Both transactions occurred in fourth quarter, in which FFO rose 11.5% to $15.6 million. PREIT's net operating income rose 16.2% in 2002.

Redevelopment of The Commons at Magnolia in Florence, SC also contributed to profits, according to Jonathan B. Weller, president and COO. The property is 99% leased, and PREIT is now redeveloping the adjoining Magnolia Mall, which nabbed Best Buy as an anchor last November. "Redevelopment activities will be a key driver for future performance as PREIT transforms its strategic focus to the retail market," Weller said.

Moving into this year, PREIT purchased the 93,000-sf Ames store lease at Dartmouth Mall, Dartmouth, PA, from Ames Realty II for $1.75 million. Revenues were $1.42 per sf, and PREIT anticipates replacing Ames with an anchor that will generate a higher return.

Also during first-quarter 2003, PREIT sold a parcel at its Crest Plaza Shopping Center in Allentown, PA to Target for $3.2 million, and expects to gain $2 million from the sale.

These two transactions are in addition to the company's acquisition this March of six Philadelphia-area shopping centers from Malvern, PA-based Rouse Co. and the sale of all of PREIT's multifamily properties.

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