Filed by Pennsylvania Real Estate Investment Trust
Subject Company: Crown American Realty Trust
Pursuant to Rule 425 under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Registration Statement File No.: 333-107902
Investor Notice
In connection with the proposed merger with Crown American Realty
Trust, PREIT has filed with the Securities and Exchange Commission a
registration statement on Form S-4 containing a preliminary joint proxy
statement/prospectus. ALL INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THIS
DOCUMENT AS IT CONTAINS IMPORTANT INFORMATION. Investors and security holders
may obtain a free copy of these materials as well as other materials filed with
the Securities and Exchange Commission concerning PREIT and Crown at the
Securities and Exchange Commission's website at http://www.sec.gov. Investors
and security holders also may obtain for free these materials and other
documents filed by PREIT by directing a request to Pennsylvania Real Estate
Investment Trust at The Bellevue, 200 S. Broad Street, Philadelphia, PA 19102;
Attn: Investor Relations. In addition, investors and security holders may obtain
for free these materials and other documents filed by Crown by directing a
request to Crown American Realty at Pasquerilla Plaza, Johnstown, Pennsylvania
15901; Attn: Investor Relations.
PREIT and its respective trustees and executive officers and other
members of their management and employees, may be deemed to be participants in
the solicitation of proxies from the shareholders of PREIT and Crown American
Realty Trust in connection with the merger. Information about the trustees and
executive officers of PREIT and their ownership of PREIT shares is set forth in
the proxy statement for PREIT's 2003 Annual Meeting of Shareholders, which was
filed with the Securities and Exchange Commission on April 30, 2003. Investors
may obtain additional information regarding the interests of such participants
by reading the preliminary joint proxy statement/prospectus contained PREIT's
registration statement on Form S-4 and by reading the definitive joint proxy
statement/prospectus when its becomes available.
Transcript of Pennsylvania Real Estate Investment Trust
Second Quarter 2003 Earnings Release Conference Call
Monday, August 11, 2003 2:00 pm
Operator: Good day everyone and welcome to today's Pennsylvania Real Estate
Investment Trust' second quarter earnings results conference call. Today's call
is being recorded. At this time for opening remarks and introduction I would
like to turn the call over to Mr. Todd Fromer, please go ahead sir.
Todd Fromer: Thank you and thank you all for joining us for PREIT's second
quarter 2003 earnings conference call.
Safe Harbor Statement
This conference call contains certain "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking statements
relate to expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and other matters that are not historical facts.
These forward-looking statements reflect PREIT's current views about future
events and are subject to risks, uncertainties, assumptions and changes in
circumstances that may cause future events, achievements or results to differ
materially from those expressed by the forward-looking statements. In
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particular, PREIT may not be able to consummate the sale of its remaining joint
venture multifamily properties on favorable terms, if at all, and may not be
able to consummate the merger with Crown, or if such transactions are
consummated, PREIT's actual results may differ significantly from those
expressed in any forward-looking statement. Certain factors that could cause
PREIT not to consummate such transactions include, without limitation, the
satisfaction of closing conditions applicable to such transactions (some of
which are beyond PREIT's control). In addition, PREIT's business is subject to
uncertainties regarding the revenues, operating expenses, leasing activities,
occupancy rates, and other competitive factors relating to PREIT's portfolio and
the properties proposed to be acquired and changes in local market conditions as
well as general economic, financial and political conditions, including the
possibility of outbreak or escalation of war or terrorist attacks, any of which
may cause future events, achievements or results to differ materially from those
expressed by the forward-looking statements. PREIT does not intend to and
disclaims any duty or obligation to update or revise any forward-looking
statements or industry information set forth in this press release to reflect
new information, future events or otherwise.
In connection with the proposed merger between PREIT and Crown American Realty
Trust (NYSE: CWN) referenced in this conference call, PREIT and Crown American
Realty Trust intend to file a joint proxy statement/prospectus on Form S-4 and
other materials with the Securities and Exchange Commission. Security holders
are urged to read these materials when they become available because they will
contain important information investors and security holders may obtain a free
copy of these materials when they become available as well as other materials
filed with Securities and Exchange Commission concerning PREIT and Crown
American Realty trust at the Securities and Exchange Commission's website at
www.sec.gov. In addition these materials and other documents filed by PREIT
maybe obtained for free by directing a request to Pennsylvania Real Estate
Investment Trust at The Bellevue, 200 South Broad Street, Philadelphia, PA
19102, Attention: Investor Relations. These materials and other documents filed
by Crown American Realty Trust maybe obtained for free by directing your request
to Crown American Realty at Pasquerilla Plaza Johnstown, Pennsylvania 15901,
Attention: Investor Relations.
