BNP RESIDENTIAL PROPERTIES, INC.                                 Exhibit 99.1
301 South College Street - Suite 3850
Charlotte, North Carolina 28202

Contact: Philip S. Payne
         Chairman
         Tel:  (704) 944-0100
         Fax:  (704) 944-2039

                                  PRESS RELEASE
                              FOR IMMEDIATE RELEASE


                   BNP RESIDENTIAL PROPERTIES, INC. ANNOUNCES
                OPERATING RESULTS FOR THE SECOND QUARTER OF 2005


Charlotte, North Carolina
August 4, 2005

BNP Residential  Properties,  Inc. (AMEX: BNP) today announced operating results
for the quarter ended June 30, 2005.

Overview: BNP Residential Properties, Inc. is a real estate investment trust
focused on owning and operating apartment communities. The Company currently
owns and operates 33 apartment communities containing a total of 8,384 units,
including 3 communities for which we are general partner of the entity that owns
the property. In addition to the apartment properties, the Company owns 40
properties that are leased on a triple net basis to a restaurant operator. The
Company currently operates in the states of North Carolina, South Carolina and
Virginia.

BNP Residential Properties, Inc. is structured as an UPREIT, or umbrella
partnership real estate investment trust. The Company is the sole general
partner and owns a controlling interest in BNP Residential Properties Limited
Partnership, the operating partnership. All of the Company's operations are
conducted through the operating partnership.

Operating Results:

                          See Tabular Information Below

Results of Operations

Results of operations for the second quarter and first six months of 2005,
compared to the same periods in 2004, reflect significant growth in our company.
We have acquired ten new apartment properties since May 2004, and the second
quarter of 2005 includes operations of five new apartment properties we acquired
since March 2005. In addition, two additional apartment properties are included
in our consolidated financial statements beginning January 2005.

Funds From Operations: Funds from operations of the operating partnership for
the second quarter of 2005 increased by 50.7% to $4.0 million from $2.6 million
in the second quarter of 2004. FFO per share was $0.34 per share compared to
$0.29 per share in 2004. For the first six months of 2005, funds from operations
for the operating partnership increased by 36.7% to $7.3 million from $5.3
million in 2004. On a per share basis, FFO for the first six months of 2005 was
$0.65 compared to $0.62. (See also "Non-GAAP Information" below)

Funds Available for Distribution: Funds available for distribution for the
second quarter of 2005 totaled $3.4 million, an increase of 61.0% compared to
2004. For the first six months of 2005, funds available for distribution was
$6.3 million, an increase of 37.8% over the same period in 2004. (See also
"Non-GAAP Information" below)

                                       3


Net Income/Loss: Net loss for the second quarter of 2005 was $406,000 compared
to net income of $217,000 for the second quarter of 2004. Through the first six
months of 2005, net loss was $6.4 million compared to net income of $590,000 in
2004. On a diluted basis, net loss attributed to common shareholders was a $0.06
loss per common share for the second quarter of 2005 compared to a $0.01 loss
per common share in the second quarter of 2004. On a diluted basis, net loss
attributed to common shareholders was a $0.75 loss per common share for the
first six months of 2005 compared to net income of $0.01 per common share
through the first six months in 2004.

Revenues: Total revenues in the second quarter of 2005 were $18.5 million, an
increase of 56.0% compared to 2004. Apartment related income (apartment rental
income plus income from apartment management and investment activities)
accounted for 94.8% of total revenue in the second quarter of 2005 compared to
91.9% in 2004. Restaurant rental income was 5.2% of total revenue in the second
quarter of 2005 as compared to 8.1% in 2004. For the first six months of 2005,
total revenue was $33.9 million, an increase of 46.8% compared to 2004.

Apartments: Apartment rental income in the second quarter of 2005 was $17.5
million, an increase of 65.5% compared to 2004. This increase was primarily
attributable to the acquisition of ten apartment communities in 2004 and 2005
and the inclusion of two additional apartment communities in our consolidated
financial statements effective January 2005. In addition, we saw increases in
rental income at our apartment communities. For the second quarter of 2005,
average economic occupancy for all apartments was 95.5% and average monthly
revenue per occupied unit was $732. For the first six months of 2005, average
economic occupancy for all apartments was 94.9% and average monthly revenue per
occupied unit was $739.

