalents - beginning of period                                            113,370              1,615
                                                                                         ---------          ---------
Cash and cash equivalents - end of period                                                $  10,930          $   9,140
                                                                                         =========          =========
SUPPLEMENTAL CASH FLOW INFORMATION
   Cash paid during the period for interest, net of amount capitalized                   $  17,669          $  19,543
                                                                                         =========          =========
   Cash paid during the period for income taxes                                          $     485          $     252
                                                                                         =========          =========

See notes to unaudited condensed consolidated financial statements.

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                       KOGER EQUITY, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                          FOR THE THREE AND NINE MONTHS
                        ENDED SEPTEMBER 30, 2002 AND 2001
                (Unaudited - See Independent Accountants' Report)

       1. BASIS OF PRESENTATION. The condensed consolidated financial statements
include the accounts of Koger Equity, Inc. and its wholly-owned subsidiaries
(the "Company"). All material intercompany transactions and accounts have been
eliminated in consolidation. The financial statements have been prepared in
accordance with the rules and regulations of the Securities and Exchange
Commission related to interim financial statements.

During January 2002, the Company acquired all of the remaining limited
partnership units in Koger-Vanguard Partners, L.P., a Delaware limited
partnership (the "Partnership"), for approximately $16.5 million. These
partnership units were convertible into 999,710 shares of the Company's common
stock. The Company previously consolidated the Partnership with an associated
minority interest. The acquisition of this minority interest was recorded using
the purchase method of accounting. As a result, the excess of the fair value of
the acquired net assets over the purchase price (approximately $6.2 million) was
recorded as a reduction in the bases of the acquired fixed assets.

During January 2001, Koger Equity, Inc. organized KRSI Merger, Inc., a Florida
corporation, as a wholly owned taxable subsidiary. Effective February 1, 2001,
Koger Realty Services, Inc. ("KRSI"), a Delaware corporation, was merged into
this new subsidiary (the "Merger"). Pursuant to the Merger, the common stock of
KRSI was repurchased at the formula price set forth in KRSI's Articles of
Incorporation. Subsequent to the Merger, the name of the new Florida subsidiary
was changed to Koger Realty Services, Inc. This merger was accounted for using
the purchase method of accounting resulting in a reduction in the cost basis of
assets of approximately $143,000. Prior to the Merger, the Company accounted for
its investment in the preferred stock of KRSI using the equity method.

The accompanying condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto for the
year ended December 31, 2001, included in the Company's Form 10-K Annual Report
for the year ended December 31, 2001. The accompanying balance sheet at December
31, 2001 has been derived from the audited financial statements at that date and
is condensed.

All adjustments of a normal recurring nature which, in the opinion of
management, are necessary to present a fair statement of the results for the
interim periods have been made. Certain prior year amounts have been
reclassified in order to conform to current year presentation. Results of
operations for the three and nine months ended September 30, 2002 are not
necessarily indicative of the results to be expected for the full year.

On July 20, 2001, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 141, "Business
Combinations", and SFAS No. 142, "Goodwill and Other Intangible Assets." These
Statements make significant changes to the accounting for business combinations,
goodwill, and intangible assets. SFAS No. 141 eliminates the
pooling-of-interests method of accounting for business combinations with limited
exceptions for combinations initiated prior to July 1, 2001. In addition, it
further clarifies the criteria for recognition of intangible assets separately
from goodwill. This Statement is effective for business combinations completed
after June 30, 2001. The Company's adoption of SFAS No. 141 has not had a
material impact on its condensed consolidated financial statements.


                                       8
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SFAS No. 142 discontinues the practice of amortizing goodwill and indefinite
lived intangible assets and initiates an annual review for impairment.
Impairment would be examined more frequently if certain indicators are
encountered. Intangible assets with a determinable useful life will continue to
be amortized over that period. The amortization provisions apply to goodwill and
intangible assets acquired after September 30, 2001. SFAS No. 142 is effective
for fiscal years beginning after December 15, 2001. The Company adopted the
Statement effective January 1, 2002. The Company's adoption of SFAS No. 142 has
not had a material impact on its condensed consolidated financial statements.

In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations." SFAS No. 143 requires entities to record the fair value of a
liability for an asset retirement obligation in the period in which it is
incurred and requires that the amount recorded as a liability be capitalized by
increasing the carrying amount of the related long-lived asset. Subsequent to
initial measurement, the liability is accreted to the ultimate amount
anticipated to be paid, and is also adjusted for revision to the timing or
amount of estimated cash flows. The capitalized cost is depreciated over the
useful life of the related asset. Upon settlement of the liability, an entity
either settles the obligation for its recorded amount or incurs a gain or loss
upon settlement. SFAS No. 143 is required to be adopted for fiscal years
beginning after June 15, 2002, with earlier application encouraged. The Company
is currently assessing but has not yet determined the impact of SFAS No. 143 on
its financial position and results of operations.

In August 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets." This Statement supersedes SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
be Disposed of." SFAS No. 144 retains the fundamental provisions of SFAS No. 121
for (a) recognition and measurement of the impairment of long-lived assets to be
held and used and (b) measurement of long-lived assets to be disposed of by
sale. SFAS No. 144 is effective for fiscal years beginning after December 15,
2001. The Company adopted the Statement effective January 1, 2002. The Company's
adoption of SFAS No. 144 has not had a material impact on its condensed
consolidated financial statements, but will require future sales of commercial
real estate properties to be presented as discontinued operations.

In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements
No.  4,  44,  and  64,  Amendment  of  FASB  Statement  No.  13,  and  Technical
Corrections."  This Statement  rescinds SFAS No. 4, "Reporting  Gains and Losses
from  Extinguishment  of Debt."  Under  SFAS No. 4, all  gains and  losses  from
extinguishment  of  debt  were  required  to be  aggregated  and,  if  material,
classified as an  extraordinary  item, net of related  income tax effect.  Under
SFAS No. 145, gains and losses from  extinguishment of debt should be classified
as extraordinary  items only if they meet the criteria in Accounting  Principles
Board Opinion No. 30. SFAS No. 145 is effective for fiscal years beginning after
May 15, 2002. The Company is currently  assessing but has not yet determined the
impact of SFAS No. 145 on its financial position and results of operations.

