·	6.2% increase in same center net operating income, 3.9% increase year to date

 

·	30.9% average increase in base rental rates on 169,555 square feet of re-leased space during the third quarter of 2007, 37.6% increase year to date

 

·	9.8% average increase in base rental rates on 107,010 square feet of signed renewals during the third quarter of 2007, 13.2% increase year to date

 

·	97.3% occupancy rate for wholly-owned properties, up 1.3% from September 30, 2006

 

·	$340 per square foot in reported same-space tenant sales for the rolling twelve months ended September 30, 2007, up 1.0% compared to the twelve months ended September 30, 2006

 

·	30.5% debt-to-total market capitalization ratio, compared to 32.8% as of September 30, 2006

 

·	3.40 times interest coverage ratio compared to 3.25 times last year

 

    

					Three months ended								Nine months ended
					September 30,								September 30,
					2007				2006				2007				2006
REVENUES
	Base rentals (a)				$	37,207			$	35,260			$	108,614			$	101,816
	Percentage rentals					2,305				1,736				5,434				4,292
	Expense reimbursements					16,719				14,866				47,496				41,271
	Other income (b)					2,155				2,400				5,243				5,248
			Total revenues			58,386				54,262				166,787				152,627
EXPENSES
	Property operating					19,158				17,616				53,893				48,183
	General and administrative					4,916				4,147				14,096				12,304
	Depreciation and amortization					14,941				13,531				48,870				42,978
			Total expenses			39,015				35,294				116,859				103,465
Operating income						19,371				18,968				49,928				49,162
	Interest expense (including prepayment premium
			and deferred loan cost write off of $917 in 2006)			10,087				10,932				30,215				30,856
Income before equity in earnings of
	unconsolidated joint ventures, minority
	interest and discontinued operations					9,284				8,036				19,713				18,306
Equity in earnings of unconsolidated joint ventures						461				539				1,030				971
Minority interests in operating partnership						(1,370	)			(1,186	)			(2,716	)			(2,524	)
Income from continuing operations						8,375				7,389				18,027				16,753
Discontinued operations, net of minority interest (c)						22				25				76				11,797
Net income						8,397				7,414				18,103				28,550
Preferred share dividends						(1,406	)			(1,406	)			(4,219	)			(4,027	)
Net income available to common shareholders					$	6,991			$	6,008			$	13,884			$	24,523
Basic earnings per common share:
	Income from continuing operations				$	.23			$	.20			$	.45			$	.42
	Net income				$	.23			$	.20			$	.45			$	.80
Diluted earnings per common share:
	Income from continuing operations				$	.22			$	.19			$	.44			$	.41
	Net income				$	.22			$	.19			$	.44			$	.79
Funds from operations available to
	common shareholders (FFO)				$	23,929			$	21,155			$	67,386			$	59,800
FFO per common share – diluted					$	.64			$	.57			$	1.80			$	1.62
Summary of discontinued operations (c)
	Operating income from discontinued operations				$	26			$	30			$	91			$	309
	Gain on sale of real estate					---				---				---				13,833
	Income from discontinued operations					26				30				91				14,142
	Minority interest in discontinued operations					(4	)			(5	)			(15	)			(2,345	)
Discontinued operations, net of minority interest					$	22			$	25			$	76			$	11,797
(a) Includes straight-line rent and market rent adjustments of $1,033 and $962 for the three months ended and $3,192 and $2,831 for the nine months ended September 30, 2007 and 2006, respectively.
(b) Includes gains on sale of outparcels of land of $177 for the three months ended September 30, 2006 and $402 for the nine months ended September 30, 2006.
(c) In accordance with SFAS No. 144”Accounting for the Impairment or Disposal of Long Lived Assets,” the results of operations for properties disposed of or classified as held for sale during the above periods in which we have no significant continuing involvement have been reported above as discontinued operations for all periods presented.