On a same units basis, apartment revenue increased by 2.4% in the second quarter
of 2005, reflecting improved apartment rental revenue. On a same units basis,
average economic occupancy was 95.2% for the second quarter of 2005 compared to
95.1% in 2004. Average monthly revenue per occupied unit for the same units was
$750 in the second quarter of 2005 compared to $732 in 2004. For the first six
months, average economic occupancy was 94.9% compared to 95.0% in 2004. Average
monthly revenue per occupied unit for the first six months was $747 in 2005
compared to $730 in 2004.

On a same units basis, apartment NOI (apartment rental income less apartment
operations expense) for the second quarter of 2005 increased by 7.2% compared to
the second quarter of 2004. For the first six months of 2005, same units NOI
increased by 4.8% compared to the first six months of 2004.

Restaurants: Restaurant rental income in the second quarters of both 2005 and
2004 was $1.0 million, which is the minimum rent due from the lessee. For the
first six months, restaurant rental income remained flat at $1.9 million. Same
store sales at our restaurant properties decreased by 6.6% in the second quarter
and by 5.0% for the first six months of 2005 compared to the same periods in
2004.

Other Income: Management fee income for the second quarter of 2005 decreased to
$11,000 from $208,000 in 2004. For the first six months, management fee income
decreased to $127,000 from $405,000 in 2004. This decrease is attributable to
the elimination of management fees for two properties whose operations are now
consolidated, along with our acquisitions of previously managed properties
during 2004 and 2005.

Expenses: Total expenses, including non-cash charges for depreciation and
amortization, were $19.1 million in the second quarter of 2005, an increase of
63.9% compared to 2004. Expenses for the first six months were $41.8 million, an
increase of 86.0% compared to 2004. This increase is primarily attributable to
growth in the size of our apartment operations, along with $7.6 million in
charges for deficit distributions to a minority partner in a consolidated
limited partnership (which had no economic effect or cost to us). We discuss
this charge and its impact on our financial reporting in more detail in our
Current Reports on Form 10-Q filed with the SEC.

Apartment operations expense (the direct costs of on-site operations) was $6.9
million in the second quarter of 2005, an increase of 56.2% compared to 2004.
Apartment operations expense was $12.3 million for the first six months of 2005,
an increase of 49.0% over 2004. This increase is primarily attributable to the
addition of ten apartment communities during 2004 and 2005. Apartment operations
expense represented 39.1% of related apartment rental income for the second
quarter and 38.9% for the first six months of 2005 as compared to 41.5% and
40.0% respectively, in 2004. On a same units basis, apartment operations expense
decreased by 4.2% for the second quarter and 1.8% for the first six months of
2005 compared to 2004.

                                       4


Apartment administrative expense (the costs associated with oversight,
accounting and support of the company's apartment management activities for both
owned and third party properties) was $738,000 in the second quarter of 2005
compared to $614,000 in 2004. For the first six months, apartment administrative
expense was $1.4 million in 2005 compared to $1.0 million in 2004. Corporate
administration expense was $637,000 in the second quarter of 2005 compared to
$561,000 in 2004. For the first six months, corporate administration expense was
$1.5 million in 2005 compared to $1.2 million in 2004.

Operating expenses for restaurant properties are insignificant because the
restaurant properties' triple-net lease arrangement requires the lessee to pay
virtually all of the expenses associated with the restaurant properties.

Non-cash charges for depreciation, amortization and write-offs of unamortized
loan costs totaled $4.3 million in the second quarter of 2005, an increase of
59.1% compared to 2004. For the first six months, these non-cash charges totaled
$8.1 million in 2005, an increase of 50.9% compared to 2004. This increase
reflects the acquisition of ten properties during 2004 and 2005, along with
write-offs of unamortized loan costs in conjunction with refinance of existing
notes payable.

Interest expense was $5.7 million in the second quarter of 2005, an increase of
72.0% compared to 2004. Interest expense (including $0.5 million in prepayment
penalties paid by Marina Shores) totaled $10.8 million in the first six months
of 2005, an increase of 64.7% compared to the first six months of 2004.

Dividend: On July 21, 2005, the Board of Directors declared a regular quarterly
dividend in the amount of $0.25 per share to be paid on August 15, 2005, to
shareholders of record on August 1, 2005. The Board of Directors also declared a
preferred quarterly dividend in the amount of $0.275 per share to be paid on
August 15, 2005 to the preferred shareholder of record on August 1, 2005.

Outlook:

With good FFO growth and FFO comparisons we were pleased with the results for
the second quarter.

