Fourth-quarter FFO was $925,000 in 2000, or $0.27 per share, compared to $1.67 million, or $0.49 per share in the fourth quarter of 1999.

"The fourth quarter of 2000 was difficult for a number of reasons including sustained periods of severe winter weather in the Midwest, which significantly reduced the number of customers visiting our centers," says chairman, president and CEO Gary J. Skoien. "Four of our centers were closed for significant periods during the busy pre-Christmas period. This, coupled with an uncertain economic outlook, had a negative effect on our sales levels."

The exceptions to the drops in sales were in Tulare, CA, where sales increased 5.0% over 1999; and Laughlin, NV, where sales were up 3.2% in 2000. The REIT's Laughlin center also saw an increased in occupancy in the fourth quarter to 88.1% from 85.2%. Increases also were posted in Medford, MN, from 91.1% to 92.8%; Lakeshore Marketplace in Muskegon, MI, from 85.1% to 86.8%; and Gretna, NE from 84.6% to 86.2%.

Overall, however, occupancy fell to 81.6% in the fourth quarter of 2000. That was down from 83.3% at the end of the third quarter as well as 84.7% in the fourth quarter of 1999.

"While the performance of our total portfolio has weakened over the past year, we are encouraged by the fact that those properties that we are seeking to refinance have experienced an increase in net operating incomeover that time period," Skoien adds. "Refinancing these properties is our primary goal over the next several months."Horizon Group Properties also sold a 117,980-sf factory outlet center 35 miles south of Cincinnati for $2.5 million. The shopping center in Dry Ridge, KY was 63% occupied at the time of closing, one of the worst of the REIT's holdings. It also sold an outparcel adjacent in Muskegon, MI for a gain of $239,000.