PREIT and Crown American Realty Trust and their respective trustees and
executive officers and other members of their management and employees may be
deemed to be participants in the solicitation of proxies from the shareholders
of PREIT and Crown American Realty Trust in connection with the merger.
Information about the trustees and executive officers of PREIT and our ownership
of PREIT shares is set forth in the proxy statement for PREIT's 2003 annual
meeting of shareholders which was filed with Securities and Exchange Commission
on April 30, 2003. Information about the trustees and executive officers of
Crown American Realty Trust and their ownership of Crown American Realty Trust
stock is set forth in the Crown American Realty Trust annual report on Form 10-K
and the amendment to Form 10-K filed with the Securities and Exchange Commission
on March 31, 2003 and April 22, 2003 respectively. Investors may obtain
additional information regarding the interest of such participants by reading
the joint proxy statements/prospectuses when they become available. With nothing
further, I would like to turn the call over to PREIT President, Mr. Jonathan
Weller.
Jonathan Weller: Thanks Todd. Good afternoon everyone and thank you for joining
us today for our second quarter 2003 conference call. With me today is our Chief
Financial Officer Ed Glickman along with George Rubin President of PREIT
Services L.P., Bruce Goldman, Executive Vice President and General Counsel; and
Dave Bryant, Senior Vice President of Finance and Treasurer. During the second
quarter the company completed two major and exciting transactions and announced
it's pending merger with Crown American Realty Trust. The company acquired six
malls from the Rouse Company (NYSE: RSE) in the Philadelphia market and divested
15 of its 19 multifamily properties. We have now completed the first phase of
the transformation of the company to a focused retail REIT. Currently the
company owns 28 retail properties with 17.5 million square feet, a 47% increase
from the end of the first quarter. Assuming the closing of the Crown merger in
the fourth quarter, the company will own 54 retail properties with 33.7 million
square feet. In the second quarter of 2003, net income increased to $144.6
million compared to $4.4 million in the second quarter of 2002. Results for the
second quarter 2003 included a $154.5 million gain on the sale of 15 multifamily
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properties. On a per share basis net income rose to $8.70 from $0.27 reflecting
a substantial gain from the multifamily sale. FFO for the second quarter of 2003
increased by 17.1% to $14.8 million over $12.7 million in a comparable period in
2002. On a per share basis FFO increased by 14.3% to $0.80 per share from $0.70
per share in 2002. Second quarter 2003 NOI increased by 34.2% to $27.4 million
from $20.5 million. Considering the timing of the Rouse Mall acquisitions and
multifamily dispositions, the increase in revenues and FFO were inline with our
expectations. Revenues for the retail portfolio were converted to net operating
income at a 66% margin for the second quarter of 2003 compared with a 72.5%
margin for the second quarter of 2002. The principal reason for the decrease in
margin is higher operating expenses in the newly acquired mall portfolio
including significantly higher real estate taxes in New Jersey. These factors
were considered in the underwriting process. Same-store NOI growth for the
retail portfolio decreased 2.4% or $277,000 in the 2003 second quarter. There
were no lease termination payments in same-store NOI in the second quarter of
2003 compared with $464,000 of lease termination payments for the second quarter
of 2002. On a same-store basis including anchors our mall portfolio occupancy
decreased to 90.4% at the end of the first quarter from 93.8%, mainly due to the
closing of Ames at Dartmouth Mall. The company purchased the Ames lease and has
executed a non-binding letter of intent for the sale of pad site to the May
Company (NYSE: MAY) for the addition of a $140,000 square foot Filene's
department stores. Same-store occupancy for the inline mall space increased to
88.7% from 87.4% in the second quarter of 2002. At Northeast Tower Center,
Wal-Mart (NYSE: WMT) opened during the quarter of 2003, making that center 100%
occupied.
