Completion of the redevelopment of eight properties in 2006buoyed operating income at each location, Ron Rubin, chairman andCEO, said during a conference call. At the end of first quarter,average sales per sf throughout the portfolio reached $361 per sf,up more than 4% from an average of $343 per sf the same time a yearago.

Rent rates for new leases signed during the quarter averaged$32.15 per sf, and renewals averaged $21.02 per sf. Bothrepresented increases over prior rates. As redevelopments begin atJacksonville Mall in North Carolina and North Hanover Mall inPennsylvania, Joseph Coradino, EVP, said, "we approach ICSC in LasVegas this month with compelling reasons for expanding retailtenancy," referring to International Council of Shopping Centers'annual convention coming up later this month.

First quarter revenue was $111.9 million, up from $111 millionin first quarter 2006. Funds from operations reached $33.2 million,up 4.7% from $31.7 million in the prior-year's opening quarter. Netoperating income dropped 2.5% to $73.5 million, compared with $75.4million in first quarter 2006, primarily because of higher leasetermination revenues in prior quarters.