Our focus during the second quarter was on increasing same unit apartment
revenue, which we were able to do with modest success. We entered the quarter
with high occupancy at our apartment properties and knew that any increase in
revenue would have to come as a result of an increase in rental rates, not
occupancy. During the quarter, continued strength in single-family home sales,
fueled in large part by low home mortgage rates, made it difficult to increase
rents as fast as we would have liked. Despite this, however, we were able to
increase same unit apartment rental revenue by 2.4%, all as the result of
increases in rental rates.

We continue to be optimistic about the outlook for our properties, our markets
and the Company. We believe we will continue to see a slow strengthening in
demand for the type of apartment property we operate and that we are well
positioned to take advantage of this trend.

Conference Call: Management will hold a conference call to discuss these
earnings on Monday, August 8, 2005 at 2:00 p.m. Eastern Time. This call will be
webcast by Shareholder.com and can be accessed through BNP's website at
www.bnp-residential.com. Institutional investors may dial 1-800-406-5356 to
access the call.

Non-GAAP Information: Funds from operations is frequently referred to as "FFO."
FFO is defined by the National Association of Real Estate Investment Trusts
("NAREIT") as "net income (computed in accordance with generally accepted
accounting principles), excluding gains (losses) from sales of property, plus
depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures." Our calculation of FFO is consistent with FFO
as defined by NAREIT. Because we hold all of our assets in and conduct all of
our operations through the operating partnership, we measure FFO at the
operating partnership level (i.e., before minority interest in the operating
partnership).

Historical cost accounting for real estate assets implicitly assumes that the
value of real estate assets diminishes predictably over time. In fact, real
estate values have historically risen or fallen with market conditions. FFO is
intended to be a standard supplemental measure of operating performance that
excludes historical cost depreciation


                                       5


from - or "adds it back" to - GAAP net income.  We consider  FFO to be useful in
evaluating potential property acquisitions and measuring operating performance.

Funds available for distribution is frequently referred to as "FAD." We define
FAD as FFO plus non-cash expense for amortization and write-off of unamortized
loan costs, plus (less) gains (losses) from sales of property, less recurring
capital expenditures. We believe that, together with net income and cash flows,
FAD provides investors with an additional measure to evaluate the ability of the
Operating Partnership to incur and service debt, to fund acquisitions and other
capital expenditures, as well as to fund distributions to shareholders and
minority unitholders.

Funds from operations and funds available for distribution do not represent net
income or cash flows from operations as defined by generally accepted accounting
principles. You should not consider FFO or FAD to be alternatives to net income
as reliable measures of the company's operating performance; nor should you
consider FFO or FAD to be alternatives to cash flows from operations as measures
of liquidity.

Funds from operations and funds available for distribution do not measure
whether cash flow is sufficient to fund all of our cash needs, including
principal amortization, capital improvements and distributions to shareholders.
FFO and FAD do not represent cash flows from operating, investing or financing
activities as defined by generally accepted accounting principles. Further, FFO
and FAD as disclosed by other REITs might not be comparable to our calculation
of FFO or FAD.

Additional Information: More information may be obtained by calling our
corporate offices at (704) 944-0100 or on our web site at
www.bnp-residential.com. Information requests may be e-mailed to the investor
relations department at investor.relations@bnp-residential.com.

Forward Looking Statement Disclosure: This press release includes
forward-looking statements concerning the company's operations, economic
performance and financial condition, including, in particular, forward-looking
statements regarding future operations and performance. Such statements are
subject to various risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors
identified in our annual report on Form 10-K for the year ending December 31,
2004.


                                       6


BNP Residential Properties, Inc.
- -------------------------------------------------------------------------------
Consolidated Statements of Operations and Financial Results - Unaudited
(all amounts in thousands except per share amounts)



                                                                  3 months ended June 30          6 months ended June 30
                                                                  2005             2004            2005            2004
                                                               -----------------------------    ----------------------------
                                                                                                      
Revenues
Apartment rental income                                           $ 17,508         $ 10,579        $ 31,600        $ 20,632
Restaurant rental income                                               957              957           1,915           1,915
Management fee income                                                   11              208             127             405
Interest and other income                                               26              113             251             136
                                                               ------------     ------------    ------------    ------------
                                                                    18,502           11,858          33,892          23,089