To summarize the information on our recent transaction, PREIT acquired 4 of the
6 Rouse properties, Cherry Hill Mall, Moorestown Mall, Exton Square Mall, and
The Gallery at Market East in late April, and the remaining 2 Rouse properties
Echelon Mall and Plymouth Meeting Mall in early June for total price of
approximately $550 million. 15 of the 19 multifamily assets were sold in April
and May. The remaining 2 wholly owned multifamily properties were sold after the
close of the quarter in late July. The remaining 2 multifamily joint ventures
are under agreement to be sold to the company's joint venture partners and are
expected to close later in the third quarter. The total price for the
multifamily portfolio will be approximately $417 million. We are proceeding with
the documentation to complete the Crown merger proxy and have adjusted the
expected closing dates to the midpoint of the fourth quarter. Since announcing
the merger in May, we have been spending a significant amount of time preparing
for the integration of the staff and operating platforms of the company. I would
now like to turn the presentation over to Ed Glickman.
Edward Glickman: Thanks Jon. Company ended the second quarter of '03 with
investments in real estate of $1.239 billion, an increase of $302.9 million or
32.3% over 2002's comparable balance of $936.6 million. Specifically in the
retail sector investment in real estate was up $521.9 million to $1.151 billion
representing 82.9% increase in retail investment over last year's balance of
$629.4 million. This $521.9 million of total retail increase was comprised of
$526.5 million of new investment plus $12.2 million of completed projects that
were previously classified as development, less $16.8 million from the sale of
Mandarin Corners and Jacksonville, Florida. The bulk of the new investment is
clearly attributed to the previously discussed acquisition of 6 regional malls
from The Rouse Company. The remainder of new investment consists of spending on
a number of smaller projects primarily at Magnolia Mall and The Commons at
Magnolia. At the end of the second quarter of '03, the company's investment in
development projects had fallen to $13.2 million from $19.1 million at the end
of the second quarter of '02. The $5.9 million decreased development was the net
of $9.2 million of new investment at Crest Plaza and Magnolia Mall, the sale of
a parcel at Crest Plaza for $2.9 million and the previously mentioned $12.2
million of completed retail properties that were placed into service. A
substantial completion of PREIT's multifamily disposition strategy has caused a
reduction in multifamily investment of $231.3 million. This reduction coupled
with a $16.6 million increase from the purchase of the full interest in Regency
Lakeside apartments in Omaha, Nebraska has left the company at the close of the
quarter with $72.4 million invested in multifamily assets. This amount is
distributed to the 4 remaining multifamily assets each of which have either been
sold or is under contract to be sold at this time. As a result of the above
changes on a cost basis, the company's portfolio is now approximately 92.9%
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retail, 5.9% multifamily, 1% retail development, and 0.2% industrial. On the
right side of the balance sheet, the company finished the second quarter with
net capital of $837.1 million, up from $606.2 million at the end of last year's
second quarter. The increase is largely attributed to the difference between the
increase in debt required for the acquisition of The Rouse Company assets, which
was a $175 million of bridge and $277 million of assumed mortgages. The net debt
increase on the refinancing of Dartmouth Mall and Moorestown Mall $93 million
and reductions thereafter that came from the proceeds of the multifamily
disposition, $151 million of fully owned mortgage payoffs and $10 million of JV
Mortgage payoffs, $161 million pay down of the bridge. With interest rates at
historical lows, and ample credit availability for retail asset purchases, the
company is biased towards long-term fixed rate financing. Of the $837.1 million
of total debt at the end of the second quarter, $699 million or 84% was
long-term fixed rate mortgage debt. The remaining $138.1 million or 16% was
drawn against the company's secured line of credit, the acquisition term loan,
and the unsecured revolver. After accounting for $75 million in swaps, 93% of
the outstanding debt was fixed at a weighted average cost of 7.07% and weighted
average maturity of 5.3 years. The remaining $53 million or 7% of the company's
debt was floating at 225 basis points over LIBOR. Since the second quarter of
2002, PREIT's equity market cap increased by 15.5% to $565.9 million from the
year ago figure of $489.9 million. The rise in equity cap was primarily a result
of stock price appreciation from $27.11 to $29.95 per share during the year and
the issuance of 822,000 new shares and units. The debt and equity changes during
the year have caused our debt to market cap to increase from 55.3% at the end of
the second quarter 2002 to 59.7% at the end of the second quarter of 2003. That
being said, subsequent to the close of the second quarter, the company completed
the sale of its remaining 2 wholly owned multifamily properties, Emerald Point
in Virginia and Regency Lakeside in Omaha and these sales resulted in $33.8
million reduction in mortgages and the balance of the sale proceeds were used to
pay both the acquisition term loan down fully and the unsecured revolver to a
zero balance. The remaining $24 million was used to pay down PREIT secured
credit facilities, returning the Company's leverage to its target level. It is
important to note that the actual closing dates for the Rouse property
acquisition and the multifamily dispositions are identified in today's press
release. The timing of these transactions may have an effect on analysts'
earnings models of the Company for both the second quarter and full year '03.
