The transaction, which has been valued at approximately $600 million, has significantly expanded Pan Pacific's portfolio. The company, which was already the largest neighborhood shopping center REIT on the West Coast, now owns and operates a total of 136 properties. Its holdings, which are diversified across the West Coast, encompass approximately 23.4 million sf. In addition to its expanded portfolio, Pan Pacific expects to see growth in its FFO as a result of the acquisition.

"As previously stated, we expect the transaction to be accretive," says Stuart Tanz, the company's president and CEO. "As such, we are on track with achieving FFO per share growth in 2003 of approximately 10%, and we expect to maintain our conservative balance sheet, flexible capital structure and solid financial ratios."

The merger has also increased Pan Pacific's share base by 20%, from 34.4 million shares of common stock to 41.4 million shares of common stock, on a fully diluted basis. This increase has occurred as a direct result of the acquisition agreement, which has allowed for the conversion of each Center Trust share of common stock into the right to receive 0.218 newly issued shares of Pan Pacific common stock.

News of the acquisition has occurred just a week after Center Trust settled a lawsuit challenging its merger with Pan Pacific. The settlement concerned a shareholder lawsuit filed by Paul Berger against Center Trust and all members of its board of directors. As part of the settlement, Center Trust agreed to provide additional disclosures regarding the merger to its stockholders in a supplement to its proxy statement.