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

 

·	34.7% debt-to-total market capitalization ratio, 3.67 times interest coverage ratio as of December 31, 2008

 

·	4.1% increase in same center net operating income during 2008

 

·	44.1% average increase in base rental rates on 492,000 square feet of re-leased space during 2008, compared to a 39.7% average increase in the prior year

 

·	17.5% increase in average base rental rates on 1.1 million square feet of signed renewals during 2008, compared to a 13.9% average increase in the prior year

 

·	96.6% occupancy rate for wholly-owned stabilized properties as of December 31, 2008

 

·	$336 per square foot in reported tenant comparable sales for the rolling twelve months ended December 31, 2008

 

						Three months ended								Year ended
						December 31,								December 31,
						2008				2007				2008				2007
REVENUES
	Base rentals (a)				$		42,694			$	38,210			$	159,068			$	146,824
	Percentage rentals						2,949				3,323				7,058				8,757
	Expense reimbursements						20,557				18,482				72,004				65,978
	Other income						2,137				1,963				7,261				7,206
		Total revenues					68,337				61,978				245,391				228,765
EXPENSES
	Property operating						21,139				20,244				77,974				73,737
	General and administrative						5,099				4,911				22,264				19,007
	Depreciation and amortization						16,733				14,940				62,326				63,810
	Abandoned due diligence costs						3,336				246				3,923				646
		Total expenses					46,307				40,341				166,487				157,200
Operating income							22,030				21,637				78,904				71,565
	Interest expense (b)						10,252				9,851				38,443				40,066
	Loss on settlement of US treasury rate locks						---				---				8,910				---
Income before equity in earnings of
	unconsolidated joint ventures, minority
	interest and discontinued operations						11,778				11,786				31,551				31,499
Equity in earnings (loss) of unconsolidated joint ventures							(696	)			443				852				1,473
Minority interest in operating partnership							(1,577	)			(1,778	)			(4,371	)			(4,494	)
Income from continuing operations							9,505				10,451				28,032				28,478
Discontinued operations, net of minority interest (c)							---				22				---				98
Net income							9,505				10,473				28,032				28,576
Less applicable preferred share dividends							(1,406	)			(1,406	)			(5,625	)			(5,625	)
Net income available to common shareholders					$		8,099			$	9,067			$	22,407			$	22,951
Basic earnings per common share:
	Income from continuing operations				$		.26			$	.29			$	.72			$	.74
	Net income				$		.26			$	.29			$	.72			$	.74
Diluted earnings per common share:
	Income from continuing operations				$		.26			$	.29			$	.71			$	.72
	Net income				$		.26			$	.29			$	.71			$	.72
Summary of discontinued operations (c)
	Operating income from discontinued operations				$		---			$	21			$	---			$	112
	Gain on sale of real estate						---				6				---				6
	Income from discontinued operations						---				27				---				118
	Minority interest in discontinued operations						---				(5	)			---				(20	)
Discontinued operations, net of minority interest					$		---			$	22			$	---			$	98
(a) Includes straight-line rent and market rent adjustments of $626 and $832 for the three months ended and $3,551 and $4,023 for the years ended December 31, 2008 and 2007, respectively.
(b) Includes prepayment premium of $406 for the year ended December 31, 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 the periods presented.

								December 31,				December 31,
								2008				2007
ASSETS:
Rental property
	Land							$	135,689			$	130,075
	Buildings, improvements and fixtures								1,260,017				1,104,459
	Construction in progress								3,823				52,603
									1,399,529				1,287,137
	Accumulated depreciation								(359,298	)			(312,638	)
	Rental property, net								1,040,231				974,499
Cash and cash equivalents									4,977				2,412
Investments in unconsolidated joint ventures									9,457				10,695
Deferred charges, net									37,942				44,804
Other assets									29,248				27,870
					Total assets			$	1,121,855			$	1,060,280
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY:
Liabilities
Debt
	Senior, unsecured notes (net of discount of $681 and $759,
		respectively)						$	398,819			$	498,741
	Unsecured term loan								235,000				---
	Mortgages payable (including premium of $0 and $1,046,
		respectively)							---				173,724
	Unsecured lines of credit								161,500				33,880
	Total debt								795,319				706,345
Construction trade payables									11,968				23,813
Accounts payable and accrued expenses									57,191				47,185
		Total liabilities							864,478				777,343
Commitments
Minority interest in operating partnership									29,321				33,733
Shareholders’ equity
Preferred shares, 7.5% Class C, liquidation preference $25 per
	share, 8,000,000 authorized, 3,000,000 shares
	issued and outstanding at December 31, 2008 and 2007								75,000				75,000
Common shares, $.01 par value, 150,000,000 authorized, at
	31,667,501 and 31,329,241 shares issued and outstanding
	December 31, 2008 and 2007, respectively								317				313
Paid in capital									358,891				351,817
Distributions in excess of earnings									(196,535	)			(171,625	)
Accumulated other comprehensive loss									(9,617	)			(6,301	)
		Total shareholders’ equity							228,056				249,204
					Total liabilities, minority interest and shareholders’
						equity		$	1,121,855			$	1,060,280

						Three months ended												Year ended
						December 31,												December 31,
						2008						2007						2008				2007
FUNDS FROM OPERATIONS (a)
Net income					$		9,505				$		10,473				$		28,032			$	28,576
Adjusted for:
	Minority interest in operating partnership						1,577						1,778						4,371				4,494
	Minority interest, depreciation and amortization
		attributable to discontinued operations					---						5						---				165
	Depreciation and amortization uniquely significant to
		real estate – consolidated					16,627						14,865						61,962				63,506
	Depreciation and amortization uniquely significant to
		real estate – unconsolidated joint ventures					1,227						626						3,165				2,611
	Gain on sale of real estate						---						(6	)					---				(6	)
Funds from operations (FFO)							28,936						27,741						97,530				99,346
Preferred share dividends							(1,406	)					(1,406	)					(5,625	)			(5,625	)
Funds from operations available to commonshareholders					$		27,530				$		26,335				$		91,905			$	93,721
Funds from operations available to common
	shareholders per share – diluted				$		.74				$		.70				$		2.46			$	2.48
WEIGHTED AVERAGE SHARES
Basic weighted average common shares							31,160						30,867						31,084				30,821
Effect of exchangeable notes							---						478						---				478
Effect of outstanding share and unit options							98						202						136				214
Effect of unvested restricted share awards							112						178						142				155
Diluted weighted average common shares (for earnings							31,370						31,725						31,362				31,668
	per share computations)
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)						37,437						37,792						37,429				37,735
OTHER INFORMATION
Gross leasable area open at end of period -
	Wholly owned						8,820						8,398						8,820				8,398
	Partially owned – unconsolidated						1,352						667						1,352				667
Outlet centers in operation -
	Wholly owned						30						29						30				29
	Partially owned – unconsolidated						3						2						3				2
States operated in at end of period (c)							21						21						21				21
Occupancy percentage at end of period (c) (d)							96.6	%					97.6	%					96.6	%			97.6	%

(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 for the 2008 and 2007 periods which were operated by us through 50% ownership joint ventures and excludes Deer Park, New York property for the 2008 period which is operated by us through a 33.3% ownership joint venture.

(d) Excludes our wholly-owned, non-stabilized center in Washington, Pennsylvania for the 2008 periods.

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