Furthermore, for modeling purposes PREIT has changed its estimated closing date
for the Crown American merger to November 17, 2003. This change calls for a
downward revision of the Company's '03 FFO per share estimate to a range of
$3.18 to $3.30. The decrease can be partly attributed to the shortened time
during 2003 in which PREIT will benefit from the Company's combined operation,
which we expect to be accretive. Additional dilution is created by the one-time
charge of $6.75 million, which is an expense that is spread over a decreasing
number of weighted average shares as the closing is pushed closer to the end of
the year. At this time, we are still assuming that we will begin 2004 as a
merged company and we are maintaining our current earnings guidance for next
year. At this time, Jon and I will answer any questions that you may have.
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QUESTION AND ANSWER SECTION
Operator: Operator instructions Our first question comes from the Alexander
Goldfarb with Lehman Brothers.
(Q): Good afternoon. First in light of just the changes in interest rate. Has
anything gone on with mark-to-market of debt or any of the interest rate
adjustments that were in the pro forma for the either Crown or Rouse
transactions?
(A): Actually, we keep looking at our model and have changed our view of
interest rates more than once since we've first started modeling the
transaction. The mark-to-market is set on the Rouse properties, but won't be set
on the Crown properties until closing. So, obviously depending upon where
interest rates end up at that point in time, it may have some impact on the
Company.
(Q): Okay, so the guidance is predicated on the interest sort of add back, that
reduces interest, that will change though?
(A): The mark-to-market adjustment is taken at closing. So, since we can't know
what those rates will be we are estimating it now, but obviously it won't be set
until close to the end of the year.
(Q): Okay, with the Willow Grove, there is an option to buy in your JV partner,
have you reached a decision on that or what's the timing of the decision?
(A): I think the option - Alex, its Jon Weller - the option is available to us a
period of two years following the opening of the Macy's at Willow Grove. That
would be this coming November. It is something that we are discussing but a
decision hasn't been reached.
(Q): Okay. And I noticed the straight-line rents went up a lot from this year
versus last, is that all attributed to the Rouse or is there other things going
on there?
(A): It's attributable to the new properties.
(Q): Okay and then going to your G&A, it seems to have been up about $1.4
million. Was there a dramatic increase in G&A or was there perhaps a one-time
charge in that number?
(A): The G&A increase is composed of about 20 different items.
(Q): Okay.
(A): But a significant number of them on the list relate to the transactions
that we're in the middle of either directly or indirectly.
(Q): Okay, so you would expect that to sort of go back down?
(A): Well I expect some of them to go away. For instance, we spent a significant
amount of money at this year ICSC convention, for instance, on additional
publicity and other things that were obviously related to the transactions that
we were announcing at the time. And so those things will probably be one-time
events.
(Q): Okay and then final question is on, can you just talk, in the press release
it said that substantially all of the gain from the apartment sale would be used
in 1031 on the mall purchase. What portion will not be and what's the tax
implication?
(A): Okay, the second quarter results in the paragraph on the second page of the
press release talked to a gain of $150 million on the thirteen wholly-owned
properties. Obviously the number that relates to the sale of the additional
properties that's apartments is going to increase the amount of that gain and so
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far on a percentage basis, we are about 90% sheltered. One cannot shelter JV
properties and there are a couple of properties where the gains were small
enough that it didn't make sense to go through the process of trying to find
exchanges and we don't foresee that there will be a significant overall impact
from the residual amount of gains.
(Q): Okay, so not much tax to the shareholders?
(A): Right, we will have to go through that when the last 2 properties are sold
off.
(Q): Okay, thank you.
Operator: Your next question comes from David Fick with Legg Mason.
(Q): Good afternoon. Can you just comment on where you stand right now in
assessing the, particularly the Crown portfolio, but I guess also the Rouse
portfolio, CapEx requirements and the forward leasing program now that you've
had another quarter to look at those assets?
(A): Dave, its Jon. We have continued to update our model on the Rouse assets
and the Crown assets. The Rouse assets we are the middle of budgeting season or
at the beginning of budgeting season now. We don't have anything that we are
prepared to announce to the marketplace in terms of our estimated CapEx
requirements for either the Rouse assets and the Crown assets going forward, we
are not ready to do that at this time. But you know, we feel very confident that
we've got our arms around the leasing requirements in the Rouse assets and we
are refining our estimates and plans on the Crown assets as we speak.