Expenses
Apartment operations                                                 6,853            4,388          12,296           8,250
Apartment and corporate administration                               1,375            1,175           2,934           2,267
Interest                                                             5,728            3,330          10,818           6,570
Depreciation                                                         4,157            2,690           7,678           5,230
Amortization of deferred loan costs                                    117               68             224             156
Write-off of unamortized loan costs at debt refinance                   63                -             223               -
Deficit distributions to minority partners                             800                -           7,621               -
                                                               ------------     ------------    ------------    ------------
                                                                    19,093           11,650          41,794          22,472
                                                               ------------     ------------    ------------    ------------
(Loss) income before minority interest                                (591)             208          (7,902)            616
Loss (income) attributed to minority interests -
  - Consolidated limited partnerships                                   14                -              76               -
  - Operating partnership                                              171                9           1,463             (27)
                                                               ------------     ------------    ------------    ------------
Net (loss) income                                                     (406)             217          (6,363)            590
Less cumulative preferred dividend                                    (250)            (250)           (500)           (500)
                                                               ------------     ------------    ------------    ------------
(Loss) income attributed to common shareholders                   $   (656)        $    (33)       $ (6,863)       $     90
                                                               ============     ============    ============    ============

(Loss) income before minority interest                            $   (591)        $    208        $ (7,902)       $    616
Less cumulative preferred dividend                                    (250)            (250)           (500)           (500)
Add amortization of in-place lease intangible                           74                -              74               -
Add depreciation                                                     4,157            2,690           7,678           5,230
Add deficit distributions to minority partners                         800                -           7,621               -
Less minority interest in FFO of consolidated
   limited partnerships (add if FFO is negative)                      (200)               -             338               -
                                                               ------------     ------------    ------------    ------------
Funds from operations                                             $  3,990         $  2,648        $  7,310        $  5,346
                                                               ============     ============    ============    ============

Net cash provided by operating activities                         $  4,371         $  2,325        $  7,048        $  5,723
Less recurring capital expenditures                                   (844)            (626)         (1,302)           (901)
Less cumulative preferred dividend                                    (250)            (250)           (500)           (500)
Add (less) change in operating assets and liabilities, net             204              614             794             174
Less equity in loss of unconsolidated
   limited partnership (add if income)                                  (0)               -              (0)              -
Add amortization of deferred interest defeasance                        46               26              77             105
Add (less) minority interest in reconciling items arising
   from consolidated limited partnerships                             (162)               -             221               -
                                                               ------------     ------------    ------------    ------------
Funds available for distribution                                  $  3,364         $  2,089        $  6,338        $  4,600
                                                               ============     ============    ============    ============

Earnings per common share - basic:
  Net (loss) income                                               $  (0.04)        $   0.03        $  (0.70)       $   0.09
  (Loss) income attributed to common shareholders                    (0.06)           (0.01)          (0.75)           0.01

Earnings per common share - diluted:
  Net (loss) income                                                  (0.04)            0.02           (0.70)           0.07
  (Loss) income attributed to common shareholders                    (0.06)           (0.01)          (0.75)           0.01
   Funds from operations                                              0.34             0.29            0.65            0.62



                                       7


Consolidated  Statements  of  Operations  and  Financial  Results  (unaudited) -
continued
(all amounts in thousands except per share amounts)




                                                                  3 months ended June 30           6 months ended June 30
                                                                  2005             2004            2005            2004
                                                               -----------------------------    ----------------------------
                                                                                                        
 Weighted average shares and units outstanding:
    Preferred B shares and units                                       909              909             909             909
    Common shares                                                    9,239            7,119           9,111           6,763
    Operating partnership minority units                             2,408            1,850           2,141           1,846


 We calculated basic and diluted per common share amounts using the following:

Numerators:
For basic per common share amounts -
   Net (loss) income                                                $ (406)           $ 217        $ (6,363)          $ 590
   Less cumulative preferred dividend                                 (250)            (250)           (500)           (500)
                                                               ------------     ------------    ------------    ------------
   (Loss) income attributed to common shareholders - basic          $ (656)           $ (33)       $ (6,863)          $  90
                                                               ============     ============    ============    ============

For diluted per common share amounts -
   Net (loss) income                                                $ (406)           $ 217        $ (6,363)          $ 590
   Adjust for loss (income) attributed to
     minority interest in operating partnership                       na(1)              (9)           na(1)             27
                                                               ------------     ------------    ------------    ------------
                                                                      (406)             208          (6,363)            616
   Less cumulative preferred dividend                                 (250)            (250)           (500)           (500)
                                                               ------------     ------------    ------------    ------------
   (Loss) income attributed to common shareholders - diluted        $ (656)           $ (42)       $ (6,863)          $ 116
                                                               ============     ============    ============    ============

