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| (Mark      One)                                                                                                                                    |
|----------------------------------------------------------------------------------------------------------------------------------------------------|
| x      ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934                |
|                                                                                                                                               |
| For      the fiscal year ended December 31, 2007                                                                                                   |
| ON                                                                                                                                                 |
| ¨       TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|                                                                                                                                               |
| For      the transition period from __________________ to      ________________                                                                    |

| TEXAS                                                               |   | 74-1464203                             |
|---------------------------------------------------------------------|--------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (IRS      Employer Identification No.) |
|                                                                |   |                                   |
| 2600      Citadel Plaza Drive                                       |   |                                   |
| P.O.      Box 924133                                                |   |                                   |
| Houston,      Texas                                                 |   | 77292-4133                             |
| (Address      of principal executive offices)                       |   | (Zip      Code)                        |
| (713)      866-6000                                                 |
| (Registrant's      telephone number)                                |

| Securities      registered pursuant to Section 12(b) of the Act:                                                                                                                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                              |   |   |
| Title of Each Class                                                                                                                                                                                               |   | Name of Each Exchange on Which      Registered |
|                                Common Shares of Beneficial Interest, $0.03 par value |   | New      York Stock Exchange |
| Series      D Cumulative Redeemable Preferred Shares, $0.03 par value                                                                                                                                             |   | New      York Stock Exchange |
| Series      E Cumulative Redeemable Preferred Shares, $0.03 par value                                                                                                                                             |   | New      York Stock Exchange |
| Series      F Cumulative Redeemable Preferred Shares, $0.03 par value                                                                                                                                             |   | New      York Stock Exchange |

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TABLE OF CONTENTS

| Item      No. |                                                                                                                                          | Page      No. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|          |                                                                                                                                          |          |
|          | PART      I                                                                                                                                   |          |
|          |                                                                                                                                          |          |
| 1.            | Business                                                                                                                                      | 2             |
| 1A.           | Risk Factors                                                                                                                                  | 4             |
| 1B.           | Unresolved Staff Comments                                                                                                                     | 10            |
| 2.            | Properties                                                                                                                                    | 11            |
| 3.            | Legal Proceedings                                                                                                                             | 26            |
| 4.            | Submission of Matters to a Vote of    Shareholders                                                                                            | 26            |
|          |                                                                                                                                          |          |
|          |                                                                                                                                          |          |
|          | PART      II                                                                                                                                  |          |
|          |                                                                                                                                          |          |
| 5.            | Market for Registrant's Common Shares of Beneficial Interest,      Related Shareholder Matters and Issuer Purchases of Equity      Securities | 27            |
| 6.            | Selected Financial Data                                                                                                                       | 30            |
| 7.            | Management's Discussion and Analysis of Financial Condition and      Results of Operations                                                    | 31            |
| 7A.           | Quantitative and Qualitative Disclosures About Market      Risk                                                                               | 48            |
| 8.            | Financial Statements and Supplementary Data                                                                                                   | 49            |
| 9.            | Changes in and Disagreements with Accountants on Accounting and      Financial Disclosure                                                     | 80            |
| 9A.           | Controls and Procedures                                                                                                                       | 80            |
| 9B.           | Other Information                                                                                                                             | 82            |
|          |                                                                                                                                          |          |
|          |                                                                                                                                          |          |
|          | PART      III                                                                                                                                 |          |
|          |                                                                                                                                          |          |
| 10.           | Trust Managers, Executive Officers and Corporate      Governance                                                                              | 82            |
| 11.           | Executive Compensation                                                                                                                        | 82            |
| 12.           | Security Ownership of Certain Beneficial Owners and Management      and Related Shareholder Matters                                           | 83            |
| 13.           | Certain Relationships and Related Transactions, and Trust      Manager Independence                                                           | 83            |
| 14.           | Principal Accountant Fees and Services                                                                                                        | 83            |
|          |                                                                                                                                          |          |
|          |                                                                                                                                          |          |
|          | PART      IV                                                                                                                                  |          |
|          |                                                                                                                                          |          |
| 15.           | Exhibits and Financial Statement Schedules                                                                                                    | 84            |
|          |                                                                                                                                          |          |
|          | Signatures                                                                                                                                    | 89            |
|          |                                                                                                                                          |          |

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ITEM1.                      Business

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ITEM1A.                   RiskFactors

| §   | Changes      in the national, regional and local economic  climate; |
|--------------------|---------------------------------------------------------------------|

| §   | Local      conditions such as an oversupply of space or a reduction in demand for      real estate in the area; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| §   | The      attractiveness of the properties totenants; |
|--------------------|------------------------------------------------------|

| §   | Competition      from other available space; |
|--------------------|----------------------------------------------|

| §   | Our      ability to provide adequate management services and to maintain our      properties; |
|--------------------|-----------------------------------------------------------------------------------------------|

| §   | Increased      operating costs, if these costs cannot be passed through to      tenants; |
|--------------------|------------------------------------------------------------------------------------------|