In July 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities." This Statement applies to costs associated
with an exit activity that does not involve an entity newly acquired in a
business combination, an asset retirement obligation covered by SFAS No. 143 or
with a disposal activity covered by SFAS No. 144. SFAS No. 146 requires that a
liability for a cost associated with an exit or disposal activity shall be
recognized and measured initially at its fair value in the period in which the
liability is incurred provided that such fair value can be reasonably estimated.
An exception applies for certain one-time termination benefits that are incurred
over time. The Company will adopt SFAS No. 146 effective January 1, 2003. This
adoption is not expected to have a significant impact on the Company's financial
position or results of operations.


                                       9
<PAGE>




       2. ORGANIZATION. Koger Equity, Inc. ("KE"), a Florida corporation, was
incorporated in 1988 to own and manage commercial office buildings and other
income-producing properties. KE is a self-administered and self-managed real
estate investment trust (a "REIT") and its common stock is listed on the New
York Stock Exchange under the ticker symbol "KE." As of September 30, 2002, KE
owned and managed 121 office buildings located primarily in 15 suburban office
projects in eight cities in the Southeastern United States of America.

In addition to managing its own properties, the Company provides property
management services to AP-Knight LP, an affiliate of Apollo Real Estate
Advisors, LP, and asset management services to Crocker Realty Trust, both
related parties. As of September 30, 2002, the Company managed 70 office
buildings for AP-Knight LP. The Company has been informed that AP-Knight LP
intends to terminate this property management agreement effective January 1,
2003.

         3. CRITICAL ACCOUNTING POLICIES AND ESTIMATES. The preparation of
consolidated financial statements in conformity with accounting principles
generally accepted in the United States requires the Company to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues, and expenses and the disclosure of contingent assets and liabilities.
These estimates are based on historical experience and various other factors
that are believed to be reasonable under the circumstances. However, actual
results could differ from the Company's estimates under different assumptions or
conditions. On an ongoing basis, the Company evaluates the reasonableness of its
estimates.

The Company believes the following critical accounting policies affect the
significant estimates and assumptions used in the preparation of its
consolidated financial statements:

Investments in Real Estate. Rental property and improvements, including interest
and other costs capitalized during construction, are included in real estate
investments and are stated at cost. Expenditures for ordinary maintenance and
repairs are expensed to operations as they are incurred. Significant renovations
and improvements, which improve or extend the useful life of the assets, are
capitalized. Except for amounts attributed to land, rental property and
improvements are depreciated as described below.

In September 2002, the Company entered an agreement to sell approximately 14.5
acres of undeveloped land at its Atlanta Gwinnett property for approximately
$3.6 million. This sale is contingent on the approval of the Company's board of
directors and on certain zoning revisions and is expected to close in the fourth
quarter of 2003.

Depreciation. The Company computes depreciation on its operating properties
using the straight-line method based on estimated useful lives of three to 40
years. A significant portion of the acquisition cost of each operating property
is allocated to the acquired buildings (usually 85% to 90%). The allocation of
the acquisition cost to buildings and the determination of the useful lives are
based on the Company's estimates. If the Company were to allocate acquisition
costs inappropriately to buildings or to incorrectly estimate the useful lives
of its operating properties, it may be required to adjust future depreciation
expense.


                                       10
<PAGE>

Impairment of Long-Lived Assets. The Company's long-lived assets include
investments in real estate and goodwill. The Company assesses impairment of
long-lived assets whenever changes or events indicate that the carrying value
may not be recoverable. The Company assesses impairment of operating properties
based on the operating cash flows of the properties. In performing its
assessment, the Company must make assumptions regarding estimated future cash
flows and other factors to determine the fair value of the respective assets.
During the three and nine months ended September 30, 2002, no impairment charges
were recorded. If these estimates or their related assumptions change in the
future, the Company may be required to record impairment charges. Impairment of
goodwill has historically been evaluated based on projected cash flows of
underlying assets.

Rental Income. Certain leases provide for tenant occupancy during periods for
which no rent is due or where minimum rent payments increase during the term of
the lease. The Company records rental income for the full term of each lease on
a straight-line basis. Accordingly, each month, a receivable is recorded from
tenants for the average monthly amount that is expected to be collected over the
remaining lease term. When a property is acquired, the term of existing leases
is considered to commence as of the acquisition date for purposes of this
calculation.

Allowances for Doubtful Accounts. The Company maintains allowances for doubtful
accounts for estimated losses resulting from the inability of its tenants to
make required payments for rents and other rental services. In assessing the
recoverability of these receivables, the Company makes assumptions regarding the
financial condition of the tenants based primarily on past payment trends and
certain financial information that tenants submit to the Company. If the
financial condition of the Company's tenants were to deteriorate and result in
an impairment of their ability to make payments, the Company may be required to
increase its allowances by recording additional bad debt expense. Likewise,
should the financial condition of its tenants improve and result in payments or
settlements of previously reserved amounts, the Company may be required to
record a reduction in bad debt expense to reverse its allowances.

       4. FEDERAL INCOME TAXES. KE is qualified and has elected tax treatment as
a REIT under the Internal Revenue Code. A REIT is a taxable corporation that
holds real estate, and through distributions to shareholders, is permitted to
reduce or avoid the payment of federal income taxes at the corporate level. To
maintain qualification as a REIT, in addition to certain other requirements, KE
must distribute to shareholders at least 90 percent of REIT taxable income. To
the extent that KE pays dividends equal to 100 percent of REIT taxable income,
the taxable earnings of KE are taxed at the shareholder level. KE has a net
operating loss carryforward of approximately $95,000, which may be used to
reduce REIT taxable income. However, the use of net operating loss carryforwards
is limited for alternative minimum tax purposes. During the first quarter of
2002, the Company made payments of approximately $385,000 for the Company's 2001
estimated alternative minimum tax liability.

