"One reason for doing open-air projects is that it allows you toopen over period of time," Coppola said. The company also addedlifestyle components to Flagstaff (AZ) Mall and Freehold (NJ)Raceway Mall, which will continue to expand this year.

Also underway are expansions and/or renovations of the Oaks inThousand Oaks, CA, and Scottsdale (AZ) Fashion Square; and thecomplete overhaul of Santa Monica Place, which was closed in thepast two weeks. Some new development also is taking place,including the first phase of the Marketplace at Estrella Falls, inGoodyear, AZ. The move dovetails well with what Coppola said willbe a soft 2008, based on tenant predictions, "and we're ready for asoft year."

For the year, total funds from operations ("FFO")-diluted were$407.9 million, compared with $383.1 million in 2006. Net incomeavailable to common stockholders was $71.7 million compared to$228.0 million in 2006. Mall tenant annual sales per square footfor the year ended increased 4.4% to $472. Portfolio occupancy atDec. 31, 2007 was 93.5% compared to 93.6% at year-end 2006.