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| §   | The      expense of periodically renovating, repairing and releasing      spaces; |
|--------------------|-----------------------------------------------------------------------------------|

| §   | Consequence      of any armed conflict involving, or terrorist attack against , the United      States; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| §   | Our      ability to secure adequateinsurance; |
|--------------------|-----------------------------------------------|

| §   | Fluctuations      in interest rates; |
|--------------------|--------------------------------------|

| §   | Changes      in real estate taxes and other expenses;and |
|--------------------|----------------------------------------------------------|

| §   | Availability      of financing on acceptable terms or atall. |
|--------------------|--------------------------------------------------------------|

| §   | Our      estimates on expected occupancy and rental rates may differ from actual      conditions; |
|--------------------|---------------------------------------------------------------------------------------------------|

| §   | Our      estimates of the costs of any redevelopment or repositioning of acquired      properties may prove to beinaccurate; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| §   | We      may be unable to operate successfully in new markets where acquired      properties are located, due to a lack of market knowledge or understanding      of local economies; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      may be unable to successfully integrate new properties into our existing      operations; or |
|--------------------|------------------------------------------------------------------------------------------------------|

| §   | We      may have difficulty obtaining financing on acceptable terms or paying the      operating expenses and debt service associated with acquired properties      prior to sufficient occupancy. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Delay      lease commencements; |
|--------------------|---------------------------------|

| §   | Decline      to extend or renew leases uponexpiration; |
|--------------------|--------------------------------------------------------|

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| §   | Fail      to make rental payments when due;or |
|--------------------|-----------------------------------------------|

| §   | Close      stores or declare bankruptcy. |
|--------------------|------------------------------------------|

| §   | We      may abandon development opportunities after expending resources to      determine feasibility; |
|--------------------|--------------------------------------------------------------------------------------------------------|

| §   | Construction      costs of a project may exceed our original  estimates; |
|--------------------|--------------------------------------------------------------------------|

| §   | Occupancy      rates and rents at a newly completed property may not be sufficient to      make the property profitable; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| §   | Rental      rates per square foot could be less than  projected; |
|--------------------|------------------------------------------------------------------|

| §   | Financing      may not be available to us on favorable terms for development of a      property; |
|--------------------|--------------------------------------------------------------------------------------------------|

| §   | We      may not complete construction and lease-up on schedule, resulting in      increased debt service expense and construction costs;  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      may not be able to obtain, or may experience delays in obtaining necessary      zoning, land use, building, occupancy and other required governmental      permits and authorizations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Our      cash flow may not satisfy required payments of principal and      interest; |
|--------------------|--------------------------------------------------------------------------------------|

| §   | We      may not be able to refinance existing indebtedness on our properties as      necessary or the terms of the refinancing may be less favorable to us than      the terms of existing debt; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Required      debt payments are not reduced if the economic performance of any property      declines; |
|--------------------|--------------------------------------------------------------------------------------------------------|

| §   | Debt      service obligations could reduce funds available for distribution to our      shareholders and funds available for capital  investment; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Any      default on our indebtedness could result in acceleration of those      obligations and possible loss of property to foreclosure;    and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | The      risk that necessary capital expenditures for purposes such as re−leasing      space cannot be financed on favorableterms. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      would be taxed as a regular domestic corporation, which, among other      things, means that we would be unable to deduct distributions to our      shareholders in computing our taxable income and would be subject to U.S.      federal income tax on our taxable income at regular corporate      rates; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Any      resulting tax liability could be substantial and would reduce the amount      of cash available for distribution to shareholders, and could force us to      liquidate assets or take other actions that could have a detrimental      effect on our operating results;and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Unless      we were entitled to relief under applicable statutory provisions, we would      be disqualified from treatment as a REIT for the four taxable years      following the year during which we lost our qualification, and our cash      available for distribution to our shareholders therefore would be reduced      for each of the years in which we do not qualify as a  REIT. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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The market price of our common shares of beneficial interest andpreferred shares could be adversely affected by disruptions in capital market orother economic conditions.

| §   | the      attractiveness of REIT securities as compared to other securities,      including securities issued by other real estate companies, fixed income      equity securities and debtsecurities; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      degree of interest held by institutional  investors; |
|--------------------|---------------------------------------------------------------|

| §   | our      operating performance and financial situation;  and |
|--------------------|--------------------------------------------------------------|

| §   | general      economic conditions. |
|--------------------|-----------------------------------|

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ITEM1B.                   UnresolvedStaff Comments

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ITEM2.                      Properties

