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## Year in Review 

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Strong financial and operational performance • Robust development pipeline • Approximately  million invested in North American acquisitions • Expansion of European strategy into Italy 

## F i n a n c i a l a n d O p e r a t i o n a l R e v i e w 

C onsolidated revenues increased . % to .  billion in   as compared with .  billion in  . Diluted FFO per share increased . % to . in   from .  in  . 

Net income available to common shareholders, however, declined . % to   million, or .  per diluted common share, from   million, or . per diluted common share in  . This decrease is primarily the result of the sale of non-core real estate and joint venture interests in real estate. Net gains related to real estate dispositions were   million lower in   than they were in  , when we sold interests in five assets to the Mills Corporation and our  % interest in Orlando Premium Outlets to Chelsea Property Group. 

Growth in revenue and FFO in  was primarily the result of the strength of the Company’s core portfolio and the positive impact of   and   acquisition activities. Regional mall comparable tenant retail sales per square foot increased . % to   in   from $   in  . Per square foot lease rates for the regional mall portfolio increased . % to $  .   in  . Lease renewals and new leases were executed in   at an average of $  .  per square foot, an increase of  % over the rent for those tenants who closed or whose leases expired. 

Regional mall occupancy declined  basis points to  .  % at year- end   as compared with  .  % a year earlier. This fractional decline was primarily the result of the timing of bankruptcy-related tenant closures late in  , which made it impossible to permanently re-lease that space by  year-end. Space lost to bankruptcies in the regional mall portfolio in  totaled  ,  square feet (less than one percent of our leased mall and freestanding store square footage) compared with  ,   square feet lost to bankruptcies in  . 

Re-leasing space lost to tenant bankruptcies is a normal aspect of our business. We have an in-house credit function that continuously analyzes retailer news and financial results, and troubled retailers are closely monitored to ensure the timely collection of rents. Tenant bankruptcies are likely to rise in   but should not significantly impact occupancy levels in  . 

## CAPITAL ACTIVITIES 

I n the favorable interest rate environment of  , we aggressively addressed our debt maturities. We financed or refinanced $  .   billion of secured debt for consolidated and joint venture properties at a blended rate of  .  % for an average term of  .   years. We also completed a $   million bond offering—a $   million seven year tranche at a fixed interest rate of . % and a $  million   year tranche at a fixed interest rate of  .  %. 

