EXHIBIT 99.3

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

BALANCE SHEET

				As of			As of
($ in 000s)				6/30/2003			12/31/2002
ASSETS
Real Estate Investments
		Operating Properties		$	2,288,561		$	2,298,242
		Undeveloped Land & Construction in Progress			98,896			82,520
			Total Real Estate, before Depreciation		2,387,457			2,380,762
		Less: Accumulated Depreciation			(386,518	)		(351,164	)
			Net Real Estate Development		2,000,939			2,029,598
	Cash and Equivalents				1,794			6,236
	Restricted Cash				1,921			1,481
	Accounts Receivable, net				7,517			10,395
	Notes Receivable				1,458			1,307
	Prepaid Expenses				5,942			7,581
	Deferred Debt and Lease Costs				23,456			23,157
	Investment in Unconsolidated Subsidiaries				34,716			36,265
	Other Assets				12,931			13,836
		Total Assets		$	2,090,674		$	2,129,856
	LIABILITIES
Long-Term Liabilities
		Payable to Banks		$	32,860		$	208,270
		Notes and Mortgages Payable			1,119,206			1,053,923
			Total Long-Term Liabilities		1,152,066			1,262,193
	Other Liabilities				59,817			55,566
		Total Liabilities			1,211,883			1,317,759
	MINORITY INTEREST & EQUITY
	Preferred Shares and Units, at Liquidation Value
		Series A 8 3/4%, Preferred Shares			—			125,000
		Series B 8 7/8%, Preferred Units			100,000			100,000
		Series C 9 1/4%, Preferred Shares			50,000			50,000
		Series D 8 1/8%, Preferred Shares			125,000			—
			Total Preferred Shares and Units, at Liquidation Value		275,000			275,000
	Common Equity, including Minority Interest				603,791			537,097
		Total Equity, including Minority Interest			878,791			812,097
	Total Liabilities and Equity			$	2,090,674		$	2,129,856

SHARES & UNITS OUTSTANDING, END OF PERIOD

		As of		As of
(shares and units in 000s)		6/30/2003		12/31/2002
Basic
	Shares		25,882		22,850
	Operating Partnership Units (OP Units)		10,420		10,788
	Total Shares & OP Units		36,302		33,638
Dilutive Common Share Equivalents			204		254
Diluted
	Shares		26,086		23,104
	Total Shares & OP Units		36,506		33,892

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COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

CONSOLIDATED STATEMENTS OF INCOME

					Three Months Ended								Six Months Ended
($ in 000s, except per share data)					6/30/2003			6/30/2002					6/30/2003			6/30/2002
Revenue
		Minimum Rent			$	65,663		$	61,830		6.2	%	$	130,867		$	123,312		6.1	%
		Percentage Rent				601			672		-10.6	%		1,172			1,139		2.9	%
		Tenant Recoveries				10,301			10,308		-0.1	%		20,566			20,246		1.6	%
		Other Property Related Revenue				6,650			4,536		46.6	%		11,771			8,767		34.3	%
		Other Non-Property Related Revenue				1,608			1,889		-14.9	%		2,707			3,653		-25.9	%
			Total Revenue			84,823			79,235		7.1	%		167,083			157,117		6.3	%
Operating Expenses
		Property Operating Expenses:
			General Operating Expenses			5,944			5,400		10.1	%		11,719			10,683		9.7	%
			Salaries and Benefits			3,872			3,850		0.6	%		7,519			7,638		-1.6	%
			Repairs and Maintenance			8,876			7,829		13.4	%		17,115			14,939		14.6	%
			Taxes, Licenses, and Insurance			7,902			7,296		8.3	%		15,847			14,843		6.8	%
				Total Property Operating Expenses		26,594			24,375		9.1	%		52,200			48,103		8.5	%
		General and Administrative				5,262			4,472		17.7	%		10,065			8,277		21.6	%
		Depreciation				20,112			17,245		16.6	%		39,607			34,676		14.2	%
		Amortization				1,958			2,025		-3.3	%		3,940			4,104		-4.0	%
			Total Operating Expenses			53,926			48,117		12.1	%		105,812			95,160		11.2	%
	Income from Operations					30,897			31,118		-0.7	%		61,271			61,957		-1.1	%
Other Income (Expense)
		Interest Expense				(17,184	)		(15,223	)	12.9	%		(33,760	)		(30,985	)	9.0	%
		Income from Investments				5			57		-91.2	%		90			401		-77.6	%
		Loss on Hedging Activities				(79	)		—					(316	)		(7	)	4414.3	%
		Gain on Sale of Property				2,277			22,304		-89.8	%		2,307			32,112		-92.8	%
		Other				167			32					421.9	%		349		—
			Total Other Expense			(14,814	)		7,170		-306.6	%		(31,330	)		1,521		-2159.8	%
	Income before Minority Interest & Discontinued Operations					16,083			38,288		-58.0	%		29,941			63,478		-52.8	%
Minority Interest
		Minority Interest in CRLP — Preferred				(2,218	)		(2,218	)	0.0	%		(4,438	)		(4,438	)	0.0	%
		Minority Interest in CRLP — Common				(1,634	)		(10,813	)	-84.9	%		(3,873	)		(17,350	)	-77.7	%
			Total Minority Interest			(3,852	)		(13,031	)	-70.4	%		(8,311	)		(21,788	)	-61.9	%
	Income from Continuing Operations					12,231			25,257		-51.6	%		21,630			41,690		-48.1	%
Discontinued Operations
		Income from Discontinued Operations				—			613		-100.0	%		246			1,162		-78.8	%
		Gain on Disposal of Discontinued Operations				—			—								9,627		—
		Minority Interest in Discontinued Operations				—			(206	)	-100.0	%		(3,272	)		(394	)	730.5	%
	Income from Discontinued Operations					—			407		-100.0	%		6,601			768		759.5	%
	Net Income					12,231			25,664		-52.3	%		28,231			42,458		-38.7	%
	Dividends to Preferred Shareholders					(3,973	)		(3,890	)	2.1	%		(7,863	)		(7,781	)	1.1	%
	Preferred Share Issuance Costs					(4,451	)		—								(4,451	)	—
	Net Income Available to Common Shareholders				$	3,807		$	21,774		-82.5	%	$	15,917		$	34,677		-54.1	%
	Earnings per Share — Basic
		Continuing Operations			$	0.16		$	0.97		-83.5	%	$	0.39		$	1.56		-75.0	%
		Discontinued Operations				—			0.02		-100.0	%		0.28			0.04		600.0	%
			EPS — Basic		$	0.16		$	0.99		-83.8	%	$	0.67		$	1.60		-58.1	%
	Earnings per Share — Diluted
		Continuing Operations			$	0.15		$	0.96		-84.4	%	$	0.39		$	1.54		-74.7	%
		Discontinued Operations				—			0.02		-100.0	%		0.28			0.03		833.3	%
			EPS — Diluted		$	0.15		$	0.97		-84.5	%	$	0.66		$	1.58		-58.2	%