Although KRSI is consolidated with KE for financial reporting purposes, this
entity is subject to federal income tax and files separate federal and state
income tax returns. KRSI has recorded provisions of $19,000 and $112,000,
respectively, for federal income taxes for the three and nine months ended
September 30, 2002.

       5. STATEMENTS OF CASH FLOWS. Cash in excess of daily requirements is
invested in short-term monetary securities. Such temporary cash investments have
an original maturity date of less than three months and are deemed to be cash
equivalents for purposes of the statements of cash flows.

During January 2002, the Company acquired all of the remaining limited
partnership units in Koger-Vanguard Partners, L.P., a Delaware limited
partnership, for approximately $16.5 million. These partnership units were
convertible into 999,710 shares of the Company's common stock.


                                       11
<PAGE>


On January 31, 2002, the Company acquired a 31-story office building containing
approximately 803,000 rentable square feet for $125.0 million and other
transaction costs. This property is located in Atlanta, Georgia. The purchase of
the property was funded with cash and by an $80 million draw from the Company's
secured revolving credit facility. As of September 30, 2002, approximately 63%
of the property's rentable space was leased. The Company expects to lease the
property's vacant space over the next three years.

During the nine months ended September 30, 2001, the Company received 86,779
shares of its common stock as settlement of $1,364,000 of notes receivable from
former employees. Pursuant to the Merger (Note 1), the Company acquired the net
assets of KRSI in exchange for its preferred stock in KRSI. The net assets of
KRSI acquired consisted of (i) cash in the amount of $2,535,000, (ii) other
assets with a fair value of $1,016,000 and (iii) liabilities assumed with a fair
value of $937,000.

       6. EARNINGS PER COMMON SHARE. Basic earnings per common share has been
computed based on the weighted average number of shares of common stock
outstanding for each period. Diluted earnings per common share is similar to
basic earnings per share except that the weighted average number of common
shares outstanding is increased to include the number of additional common
shares that would have been outstanding if the dilutive common shares (options)
had been issued. The treasury stock method is used to calculate dilutive shares
which reduces the gross number of dilutive shares by the number of shares
purchasable from the proceeds of the options assumed to be exercised. See
Exhibit 11 for weighted average number of shares of common stock outstanding,
dilutive shares, and computations of basic and diluted earnings per share.

       7. MORTGAGES AND LOANS PAYABLE. At September 30, 2002, the Company had
$314,994,000 of loans outstanding, which are collateralized by mortgages on the
Company's operating properties. Annual maturities for mortgages and loans
payable are summarized as follows (in thousands):

     Year Ending December 31,
        2002                                        $    9,013
        2003                                             5,200
        2004                                            75,629
        2005                                             6,110
        2006                                            23,704
        Subsequent Years                               195,338
                                                    ----------
              Total                                 $  314,994
                                                    ==========

       8. DIVIDENDS. On January 15, 2002, the Company paid a special dividend of
$1.74 per share to shareholders of record on December 28, 2001 totaling
$36,764,000. The Company paid quarterly dividends of $0.35 per share on February
7, 2002 totaling $7,395,000, May 2, 2002 totaling $7,433,000, and August 1, 2002
totaling $7,452,000 to shareholders of record on December 31, 2001, March 31,
2002, and June 30, 2002, respectively. During the quarter ended September 30,
2002, the Company's Board of Directors declared a quarterly dividend of $0.35
per share payable on November 7, 2002 to shareholders of record on September 30,
2002. The Company currently expects that all dividends paid for 2002 will be
treated as ordinary income to the recipient for income tax purposes.

       9. SEGMENT REPORTING. The Company operates in one business segment, real
estate. The Company's primary business is the ownership, development, and
operation of income-producing office properties. Management operates each
property as an individual operating segment and has aggregated these operating
segments into a single segment for financial reporting purposes due to the fact
that all of the individual operating segments have similar economic
characteristics. All of the Company's operations are located in the Southeastern
United States.


                                       12
<PAGE>

       10. NOTES RECEIVABLE FROM STOCK SALES. On February 17, 2000, and in
conjunction with the Company's plan to repurchase up to 2.65 million shares of
common stock (the "Shares"), the Board of Directors granted to Thomas J.
Crocker, the Company's Chief Executive Officer, the right to purchase up to
500,000 Shares and to Robert E. Onisko, the Company's Chief Financial Officer,
the right to purchase up to 150,000 Shares. These officers are entitled to make
purchases of one Share of every three Shares purchased by the Company as part of
this plan. The Shares may be purchased from the Company at the same time and for
the same price as the Company purchases Shares. In addition, the Company will
loan up to 75% of the purchase price for these Shares to Mr. Crocker and to Mr.
Onisko. These loans will be collateralized by the Shares purchased. These loans
will bear interest at 150 basis points over the applicable LIBOR rate.
Approximately $836,000 of these loans are subject to recourse and the remaining
loans will be without recourse. Accrued interest on these loans is a recourse
obligation and any paid interest is not refundable if the stock is returned in
settlement of the loans. Through September 30, 2002, Mr. Crocker acquired
302,495 Shares and Mr. Onisko acquired 100,831 Shares under this plan. All of
these Shares were acquired during 2000.

       11. SUBSEQUENT EVENTS. In addition to the prospective sale described in
Note 3, the Company has entered an agreement to sell approximately 7.0 acres of
undeveloped land at its Charlotte Carmel property for approximately $1.6
million. This sale is contingent on the approval of the Company's board of
directors and is expected to close in the first quarter of 2003.

In October 2002, the Company entered into purchase agreements to acquire The
Lakes on Post Oak in Houston, Texas for approximately $102 million. The Lakes
are three office buildings adjacent to the Galleria Mall which contain
approximately 1.2 million square feet of rentable space. The Company is
currently performing due diligence procedures and the transactions are expected
to close in December 2002.

