Funds from operations (FFO) increased at two Northeastern-based REITS in the third quarter and a third would have also reported positive results except for charges related to termination of a proposed acquisition.

Pennsylvania Real Estate Investment Trust (NYSE: PEI) reported FFO of $10.73 million, an increase of 7.6% compared to 3Q 2000. Combined net operating income increased 10.9% to $22.35 million and same store operating income from the shopping center portfolio increased 4%. Same store multifamily net operating income increased 5.4% while mall sales increased 7.1% to $391 per sf and shopping center occupancy increased 180 basis points to 91.5%.

The company ended 3Q 2001 with $824 million of investment in real estate, a net increase of $20 million over year 2000. The portfolio is now 34% multifamily, 60% retail, 6% retail development and less than 1% industrial. A dividend of 51 cents per share will be paid on Dec. 17, the 99th consecutive distribution since 1962. The trust's portfolio of 45 properties in 10 states is located primarily in the eastern US. There are 6 retail properties under development expected to add 1.8 million sf to the portfolio.