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COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

SECOND QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION

				Three Months Ended								Six Months Ended
($ in 000s, except per share data)				6/30/2003			6/30/2002					6/30/2003			6/30/2002
Net Income Available to Common Shareholders				$	3,807		$	21,774		-82.5	%	$	15,917		$	34,677		-54.1	%
Minority Interest in CRLP (Operating Ptr Unitholders)					1,634			11,019		-85.2	%		7,145			17,744		-59.7	%
Total					5,441			32,793		-83.4	%		23,062			52,421		-47.5	%
Adjustments — Consolidated Properties
		Depreciation — Real Estate			19,806			17,286		14.6	%		39,187			34,832		12.5	%
		Amortization — Real Estate			1,018			1,085		-6.2	%		2,143			2,249		-4.7	%
		Remove: Gain/(Loss) on Sale of Property			(2,277	)		(22,304	)	-89.8	%		(11,934	)		(32,112	)	-62.8	%
		Include: Gain/(Loss) on Sale of Undepreciated Property			2,004			228		778.9	%		2,155			228		845.2	%
		Straight-Line Rents (Prior to 2003)			—			(439	)	-100.0	%		—			(781	)	-100.0	%
		Marketing Fees (Prior to 2003)			—			1,167		-100.0	%		—			1,658		-100.0	%
			Total Adjustments — Consolidated		20,551			(2,977	)	-790.3	%		31,551			6,074		419.4	%
Adjustments — Unconsolidated Properties
		Depreciation — Real Estate			942			603		56.2	%		1,882			1,196		57.4	%
		Amortization — Real Estate			23			6		283.3	%		55			11		400.0	%
		Remove: Gain/(Loss) on Sale of Property			(3	)		—								(3	)	—
		Include: Gain/(Loss) on Sale of Undepreciated Property			—			—								—		—
		Straight-Line Rents (Prior to 2003)			—			(12	)	-100.0	%		—			(22	)	-100.0	%
			Total Adjustments — Unconsolidated		962			597		61.1	%		1,934			1,185		63.2	%
	Funds from Operations			$	26,954		$	30,413		-11.4	%	$	56,547		$	59,680		-5.2	%
	FFO per Share
		Basic		$	0.78		$	0.92		-15.4	%	$	1.65		$	1.82		-9.2	%
		Diluted		$	0.77		$	0.91		-15.2	%	$	1.64		$	1.80		-9.0	%

Pursuant to the definition of Funds from Operations (“FFO”) adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), FFO is calculated by adjusting net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis.