In October 2002, the Company purchased 19,900 shares of its common stock on the
open market. Under the plan described in Note 10, the Company's Chief Executive
Officer and Chief Financial Officer acquired 4,975 and 1,659 shares,
respectively, of the Company's common stock.

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

The following discussion should be read in conjunction with the condensed
consolidated financial statements and related notes appearing elsewhere in this
Form 10-Q, and the Management's Discussion and Analysis of Financial Condition
and Results of Operations included in the Company's Annual Report on Form 10-K
for the period ended December 31, 2001.

In December 2001, the Company sold 75 suburban office buildings, one retail
center and 3.4 acres of unimproved land to AP-Knight LP, a related party, for
approximately $199,587,000, net of selling costs, and 5,733,772 shares of the
Company's common stock (which were valued at approximately $96,327,000). These
properties contained more than 3.9 million of rentable square feet and
contributed rental revenues of approximately $42.4 million during the nine
months ended September 30, 2001. Rental revenues for the sold properties
comprised approximately 34% of the Company's total rental revenues for the nine
months ended September 30, 2001. The results of these properties are included in
the operating results of the Company for the periods ending September 30, 2001.
As a result, certain of the Company's current operating results, as compared to
the prior year, have been affected by the sale of these assets. On January 15,
2002, the Company distributed a portion of the proceeds above in the form of a
special dividend of $1.74 per share to shareholders of record on December 28,
2001.

During January 2002, the Company acquired all of the remaining limited
partnership units in Koger-Vanguard Partners, L.P., a Delaware limited
partnership, for approximately $16.5 million. These partnership units were
convertible into 999,710 shares of the Company's common stock.


                                       13
<PAGE>

On January 31, 2002, the Company acquired Three Ravinia Drive, an 803,160 square
foot office building located in Atlanta, Georgia, for approximately $125.0
million and other transaction costs. As of September 30, 2002, approximately 63%
of the property's rentable space was leased. The Company expects to lease the
property's vacant space over the next three years. The results of the
Koger-Vanguard Partners, L.P. and Three Ravinia Drive acquisitions have been
included in the Company's operating results for the periods ending September 30,
2002 from their respective acquisition dates.

RESULTS OF OPERATIONS

Rental and other rental services revenues totaled $31,836,000 for the quarter
ended September 30, 2002, compared to $42,243,000 for the quarter ended
September 30, 2001. Rental and other rental services revenues totaled
$94,286,000 for the nine months ended September 30, 2002, compared to
$125,462,000 for the nine months ended September 30, 2001. These decreases
resulted primarily from the sale of assets described above. The effect of these
decreases was partially offset by an increase in rental revenues ($2.4 million)
from two buildings constructed by the Company in 2001 and eight months of
revenues ($9.1 million) from the Three Ravinia Drive property. At September 30,
2002, the Company's buildings were on average 86 percent leased with an average
rental rate of $16.91 per rentable square foot. Excluding Three Ravinia Drive,
which was in its lease-up period at September 30, 2002, the remainder of the
Company's buildings were on average 89 percent leased. At September 30, 2001,
the Company's buildings were on average 88 percent leased with an average rental
rate of $16.58 per rentable square foot.

Management fee revenues totaled $839,000 for the quarter ended September 30,
2002, compared to $1,074,000 for the quarter ended September 30, 2001.
Management fee revenues totaled $2,590,000 for the nine months ended September
30, 2002, compared to $3,530,000 for the nine months ended September 30, 2001.
These decreases were due primarily to the loss of fees from one management
agreement that was terminated in 2001. This loss of fees was partially offset by
fees received from AP-Knight LP under a property management agreement that began
in December 2001. The Company has been informed that AP-Knight LP intends to
terminate this property management agreement effective January 1, 2003. For the
nine months ended September 30, 2002, management fees and leasing commissions
from AP-Knight LP totaled approximately $2.1 million. The loss of such revenues
would be partially offset by a corresponding reduction in the direct cost of
management fees. In conjunction with the termination of the management
agreement, John R.S. Jacobsson resigned as a director of the Company in August
2002. Mr. Jacobsson is also a director of Apollo Real Estate Advisors, LP.

Interest revenues decreased $56,000 and $267,000 for the three and nine months
ended September 30, 2002, respectively, compared to the same periods last year.
These decreases were due primarily to reductions in interest earned from loans
to certain current and former employees and lower effective interest rates on
the Company's average invested cash balances.

Property operations expense includes such charges as utilities, real estate
taxes, janitorial, maintenance, property insurance, provision for uncollectible
rents and management costs. The amount of property operations expense and its
percentage of total rental revenues for the applicable periods are as follows:

                                       14
<PAGE>
<TABLE>
<CAPTION>

                                                                               Percent of
                                                                             Rental and Other
                  Period                                 Amount              Rental Services
    ------------------------------------              --------------        ------------------
<S>                                                    <C>                        <C>
      September 30, 2002 - Quarter                      $ 11,846,000               37.2%
      September 30, 2001 - Quarter                      $ 15,591,000               36.9%
      September 30, 2002 - Nine Months                  $ 34,233,000               36.3%
      September 30, 2001 - Nine Months                  $ 46,749,000               37.3%
</TABLE>


Depreciation expense has been calculated on the straight-line method based upon
the useful lives of the Company's depreciable assets, generally 3 to 40 years.
Depreciation expense decreased $2,693,000 and $6,533,000, respectively, for the
three and nine months ended September 30, 2002, compared to the same periods
last year. These decreases were due to the Company's disposition of 75 office
buildings and one retail property in December 2001. Amortization expense
decreased $261,000 and $706,000, respectively, for the three and nine months
ended September 30, 2002, compared to the same period last year. These decreases
were due primarily to a decline in the Company's expenditures for deferred
tenant costs and the Company's adoption of SFAS No. 142 effective January 1,
2002. SFAS No. 142 discontinues the practice of amortizing goodwill.

