·	Closed on a $235.0 million unsecured three year term loan with a rate of 160 basis points over LIBOR

 

·	Repaid last remaining mortgage loan with a principal balance of $170.7 million

 

·	19.8% average increase in base rental rates on 184,000 square feet of signed renewals during the second quarter of 2008, 18.3% increase year to date compared to 13.6% year to date in 2007

 

·	46.1% average increase in base rental rates on 124,000 square feet of re-leased space during the second quarter of 2008, 43.1% increase year to date compared to 40.1% year to date in 2007

 

·	96.2% occupancy rate for wholly-owned properties, up 1.0% from March 31, 2008

 

·	$340 per square foot in reported same-space tenant sales for the rolling twelve months ended June 30, 2008

 

·	3.9% increase in same center net operating income, 4.8% increase year to date

 

·	34.8% debt-to-total market capitalization ratio, compared to 31.7% last year

 

·	3.56 times interest coverage ratio for the three months ended June 30, 2008 compared to 3.24 times last year

 

For the twelve months ended December 31, 2008:
		Low Range	High Range
Estimated diluted net income per share		$0.65	$0.71
Minority interest, gain/loss on the sale of real estate,
	depreciation and amortization uniquely
	significant to real estate including minority interest
	share and our share of joint ventures	1.75	1.75
Estimated diluted FFO per share		$2.40	$2.46

 

				Three months ended								Six months ended
				June 30,								June 30,
				2008				2007				2008				2007
				(unaudited)				(unaudited)				(unaudited)				(unaudited)
REVENUES
	Base rentals (a)			$	38,623			$	36,318			$	75,855			$	71,407
	Percentage rentals				1,120				1,662				2,298				3,129
	Expense reimbursements				15,692				15,764				33,170				30,777
	Other income				1,570				1,590				2,958				3,088
		Total revenues			57,005				55,334				114,281				108,401
EXPENSES
	Property operating				17,525				17,822				36,744				34,735
	General and administrative				5,677				4,903				10,948				9,180
	Depreciation and amortization				14,690				15,490				30,273				33,929
		Total expenses			37,892				38,215				77,965				77,844
Operating income					19,113				17,119				36,316				30,557
Interest expense (b)					9,496				10,072				19,044				20,128
Loss on settlement of US treasury rate locks					8,910				---				8,910				---
Income before equity in earnings of
	unconsolidated joint ventures, minority
	Interest and discontinued operations				707				7,047				8,362				10,429
Equity in earnings of unconsolidated joint ventures					558				334				952				569
Minority interest in operating partnership					23				(982	)			(1,065	)			(1,346	)
Income from continuing operations					1,288				6,399				8,249				9,652
Discontinued operations, net of minority interest (c)					---				26				---				54
Net income					1,288				6,425				8,249				9,706
Preferred share dividends					(1,407	)			(1,407	)			(2,813	)			(2,813	)
Net income (loss) available to common
	shareholders			$	(119	)		$	5,018			$	5,436			$	6,893
Basic earnings per common share:
	Income (loss) from continuing operations			$	---			$	.16			$	.18			$	.22
	Net income (loss)			$	---			$	.16			$	.18			$	.22
Diluted earnings per common share:
	Income (loss) from continuing operations			$	---			$	.16			$	.17			$	.22
	Net income (loss)			$	---			$	.16			$	.17			$	.22
Funds from operations available to
	common shareholders (FFO)			$	15,117			$	22,146			$	37,920			$	43,457
FFO per common share – diluted				$	.40			$	.59			$	1.01			$	1.16
Summary of discontinued operations (c)
	Income from discontinued operations			$	---			$	31			$	---			$	65
	Minority interest in discontinued operations				---				(5	)			---				(11	)
Discontinued operations, net of minority interest				$	---			$	26			$	---			$	54
(a) Includes straight-line rent and market rent adjustments of $1,283 and $1,077 for the three months ended and $1,967 and $2,158 for the six months ended June 30, 2008 and 2007, respectively.
(b) Includes prepayment premium of $406 for the three and six months ended June 30, 2008 related to the repayment of our only remaining mortgage which had a principle balance of $170.7 million.
(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 in which we have no significant continuing involvement have been reported above as discontinued operations for all periods presented.