The Company believes that FFO is useful to investors because it provides an additional indicator of the Company’s financial and operating performance. FFO is a widely recognized measure in the Company’s industry. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net cash flows from operating activities (determined in accordance with GAAP), as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

SECOND QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED

		Three Months Ended						Six Months Ended
(shares and units in 000s)		6/30/2003		6/30/2002				6/30/2003		6/30/2002
Basic
	Shares		24,312		22,040	10.3	%		23,777		21,713	9.5	%
	Operating Partnership Units (OP Units)		10,420		11,129	-6.4	%		10,497		11,136	-5.7	%
	Total Shares & OP Units		34,732		33,169	4.7	%		34,274		32,849	4.3	%
Dilutive Common Share Equivalents			250		319	-21.6	%		204		265	-23.0	%
Diluted
	Shares		24,562		22,359	9.9	%		23,981		21,978	9.1	%
	Total Shares & OP Units		34,982		33,488	4.5	%		34,478		33,114	4.1	%

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COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

SECOND QUARTER SEGMENT DATA & RECONCILIATION

				Three Months Ended								Six Months Ended
				6/30/2003			6/30/2002					6/30/2003			6/30/2002
Net Operating Income (NOI)
	Divisional Same-Property NOI
			Multifamily		13,684			14,361		-4.7	%		27,246			29,129		-6.5	%
			Office		9,076			9,667		-6.1	%		18,278			19,452		-6.0	%
			Retail		24,562			25,696		-4.4	%		50,500			51,063		-1.1	%
			Total Same-Property		47,323			49,724		-4.8	%		96,024			99,643		-3.6	%
		Less: Unconsolidated Assets			(1,114	)		(1,072	)				(2,219	)		(2,263	)
		Same-Property NOI, Consolidated			46,209			48,652					93,805			97,380
Divisional Non Same-Property NOI
		Multifamily			1,477			2,894					3,241			6,801
		Office			9,078			2,262					15,760			2,984
		Retail			1,010			713					2,286			1,414
		Total Non-Same Property			11,565			5,869					21,286			11,199
		Less: Unconsolidated Assets			(1,097	)		(525	)				(2,261	)		(1,161	)
		Non Same-Property NOI, Consolidated			10,468			5,344					19,025			10,038
Divisional Total NOI
		Multifamily			15,162			17,255		-12.1	%		30,487			35,930		-15.1	%
		Office			18,154			11,929		52.2	%		34,037			22,436		51.7	%
		Retail			25,572			26,409		-3.2	%		52,786			52,477		0.6	%
		Total Divisional NOI			58,888			55,592		5.9	%		117,310			110,842		5.8	%
Less: NOI, Unconsolidated					(2,211	)		(1,597	)				(4,480	)		(3,424	)
2002 Discontinued Operations					—			(385	)				—			(670	)
2003 Discontinued Operations					—			(588	)				(440	)		(1,207	)
Unallocated Corporate Rev					1,588			1,867					2,571			3,521
Other Expense					(36	)		(29	)				(78	)		(47	)
General & Administrative Expenses					(5,262	)		(4,472	)				(10,065	)		(8,277	)
Depreciation					(20,112	)		(17,245	)				(39,606	)		(34,677	)
Amortization					(1,958	)		(2,025	)				(3,940	)		(4,103	)
Income from Operations, restated for additional discontinued operations					30,897			31,118					61,272			61,958
Total Other Income (Expense)					(14,814	)		7,170					(31,332	)		1,520
Income from Continuing Operations before Extraordinary Items, Minority Interest and Discontinued Operations, as restated for additional discontinued operation					16,083			38,288					29,940			63,478
Add: 2003 Discontinued Operations NOI					—			588					—			1,207
2003 Discontinued Operations Deprec/Amortization					—			(220	)				—			(440	)
Income from Continuing Operations before Extraordinary Items, Minority Interest and Discontinued Operations, per corresponding 10-K or 10-Q					16,083			38,657					29,940			64,245

Divisional NOI is defined as total property revenues, including unconsolidated partnerships and joint ventures, less real estate expenses (such items as repairs and maintenance, payroll, utilities, property taxes, insurance, advertising, management fees). The Company believes Total Divisional NOI (and other NOI measures aggregating segment data) is useful to investors as a meaningful indicator of property level operating performance and current market conditions affecting the Company . Additionally, the Company also believes Total Divisional NOI (and such other NOI measures) is useful to investors because NOI is commonly used industry-wide to evaluate and compare property level operating results of real estate companies, allowing investors to view the Company in comparison to these other real estate companies. The Company cautions investors that other real estate companies may calculate Total Divisional NOI on a basis different than the Company. In addition, Total Divisional NOI (and such other NOI measures) should not be viewed as a substitute measure of performance for GAAP income from continuing operations or other applicable GAAP performance measures.

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