Acquisition costs for the quarter were about $719 million andincluded the purchase of Boston's one-million-sf, fully leasedState Street Financial Center. As of March 31 of this year, theREIT owned or held leasehold interest in 583 properties with anaggregate of approximately 18.2 million sf in 28 states andWashington, DC. Of those properties, 363 are bank branches and 220are office buildings.

At the end of first quarter, 90.4% of American Financial'sannualized contractual rent was derived from financialinstitutions. Its three largest tenants were Bank of America, whichrepresented 44.8% of all contractual rents; State Street Corp. with26.9%, and Wachovia Bank with 9.7%.

The REIT also made gains in a continuing process ofstrengthening its balance sheet by refinancing to long-term,fixed-rate debt. A commitment was put in place to refinance $43million of floating rate on a Wilmington, MD property. When therefinancing is completed this June, American Financial will haveless than $8 million of floating debt outstanding, which willrepresent less than 1% of its total outstanding debt.