The regional mall REIT recorded net income of $20.6 million forthe first quarter, an 18.8% decrease from $25.4 million for thesame period last year, while profit available to commonshareholders per diluted share was 32 cents in the first quartercompared with 39 cents for the prior-year period, a decline of17.9%.

The decrease is attributable to increased depreciation expenseand interest expense from new properties acquired, according to acompany statement.Total revenues increased 14.3% in the firstquarter 2006 to $245.3 million from $214.7 million for the sameperiod last year. For the first quarter, FFO rose 9.2% to $96.6million compared to $88.5 for the first quarter 2005, driven by theopening of several new developments and acquisitions. Same-storeNOI improved by 3.6%, while same-store sales increased 2.8% infirst quarter to $332 per sf for those tenants who have reportedsales, compared with a 4.5% increase for the prior year period.

Portfolio occupancy was 91.3% at the end of the quarter--thesame as it was for the first quarter 2005. However, mall occupancydecreased to 91.1% from 91.5%.