(Q): Would you say you see more upside in your first year cap rate assumptions
or less or the same, versus your original projections for them?
(A): I would say the same; I don't think we are prepared to add any different
color to that.
(Q): Okay, I understand. Thank you.
Operator: We will go to Greg Andrews with Green Street Advisors.
(Q): Good afternoon.
(A): Hi Greg.
(Q): Hi, could you just remind us what the $6.75 million charge is for this
year?
(A): Greg its for some of our consulting costs, the consultants that we have
hired to assist us in the integration process and its also for anticipated
payments to members of the PREIT staff.
(Q): I am sorry, and that's for?
(A): They are transition workers, bonus payments and they've just, the
consulting that I mentioned.
(Q): Okay, so its basically, its non-recurring its just related to the
transactions this year?
(A): Yeah, but these are not costs that are we are able to capitalize, these are
costs that we require to expense.
(Q): Right. Okay and then in the quarter, do the results include the couple
million dollar essentially, kind of, brokerage fee related to the sale of
Christiana Mall?
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(A): Yes they do Greg.
(Q): Okay and then lastly, in terms of the mall portfolio, do you have the comp
store sales for the tenants for the quarter and maybe year-to-date?
(A): For the individual tenants?
(Q): Oh no, just in aggregate for your portfolio.
(A): Actually in aggregate yes, we do, I have that in front of me. The aggregate
number for the portfolio including the centers that we recently acquired is
$3.43 per square foot, okay. On a same store basis, it's $3.80. By same store, I
mean, compared with the properties that were in the portfolio a year ago.
(Q): Well how does that change, is there a percentage change there that you can
highlight?
(A): Greg, first of all, I will highlight it but these numbers are all in the
supplemental but the $3.80 on the same store basis, which I think is the only
meaningful comparison really because otherwise you are comparing a completely
different sample. It's actually unchanged; it was $3.80 in the same period,
1-year ago.
(Q): Okay, thank you.
Operator: We will take our next question from Jonathan Miniman with ING Clarion.
(Q): Hi, it's Tim Campbell. Can you just refresh my memory on the major capital
elements that you take over from the Crown, my memory is there is a pref. and
there is a REMIC and how do you deal with those? And any other debt? And
ultimately, how you plan to reduce the cost of capital from that portfolio?
(A): Frank (sic) this is Ed and I will go through those with you. There is an
outstanding preferred stock issue, which cannot be altered and PREIT will be
issuing its preferred stock to the holders of the Crown preferred stock so that
will actually stay in place. It is redeemable at a slight premium, I think that
is in approximately 4 or 5 years from now and that premium declines thereafter
for the next couple of years, I think, it is at par in 7 or 8 years. There is a
REMIC outstanding with GECC and that we will assume as well. It allows for some
amount of substitution and we may move certain assets into or out of it as we
can. We are intending to put 6 assets into a special financing and we are
working out the details of that as we speak and it's our intention to liquidate
those assets over the next few years. There are a few assets with individual
mortgages on them that those mortgages will stay in place. The REMIC, obviously
since it was put into place a number of years ago is at rates that are above the
rates, that one would need to pay were one to try to do that financing today,
but it has yield maintenance and other things that will keep the cost of capital
there relatively steady overtime. It's our general intention to reduce the level
of leverage of the Company by going out into the equity market when that becomes
feasible and prudent and, I think, we would all be happier with the Company with
slightly less leverage than it will have pro forma before the transaction.
(Q): The 6 assets are going to go into this special financing vehicle. Have you
identified them or could it be 7 or could it be 5 or is it 6 iron-clad?
(A): It is not 6 iron-clad as that will depend on our ability to move some
assets into and out of the REMIC. It also and that's a pretty difficult process
that we are going to be going into, so it will depend on how that works out, and
you know this was based on an analysis of the assets that we did a number of
months ago, and obviously that's fluid as we learn more about the individual
properties. But what I am telling you is what our plans are at the moment.
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(Q): And is there any way to put a dollar value on that 6?
(A): Well, it will obviously depend on which 6 it is and, you know, that is
going to depend again on the holders of the REMIC and the special servicer and a
whole bunch of circumstances, but I think in general we are talking about a
group of assets that are probably worth somewhere less than 10% of the overall
capitalization of the company. And by the company I mean Crown.
