The REIT, which manages and owns properties in 11 core markets,has a diluted FFO of 81 cents per share in comparison to lastyear's 72 cents per share. REIT officials say the increase is aresult of a 5.1% same-store growth and success of a developmentprogram. Since its first operational quarter at the close of 1996,the REIT has experienced a 65.3% cumulative FFO per sharegrowth.

"Our strong results for the quarter provide proof that we wereable to keep our 'eye on the ball' despite the pending merger withMack-Cali," says Thomas F. August, president and CEO. "Now that themerger has been terminated and Mack-Cali has paid the $25 milliontermination fee, we will pursue the same successful business planthat we were following prior to the merger." That plan calls forupping the cash flow by selling older or non-strategic propertiesand replacing them with new developments or value-addedacquisitions in core markets, says August. In adjunct with themerger termination, announced Sept. 21, Prentiss has acquired theclass-A, 270,7111-sf Cielo Center in southwest Austin from aMack-Cali partnership for $47.2 million.

For this year's third quarter, the REIT is reporting $24.2million in income before gain on sale and minority interests incomparison to last year's $18.7 million. The bulk of the 29%increase has been derived by the $4.1 million net on the Mack-Calitermination fee. The non-recurring income has been placed intoescrow and carries a five-year drawdown condition. The REIT's thirdquarter 2000 net income totals $18.3 million.