In addition, the REIT experienced a 33.7% increase in total funds from operations, with the company's FFO rising from $101.4 million for year-end 2002 to $135.5 million for end-of-year 2003. On a per share basis, Pan Pacific's FFO jumped 13.3%, increasing from $2.94 to $3.33. This figure beats company officials' expectations from back in the beginning of 2003, when president and CEO Stuart Tanz said the REIT was "on track with achieving FFO per share growth in 2003 of approximately 10%."

The REIT's net income also rose, jumping from $77.7 million for the year ended December 31, 2002 to $104.4 million for the same period ended December 31, 2002. On a per share basis, the company's net income increased from $2.30 per share to $2.61 per share.

During 2003, Pan Pacific significantly increased the size of its portfolio with its purchase of Center Trust Inc. and the company's 31 shopping centers for $600 million. At the time of the transaction, which closed in January 2003, Pan Pacific owned and operated a total of 136 properties (including the Center Trust assets) that encompassed approximately 23.4 million sf. In addition to its Center Trust purchase, Pan Pacific also acquired two grocery-anchored shopping complexes in San Diego for $38.5 million. Those transactions occurred during the first quarter of 2003.

The year ended December 31, 2003 also saw the disposition of some non-strategic holdings by Pan Pacific, as the REIT sold off two complexes in Southern California, four assets in Northern California and three properties in Arizona. Those transactions are worth a total of $244.7 million.

In regards to rental activity, Pan Pacific executed 723 leases totaling 2.3 million sf during the 12 months of 2003 and ended the year with its portfolio 95.4% leased. It also achieved a 13% increase over prior rents on a same-store basis.

Tanz has characterized 2003 as an "exceptional" year for Pan Pacific, saying that the company accomplished four main objectives: growing the portfolio, selling off non-strategic assets, achieving rental growth, and increasing FFO per share. He says the REIT is well positioned to continue increasing both its business and shareholder value.