For the first three quarters of the year, the NewportBeach-based REIT's FFO increased 13% over the first nine months oflast year to $49.254 million. The gain in both cases was attributedmainly to same-store rents on the REIT's portfolio of industrialand multifamily properties, including rental housing forseniors.

Net operating income for the third quarter, calculated as grossrental income less rental operating expenses, equaled $27 millionon revenues of $35 million, a 13% increase from net operatingincome reported for the same period last year. For the first ninemonths of the year net operating income was $78 million on revenueof $102 million, also a 13% increase from a year ago.

During the third quarter PAG completed industrial facilityleases totaling 736,000 sf, generating a 20% increase in effectiverents over ending rates on expired leases. Industrial propertiesgenerated 82% of the REIT's net operating income for both thequarter and the first nine months of the year. Industrialsame-store net operating income increased 9% over 1999, whilemultifamily same-store net operating income increased 16% from ayear ago.