At Kramont, funds from operations rose 11% to $9.6 million in third quarter, compared with $8.6 million in the same quarter a year ago. Net income, however, fell 17% to $6.1 million in this third quarter compared with $7.4 million in third-quarter 2003.

The increase in FFO is attributed largely to a $1.2-million lease termination fee from a major tenant. A non-recurring charge of $17.7 million related to Kramont's redemption of a series of preferred shares is the primary reason for the decline in net income. For the first nine months of the year, however, Kramont's net income rose approximately 14% to $20.4 million this year, compared with $17.5 million for the first nine months of last year.

Brandywine's third-quarter 2004 FFO dropped 2% to $33.7 million, down from $34.4 million in third-quarter 2003. However, net income in the most recent quarter rose 18% to $21.2 million, compared with $17.4 million in the comparable quarter a year ago.

This year's third-quarter leasing activity was comparable at both companies. Rates for new leases rose while renewal rental rates dipped a bit. Kramont executed 21 new leases for previously leased space at an average base rent of $10.83 per sf, which is an increase of 2.8%. It renewed 22 leases at an average rental of $13.07 per sf, which was a decline of 0.7%, putting the REIT's total rate increase at 1.1%. It executed six new leases at an average of $24.24 per sf.

Meanwhile, Brandywine reported that quarterly rental rate growth on new leases was a positive 1.3%, while rental rate growth on renewals was a negative 3.3%. The REIT's portfolio ended third quarter 90.5% occupied and 91.5% leased.