Indeed, as EVP/CFO Barry Lefkowitz announced via teleconferenceyesterday, the REIT saw FFO per diluted share for the quarterincrease 7.2% over '99. FFO, after adjustment for straight-liningof rents and non-recurring charges, were $65 million for thequarter, 89 cents a share. For the quarter, the company did excludenon-recurring charges of $27.9 million relating to its failedmerger with Prentiss. And for the nine months, FFO was $197.5million, $2.70 a share, vs. $182.2 million, $2.46 a share, a 9.8%rise, according to Lefkowitz.

"We're pleased with the results," CEO Mitchell Hersh toldteleconferencers. Beyond the numbers, "we are going to execute ahighly focused growth strategy," says Hersh, referring to thecompany's well-publicized move back to its regional roots. "Withour asset disposition program in non-core markets, we will buildgreater value for our shareholders by redeploying the proceeds inour core, high-barrier-to-entry Northeast markets."

Along those lines, the company has already sold assets inAustin, TX and Omaha, NE; has its assets in Houston and San Antonioon the market; and is ready to move properties in Phoenix, Denverand Dallas.