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Retail                                                                                         |   |   |   |      |   |       |
|------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|
| Arizona                                                                                        |   |   |   |      |   |       |
| Arrowhead      Festival S.C., 75th Ave. at W. Bell Rd., Glendale                          |   |   |   | 176,458   |   | 157,000    |
| Broadway      Marketplace, Broadway at Rural, Tempe                                            |   |   |   | 82,757    |   | 347,000    |
| Camelback      Village Square, Camelback at 7th Avenue, Phoenix                                |   |   |   | 234,494   |   | 543,000    |
| Entrada      de Oro, Magee Road and Oracle Road, Tucson                                        |   |   |   | 109,091   |   | 572,000    |
| Fountain Plaza,      77th St. at McDowell, Scottsdale                                     |   |   |   | 102,271   |   | 445,000    |
| Fry's      Ellsworth Plaza, Broadway Rd. at Ellsworth Rd., Mesa                           |   |   |   | 73,608    |   | 58,000     |
| Fry's      Valley Plaza, S. McClintock at E. Southern, Tempe                              |   |   |   | 145,104   |   | 570,000    |
| Gladden      Farms, Lon Adams Rd at Tangerine Farms Rd                                         |   | (1)(2) |   | 119,685   |   | 464,785    |
| Laveen Village      Market, Baseline Rd. at  51st St., Phoenix                  |   |   |   | 111,644   |   | 372,274    |
| Madera Village,      Tanque Verde Rd. and Catalina Hwy, Tucson                            |   |   |   | 106,626   |   | 419,000    |
| Mohave      Crossroads, Bullhead Parkway at State Route 95,      Bullhead City            |   | (2)    |   | 302,230   |   | 1,356,023  |
| Monte Vista Village Center,      Baseline Rd. at  Ellsworth Rd., Mesa |   |   |   | 104,151   |   | 353,000    |
| Oracle      Crossings, Oracle Highway and Magee Road, Tucson                                   |   |   |   | 253,625   |   | 1,307,000  |
| Oracle      Wetmore, Wetmore Road and Oracle Highway, Tucson                                   |   |   |   | 256,093   |   | 1,181,000  |
| Palmilla Center,      Dysart Rd. at McDowell Rd., Avondale                                |   |   |   | 169,142   |   | 264,000    |
| Pueblo      Anozira, McClintock Dr. at Guadalupe Rd., Tempe                                    |   |   |   | 157,309   |   | 769,000    |
| Raintree      Ranch, Ray Road at Price Road, Chandler                                          |   | (2)    |   | 128,106   |   | 759,000    |
| Rancho      Encanto, 35th Avenue at Greenway Rd., Phoenix                                      |   |   |   | 70,909    |   | 246,440    |
| Red Mountain      Gateway, Power Rd. at McKellips Rd., Mesa                               |   |   |   | 205,568   |   | 353,000    |
| Scottsdale      Horizon, Frank Lloyd Wright Blvd and Thompson Peak Parkway,      Scottsdale    |   |   |   | 10,337    |   | 61,000     |
| Shoppes      at Bears Path, Tanque Verde Rd. and Bear Canyon Rd.,Tucson                        |   |   |   | 65,779    |   | 362,000    |
| Squaw Peak Plaza,      16th Street at Glendale Ave., Phoenix                         |   |   |   | 61,060    |   | 220,000    |
| The      Shoppes at Parkwood Ranch, Southern Avenue and Signal Butte Road,      Mesa           |   | (2)    |   | 69,300    |   | 658,567    |
| University Plaza,      Plaza Way at Milton Rd., Flagstaff                                 |   |   |   | 166,321   |   | 919,000    |
| Val Vista Towne Center,      Warner at Val Vista Rd., Gilbert                   |   |   |   | 216,372   |   | 366,000    |
| Arizona,      Total                                                                            |   |        |   | 3,498,040 |   | 13,123,089 |
| Arkansas                                                                                       |   |   |   |      |   |       |
| Markham      Square, W. Markham at John Barrow, Little Rock                               |   |   |   | 126,904   |   | 514,000    |
| Markham      West, 11400 W. Markham, Little Rock                                               |   |   |   | 178,210   |   | 769,000    |
| Westgate,      Cantrell at Bryant, Little Rock                                                 |   |   |   | 52,626    |   | 206,000    |
| Arkansas,      Total                                                                           |   |        |   | 357,740   |   | 1,489,000  |
| California                                                                                     |   |   |   |      |   |       |
| 580      Market Place, E. Castro Valley at Hwy. I-580, CastroValley                            |   |   |   | 100,165   |   | 444,000    |
| Arcade      Square, Watt Ave. at Whitney Ave., Sacramento                                      |   |   |   | 76,497    |   | 234,000    |
| Buena      Vista Marketplace, Huntington Dr. at Buena Vista St.,    Duarte                     |   |   |   | 90,805    |   | 322,000    |
| Centerwood Plaza,      Lakewood Blvd. at Alondra Dr., Bellflower                          |   |   |   | 75,500    |   | 333,000    |
| Chino      Hills Marketplace, Chino Hills Pkwy. at Pipeline Ave., Chino      Hills             |   |   |   | 309,098   |   | 1,187,000  |
| Creekside Center,      Alamo Dr. at Nut Creek Rd., Vacaville                              |   |   |   | 116,229   |   | 400,000    |
| Discovery Plaza,      W. El Camino Ave. at Truxel Rd., Sacramento                         |   |   |   | 93,398    |   | 417,000    |
| El      Camino Promenade, El Camino Real at Via Molena, Encinitas                              |   |   |   | 130,856   |   | 451,000    |
| Freedom      Centre, Freedom Blvd. At Airport Blvd., Watsonville                               |   |   |   | 150,241   |   | 543,000    |
| Fremont Gateway Plaza,      Paseo Padre Pkwy. at Walnut Ave., Fremont                |   |   |   | 194,601   |   | 650,000    |
| Greenhouse      Marketplace, Lewelling Blvd. at Washington Ave., San    Leandro                |   |   |   | 238,664   |   | 578,000    |
| Hallmark Town Center,      W. Cleveland Ave. at Stephanie Ln., Madera                |   |   |   | 85,066    |   | 365,000    |