											September 30,				December 31,
											2007				2006
ASSETS:
Rental property
	Land										$	129,921			$	130,137
	Buildings, improvements and fixtures											1,074,310				1,068,070
	Construction in progress											61,364				18,640
												1,265,595				1,216,847
	Accumulated depreciation											(302,411	)			(275,372	)
		Rental property, net										963,184				941,475
Cash and cash equivalents												2,434				8,453
Assets held for sale												2,052				---
Investments in unconsolidated joint ventures												11,908				14,451
Deferred charges, net												47,306				55,089
Other assets												26,563				21,409
Total assets											$	1,053,447			$	1,040,877
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY:
Liabilities
Debt
	Senior, unsecured notes (net of discount of $778 and
	$832, respectively)										$	498,722			$	498,668
	Mortgages payable (including a debt premium of $1,654 and
	$3,441, respectively)											175,312				179,911
	Unsecured lines of credit											23,300				---
	Total debt											697,334				678,579
Construction trade payables												27,943				23,504
Accounts payable and accrued expenses												35,237				25,094
Total liabilities												760,514				727,177
Commitments
Minority interest in operating partnership												35,366				39,024
Shareholders’ equity
Preferred shares, 7.5% Class C, liquidation preference $25 per
	share, 8,000,000 shares authorized, 3,000,000 shares issued
	and outstanding at September 30, 2007 and December 31, 2006											75,000				75,000
Common shares, $.01 par value, 150,000,000 shares authorized,
	31,317,401 and 31,041,336 shares issued and outstanding
	at September 30, 2007 and December 31, 2006, respectively											313				310
Paid in capital												350,701				346,361
Distributions in excess of earnings												(169,419	)			(150,223	)
Accumulated other comprehensive income												972				3,228
Total shareholders’ equity												257,567				274,676
Total liabilities, minority interest and shareholders’
equity											$	1,053,447			$	1,040,877

					Three months ended								Nine months ended
					September 30,								September 30,
					2007				2006				2007				2006
FUNDS FROM OPERATIONS (a)
	Net income				$	8,397			$	7,414			$	18,103			$	28,550
		Adjusted for:
		Minority interest in operating partnership				1,370				1,186				2,716				2,524
		Minority interest, depreciation and amortization
			attributable to discontinued operations			52				52				160				2,604
		Depreciation and amortization uniquely significant to
			real estate – consolidated			14,865				13,465				48,641				42,780
		Depreciation and amortization uniquely significant to
			real estate – unconsolidated joint ventures			651				444				1,985				1,202
		(Gain) loss on sale of real estate				---				---				---				(13,833	)
		Funds from operations (FFO)				25,335				22,561				71,605				63,827
		Preferred share dividends				(1,406	)			(1,406	)			(4,219	)			(4,027	)
		Funds from operations available to common
			shareholders		$	23,929			$	21,155			$	67,386			$	59,800
		Funds from operations available to common
			shareholders per share - diluted		$	.64			$	.57			$	1.80			$	1.62
WEIGHTED AVERAGE SHARES
	Basic weighted average common shares					30,847				30,619				30,805				30,582
	Effect of exchangeable notes					235				---				235				---
	Effect of outstanding share and unit options					188				229				217				234
	Effect of unvested restricted share awards					130				135				144				107
	Diluted weighted average common shares (for earnings
		per share computations)				31,400				30,983				31,401				30,923
	Convertible operating partnership units (b)					6,067				6,067				6,067				6,067
	Diluted weighted average common shares (for funds
		from operations per share computations)				37,467				37,050				37,468				36,990
OTHER INFORMATION
Gross leasable area open at end of period -
	Wholly owned					8,363				8,389				8,363				8,389
	Partially owned – unconsolidated					667				667				667				667
	Managed					229				293				229				293
Outlet centers in operation -
	Wholly owned					30				30				30				30
	Partially owned – unconsolidated					2				2				2				2
	Managed					2				3				2				3
States operated in at end of period (c)						21				21				21				21
Occupancy at end of period (c) (d)						97.3	%			96.0	%			97.3	%			96.0	%

(a)

FFO is a non-GAAP financial measure.  The most directly comparable GAAP measure is net income (loss), to which it is reconciled.  We believe that for a clear understanding of our operating results, FFO should be considered along with net income as presented elsewhere in this report.  FFO is presented because it is a widely accepted financial indicator used by certain investors and analysts to analyze and compare one equity REIT with another on the basis of operating performance.  FFO is generally defined as net income (loss), computed in accordance with generally accepted accounting principles, before extraordinary items and gains (losses) on sale or disposal of depreciable operating properties, plus depreciation and amortization uniquely significant to real estate and after adjustments for unconsolidated partnerships and joint ventures.  We caution that the calculation of FFO may vary from entity to entity and as such the presentation of FFO by us may not be comparable to other similarly titled measures of other reporting companies.  FFO does not represent net income or cash flow from operations as defined by accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as an indication of operating performance or to cash flows from operations as a measure of liquidity.  FFO is not necessarily indicative of cash flows available to fund dividends to shareholders and other cash needs.

(b)	The convertible operating partnership units (minority interest in operating partnership) are not dilutive on earnings per share computed in accordance with generally accepted accounting principles.

(c)	Excludes Myrtle Beach, South Carolina Hwy 17 and Wisconsin Dells, Wisconsin properties which are operated by us through 50% ownership joint ventures and two centers for which we only have management responsibilities.

(d)	Excludes our wholly-owned, non-stabilized center in Charleston, South Carolina.