BIRMINGHAM, AL-Even though Colonial Properties Trust executives sold off a major portion of their retail assets this year, they still plan to make the development of open-air centers a future priority, officials said yesterday during their Q4 conference call. Last year Continental sold off its majority ownership in 10 malls.

"The retail development business continues to be a priority for the company," says C. Reynolds Thompson, the firm's chief operating officer. "We are able to create more value in retail development than anything we can do right now." The company currently has five new retail projects underway totaling 1.3 million sf.

Two retail projects are scheduled to open this year, the 289,000-sf Colonial Pinnacle Turkey Creek, in Knoxville, TN; and the 300,000-sf Colonial Pinnacle at Tutwiler Farm, in Birmingham. Other projects under development are throughout Alabama.

Executives told investors and analysts to expect less activity on the acquisition front due to low cap rates, though they stressed that they are still looking to retail assets. The firm is also planning to sell about $150 million in retail properties this year, as well as $300 million in office and $200 million in multifamily.

During the quarter, which ended Dec. 31, net income was $76.3 million, compared to $15 million during the same year-ago quarter, due mainly to the sale of six regional malls. FFO was $52.3 million, up from $39.9 million. Colonial's retail occupancy was 92.2%, up 80 basis points.

Colonial owns 38 retail properties in the Southeast totaling about 11.5 million sf. It also owns 20.2 million sf of offices and nearly 47,000 apartment units. Last year the company and DRA Advisors acquired spent $1.5 million to acquire office REIT Cornerstone Realty Income Trust.