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| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Jess      Ranch Marketplace, Bear Valley Road at Jess Ranch Parkway, Apple      Valley                  |   | (1)(2)(3) |   | 275,595   |   | 0          |
|---------------------------------------------------------------------------------------------------------|--------|-----------|--------|-----------|--------|------------|
| Jess      Ranch Phase III, Bear Valley Road at Jess Ranch Parkway, Apple      Valley                    |   | (1)(2)(3) |   | 71,500    |   | 1,692,000  |
| Marshalls Plaza,      McHenry at Sylvan Ave., Modesto                                              |   |      |   | 78,752    |   | 218,000    |
| Menifee Town Center,      Antelope Rd. at Newport Rd., Menifee                                |   |      |   | 248,494   |   | 658,000    |
| Prospectors      Plaza, Missouri Flat Rd. at US Hwy. 50, Placerville                                    |   |      |   | 228,345   |   | 866,684    |
| Ralphs      Redondo, Hawthorne Blvd. at 182nd St., Redondo Beach                                        |   |      |   | 66,700    |   | 431,000    |
| Rancho      San Marcos Village, San Marcos Blvd. at Rancho Santa Fe Rd., San      Marcos                |   |      |   | 120,829   |   | 541,000    |
| San      Marcos Plaza, San Marcos Blvd. at Rancho Santa Fe Rd., San      Marcos                         |   |      |   | 81,086    |   | 116,000    |
| Shasta      Crossroads, Churn Creek Rd. at Dana Dr., Redding                                            |   |      |   | 252,802   |   | 520,000    |
| Silver Creek Plaza,      E. Capital Expressway at Silver Creek Blvd., San Jose                |   |      |   | 199,179   |   | 573,000    |
| Southampton Center,      IH-780 at Southampton Rd., Benecia                                        |   |      |   | 162,390   |   | 596,000    |
| Stony      Point Plaza, Stony Point Rd. at Hwy. 12, Santa Rosa                                     |   |      |   | 198,528   |   | 619,000    |
| Summerhill Plaza,      Antelope Rd. at Lichen Dr., Sacramento                                      |   |      |   | 133,614   |   | 704,000    |
| Sunset Center,      Sunset Ave. at State Hwy. 12, Suisun City                                 |   |      |   | 85,238    |   | 359,000    |
| Tully      Corners Shopping Center, Tully Rd at Quimby Rd, San    Jose                             |   | (1)(3)    |   | 115,992   |   | 430,891    |
| Valley,      Franklin Boulevard and Mack Road, Sacramento                                               |   |      |   | 103,605   |   | 580,000    |
| Westminster Center,      Westminster Blvd. at Golden West St., Westminster                         |   |      |   | 411,278   |   | 1,739,000  |
| California,      Total                                                                                  |   |           |   | 4,495,047 |   | 16,567,575 |
| Colorado                                                                                                |   |      |   |      |   |       |
| Academy      Place, Academy Blvd. at Union Blvd., Colorado Springs                                      |   |      |   | 261,419   |   | 404,000    |
| Aurora      City Place, E. Alameda at I225, Aurora                                                 |   | (1)(3)    |   | 547,283   |   | 2,260,000  |
| Buckingham      Square, Mississippi at Havana, Aurora                                                   |   | (1)(2)    |   | 142,500   |   | 0          |
| CityCenter      Englewood, S. Santa Fe at Hampden Ave., Englewood                                       |   | (1)       |   | 360,543   |   | 452,941    |
| Crossing      at Stonegate, Jordon Rd. at Lincoln Ave., Parker                                          |   | (1)       |   | 109,058   |   | 870,588    |
| Glenwood      Meadows, Midland Ave. at W. Meadows, Glenwood Springs                                     |   | (1)(2)(3) |   | 395,760   |   | 1,287,805  |
