CLEVELAND-Though Developers Diversified Realty reporteddecreases in FFO per diluted share and net income per diluted sharefor the third quarter that ended Sept. 30, 2007, as compared to Q32006, the company touted increased leases, rents and developmentpipeline during a conference call Friday. Of note, the firm has 30developments and expansions in progress, 13 more planned to startby the end of the year, and has identified several additionaldevelopment opportunities reflecting an aggregate estimated cost ofmore than $1 billion, said company officials in a pressstatement.

According to the company, FFO per diluted share decreased 3.6%to 80 cents per share and net income per diluted share decreased42.2% to 26 cents per share for the three-month period that endedSept. 30. However, company officials said during the call that thethird quarter saw record lease executions, including 179 new leasesand 299 renewals, with base rental rates increasing by 13.8% to$12.58 per sf. The company's overall occupancy rate for Q3 was95.9%, said the executives.

“There's some softening in demand for lower-quality assets, butthere's strong demand for well-positioned assets with a visiblegrowth profile,” said David Oakes, the company's EVP of finance andchief investment officer. The company sold 13 shopping centerproperties in the third quarter, three to its joint venture withMacquarie DDR Trust for $49.8 million and eight as part of a52-property portfolio sale that carried over from the secondquarter, for $86.6 million.