1013844--3/16/2006--COLONIAL_REALTY_LIMITED

related topics

{debt, indebtedness, cash}

{investment, property, distribution}

{acquisition, growth, future}

{tax, income, asset}

{provision, law, control}

{regulation, change, law}

{loss, insurance, financial}

{capital, credit, financial}

{cost, regulation, environmental}

{cost, contract, operation}

{stock, price, share}

{stock, price, operating}

{operation, natural, condition}

{cost, operation, labor}

We may not be able to control our operating costs or our expenses may remain constant, even if our revenues decrease, causing our results of operations to be adversely affected. An economic downturn or natural disaster in an area in which our properties are concentrated could adversely affect our results of operations or financial condition. Tenant bankruptcies and downturns in tenants businesses may adversely affect our operating results by decreasing our revenues. Risks associated with the property management, leasing and brokerage businesses could adversely affect our results of operations by decreasing our revenues. We could incur significant costs related to environmental issues which could adversely affect our results of operations through increased compliance costs or our financial condition if we become subject to a significant liability. Uninsured or underinsured losses could adversely affect our financial condition. Competition for acquisitions could reduce the number of acquisition opportunities available to us and result in increased prices for properties, which could adversely affect our return on properties we purchase. We may be unable to successfully integrate and effectively manage the properties we acquire, which could adversely affect our results of operations. We may not be able to achieve the anticipated financial and operating results from our acquisitions, which would adversely affect our operating results. We may be unable to develop new properties or redevelop existing properties successfully, which could adversely affect our results of operations due to unexpected costs, delays and other contingencies. Our joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on our joint venture partners financial condition, any disputes that may arise between us and our joint venture partners and our exposure to potential losses from the actions of our joint venture partners. Risks Associated with Our Indebtedness and Financing We have substantial indebtedness and our cash flow may not be sufficient to make required payments on our indebtedness or repay our indebtedness as it matures. Our degree of leverage could limit our ability to obtain additional financing which would negatively impact our results of operation and financial condition. Due to the amount of our variable rate debt, rising interest rates would adversely affect our results of operation. We have entered into debt agreements with covenants that restrict our operating activities, which could adversely affect our results of operations, and violation of these restrictive covenants could adversely affect our financial condition through debt defaults or acceleration. Our inability to obtain sufficient third party financing could adversely affect our results of operations and financial condition because we depend on third party financing for our development, expansion or acquisition activities. Our senior notes do not have an established trading market, therefore, holders of our notes may not be able to sell their notes. Risks Associated with Our Organization Some of Trust s trustees and officers have conflicts of interest and could exercise influence in a manner inconsistent with holders of interests of in CRLP. Restrictions on the acquisition and change in control of the Trust may have adverse effects on the value of our common units. The Board of Trustees of the Trust has adopted a shareholder rights plan that could discourage a third party from making a proposal to acquire the Trust. We may change our business policies in the future, which could adversely affect our financial condition or results of operations. Risks Associated with Income Tax Laws The Trust s failure to qualify as a REIT could have adverse tax consequences. Even if the Trust qualifies as a REIT, we and our subsidiaries will be required to pay some taxes.

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1013844--3/16/2006--COLONIAL_REALTY_LIMITED_PARTNERSHIP