Charles Knight Property Quotations

Capitalization rate is merely one indicator of real estate value. Each property needs to be evaluated independently based on current and future income, market and submarket dynamics, physical condition and the terms of any indebtedness secured by the property. These capitalization rates and values may not be representative of future capitalization rates and values that may be achieved on the Company's remaining properties under the liquidation plan.

Our fourth quarter operating results were right in line with our expectations. We continue to see improved leasing activities, and our operations continue to become more efficient with our new third-party property managers. The trends in all our markets are positive.

We are providing this extra level of detail about the recent property sales to give our shareholders and analysts a more complete view of one element of the value associated with each of these sales. Though we have not historically provided this level of detail on specific sales, in view of our recently announced plan of liquidation adopted by our Board of Directors, we understand that shareholders are asking for this additional information, and we're pleased to provide it.