For the three months ended September 30, 2002, interest expense decreased to
$6,041,000 from $6,543,000 for the three months ended September 30, 2001. For
the nine months ended September 30, 2002, interest expense decreased to
$17,864,000 from $20,059,000 for the nine months ended September 30, 2001. At
September 30, 2002 and 2001, the weighted average interest rate on the Company's
outstanding debt was approximately 7.13 percent and 7.19 percent, respectively.
From January 1, 2002 until January 31, 2002, the Company had no outstanding
balances on its secured revolving credit facility. On January 31, 2002, the
Company borrowed $80 million on its credit facility to purchase Three Ravinia
Drive as described above. As of September 30, 2002, the outstanding balance on
the Company's credit facility was $70 million.

General and administrative expenses for the three months ended September 30,
2002 and 2001, totaled $2,971,000 and $2,276,000, respectively. General and
administrative expenses for the nine months ended September 30, 2002 and 2001,
totaled $8,428,000 and $6,148,000, respectively. During the first nine months of
2002, the Company expensed $1,479,000 of compensation expense related to special
distributions that are probable of being paid under the terms of certain stock
option agreements. The Company has also experienced increases in professional
fees for internal audit, legal, and personnel recruiting services. General and
administrative expenses as a percentage of rental revenues increased during the
three and nine months ended September 30, 2002 as compared to the same periods
in 2001. The Company expects these ratios to decline as capital from the sale of
assets is redeployed.

Direct costs of management fees decreased $1,000 and $28,000, respectively, for
the three and nine months ended September 30, 2002, compared to the same period
last year.

Net income totaled $4,394,000 for the quarter ended September 30, 2002, compared
to net income of $8,006,000 for the corresponding period in 2001. Net income
totaled $13,882,000 for the nine months ended September 30, 2002, compared to
net income of $25,344,000 for the corresponding period in 2001. This decrease
resulted primarily from the sale of assets described above.

LIQUIDITY AND CAPITAL RESOURCES

       Operating Activities-- During the nine months ended September 30, 2002,
the Company generated approximately $39.5 million in net cash from operating
activities. The Company's primary internal sources of cash are


                                       15
<PAGE>

(i) the  collection of rents from  buildings  owned by the Company and (ii)
the  receipt of fees paid to the  Company in  respect of  properties  managed on
behalf of AP-Knight LP and Crocker  Realty Trust.  As a REIT for Federal  income
tax  purposes,  the Company is required to pay out annually,  as  dividends,  at
least 90 percent of its REIT taxable  income  (which,  due to non-cash  charges,
including   depreciation   and  net  operating   loss   carryforwards,   may  be
substantially  less  than cash  flow).  In the past,  the  Company  has paid out
dividends  in amounts at least  equal to its REIT  taxable  income.  The Company
believes  that its cash provided by operating  activities  will be sufficient to
cover debt service  payments and to pay the dividends  required to maintain REIT
status through 2002.

The level of cash flow generated by rents depends primarily on the occupancy
rates of the Company's buildings and changes in rental rates on new and renewed
leases and under escalation provisions in existing leases. At September 30,
2002, leases representing approximately 9.3 percent of the gross annualized rent
from the Company's properties, without regard to the exercise of options to
renew, were due to expire during the remainder of 2002. These scheduled
expirations represent 87 leases for space in buildings located in 14 of the 15
centers or locations in which the Company owns buildings. Certain of these
tenants may not renew their leases or may reduce their demand for space. During
the nine months ended September 30, 2002, leases were renewed on approximately
68 percent of the Company's rentable square feet that were scheduled to expire
during the nine-month period. For those leases which renewed during the nine
months ended September 30, 2002, the average rental rate per rentable square
foot increased from $16.95 to $17.68. However, current market conditions in
certain markets may require that rental rates at which leases are renewed or at
which vacated space is leased be lower than rental rates under existing leases.
Based upon the amount of leases that will expire during 2002 and the competition
for tenants in the markets in which the Company operates, the Company has and
expects to continue to offer incentives to certain new and renewal tenants.
These incentives may include the payment of tenant improvement costs and, in
certain markets, reduced rents during initial lease periods.

Governmental tenants (including the State of Florida and the United States
Government) which account for approximately 25.0 percent of the Company's leased
space at September 30, 2002 may be subject to budget reductions in times of
recession and governmental austerity measures. Consequently, there can be no
assurance that governmental appropriations for rents may not be reduced.
Additionally, certain of the private sector tenants that have contributed to the
Company's rent stream may reduce their current demands, or curtail their future
need, for additional office space. During 2002, the State of Florida announced
its intention to eliminate its Department of Labor, which will have a direct
impact on the Company's property in Tallahassee. The Company is currently
evaluating the long-term impact of this reorganization and is in negotiations
with other state departments to reassign the vacated space.

The Company has benefited from historic economic conditions and stable vacancy
levels for office buildings in many of the metropolitan areas in which the
Company owns buildings. The Company believes that the Southeastern and
Southwestern United States provides significant economic growth potential due to
its diverse regional economies, expanding metropolitan areas, skilled work force
and moderate labor costs. However, the Company is currently experiencing slower
growth in the markets in which it owns buildings. Cash flow from operations
could be reduced if a weakened economy resulted in lower occupancy rates and
lower rental income for the Company's buildings, which may in turn affect the
amount of dividends paid by the Company.

       Investing Activities-- During January 2002, the Company acquired all of
the remaining limited partnership units in Koger-Vanguard Partners, L.P., a
Delaware limited partnership, for approximately $16.5 million. These partnership
units were convertible into 999,710 shares of the Company's common stock.

On January 31, 2002, the Company acquired Three Ravinia Drive, an 803,160 square
foot office building located in Atlanta, Georgia, for approximately $125.0
million and other transaction costs. The Company allocated approximately $7.0
million and $118.3 million of the net purchase price to value of the acquired
land and building, respectively. As of September 30, 2002, approximately 63% of
the property's rentable space was leased. The Company expects to lease


                                       16
<PAGE>

the property's vacant space over the next three years.

