In all, Gables projects economic gains of between $30 millionand $35 million from the sale of real estate in 2005. About $100million of the anticipated 2005 acquisitions were originallyexpected to close in 2004. Part of the investment strategy involvesrecycling capital through dispositions of non-core, slower growthassets and the acquisition of assets with better growthpotential.

The forecast statement says, "The competitive acquisitionenvironment, including competition from condominium converters, islikely to result in a timing difference between the closing ofdispositions and the closing of acquisitions. In addition,continued pressure of initial investment yields from increasingasset prices is likely to cause more short-term earnings dilutionthan previously anticipated."

The locally based developer, owner and manager of multifamilyfacilities currently has $301 million in properties underconstruction. They include Gables Marbella here and GablesMontecito in Palm Beach Gardens. Marbella lease-up will begin infourth quarter 2005 and lease-up of Montecito is expected to beginin first quarter 2006. Beyond current construction, Gables has landvalued at approximately $400 million in its development pipeline,primarily in Texas.