The REIT's board of directors has adopted the initiatives on the recommendation of its corporate governance committee, which is comprised solely of independent directors. A major component of the new initiatives is the implementation of a code of business conduct & ethics policy, which company officials say is "aimed at maintaining the highest level of business and ethical conduct among all Pan Pacific employees." In conjunction with the new policy, Pan Pacific employees will now be able to report, on a confidential basis, any violations, complaints and concerns regarding accounting practices to the firm's audit committee.

As part of the new initiatives, the REIT has also created a lead independent director position, which company officials say will "enhance the quality of corporate governance at Pan Pacific and strengthen communications among the independent directors and with management." Joseph P. Colmery, who joined the board as independent director in November 2002, has been chosen to serve in this capacity. His prior experience includes stints at Western Properties' Board of Trustees as an independent trustee and U.S. Bank of California as president and CEO.

Commenting on the adoption of the new initiatives, Pan Pacific's president and CEO Stuart A. Tanz says it demonstrates the company's long-standing commitment of full accountability to the stockholders. Headquartered in Vista, Pan Pacific is the largest shopping center REIT on the West Coast with 133 properties encompassing approximately 21.1 million sf of retail space.