								June 30,				December 31,
								2008				2007
								(Unaudited)				(Unaudited)
ASSETS:
	Rental property
		Land						$	130,077			$	130,075
		Buildings, improvements and fixtures							1,130,536				1,104,459
		Construction in progress							90,430				52,603
									1,351,043				1,287,137
		Accumulated depreciation							(333,995	)			(312,638	)
		Rental property, net							1,017,048				974,499
	Cash and cash equivalents								1,088				2,412
	Investments in unconsolidated joint ventures								11,667				10,695
	Deferred charges, net								41,821				44,804
	Other assets								28,097				27,870
				Total assets				$	1,099,721			$	1,060,280
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY:
Liabilities
	Debt
	Senior, unsecured notes (net of discount of $721 and
		$759, respectively)						$	398,779			$	498,741
	Unsecured term loan								235,000				---
	Mortgages payable (including a debt premium of
		$0 and $1,046, respectively)							---				173,724
	Unsecured lines of credit								128,300				33,880
		Total debt							762,079				706,345
Construction trade payables									28,393				23,813
Accounts payable and accrued expenses									34,831				47,185
		Total liabilities							825,303				777,343
Commitments
Minority interest in operating partnership									32,102				33,733
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 June 30, 2008
		and December 31, 2007							75,000				75,000
	Common shares, $.01 par value, 150,000,000 shares authorized,
		31,619,721 and 31,329,241 shares issued and outstanding
		at June 30, 2008 and December 31, 2007, respectively							316				313
	Paid in capital								355,733				351,817
	Distributions in excess of earnings								(189,458	)			(171,625	)
	Accumulated other comprehensive income (loss)								725				(6,301	)
		Total shareholders’ equity							242,316				249,204
				Total liabilities, minority interest and shareholders’
						equity		$	1,099,721			$	1,060,280

					Three months ended								Six months ended
					June 30,								June 30,
					2008				2007				2008				2007
					(unaudited)				(unaudited)				(unaudited)				(unaudited)
FUNDS FROM OPERATIONS (a)
	Net income				$	1,288			$	6,425			$	8,249			$	9,706
		Adjusted for:
		Minority interest in operating partnership				(23	)			982				1,065				1,346
		Minority interest, depreciation and amortization
			attributable to discontinued operations			---				54				---				108
		Depreciation and amortization uniquely significant to
			real estate – consolidated			14,608				15,412				30,116				33,776
		Depreciation and amortization uniquely significant to
			real estate – unconsolidated joint ventures			651				680				1,303				1,334
		Funds from operations (FFO)				16,524				23,553				40,733				46,270
		Preferred share dividends				(1,407	)			(1,407	)			(2,813	)			(2,813	)
		Funds from operations available to common
			shareholders		$	15,117			$	22,146			$	37,920			$	43,457
		Funds from operations available to common
			shareholders per share - diluted		$	.40			$	.59			$	1.01			$	1.16
WEIGHTED AVERAGE SHARES
	Basic weighted average common shares					31,068				30,824				31,024				30,784
	Effect of exchangeable notes					223				381				223				381
	Effect of outstanding options					155				215				162				231
	Effect of unvested restricted share awards					102				127				120				141
	Diluted weighted average common shares (for earnings
		per share computations)				31,548				31,547				31,529				31,537
	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)				37,615				37,614				37,596				37,604
OTHER INFORMATION
Gross leasable area open at end of period -
Wholly owned						8,453				8,354				8,453				8,354
Partially owned – unconsolidated						667				667				667				667
Managed						---				229				---				229
Outlet centers in operation -
Wholly owned						29				30				29				30
Partially owned – unconsolidated						2				2				2				2
Managed						---				2				---				2
States operated in at end of period (c)						21				21				21				21
Occupancy at end of period (c) (d)						96.2	%			96.6	%			96.2	%			96.6	%

(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.

(d) Excludes our wholly-owned, non-stabilized center in Charleston, South Carolina for the 2007 period.