Included in the earnings was a $2.4 million non-recurring charge the locally based firm took in settling a lawsuit on appraisal rights related to the 2001 acquisition of Captec Net Lease Realty. The charge lowered funds from operations to $11.8 million or 29 cents per share from a reported gross $14.2 million or 35 cents per share. FFO in Q1 of 2002 was $14.1 million.

In a prepared statement, CNLR president and chief operating officer Gary M. Ralston says the settlement "approximated the current value of the original merger consideration (which included cash, common shares, preferred shares and subsequent dividends)." He says the company considers the settlement a prudent action because it "will be able to avoid the cost of continued litigation."

Rental and earned income totaled $450,000 versus $887,000 in the same period last year. Total revenue was $525,000 against $887,000 in the 2002 quarter.