At September 30, 2002, substantially all of the Company's invested assets were
in real properties. Improvements to the Company's existing properties have been
financed through internal operations. During the nine months ended September 30,
2002, the Company's expenditures for improvements to existing properties
decreased $4,447,000 from the corresponding period of the prior year. This
decrease was due to the reduction in expenditures for tenant improvements
primarily caused by the sale of 75 office buildings and one retail property in
2001.

       Financing Activities-- The Company has a $125 million secured revolving
credit facility ($70 million of which had been borrowed on September 30, 2002)
provided by Fleet National Bank and other lenders. At September 30, 2002, the
Company had no unencumbered properties. Loan maturities and normal amortization
of mortgages and loans payable are expected to total approximately $9.0 million
during the remainder of calendar year 2002.

The foregoing discussion contains forward-looking statements concerning 2002.
The actual results of operations for 2002 could differ materially from those
projected because of factors affecting the financial markets, reactions of the
Company's existing and prospective investors, the ability of the Company to
identify and execute development projects and acquisition opportunities, the
ability of the Company to renew and enter into new leases on favorable terms
with creditworthy tenants, and other risk factors. See Item 7, "Management's
Discussion and Analysis of Financial Condition and Results of Operations - -
Cautionary Statement Relevant to Forward-Looking Information for Purpose of the
`Safe Harbor' Provisions of the Private Securities Litigation Reform Act of
1995" in the Company's Annual Report on Form 10-K for the Fiscal Year Ended
December 31, 2001.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

       Interest Rate Risk. The Company currently has a $125 million secured
revolving credit facility with a variable interest rate. The Company may incur
additional variable rate debt in the future to meet its financing needs.
Increases in interest rates on such debt could increase the Company's interest
expense, which would adversely affect the Company's cash flow and its ability to
pay dividends to its shareholders. The Company has not entered into any interest
rate hedge contracts in order to mitigate the interest rate risk with respect to
the secured revolving credit facility. As of September 30, 2002, the Company had
borrowed $70 million under the secured revolving credit facility. If the
weighted average interest rate on this variable rate debt were 100 basis points
higher or lower, annual interest expense would be increased or decreased by
approximately $700,000.

Item 4.    Controls and Procedures

       (a) The Company maintains disclosure controls and procedures that are
designed to ensure that information required to be disclosed in the Company's
filings under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the periods specified in the rules and forms of
the Securities and Exchange Commission.  Such information is accumulated and
communicated to the Company's management, including its principal executive
officer and principal financial officer, as appropriate, to allow timely
decisions regarding required disclosure. The Company's management, including the
principal executive officer and the principal financial officer, recognizes that
any set of controls and procedures, no matter how well designed and operated,
can provide only reasonable assurance of achieving the desired control
objectives.

Within 90 days prior to the filing date of this quarterly report on Form 10-Q,
the Company has carried out an evaluation, under the supervision and with the
participation of the Company's management, including the Company's principal
executive officer and the Company's principal financial officer, of the
effectiveness of the design and operation of the Company's disclosure controls
and procedures. Based on such evaluation, the Company's principal executive
officer and principal financial officer concluded that the Company's disclosure
controls and procedures are effective.

       (b) There have been no significant changes in the Company's internal
controls or in other factors that could significantly affect the internal
controls subsequent to the date of their evaluation in connection with the
preparation of this quarterly report on Form 10-Q.


                                       17
<PAGE>

                           PART II. OTHER INFORMATION
Item 1.  Legal Proceedings

       None.

Item 5.  Other Information

(a)    The following table sets forth, with respect to each Koger Center or
       location at September 30, 2002, gross square feet, rentable square feet,
       percentage leased, and the average annual rent per rentable square foot
       leased.
<TABLE>
<CAPTION>

                                                                                                                Average
                                                                                                                 Annual
                                                     Gross               Rentable                               Rent Per
                                                     Square               Square            Percent              Square
Koger Center/Location                                 Feet                 Feet            Leased(1)            Foot (2)
---------------------                             ----------           -----------         ---------            --------
<S>                                                <C>                   <C>                   <C>               <C>
Atlanta Chamblee                                   1,199,800             1,117,565             89%               $18.19
Atlanta Gwinnett                                     274,400               262,789             91%                18.70
Atlanta Perimeter                                    184,000               176,503             99%                20.90
Atlanta Three Ravinia (3)                            845,000(4)            803,160(4)          63%                15.90
Charlotte University                                 190,600               182,852             99%                18.26
Charlotte Vanguard                                   548,200               525,679             75%                16.83
Jacksonville Baymeadows                              793,400               749,848             99%                14.93
Jacksonville JTB                                     436,000               416,773            100%                12.70 (5)
Memphis Germantown                                   562,600               531,346             82%                18.63
Orlando Central                                      699,700               616,154             97%                16.15
Orlando Lake Mary                                    318,000               303,481             96%                20.32
Orlando University                                   405,200               384,193             86%                20.38
Richmond Paragon                                     154,300               153,374             98%                18.60
St. Petersburg                                       715,500               668,360             87%                16.12
Tallahassee                                          960,300               833,916             72%                17.61
                                                ------------          ------------
   Total                                           8,287,000             7,725,993
                                                 ===========          ============
Weighted Average - Total Company                                                               86%               $16.91
                                                                                            ======               ======
Weighted Average - Operational Buildings                                                       89%               $17.00
                                                                                            ======               ======
Weighted Average - Building in Lease-up                                                        63%               $15.90
                                                                                            ======               ======
</TABLE>

(1)  The percent  leased rates have been  calculated by dividing  total rentable
     square  feet leased in an office  building by rentable  square feet in such
     building.

(2)  Rental  rates are  computed by  dividing  (a) total  annualized  base rents
     (which excludes expense pass-through and reimbursements) for a Koger Center
     or  location  as of  September  30,  2002 by (b) the  rentable  square feet
     applicable to such total annualized rents.

