The net effective rent for new leases signed in the second quarter of 2002 was $20.59 per sf, up 35%, compared to $15.23 per sf for second-quarter 2001. Net effective rent is annual gross rent, minus the annual amortization of tenant allowances and leasing costs. For the first half of 2002, the net effective rent among all Crown American properties was $21.88 per sf, an increase of 3% over $21.29 per sf for the same period a year ago.

Aggregate mall shop occupancy was 86% at the end of this June, compared with 84% for the first six months of the previous year. "Looking ahead, we believe year-end occupancy to be flat or marginally down, compared to last year," Pasquerilla predicts, saying he expects it to finish 2002 at between 86% and 87%.

"Tenant closings in the first half of 2002 were only slightly higher than ourhistorical average," Pasquerilla says. The negative impact of the recent closing of Kmart at the company's Phillipsburg, NJ mall, along with the anticipated third-quarter closings of Phar-Mor stores at South Mall in Allentown, PA and Schuylkill Mall in Frackville, PA, have been factored into Crown American's forecast.