14073--3/31/2006--BRESLER_&_REINER

related topics

{loan, real, estate}

{investment, property, distribution}

{cost, contract, operation}

{debt, indebtedness, cash}

{condition, economic, financial}

{acquisition, growth, future}

{stock, price, operating}

{cost, regulation, environmental}

{regulation, change, law}

{operation, natural, condition}

Risk Factors That May Affect Our Future Business Results We are subject to risks associated with investments in real estate. We may not be able to recover increased property maintenance costs through rent increases. Various factors could adversely affect development of new projects or the repositioning of existing projects. We face risks associated with property acquisitions. We may be unable to sell properties at fair value to avoid losses or to reposition our portfolio. We face significant competition from other real estate developers. We may be unable to renew expiring leases, lease vacant space or re-lease space on a timely basis or on comparable or better terms. Increased interest rates would raise our cost of capital and could affect our ability to obtain new mortgage debt or refinance existing mortgage debt. We may have difficulty obtaining financing in weak markets. Our debt level may impair our ability to pursue our business plan. Weaker economic conditions in the markets in which our properties are located could adversely affect our financial condition. We are investing in properties in real estate markets that are outside our core geographic markets. Our insurance may not be adequate to cover losses, including those that result from environmental damage or terrorist acts. The costs of compliance with or liabilities under environmental laws may adversely affect our operating results. There may be environmental problems associated with our properties of which we are unaware. Our properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating the problem and which could adversely affect the value of our properties. We are controlled by the Bresler and Reiner families, whose interests may differ from those of other shareholders. We expect to experience significant growth in the future and may not be able to adapt our management and operational systems to integrate additional properties without unanticipated significant disruption or expense. If our property managers or leasing agents default on their obligations, operating results from affected properties could suffer and we may have difficulty finding replacements. Property ownership through joint ventures may limit our ability to act exclusively in our interests. Compliance with the Americans with Disabilities Act and fire, safety and other regulations may require us to make unanticipated expenditures that adversely affect our financial condition.

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14073--3/31/2006--BRESLER_&_REINER_INC