Denominators:
 For basic per common share income amounts -
    Weighted average common shares outstanding                       9,239            7,119           9,111           6,763
 Effect of potentially dilutive securities:
    Operating partnership minority units                              na(1)           1,850            na(1)          1,846
    Dilutive stock options                                               -               24               -              19
                                                               ------------     ------------    ------------    ------------
 For diluted per share income amounts -
    Adjusted weighted average common shares
      and assumed conversions                                        9,239            8,994           9,111           8,628
                                                               ============     ============    ============    ============

 For funds from operations per share:
    Weighted average common shares outstanding                       9,239            7,119           9,111           6,763
    Operating partnership minority units                             2,408            1,850           2,141           1,846
    Dilutive stock options                                               -               24               -              19
                                                               ------------     ------------    ------------    ------------
    Weighted average operating partnership
       common units and assumed conversions                         11,647            8,994          11,252           8,628
                                                               ============     ============    ============    ============


(1) Operating  partnership  units are  anti-dilutive at June 30, 2005 - excluded
from  calculation  of  diluted  per share  amounts  for net  income  and  income
available to common shareholders. FFO is calculated at the operating partnership
level; this calculation includes operating partnership minority units.


                                       8

BNP Residential Properties, Inc.
- -------------------------------------------------------------------------------
Supplemental Consolidating Summary Balance Sheets - Unaudited
(all amounts in thousands)




                                                          June 30                                       December 31
                                                            2005                                            2004
                                                        ---------------------------------------------  ---------------
                                                                               Consol       Owned          (Owned
                                                           Consol     Elim       LPs      Properties     Properties)
                                                        ---------------------------------------------  ---------------
                                                                                            
 Assets
 Real estate investments at cost:                         $ 565,047  $     -   $ 46,716    $ 518,331        $ 426,525
 Less accumulated depreciation                              (80,120)       -     (6,711)     (73,408)         (66,454)
                                                        ---------------------------------------------  ---------------
                                                            484,927        -     40,004      444,923          360,071
 Cash and cash equivalents                                    2,533        -        696        1,837              517
 Prepaid expenses and other assets                            8,209   (3,949)     1,141       11,018            4,516
 Intangible assets                                            1,251        -          -        1,251            1,115
 Deferred financing costs, net                                2,329        -        599        1,730            1,545
                                                        ---------------------------------------------  ---------------
 Total assets                                             $ 499,250  $(3,949)  $ 42,439    $ 460,760        $ 367,764
                                                        =============================================  ===============

 Liabilities and Shareholders' Equity
 Deed of trust and other notes payable                    $ 410,480  $(1,914)  $ 47,625    $ 364,769        $ 286,425
 Accounts payable and accrued expenses                        3,700      (73)       280        3,493              897
 Accrued interest on notes payable                            1,721        -        190        1,531            1,264
 Consideration due for acquisitions                           1,000        -          -        1,000                -
 Deferred revenue and security deposits                       2,089        -        133        1,956            1,787
                                                        ---------------------------------------------  ---------------
                                                            418,989   (1,987)    48,228      372,748          290,373
 Minority interests -
 - Consolidated limited partnerships                            274        -        274            -                -
 - Operating partnership                                     19,637        -          -       19,637           14,394
 Shareholders' equity                                        60,350   (1,962)    (6,062)      68,375           62,997
                                                        ---------------------------------------------  ---------------
Total liabilities and shareholders' equity                $ 499,250  $(3,949)  $ 42,439    $ 460,760        $ 367,764
                                                        =============================================  ===============


                                       9



BNP Residential Properties, Inc.
- -------------------------------------------------------------------------------
Supplemental Consolidating Summary Statements of Operations - Unaudited
(all amounts in thousands)





 Three months ended June 30 -                               2005                                            2004
                                                        ---------------------------------------------  ---------------
                                                                               Consol       Owned          (Owned
                                                           Consol     Elim       LPs      Properties     Properties)
                                                       ---------------------------------------------  ---------------
                                                                                             
 Revenues
 Apartment rental income                                   $ 17,508      $ -    $ 1,830     $ 15,678         $ 10,579
 Restaurant rental income                                       957        -          -          957              957
 Management fee income                                           11      (92)         -          103              208
 Interest and other income                                       26      (44)        11           59              113
                                                        ---------------------------------------------  ---------------
                                                             18,502     (136)     1,841       16,798           11,858

