·	Received an upgrade from BBB- to BBB from Standard and Poor’s Ratings Services on October 23, 2008

 

·	31.2% debt-to-total market capitalization ratio, compared to 30.5% as of September 30, 2007

 

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

 

·	4.7% increase in same center net operating income for the third quarter and year to date

 

·	47.0% average increase in base rental rates on 77,000 square feet of re-leased space during the third quarter of 2008, 43.8% increase year to date, compared to a 37.6% increase year to date in 2007

 

·	8.3% average increase in base rental rates on 56,000 square feet of signed renewals during the third quarter of 2008, 17.6% increase year to date, compared to a 13.2% increase year to date in 2007

 

·	96.7% occupancy rate for wholly-owned properties, up 0.5% from June 30, 2008

 

·	Same-space tenant sales for the rolling twelve months ended September 30, 2008 increased 0.3% to $341 per square foot excluding two properties undergoing major renovations

 

 

For the twelve months ended December 31, 2008:
		Low Range	High Range
Estimated diluted net income per share		$0.63	$0.69
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	1.72	1.72
Estimated diluted FFO per share		$2.35	$2.41

 

					Three months ended								Nine months ended
					September 30,								September 30,
					2008				2007				2008				2007
REVENUES
	Base rentals (a)				$	40,519			$	37,207			$	116,374			$	108,614
	Percentage rentals					1,811				2,305				4,109				5,434
	Expense reimbursements					18,277				16,719				51,447				47,496
	Other income					2,166				2,155				5,124				5,243
			Total revenues			62,773				58,386				177,054				166,787
EXPENSES
	Property operating					20,678				19,158				57,422				53,893
	General and administrative					6,217				4,916				17,165				14,096
	Depreciation and amortization					15,320				14,941				45,593				48,870
			Total expenses			42,215				39,015				120,180				116,859
Operating income						20,558				19,371				56,874				49,928
	Interest expense (b)					9,147				10,087				28,191				30,215
		Loss on settlement of US treasury rate locks				---				---				8,910				---
Income before equity in earnings of
	unconsolidated joint ventures, minority
	interest and discontinued operations					11,411				9,284				19,773				19,713
Equity in earnings of unconsolidated joint ventures						596				461				1,548				1,030
Minority interests in operating partnership						(1,729	)			(1,370	)			(2,794	)			(2,716	)
Income from continuing operations						10,278				8,375				18,527				18,027
Discontinued operations, net of minority interest (c)						---				22				---				76
Net income						10,278				8,397				18,527				18,103
Preferred share dividends						(1,406	)			(1,406	)			(4,219	)			(4,219	)
Net income available to common shareholders					$	8,872			$	6,991			$	14,308			$	13,884
Basic earnings per common share:
	Income from continuing operations				$	.29			$	.23			$	.46			$	.45
	Net income				$	.29			$	.23			$	.46			$	.45
Diluted earnings per common share:
	Income from continuing operations				$	.28			$	.22			$	.45			$	.44
	Net income				$	.28			$	.22			$	.45			$	.44
Funds from operations available to
	common shareholders (FFO)				$	26,455			$	23,929			$	64,375			$	67,386
FFO per common share – diluted					$	.70			$	.64			$	1.70			$	1.80
Summary of discontinued operations (c)
	Operating income from discontinued operations				$	---			$	26			$	---			$	91
	Gain on sale of real estate					---				---				---				---
	Income from discontinued operations					---				26				---				91
	Minority interest in discontinued operations					---				(4	)			---				(15	)
Discontinued operations, net of minority interest					$	---			$	22			$	---			$	76
(a) Includes straight-line rent and market rent adjustments of $957 and $1,033 for the three months ended and $2,924 and $3,192 for the nine months ended September 30, 2008 and 2007, respectively.
(b) Includes prepayment premium of $406 for the nine months ended September 30, 2008 related to the repayment of our only remaining mortgage which had a principal 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 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,
								2008				2007
ASSETS:
Rental property
	Land							$	135,688			$	130,075
	Buildings, improvements and fixtures								1,233,680				1,104,459
	Construction in progress								16,377				52,603
									1,385,745				1,287,137
	Accumulated depreciation								(345,577	)			(312,638	)
		Rental property, net							1,040,168				974,499
Cash and cash equivalents									3,753				2,412
Investments in unconsolidated joint ventures									12,145				10,695
Deferred charges, net									39,854				44,804
Other assets									28,811				27,870
Total assets								$	1,124,731			$	1,060,280
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY:
Liabilities
Debt
	Senior, unsecured notes (net of discount of $701 and $759, respectively)							$	398,799			$	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								149,500				33,880
	Total debt								783,299				706,345
Construction trade payables									22,840				23,813
Accounts payable and accrued expenses									46,573				47,185
Total liabilities									852,712				777,343
Commitments
Minority interest in operating partnership									31,678				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 September 30, 2008 and December 31, 2007								75,000				75,000
Common shares, $.01 par value, 150,000,000 shares authorized,
	31,664,401 and 31,329,241 shares issued and outstanding
	at September 30, 2008 and December 31, 2007, respectively								317				313
Paid in capital									357,698				351,817
Distributions in excess of earnings									(192,601	)			(171,625	)
Accumulated other comprehensive loss									(73	)			(6,301	)
Total shareholders’ equity									240,341				249,204
Total liabilities, minority interest and shareholders’
equity								$	1,124,731			$	1,060,280

					Three months ended								Nine months ended
					September 30,								September 30,
					2008				2007				2008				2007
FUNDS FROM OPERATIONS (a)
	Net income				$	10,278			$	8,397			$	18,527			$	18,103
		Adjusted for:
		Minority interest in operating partnership				1,729				1,370				2,794				2,716
		Minority interest, depreciation and amortization
			attributable to discontinued operations			---				52				---				160
		Depreciation and amortization uniquely significant to
			real estate – consolidated			15,219				14,865				45,335				48,641
		Depreciation and amortization uniquely significant to
			real estate – unconsolidated joint ventures			635				651				1,938				1,985
		Funds from operations (FFO)				27,861				25,335				68,594				71,605
		Preferred share dividends				(1,406	)			(1,406	)			(4,219	)			(4,219	)
		Funds from operations available to common
			shareholders		$	26,455			$	23,929			$	64,375			$	67,386
		Funds from operations available to common
			shareholders per share - diluted		$	.70			$	.64			$	1.70			$	1.80
WEIGHTED AVERAGE SHARES
	Basic weighted average common shares					31,129				30,847				31,059				30,805
	Effect of exchangeable notes					487				235				487				235
	Effect of outstanding options					123				188				149				217
	Effect of unvested restricted share awards					132				130				138				144
	Diluted weighted average common shares (for earnings
		per share computations)				31,871				31,400				31,833				31,401
	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)				37,938				37,467				37,900				37,468
OTHER INFORMATION
Gross leasable area open at end of period -
	Wholly owned					8,823				8,363				8,823				8,363
	Partially owned – unconsolidated					667				667				667				667
	Managed					---				229				---				229
Outlet centers in operation -
	Wholly owned					30				30				30				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)						96.7	%			97.3	%			96.7	%			97.3	%

(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 Washington, Pennsylvania for the 2008 periods and excludes our wholly-owned, non-stabilized center in Charleston, South Carolina for the 2007 periods.