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PHILADELPHIA-Second-quarter net operating income for Pennsylvania Real Estate Investment Trust was $72.9 million, virtually unchanged in comparison with the same quarter a year ago. However, NOI rose 13% at the eight properties that were renovated and redeveloped during 2006.

In-line occupancy at those properties reached 92%, versus a portfolio average of 86.5% non-anchor occupancy for the period ended June 30, and rental rates at those locations were also up, said Joseph Coradino, SVP, during a conference call. Another five properties will have been redeveloped by the end of this year, and seven more will undergo redevelopment in 2008-2009, he said, taking overall redevelopment of the locally based retail REIT’s 38-property portfolio above 50%.

Second-quarter funds from operations were $33.9 million, up 3% from $32.9 million in the same quarter of 2006. For the 12 months ended this June 30, average sales per sf at PREIT centers was $364, versus an average of $351 per sf at the same time a year ago. Coradino said at 10 properties the average was above $400 per sf.

Asked by an analyst if there was evidence of a slowdown in consumer spending, Coradino acknowledged concerns, but pointed to sales increases at PREIT properties. He added that there had not been a slowdown in tenant extensions and noted that PREIT was attracting first-to-market tenants at some of its assets.

On the day of the conference call, the company announced it would pay a cash dividend of $0.57 a share. Although PEI common stock is trading at the low end of its 52-week range, it was among few companies that saw an increase at the close of trading on July 31. PEI ended trading at $38.94 a share, up nearly 1.6% for the day. This compares with a 52-week low of $37.15 a share the day before and a 52-week high of $50.39 a share this April 5.

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