 Expenses
 Apartment operations                                         6,853      (92)       745        6,200            4,388
 Apartment  and corporate administration                      1,375        -          -        1,375            1,175
 Interest                                                     5,728      (44)       637        5,135            3,330
 Depreciation                                                 4,157        -        197        3,960            2,690
 Amortization of deferred loan costs                            117        -         17          100               68
 Write-off of unamortized loan costs at debt refinance           63        -          -           63                -
 Deficit distributions to minority partners                     800        -        800            -                -
                                                        ---------------------------------------------  ---------------
                                                             19,093     (136)     2,396       16,833           11,650
                                                        ---------------------------------------------  ---------------
 Income (loss) before minority interest                        (591)     $ -    $  (555)    $    (35)             208
                                                                    =================================
 Loss (income) attributed to minority interests -
  - Consolidated LPs                                             14                                                 -
  - Operating partnership                                       171                                                 9
                                                        ------------                                   ---------------
 Net income (loss)                                             (406)                                              217
 Less cumulative preferred dividend                            (250)                                             (250)
                                                        ------------                                   ---------------
 Income (loss) attributed to common shareholders             $ (656)                                         $    (33)
                                                        ============                                   ===============

 Calculation of FFO:
 Income (loss) before minority interest                      $ (591)     $ -    $  (555)    $    (35)        $    208
 Cumulative preferred dividend                                 (250)       -          -         (250)            (250)
 Amortization of in-place lease intangible                       74        -          -           74                -
 Depreciation                                                 4,157        -        197        3,960            2,690
 Deficit distributions                                          800        -        800            -                -
                                                         ---------------------------------------------  ---------------
                                                              4,190      $ -    $   442     $  3,748            2,648
                                                                    =================================
 Minority interest in consolidated LPs                         (200)                                                -
                                                        ------------                                   ---------------
 FFO - Operating partnership                                $ 3,990                                          $  2,648
                                                        ============                                   ===============


                                       10


BNP Residential Properties, Inc.
- -------------------------------------------------------------------------------
Supplemental Consolidating Summary Statements of Operations - Unaudited
(all amounts in thousands)




 Six months ended June 30 -                                 2005                                            2004
                                                        ---------------------------------------------  ---------------
                                                                               Consol       Owned          (Owned
                                                           Consol     Elim       LPs      Properties     Properties)
                                                        ---------------------------------------------  ---------------
                                                                                             
 Revenues
 Apartment rental income                                   $ 31,600      $ -    $ 3,013     $ 28,586         $ 20,632
 Restaurant rental income                                     1,915        -          -        1,915            1,915
 Management fee income                                          127     (151)         -          277              405
 Interest and other income                                      251      (56)         5          302              136
                                                        ---------------------------------------------  ---------------
                                                             33,892     (207)     3,018       31,081           23,089
 Expenses
 Apartment operations                                        12,296     (151)     1,217       11,230            8,250
 Apartment  and corporate administration                      2,934        -          -        2,934            2,267
 Interest                                                    10,818      (56)     1,548        9,326            6,570
 Depreciation                                                 7,678        -        543        7,135            5,230
 Amortization of deferred loan costs                            224        -         29          196              156
 Write-off of unamortized loan costs at debt refinance          223        -        160           63                -
 Deficit distributions to minority partners                   7,621        -      7,621            -                -
                                                        ---------------------------------------------  ---------------
                                                             41,794     (207)    11,119       30,882           22,472
                                                        ---------------------------------------------  ---------------
 Income (loss) before minority interest                      (7,902)     $ -    $(8,100)    $    199              616
                                                                    =================================
 Loss (income) attributed to minority interests -
  - Consolidated LPs                                             76                                                 -
  - Operating partnership                                     1,463                                               (27)
                                                        ------------                                   ---------------
 Net income (loss)                                           (6,363)                                              590
 Less cumulative preferred dividend                            (500)                                             (500)
                                                        ------------                                   ---------------
 Income (loss) attributed to common shareholders           $ (6,863)                                         $     90
                                                        ============                                   ===============

 Calculation of FFO:
 Income (loss) before minority interest                    $ (7,902)     $ -    $(8,100)    $    199         $    616
 Cumulative preferred dividend                                 (500)       -          -         (500)            (500)
 Amortization of in-place lease intangible                       74        -          -           74                -
 Depreciation                                                 7,678        -        543        7,135            5,230
 Deficit distributions                                        7,621        -      7,621            -                -
                                                        ---------------------------------------------  ---------------
                                                              6,971      $ -    $    64     $  6,907            5,346
                                                                    =================================
 Minority interest in consolidated LPs                          338                                                 -
                                                        ------------                                   ---------------
 FFO - Operating partnership                                $ 7,310                                          $  5,346
                                                        ============                                   ===============






                                       11