BIRMINGHAM, AL-Encouraged by improving fundamentals in themultifamily sector, Colonial Properties Trust is primed to begindevelopment of apartment projects for a late 2011 or 2012 delivery.The REIT’s Chairman and CEO Thomas Lowder made the annoucementduring the company’s first quarter earnings conference call.

“Should multifamily fundamentals continue to improve in marketswhere we have sites ready for development, we would be more likelyto start selective multifamily development that we had previouslypostponed so we can deliver units in late 2011 or 2012 where weexpect significant rent growth,” Lowder said.

During the first quarter, occupancy for Colonial Properties’apartment portfolio increased 200 basis points to 96.7%. “Earlysigns of recovery are broad-based,” according to C. ReynoldsThompson III, president and CFO of Colonial Properties. In fact,the REIT saw occupancy improve in 11 out of 12 markets, and netrental income has trended positive for three months in a row, henotes.