| Green Valley Ranch Towne Center,      Tower Rd. at 48th Ave., Denver                |   | (1)(3)    |   | 113,006   |   | 310,000    |
| Lowry Town Center,      2nd Ave. at Lowry Ave., Denver                                        |   | (1)(3)    |   | 129,439   |   | 246,000    |
| River      Point at Sheridan, Highway 77 and Highway 88, Sheridan                                       |   | (1)(2)(3) |   | 380,638   |   | 4,270,000  |
| Thorncreek      Crossing, Washington St. at 120th St., Thornton                                    |   | (1)       |   | 386,130   |   | 1,156,863  |
| Uintah Gardens,      NEC 19th St. at West Uintah, Colorado Springs                                 |   |      |   | 212,638   |   | 677,000    |
| Westminster Plaza,      North Federal Blvd. at 72nd Ave., Westminster                              |   | (1)       |   | 97,042    |   | 636,000    |
| Colorado,      Total                                                                                    |   |           |   | 3,135,456 |   | 12,571,197 |
| Florida                                                                                                 |   |      |   |      |   |       |
| Alafaya      Square, Alafaya Trail, Oviedo                                                              |   | (1)(3)    |   | 176,486   |   | 915,000    |
| Argyle Village,      Blanding at Argyle Forest Blvd., Jacksonville                                 |   |      |   | 304,447   |   | 1,329,000  |
| Boca      Lyons, Glades Rd. at Lyons Rd., Boca Raton                                                    |   |      |   | 113,689   |   | 545,000    |
| Clermont      Landing, U.S. 27 & Steve's Road                                                       |   | (1)(2)    |   | 144,019   |   | 2,289,949  |
| Colonial      Landing, East Colonial Dr. at Maguire Boulevard, Orlando                                  |   | (1)(2)    |   | 263,267   |   | 980,000    |
| Colonial Plaza,      E. Colonial Dr. at Primrose Dr., Orlando                                      |   |      |   | 496,628   |   | 2,009,000  |
| Countryside      Centre, US Highway 19 at Countryside Boulevard                                         |   |      |   | 242,123   |   | 906,440    |
| Curry      Ford, Young Pines and Curry Ford Rd, Orange County                                           |   | (2)       |   | 0         |   | 132,422    |
| East      Lake Woodlands, East Lake Road and Tampa Road,      Palm Harbor                          |   | (1)(3)    |   | 140,103   |   | 730,000    |
| Embassy Lakes,      Sheraton St. at Hiatus Rd., Cooper City                                   |   |      |   | 179,937   |   | 618,000    |
| Flamingo      Pines, Pines Blvd. at Flamingo Rd., Pembroke Pines                                        |   |      |   | 368,111   |   | 1,447,000  |
| Hollywood Hills Plaza,      Hollywood Blvd. at North Park Rd., Hollywood                      |   |      |   | 364,714   |   | 1,429,000  |
| Indian      Harbour Place, East Eau Gallie Boulevard,      Indian Harbour Beach               |   | (1)(3)    |   | 163,521   |   | 636,000    |
| International Drive Value Center,      International Drive and Touchstone Drive, Orlando |   | (1)(3)    |   | 185,664   |   | 985,000    |
| Kendall      Corners, Kendall Drive and SW 127th Avenue, Miami                                          |   | (1)(3)    |   | 96,515    |   | 365,000    |
| Lake      Washington Crossing, Wickham Rd. at Lake Washington Rd.,      Melbourne                       |   | (1)(3)    |   | 118,828   |   | 580,000    |
| Lake      Washington Square, Wickham Rd. at Lake Washington Rd.,      Melbourne                         |   |      |   | 111,811   |   | 688,000    |
| Largo      Mall, Ulmerton Rd. at Seminole Ave., Largo                                                   |   |      |   | 575,388   |   | 1,888,000  |

