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PHILADELPHIA-Second-quarter results for locally based Pennsylvania Real Estate Investment Trust all point up. Although the most significant increases result from completion of its acquisition of Crown and its purchase of six properties from Rouse Co., which add 32 wholly owned assets, occupancy in PREIT’s same store retail portfolio was also up and so were rental rates on new and renewed leases. Sales per sf in the portfolio, however, slipped a bit.

Income from continuing operations rose 27% in second quarter this year, up to $9.4 million, compared with $6.9 million in second-quarter 2003. Funds from operations jumped 129% to $34 million, from $14.8 million in the same quarter a year ago, and net operating income spiked 135% to $64.8 million, compared with $27.6 million in second-quarter 2003. Same store net operating income for the PREIT portfolio also rose, making a 4.3%-gain over the same quarter a year ago.

As of June 30, occupancy in the same store portfolio reached 95.2%, up from 93.8% at the same time last year. The company’s power centers and enclosed malls were 98% and 90.2% occupied, respectively, at the end of this June, compared with 97.7% and 88%, respectively, a year ago. The portfolio’s same store sales per sf averaged $348 as of June 30, 2004, down from an average of $350 on the same date last year.

During second-quarter 2004, PREIT executed 119 retail leases encompassing 257,254 sf at an average rent per sf of $24.95. New leases for previously leased space accounted for 17 transactions totaling 42,013 sf at an average rent of $32.96, or an increase of $8.37 over the rate at the time of expiration. There were 80 tenant renewals during the second quarter, representing 178,337 sf, at an average of $22.57 per sf, or up, on average, 88 cents per sf over the rent at expiration. In addition, PREIT filled 22 formerly vacant spaces totaling 36,904 sf at an average rental rate of $27.35 per sf.

At the end of the most recent quarter, PREIT’s investment in real estate, excluding assets held for sale, was in excess of $2.5 billion, up $54 million since the end of the first quarter of this year.

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