(Q): I am just trying to get a, you know, for modeling purposes, some idea you
know how this thing plays out? That's all.
(A): Right. Well, it's complex to model it and there is a lot of variables up in
the air. Hopefully that will become more transparent as we move along in the
process. But it is complex because we are trying to deal with a number of
factors at once.
(Q): Did those have to be settled before you file the proxy?
(A): No, I don't think so. We are going to file a proxy with the information as
we know it at the moment. And obviously this is a process that we have started
and will take us some months before we finish. So the proxy will be our
understanding of the transaction as it is when we file it.
(Q): Okay, thank you.
(A): Thanks.
Operator: And we will take a question from Alexander Goldfarb with Lehman
Brothers
(Q): Just a follow up question. Your swap that matures December '03, what are
your plans for that, are you going to renew or are you going try and fix?
(A): Again, there is a number of variables that are up in the air. One of which
is how much debt we have outstanding and what form that debt is? But it's
unlikely that we are going to deal with debt, that has significant yield
maintenance requirement and so if you think about that as debt that's available
to work with this, the floating rate, and similar debt and that's the debt
that's currently swapped. So I think what we do with the swap and the reason we
haven't addressed it as of yet is because it will depend on what we do with
equity over the coming months.
(Q): Okay, okay and on the percent rent just comparing this year to last, while
the Rouse contributed to revenue, it looks like the percentage rent actually
declined?
(A): Well there was a slight decline in the percentage rent, but it was, I think
a minimal amount and some of it represents a conversion of percentage rent to
fixed minimum rent through stipulating increases in the leases.
(Q): Okay, is that, that's an annual occurrence?
(A): Well that's, yes that's generally an annual occurrence, but it has to do
with which leases come due at which, you know, renew at which point in time.
(Q): Okay, and then just a final question. Your expense recovery on the Rouse
assets is that pretty close to what you pro forma'ed or - and to the existing
portfolio, or is there any difference?
(A): I think we are going to have to get back to you as an answer to that
question as we get more in-depth familiarity with how those properties are
performing?
(Q): Okay, thank you.
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Operator: We will take our next question from Liz Watson with Legg Mason
(Q): Hi, not that you haven't done enormous amount of acquisitions and
dispositions, are there any other acquisition projects or development projects
that you are working on this fall, or working on that could also be acquired
this fall?
(A): Liz, hi, it's Jon. The question that we received about Willow Grove is
obviously something that is, that we are addressing actively because of the
timeframe, but we don't expect to have any other announcements that are based on
what's going on right now.
(Q): Can you just comment on your development projects, if they are on track?
And are there any, will there be any new development projects coming online?
(A): Well, we have a very active development pipeline that we have not disclosed
the details of because the projects are not far enough along in the process in
order to do so. The ones that we have talked about the Christiana Power Center
and New Garden Township have experienced some delay that we've talked at length
about the Christiana Project which is a subject of some litigation between the
company and the Delaware Department of Transportation. So that's really affected
the timing of that project and to the extent that other projects mature to the
point where their timing can be estimated and their cost can be reasonably
estimated we will let you know, but...
(Q): So the dates in the supplemental, where they are pushed back to 2005 are
good dates?
(A): Well again, the Christiana project, by way of example, Liz, is subject to
some unresolved litigation.
(Q): Okay.
(A): So it's really, I mean, that's our best estimate.
(Q): Okay, so there is no development projects coming on for 2004?
(A): I am sorry, I just got distracted there.
(Q): There is no development projects coming online in 2004?
(A): No.
(Q): Okay.
(A): Let me just say that as a general point that we are always looking at
acquisition opportunities and disposition opportunities within the portfolio,
but there is nothing that is sufficiently advanced or material to, - for us to
discuss at this time other than what I said.
(Q): Okay. I was just trying to get a sense of that for modeling purpose.
(A): Right.
(Q): Okay, thanks very much.
(A): Okay.
Operator: And we'll have a question from Mike Mueller with J P Morgan
(Q): Hi, my question has been answered, thanks.
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Operator: And we have no further questions in queue at this time. I will turn
the conference back over to our speakers for any additional or closing remarks.
Jonathan Weller: Okay. This is Jon Weller. Thank you for calling in and thank
you for those of you who asked questions. We will be happy to talk to you
further offline and we look forward to speaking with you again soon. Have a good
day.
Operator: This does conclude today's conference call, and you may now
disconnect. We do appreciate your participation.
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