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In   we called for the redemption of the Company’s Series B  .  % Convertible Preferred Stock. Only  ,   shares were redeemed at the redemption price. Because of the strong performance of the Company’s common stock, the remaining preferred shares were converted by the holders and  .   million shares of the Company’s Common Stock were issued for the conversion of Series B shares in  . 

Floating rate debt (including out-of-the-money caps) at December  ,  , comprised only  % of our share of indebtedness in the U.S. Interest coverage at   year-end was a strong  .   times. 

Our financing strategy is conservative. We own long lived assets and believe that they should be financed primarily with long term, fixed rate debt. We also firmly believe that we must be able to access capital in many different forms, including the unsecured market. Our senior unsecured ratings are the highest in the regional mall industry. We believe that this philosophy is appropriate for the long-term success of our company in all cycles of economic health and capital availability. 

## REDEVELOPMENT ACTIVITIES 

W e continued to focus on enhancing the quality of our core assets in ,  and we completed several renovation and/or expansion projects including: 

● The Galleria in Houston, Texas – We added Nordstrom, Foley’s,  ,  square feet of small shops, and two parking decks. Tenants added or opening soon include Movado, French Connection, Ferragamo, Brighton Collectibles, Lucky Brand Jeans, Club Monaco, A/X Armani Exchange, Steve Madden, Urban Outfitters, L’Occitane en Provence, J. Jill and Brooks Brothers Women. This center is now one of the largest and most successful in the U.S., encompassing  .  million square feet and generating total annual sales in excess of $   million. 

● Barton Creek Square in Austin, Texas  – We completed a mall renovation and added Nordstrom and  ,   square feet of small shops in a former Montgomery Ward space. Specialty shops added to the mall that are new to the Austin market include Pottery Barn Kids, Steve Madden, J. Jill and J. Jill Petite, Talbots Kids, Janie and Jack, Oakley and Dry Ice. Other new tenants include Williams-Sonoma, Coach, Build-A-Bear Workshop and The Children’s Place. Barton Creek is  % occupied and generates sales of $  per square foot. 

● Bay Park Square in Green Bay, Wisconsin  – We added Younkers and  ,  square feet of small shops in a former Montgomery Ward space. Eighteen new tenants opened with the expansion including Aeropostale, Hot Topic, Yankee Candle, Children’s Place, Charlotte Russe, Wet Seal and American Eagle. Bay Park is  % occupied and generates sales of approximately $  per square foot. 

● SouthPark Mall in Charlotte, North Carolina – The redevelopment of SouthPark has been a multi-phase project. Belk’s expanded and renovated and The Cheesecake Factory was added in  ; a mall renovation and the 

## Total Market Capitalization ($ – billions) 

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