(3)  Currently in a lease-up period.  The Company considers an acquired building
     to be in a lease-up period until the earlier of 85% occupancy or 18 months.


                                       18
<PAGE>

(4)  An  engineering  survey of the newly acquired  property is ongoing.  Square
     footage amounts represent the Company's best current estimates.

(5)  Includes the effect of "triple net" leases where tenants pay  substantially
     all operating costs in addition to base rent.

(b)  The following  schedule  sets forth for all of the Company's  buildings (i)
     the number of leases  which will expire  during the  remainder  of calendar
     year 2002,  calendar years 2003 through 2010, and years subsequent to 2010,
     (ii) the total  rentable area in square feet covered by such leases,  (iii)
     the  percentage of total rentable  square feet  represented by such leases,
     (iv) the  average  annual  rent per square  foot for such  leases,  (v) the
     current  annualized  base rents  represented  by such leases,  and (vi) the
     percentage of gross annualized base rents contributed by such leases.  This
     information is based on the buildings owned by the Company on September 30,
     2002 and on the terms of leases in effect as of September  30, 2002, on the
     basis of then existing base rentals,  and without regard to the exercise of
     options to renew. Furthermore,  the information below does not reflect that
     some leases have  provisions  for early  termination  for various  reasons,
     including,   in  the  case  of   government   entities,   lack  of   budget
     appropriations.  Leases  were  renewed on  approximately  68 percent of the
     Company's  rentable  square feet which were  scheduled to expire during the
     nine months ended September 30, 2002.
<TABLE>
<CAPTION>

                                                       Percentage of           Average                              Percentage
                                                        Total Square         Annual Rent            Total            of Total
                       Number of        Number of       Feet Leased           per Square         Annualized        Annual Rents
                         Leases        Square Feet     Represented by         Foot Under         Rents Under      Represented by
             Period     Expiring         Expiring     Expiring Leases      Expiring Leases     Expiring Leases    Expiring Leases
             ------  ---------------   ------------    --------------      ---------------     ---------------    ---------------
<S>          <C>           <C>            <C>                <C>               <C>             <C>                     <C>
             2002          87             584,475            8.8%              $17.73          $  10,360,263           9.3%
             2003         250           1,143,513           17.3%               17.14             19,597,712          17.5%
             2004         198             822,090           12.4%               16.97             13,952,792          12.5%
             2005         149             879,992           13.3%               16.55             14,562,009          13.0%
             2006          75             677,509           10.2%               16.81             11,388,192          10.2%
             2007          54             785,978           11.9%               16.91             13,291,715          11.9%
             2008          18             427,328            6.5%               18.48              7,896,510           7.0%
             2009          17             682,738           10.3%               17.13             11,691,991          10.4%
             2010           3             116,495            1.8%               17.21              2,005,239           1.8%
             Other         11             495,266            7.5%               14.41              7,138,356           6.4%
                      -------         -----------        --------                            ---------------       --------

             Total        862           6,615,384          100.0%              $16.91           $111,884,779         100.0%
                       ======          ==========          ======              ======           ============         ======

</TABLE>

                                       19
<PAGE>


(c)     The Company believes that Funds from Operations is one measure of the
        performance of an equity real estate investment trust. Funds from
        Operations should not be considered as an alternative to net income as
        an indication of the Company's financial performance or to cash flow
        from operating activities (determined in accordance with accounting
        principles generally accepted in the United States of America) as a
        measure of the Company's liquidity, nor is it necessarily indicative of
        sufficient cash flow to fund all of the Company's needs. Funds from
        Operations is calculated as follows (in thousands):
<TABLE>
<CAPTION>

                                                                             Three Months
                                                                         Ended September 30,
                                                                          2002          2001
                                                                       ------------------------
<S>                                                                     <C>           <C>
        Net Income                                                      $   4,394     $   8,006
        Depreciation - real estate                                          6,174         8,849
        Amortization - deferred tenant costs                                  378           597
        Amortization - goodwill                                                --            43
        Minority interest                                                      --           323
        Gain on sale of furniture and equipment                                (1)           --
                                                                        ----------   ----------
           Funds from Operations                                           $10,945      $17,818
                                                                        ==========   ===========

                                                                              Nine Months
                                                                         Ended September 30,
                                                                          2002          2001
                                                                       ------------------------
        Net Income                                                      $  13,882     $  25,344
        Depreciation - real estate                                         18,493        24,991
        Amortization - deferred tenant costs                                1,080         1,658
        Amortization - goodwill                                                --           128
        Minority interest                                                      20           937
        Gain on sale of furniture and equipment                                (2)           --
                                                                        ----------   ----------
           Funds from Operations                                          $33,473      $53,058
                                                                        ===========  ==========

</TABLE>

                                       20
<PAGE>

Item 6.  Exhibits and Reports on Form 8-K

    (a)   Exhibits

           Number         Description
           ------         -----------
             11           Earnings Per Share Computations.
             15           Letter re:  Unaudited interim financial information.

(b) Reports on Form 8-K

On August 15, 2002, the Company filed a Form 8-K (dated August 13, 2002)
reporting under Item 9, Regulation FD Disclosure, the announcement of its
quarterly results for the period ended June 30, 2002, and related supplemental
information, dated June 30, 2002, and including under Item 7, Financial
Statements and Exhibits, the Koger Equity, Inc. News Release, dated August 13,
2002, and related supplemental information.

On August 16, 2002, the Company filed a Form 8-K (dated August 15, 2002)
reporting under Item 9, Regulation FD Disclosure, the announcement of a
quarterly dividend, and including under Item 7, Financial Statements and
Exhibits, the Koger Equity, Inc. News Release, dated August 15, 2002.


                                       21
<PAGE>

                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.




