However, retailers feeling economic pain could impact occupancy rates in the upcoming quarter. During yesterday's quarterly earnings call, AmREIT CFO Chad C. Braun said the upcoming liquidation of Linens 'n Things will cause the portfolio's occupancy to fall to about 95%. He said the anticipated guidance for FFO for the quarter as well as 2009 reflects the anticipated drop of five to six cents per share. "We understand 2009 will be challenging for retail and we've dialed that in with assumptions going into 2009," Braun said.

Even with a high occupancy, Q3 operating revenues were $8.6 million in comparison to $9.7 million for the same period in 2007 due to a decrease in real estate transactions. On the other hand, revenues from the property management portfolio and asset management fees were $7.9 million versus $7.8 million in Q3 2007.

Braun said steps are being taken to increase liquidity as well. The company is working on a refinance of its 198,443-square-foot MacArthur Park Shopping Center at 7600 N. MacArthur Blvd. in Irving, TX. "The debt is maturing and we expect to close the new loan by Dec. 1," he told shareholders and analysts.

AmREIT also is working with the lender of its $37-million credit facility to reduce the overall commitment. "Another opportunity we've talked about in the past and are currently pursuing is institutional joint ventures, similar to what we've done with our advised business funds," Braun said. He added the credit facility and MacArthur Park's note are the only maturing debt of significance for the next four years.

REIT chairman and CEO H. Kerr Taylor said management also launched the first phase of its Vision 2010, which involved the exit of its general contractor and broker-dealer securities business and fund-raising activities. The Vision 2010 plan was unveiled in early October to bring AmREIT into conformity with other REITs involved with high-end retail assets. AmREIT also suspended its REITPlus Inc., a best efforts equity offering.

"Phases two and three are dedicated to simplifying our equity structure," Taylor said. "It will allow us more focus on creating value on irreplaceable corners."