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| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Market      at Southside, Michigan Ave. at Delaney Ave., Orlando                                              |   |   |   | 159,835   |   | 349,000    |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|
| Marketplace      at Seminole Towne Center, Central Florida Greenway and Rinehart      Road, Sanford |   |   |   | 493,761   |   | 1,743,000  |
| Northridge,      E. Commercial Blvd. at Dixie Hwy., Oakland Park                                              |   |   |   | 236,170   |   | 901,000    |
| Palm Coast Center,      State Road 100 & Belle Terre Parkway, Palm Coast                   |   | (1)(2) |   | 303,146   |   | 1,384,772  |
| Palm Lakes Plaza,      Atlantic Boulevard and Rock Island Road, Maragate                            |   | (1)(3) |   | 116,402   |   | 550,000    |
| Paradise      Key at Kelly Plantation, US Highway 98 and Mid Bay Bridge Rd,      Destin                       |   | (1)(3) |   | 271,777   |   | 1,247,123  |
| Pembroke Commons,      University at Pines Blvd., Pembroke Pines                                         |   |   |   | 314,417   |   | 1,394,000  |
| Phillips      Crossing, Interstate 4 and Sand Lake Road, Orlando                                              |   | (2)    |   | 91,350    |   | 697,000    |
| Phillips      Landing, Turkey Lake Rd., Orlando                                                               |   | (2)    |   | 253,888   |   | 311,000    |
| Pineapple      Commons, Us Highway 1 and Britt Rd.                                                            |   | (1)(3) |   | 249,014   |   | 762,736    |
| Publix      at Laguna Isles, Sheridan St. at SW 196th Ave., Pembroke    Pines                                 |   |   |   | 69,475    |   | 400,000    |
| Quesada Commons,      Quesada Avenue and Toledo Blade Boulevard, Port Charlotte                          |   | (1)(3) |   | 58,890    |   | 312,000    |
| Shoppes      at Paradise Isle, 34940 Emerald Coast Pkwy, Destin                                               |   | (1)(3) |   | 171,837   |   | 764,000    |
| Shoppes      at Parkland, Hillsboro Boulevard at State Road #7,Parkland                                       |   |   |   | 145,652   |   | 905,000    |
| Shoppes      of Port Charlotte, Toledo Blade Boulevard and Tamiami Trail, Port      Charlotte                 |   | (1)(3) |   | 41,011    |   | 276,000    |
| South      Dade, South Dixie Highway and Eureka Drive, Miami                                                  |   | (1)(3) |   | 219,412   |   | 1,230,000  |
| Sunrise West Shopping      Center, West Commercial Drive and NW 91st Avenue, Sunrise                |   | (1)(3) |   | 76,321    |   | 540,000    |
| Sunset      19, US Hwy. 19 at Sunset Pointe Rd., Clearwater                                                   |   |   |   | 275,910   |   | 1,078,000  |
| Tamiami      Trail Shops, S.W. 8th St. at S.W. 137th Ave., Miami                                              |   |   |   | 110,867   |   | 515,000    |
| The      Marketplace at Dr. Phillips, Dr. Phillips Boulevard and Sand Lake Road,      Orlando                 |   | (1)(3) |   | 326,250   |   | 1,495,000  |
| The      Shoppes at South Semoran, Semoran Blvd. at Pershing Ave.                                             |   |   |   | 101,535   |   | 451,282    |
| TJ      Maxx Plaza, 117th Avenue at Sunset Blvd., Kendall                                                |   |   |   | 161,871   |   | 540,000    |
| University      Palms, Alafaya Trail at McCullough Rd., Oviedo                                                |   |   |   | 99,172    |   | 522,000    |
| Venice      Pines, Center Rd. at Jacaranda Blvd., Venice                                                      |   |   |   | 97,303    |   | 525,000    |
| Vizcaya      Square, Nob Hill Rd. at Cleary Blvd., Plantation                                                 |   |   |   | 112,410   |   | 521,000    |
| Westland Terrace Plaza,      SR 50 at Apopka Vineland Rd., Orlando                                  |   |   |   | 250,954   |   | 361,000    |
| Winter      Park Corners, Aloma Ave. at Lakemont Ave., Winter Park                                            |   |   |   | 102,397   |   | 400,000    |
| Florida,      Total                                                                                           |   |   |   | 8,956,278 |   | 38,647,724 |
| Georgia                                                                                                       |   |   |   |      |   |       |
| Brookwood      Marketplace, Peachtree Parkway at Mathis Airport Rd.,    Suwannee                              |   |   |   | 367,170   |   | 1,459,000  |
| Brookwood      Square, East-West Connector at Austell Rd., Austell                                            |   |   |   | 253,448   |   | 971,000    |
| Brownsville Commons,      Brownsville Road and Hiram-Lithia Springs Road, Powder    Springs              |   |   |   | 81,886    |   | 205,000    |
| Camp      Creek Marketplace II, Camp Creek Parkway and Carmla Drive,      Atlanta                             |   |   |   | 196,283   |   | 724,000    |
| Cherokee Plaza,      Peachtree Road and Colonial Drive, Atlanta                                          |   |   |   | 98,553    |   | 336,000    |
| Dallas      Commons, US Highway 278 and Nathan Dean Boulevard, Dallas                                         |   |   |   | 95,262    |   | 244,000    |
| Grayson Commons,      Grayson Hwy at Rosebud Rd., Grayson                                                |   |   |   | 76,611    |   | 507,383    |
| Lakeside      Marketplace, Cobb Parkway (US Hwy 41), Acworth                                                  |   |   |   | 321,688   |   | 736,000    |
| Mansell      Crossing, North Point Parkway at Mansell Rd                                                      |   | (1)(3) |   | 102,931   |   | 582,833    |
| Perimeter Village,      Ashford-Dunwoody Rd                                                              |   |   |   | 387,755   |   | 1,803,820  |
| Publix      at Princeton Lakes, Carmia Drive and Camp Creek Drive,      Atlanta                          |   |   |   | 68,389    |   | 336,000    |
| Reynolds      Crossing, Steve Reynolds and Old North Cross Rd., Duluth                                        |   |   |   | 115,983   |   | 407,000    |
| Roswell      Corners, Woodstock Rd. at Hardscrabble Rd., Roswell                                              |   |   |   | 318,499   |   | 784,000    |
| Sandy Plains      Exchange, Sandy Plains at Scufflegrit, Marietta                                   |   |   |   | 72,784    |   | 452,000    |
| South Fulton Town Center,      NWC South Fulton Parkway @ Hwy 92, Union City                   |   | (1)(2) |   | 178,601   |   | 3,554,000  |
| Thompson Bridge Commons,      Thompson Bridge Rd. at Mt. Vernon Rd., Gainesville                    |   |   |   | 78,351    |   | 540,000    |
| Georgia,      Total                                                                                           |   |        |   | 2,814,194 |   | 13,642,036 |
| Illinois                                                                                                      |   |   |   |      |   |       |
| Burbank      Station, S. Cicero Ave. at W. 78th St.                                                           |   |   |   | 303,566   |   | 1,013,380  |
| Illinois,      Total                                                                                          |   |        |   | 303,566   |   | 1,013,380  |

