Regional mall sales last year were $468 per sf, but comparablesales declined 1.8% in 2007, indicating weakness. With all sectorsslowing, and anticipating a weak financing environment for the restof the year, the company has delayed projects that would haveexceeded $1 billion (including a retail project in the Northeast),and each project in the pipeline is being examined.

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"We know over the long term that real estate development isimportant," said Charles A. Ratner, president and CEO. "[But] giventhe challenging economic environment we face, we'll continue to bemore selective on the projects and the pace at which wedevelop."

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Even so, the company ended 2007 with $2.2 billion of projects(all sectors) under construction and expects to begin work on anadditional $1.5 billion in projects in 2008. Orchard Town Center inWestminster, CO, opens next week and The Shops at Wiregrass remainson track for a 2008 opening, with approximately 75% of spacecommitted. White Oak Village in Richmond, VA, is on schedule for athird-quarter opening. Ground has been broken on Village atGulfstream in Hallandale, FL, and Ridge Hill in Yonkers, NY. ForestCity has begun preliminary site work on Atlantic Yards in Brooklyn,NY, and Waterfront in Washington, D.C.

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In addition, the company has boosted its liquidity to recordlevels to take advantage of strategic growth opportunities,including "land, individual properties or even entire portfolios,"Ratner said.

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For the year, revenues were $1.3 billion, a 15.3% increasecompared with last year's $1.1 billion. Net earnings for the fullyear were $52.4 million, compared with $177.3 million in 2006.

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Fourth-quarter consolidated revenues were $406 million comparedwith $348.3 million last year. Net earnings for the fourth quarterwere $12.6 million, down from $70.6 million in the prior year.

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