The company is in an excellent position for acquisitions anddevelopment, he adds, as it has only 25% leverage and a $300million credit that is still available. "In other words, we have alot of dry powder," Wood states. Headquartered here, the DC markethas naturally been a strong focus for the REIT over the lastseveral decades. It has also expanded to other coastal area marketsand now has a strong presence in California, Texas and the EastCoast, from Boston to DC.

Even though its exposure to the local market became somewhatdiluted as it expanded elsewhere, the company is very bullish onretail here--but only in certain circumstances, Wood said.Specifically, he likes close-in areas--and nothing in the Districtitself. Retail is beginning to hurt in the downturn, with manyfirms deciding to scale back on expansion plans. "Valuations havenot changed that much in the great locations, but they haveretreated a lot in far out suburbs."

The firm's investment in Rockville's Mid-Pike plaza is typicalof what shareholders can expect to see it make going forward. Atthe epicenter of Wood's list of favored investment locations,Mid-Pike Plaza will under go a redevelopment within the next two tothree years, he said. Another example is Pike Seven Plaza inTyson's Corner, a retail center that is located on the metroline--which Wood noted has been shelved due to pulled federalfunding. "But it does well today even without the metro and can beeasily exploited if plans for the metro ever do go forward."