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Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Kansas                                                                                  |   |   |   |      |   |       |
|-----------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|
| Kohl's,      Wanamaker Rd. at S.W. 17th St., Topeka                                     |   |   |   | 115,716   |   | 444,000    |
| Shawnee Village,      Shawnee Mission Pkwy. at Quivera Rd., Shawnee                |   |   |   | 135,139   |   | 10,000     |
| Kansas,      Total                                                                      |   |   |   | 250,855   |   | 454,000    |
|                                                                                    |   |   |   |      |   |       |
| Kentucky                                                                                |   |   |   |      |   |       |
| Festival      at Jefferson Court, Outer Loop at Jefferson Blvd.,    Louisville          |   |   |   | 218,396   |   | 1,153,000  |
| Millpond Center,      Boston at Man O’War, Lexington                         |   |   |   | 151,567   |   | 773,000    |
| Regency      Shopping Centre, Nicholasville Rd.& West Lowry Lane,      Lexington    |   |   |   | 124,486   |   | 590,000    |
| Tates      Creek, Tates Creek at Man O’ War, Lexington                            |   |   |   | 179,450   |   | 660,000    |
| Kentucky,      Total                                                                    |   |        |   | 673,899   |   | 3,176,000  |
| Louisiana                                                                               |   |   |   |      |   |       |
| 14/Park Plaza,      Hwy. 14 at General Doolittle, Lake Charles                     |   |   |   | 172,068   |   | 535,000    |
| Ambassador Plaza,      Ambassador Caffery at W. Congress, Lafayette                |   |   |   | 101,950   |   | 34,915     |
| Conn's      Building, Ryan at 17th St., Lake Charles                                    |   |   |   | 23,201    |   | 36,000     |
| Danville Plaza,      Louisville at 19th, Monroe                                    |   |   |   | 141,380   |   | 539,000    |
| K-Mart Plaza,      Ryan St., Lake Charles                                          |   | (1)(3) |   | 215,948   |   | 126,000    |
| Manhattan      Place, Manhattan Blvd. at Gretna Blvd., Harvey                           |   |   |   | 263,615   |   | 894,000    |
| Orleans      Station, Paris, Robert E. Lee at Chatham, New Orleans                      |   |   |   | 0         |   | 31,000     |
| Park      Terrace, U.S. Hwy. 171 at Parish, DeRidder                                    |   |   |   | 131,127   |   | 520,000    |
| Prien Lake Plaza,      Prien Lake Rd. at Nelson Rd., Lake Charles             |   |   |   | 213,118   |   | 64,950     |
| River      Marketplace, Ambassador Caffery at Kaliste Saloom,    Lafayette              |   | (1)(3) |   | 342,968   |   | 1,029,415  |
| Seigen Plaza,      Siegen Lane at Honore Lane, Baton Rouge                         |   |   |   | 349,737   |   | 1,000,000  |
| Southgate,      Ryan at Eddy, Lake Charles                                              |   |   |   | 170,588   |   | 511,000    |
| Town      & Country Plaza, U.S. Hwy. 190 West, Hammond                              |   |   |   | 226,102   |   | 645,000    |
| University      Place, 70th St. at Youree Dr., Shreveport                               |   | (1)(3) |   | 395,272   |   | 1,078,431  |
| Westwood Village,      W. Congress at Bertrand, Lafayette                          |   |   |   | 141,346   |   | 942,000    |
| Louisiana,      Total                                                                   |   |        |   | 2,888,420 |   | 7,986,711  |
| Maine                                                                                   |   |   |   |      |   |       |
| The      Promenade, Essex at Summit, Lewiston                                           |   | (1)    |   | 205,034   |   | 962,667    |
| Maine,      Total                                                                       |   |        |   | 205,034   |   | 962,667    |
| Missouri                                                                                |   |   |   |      |   |       |
| Ballwin Plaza,      Manchester Rd. at Vlasis Dr., Ballwin                          |   |   |   | 200,915   |   | 653,000    |
| Western Plaza,      Hwy 141 at Hwy 30, Fenton                                      |   | (1)(3) |   | 56,534    |   | 654,000    |
| Missouri,      Total                                                                    |   |        |   | 257,449   |   | 1,307,000  |
| Nevada                                                                                  |   |   |   |      |   |       |
| Best      in the West, Rainbow at Lake Mead Rd., Las Vegas                              |   |   |   | 436,814   |   | 1,516,000  |
| Charleston Commons,      Charleston and Nellis, Las Vegas                          |   |   |   | 338,378   |   | 1,316,000  |
| College      Park S.C., E. Lake Mead Blvd. at Civic Ctr. Dr., North Las      Vegas |   |   |   | 167,654   |   | 721,000    |
| Decatur      215, Decatur at 215                                                        |   | (1)(2) |   | 0         |   | 1,103,810  |
| Eastern      Horizon, Eastern Ave. at  Horizon Ridge Pkwy.,      Henderson    |   |   |   | 210,287   |   | 478,000    |
| Francisco      Centre, E. Desert Inn Rd. at S. Eastern Ave., Las Vegas                  |   |   |   | 148,815   |   | 639,000    |
| Mission Center,      Flamingo Rd. at Maryland Pkwy, Las Vegas                      |   |   |   | 208,220   |   | 570,000    |
| Paradise      Marketplace, Flamingo Rd. at Sandhill, Las Vegas                          |   |   |   | 148,713   |   | 537,000    |
| Rainbow Plaza,      Phase I, Rainbow Blvd. at Charleston Blvd., Las Vegas          |   |   |   | 136,369   |   | 514,518    |
| Rainbow Plaza,      Rainbow Blvd. at Charleston Blvd., Las Vegas                   |   |   |   | 278,416   |   | 1,033,482  |
| Rancho      Towne & Country, Rainbow Blvd. at Charleston Blvd., Las      Vegas      |   |   |   | 87,367    |   | 350,000    |
| Tropicana      Beltway, Tropicana Beltway at Fort Apache Rd., Las Vegas                 |   |   |   | 640,749   |   | 1,466,000  |
| Tropicana      Marketplace, Tropicana at Jones Blvd., Las Vegas                         |   |   |   | 142,728   |   | 519,000    |
| Westland      Fair North, Charleston Blvd. At Decatur Blvd., Las Vegas                  |   |   |   | 576,202   |   | 2,344,000  |
| Nevada,      Total                                                                      |   |        |   | 3,520,712 |   | 13,107,810 |

