In response, Heritage filed with the bankruptcy court for an order allowing and directing immediate payment of rent owed by Fleming to Heritage for the month of April. A decision with respect to this motion has not yet been rendered by the bankruptcy court.

The three store locations are in Minnesota, Wisconsin and Iowa. Fleming already closed operations in these facilities, and the spaces are currently unoccupied. Heritage Property says that the leases account for approximately $1.2 million in annualized base rent or 0.6% of Heritage's annualized base rent as of Dec. 31, 2002.

Heritage leases space to Fleming-owned supermarkets in 10 other Heritage shopping centers, all of which are physically occupied and account for approximately 1.6% of Heritage's total annualized base rent as of Dec. 31. The total square footage of these 10 grocery stores is approximately 500,000 sf.

Fleming has not yet unveiled any other plans to reject or affirm leases. But, while operating in bankruptcy, Fleming can decide to reject other leases, including leases at other Heritage locations. Heritage spokespeople say it is not revising its estimates based on Fleming's bankruptcy filing until a hearing on Fleming's motion is held and additional information becomes available.

A hearing on Fleming's motion will be held on April 21. Heritage cannot sign other tenants for the space until the court rules on the motion and the leases are rejected.