X0202 4 2005-03-10 0 0000037008 FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS FUR 0001011443 HBK INVESTMENTS L P 300 CRESCENT CT STE 700 DALLAS TX 75201 0 0 1 0 Security Based Swap (call equivalent position) 2005-03-10 4 S 1 1 4.3 D Common Shares 5600 123000 D Security Based Swap (call equivalent position) 2005-03-11 4 S 1 1 4.31 D Common Shares 4200 118800 D HBK Master Fund L.P. ("Master Fund") is a party to a security based swap transaction that provides for payments by Master Fund to the counterparty or by the counterparty to Master Fund based on changes in the price of the common shares of beneficial interest of First Union Real Estate Equity and Mortgage Investments and any declared dividends. In addition, Master Fund makes a floating rate payment to the counterparty based on the notional size of the transaction. HBK Investments L.P. (the "Manager") has sole voting and dispositive power over the securities listed pursuant to an Investment Management Agreement with HBK Master Fund L.P., but the Manager has no pecuniary interest in such securities. The Security Based Swap is held in the name of HBK Master Fund L.P. Jon L. Mosle, Authorized Signatory 2004-03-11