Net income for the full year was also down. It totaled $92.7million in 2005 compared with $97.8 million in 2004, and, forfourth-quarter 2005, it was $17.8 million versus $28.3 million inthe same quarter the previous year. During the call, the declineswere attributed to a disparity in gains on sales of real estate.During 2005, the company realized a gain of just $11.5 million fromreal estate sales, while it recorded a gain of $22.2 million theyear before. There were no gains from the sale of real estate infourth quarter 2005, while gains of $8.2 million were obtainedduring fourth quarter 2004.

Rental rates at the company's 181 retail properties are rising.It negotiated 344 lease renewals for an aggregate of 735,729 sfduring 2005 at an overall increase of 4.2% for an average of $15.16per sf. During the year the company executed 345 new leases for anaggregate 1.4 million sf at an average rental rate of $10.18 persf. As of Dec. 31, 2005, occupancy in the core shopping-centerportfolio was 93.4%.

Citing "high occupancy levels and significant rent gains,"chairman and CEO Chaim Katzman said 2005, "set the stage for highergains from development and investment activities and for sustainedearnings growth." He said the company was continuing to consideralternatives for its Texas portfolio, "including a possible sale orjoint venture." Six development parcels are in the pipeline,including 155 acres in Tampa, 33 acres in Huntsville, AL and 11.2acres in Canton, GA.