CarrAmerica, 2003 Annual Report, Reconciliation of Diluted FFO Per Share to Diluted Earnings Per Share

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	December 31,			December 31,			December 31,
	2003			2002			2001

Diluted net income per share	$	0.89		$	1.39		$	0.72
Add:Depreciation and amortization		2.38			2.30			2.10
Less:Gain on sale of properties		(0.25	)		(0.58	)		(0.05	)
Minority interest adjustment		0.26			0.30			(0.13	)
Adjustment for share difference²		(0.21	)		(0.21	)		—

Diluted funds from operations per share¹	$	3.07		$	3.20		$	2.64

Diluted funds from operations available to
common shareholders, excluding
Preferred stock issuance costs	$	0.14		$	0.07		$	—
Impairment of real estate		0.12			0.04			0.02
HQ lease guarantees		0.01			0.14			—
HQ investment impairment		—			—			0.61
Other		—			—			0.02

	$	3.34		$	3.45		$	3.29

Diluted net income per common share, excluding
Preferred stock issuance costs	$	0.15		$	0.09		$	—
Impairment of real estate		0.13			0.04			0.02
HQ lease guarantees		0.02			0.17			—
HQ investment impairment		—			—			0.68

	$	1.19		$	1.69		$	1.42

Funds from operations is defined as net income, excluding gains on sales of property, plus depreciation and amortization of assets and after adjustments for unconsolidated partnerships and joint venture. Diluted funds from operations is computed as FFO attributable to common shareholders adjusted to reflect all operating partnership units as if they were converted to common shares for any period in which they are not antidilutive.

Operating partnership units are considered to be converted to common shares for any period in which they are not antidilutive. Diluted FFO per share may include operating partnership units in periods which operating partnership units are antidilutive for EPS purposes.