                                                      KOGER EQUITY, INC.
                                                          Registrant


Dated:  November 14, 2002                            /s/ Robert E. Onisko
                                                --------------------------------
                                                      Robert E. Onisko
                                                    Chief Financial Officer



                                       22
<PAGE>


                                 CERTIFICATE OF
                             CHIEF EXECUTIVE OFFICER
                           AND CHIEF FINANCIAL OFFICER

Each of the undersigned hereby certifies in his capacity as an officer of Koger
Equity, Inc. (the "Company") that he has reviewed this quarterly report and, to
the best of his knowledge and belief, the quarterly report of the Company on
Form 10-Q for the quarterly period ended September 30, 2002 fully complies with
the requirements of Section 13(a) of the Securities Exchange Act of 1934, that
the quarterly report does not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the report not
misleading, and that the information contained in such report fairly presents,
in all material respects, the financial condition of the Company at the end of
such period and the results of operations of the Company for such period.

Additionally, each of the undersigned are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the Company and has:

a) designed such disclosure controls and procedures to ensure that material
information relating to the Company, including its consolidated subsidiaries, is
made known to each of the undersigned by others within those entities; and

b) evaluated the effectiveness of the Company's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) disclosed, based on his most recent evaluation, to the Company's auditors and
the audit committee of the Company's board of directors:

            1) all significant deficiencies in the design or operation of
            internal controls which could adversely affect the Company's ability
            to record, process, summarize and report financial data and have
            identified for the Company's auditors any material weaknesses in
            internal controls;

            2) any fraud, whether or not material, that involves management or
            other employees who have a significant role in the Company's
            internal controls; and

            3) any significant changes in internal controls or in other factors
            that could significantly affect internal controls, subsequent to the
            date of his most recent evaluation, including any corrective actions
            with regard to significant deficiencies and material weaknesses.



Dated:  November 14, 2002                    /s/ Thomas J. Crocker
                                           ------------------------------
                                               Thomas J. Crocker
                                             Chief Executive Officer
                                               Koger Equity, Inc.


Dated:  November 14, 2002                    /s/ Robert E. Onisko
                                           ------------------------------
                                              Robert E. Onisko
                                            Chief Financial Officer
                                               Koger Equity, Inc.

                                       23
<PAGE>
<TABLE>
<CAPTION>
                                                                      EXHIBIT 11

                         EARNINGS PER SHARE COMPUTATIONS
                      (In Thousands Except Per Share Data)


                                                                                                 Three Months
                                                                                             Ended September 30,
                                                                                             2002            2001
                                                                                          ----------      ---------
EARNINGS PER COMMON AND DILUTIVE
  POTENTIAL COMMON SHARE:
<S>                                                                                       <C>             <C>
  Net Income                                                                              $   4,394       $   8,006
                                                                                          =========       =========
  Shares:
  Weighted average number of common
      shares outstanding - Basic                                                             21,293          26,865
                                                                                          =========       =========

EARNINGS PER SHARE - BASIC                                                                $     0.21      $    0.30
                                                                                          ==========      =========
  Shares:
  Weighted average number of common
        shares outstanding - Basic                                                           21,293          26,865
  Effect of dilutive securities (a):
      Stock options                                                                             117              47
                                                                                          ---------       ---------
  Adjusted weighted average common shares - Diluted                                          21,410          26,912
                                                                                          =========       =========

EARNINGS PER SHARE - DILUTED                                                              $    0.21       $    0.30
                                                                                          =========       =========


                                                                                                  Nine Months
                                                                                              Ended September 30,
                                                                                             2002            2001
                                                                                          ----------      ---------
EARNINGS PER COMMON AND DILUTIVE
  POTENTIAL COMMON SHARE:
  Net Income                                                                              $  13,882       $  25,344
                                                                                          =========       =========
  Shares:
  Weighted average number of common
      shares outstanding - Basic                                                             21,258          26,872
                                                                                          =========       =========

EARNINGS PER SHARE - BASIC                                                                $    0.65       $    0.94
                                                                                          =========       =========
  Shares:
  Weighted average number of common
        shares outstanding - Basic                                                           21,258          26,872
  Effect of dilutive securities (a):
      Stock options                                                                             149              16
                                                                                          ---------       ---------
  Adjusted weighted average common shares - Diluted                                          21,407          26,888
                                                                                          =========       =========

EARNINGS PER SHARE - DILUTED                                                              $    0.65       $    0.94
                                                                                          =========       =========
</TABLE>


(a) Shares issuable were derived using the "Treasury Stock Method" for all
dilutive potential shares.


                                       24
<PAGE>
                                                                      EXHIBIT 15



November 13, 2002


Koger Equity, Inc.
433 Plaza Real, Suite 335
Boca Raton, Florida  33432




We have made a review, in accordance with standards established by the
American Institute of Certified Public Accountants, of the unaudited interim
financial information of Koger Equity, Inc. and subsidiaries for the nine
month periods ended September 30, 2002 and 2001, as indicated in our report
dated October 25, 2002; because we did not perform an audit, we expressed no
opinion on such financial information.

We are aware that our report  referred to above,  which is included in your
Quarterly  Report on Form 10-Q for the quarter  ended  September  30,  2002,  is
incorporated  by  reference  in  Registration  Statement  No.  33-55179 of Koger
Equity, Inc. on Form S-3,  Registration  Statement No. 33-54617 of Koger Equity,
Inc. on Form S-8, Registration  Statement No. 333-20975 of Koger Equity, Inc. on
Form S-3,  Registration  Statement No.  333-23429 of Koger Equity,  Inc. on Form
S-8,  Registration  Statement No.  333-37919 of Koger Equity,  Inc. on Form S-3,
Registration  Statement  No.  333-33388  of Koger  Equity,  Inc. on Form S-8 and
Registration Statement No. 333-38712 of Koger Equity, Inc. on Form S-8.

We also are aware that the aforementioned report, pursuant to Rule 436(c)
under the Securities Act of 1933, is not considered a part of the
Registration Statement prepared or certified by an accountant or a report
prepared or certified by an accountant within the meaning of Sections 7 and
11 of that Act.


DELOITTE & TOUCHE LLP
West Palm Beach, Florida


                                       25