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Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| New      Mexico                                                                                       |   |   |   |      |   |       |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|
| De      Vargas, N. Guadalupe at Paseo de Peralta, Santa Fe                                            |   |   |   | 312,421   |   | 795,000    |
| Eastdale,      Candelaria Rd. at Eubank Blvd., Albuquerque                                            |   |   |   | 117,623   |   | 601,000    |
| North Towne Plaza,      Academy Rd. at Wyoming Blvd., Albuquerque                           |   |   |   | 104,034   |   | 607,000    |
| Pavillions      at San Mateo, I-40 at San Mateo, Albuquerque                                          |   |   |   | 195,944   |   | 791,000    |
| Plaza      at Cottonwood, Coors Bypass Blvd. at Seven Bar Loop Rd.,      Albuquerque                  |   |   |   | 418,322   |   | 386,000    |
| Wyoming      Mall, Academy Rd. at Northeastern, Albuquerque                                           |   |   |   | 270,271   |   | 1,309,000  |
| New      Mexico, Total                                                                                |   |        |   | 1,418,615 |   | 4,489,000  |
| North      Carolina                                                                                   |   |   |   |      |   |       |
| Avent      Ferry, Avent Ferry Rd. at Gorman St., Raleigh                                              |   |   |   | 111,650   |   | 669,000    |
| Bull City      Market, Broad St. at West Main St., Durham                                        |   |   |   | 42,517    |   | 112,000    |
| Capital      Square, Capital Blvd. at Huntleigh Dr., Cary                                             |   |   |   | 143,063   |   | 607,000    |
| Chatham Crossing,      US 15/501 at Plaza Dr., Chapel Hill                                       |   | (1)(3) |   | 96,155    |   | 424,000    |
| Cole      Park Plaza, US 15/501 and Plaza Dr., Chapel Hill                                            |   | (1)(3) |   | 82,258    |   | 380,000    |
| Durham      Festival, Hillsborough Rd. at LaSalle St., Durham                                         |   |   |   | 134,295   |   | 487,000    |
| Falls      Pointe, Neuce Rd. at Durant Rd., Raleigh                                                   |   |   |   | 193,331   |   | 659,000    |
| Galleria,      Galleria Boulevard and Sardis Road, Charlotte                                          |   |   |   | 328,144   |   | 799,000    |
| Harrison      Pointe, Harrison Ave. at Maynard Rd., Cary                                              |   |   |   | 130,934   |   | 1,343,000  |
| Heritage      Station, Forestville Rd. at Rogers Rd., Wake Forest                                |   |   |   | 68,778    |   | 392,000    |
| High      House Crossing, NC Hwy 55 at Green Level W. Rd., Cary                                       |   |   |   | 89,997    |   | 606,000    |
| Johnston Road Plaza,      Johnston Rd. at McMullen Creek Pkwy., Charlotte                   |   |   |   | 79,508    |   | 466,000    |
| Leesville Town      Centre, Leesville Rd. at Leesville Church Rd., Raleigh                       |   |   |   | 112,615   |   | 904,000    |
| Little      Brier Creek, Little Brier Creek Lane and Brier Leaf Lane,      Raleigh                    |   |   |   | 63,011    |   | 90,000     |
| Lynnwood      Collection, Creedmoor Rd at Lynn Road, Raleigh                                          |   |   |   | 86,362    |   | 429,000    |
| Mineral Springs Village,      Mineral Springs Rd. at Wake Forest Rd., Durham                |   |   |   | 59,859    |   | 572,000    |
| Northwoods      Market, Maynard Rd. at Harrison Ave., Cary                                            |   |   |   | 77,802    |   | 431,000    |
| Parkway      Pointe, Cory Parkway at S. R. 1011, Cary                                                 |   |   |   | 80,061    |   | 461,000    |
| Pinecrest Plaza,      Hwy. 15-501 at Morganton Rd., Pinehurst                                    |   |   |   | 250,140   |   | 1,438,000  |
| Ravenstone Commons,      Hwy 98 at Sherron Rd., Durham                                           |   |   |   | 60,424    |   | 374,000    |
| Six      Forks Station, Six Forks Rd. at Strickland Rd., Raleigh                                      |   |   |   | 469,780   |   | 1,843,000  |
| Southern      Pines, U.S. 15-501 and Bruce Wood Rd, Southern Pines                                    |   | (2)    |   | 0         |   | 1,047,000  |
| Steele      Creek Crossing, York Rd. at Steele Creek Rd., Charlotte                                   |   |   |   | 77,301    |   | 491,000    |
| Stonehenge      Market, Creedmoor Rd. at Bridgeport Dr., Raleigh                                      |   |   |   | 188,521   |   | 669,000    |
| Surf City      Crossing, Highway 17 and Highway 210, Surf City                              |   | (2)    |   | 48,756    |   | 2,538,476  |
| Waterford      Village, US Hwy 17 & US Hwy 74/76, Leland                                          |   | (1)(2) |   | 52,781    |   | 1,264,000  |
| Whitehall Commons,      NWC of Hwy. 49 at I-485, Charlotte                                       |   |   |   | 444,596   |   | 360,000    |
| North      Carolina, Total                                                                            |   |        |   | 3,572,639 |   | 19,855,476 |
| Oklahoma                                                                                              |   |   |   |      |   |       |
| Market      Boulevard , E. Reno Ave. at N. Douglas Ave., Midwest City                                 |   |   |   | 35,765    |   | 142,000    |
| Town      and Country, Reno Ave at North Air Depot, Midwest City                                      |   |   |   | 135,892   |   | 540,000    |
| Oklahoma,      Total                                                                                  |   |        |   | 171,657   |   | 682,000    |
| Oregon                                                                                                |   |   |   |      |   |       |
| Clackamas      Square, SE 82nd Avenue and SE Causey Avenue, Portland                                  |   | (1)(3) |   | 136,739   |   | 215,000    |
| Oak Grove Market Center,      SE Mcloughlin Blvd & Oak Grove Ave                   |   |   |   | 97,207    |   | 292,288    |
| Raleigh Hills Plaza,      SW Beaverton-Hillsdale Hwy and SW Scholls Ferry Road,    Portland |   | (1)(3) |   | 39,520    |   | 165,000    |
| Oregon,      Total                                                                                    |   |        |   | 273,466   |   | 672,288    |
| South      Carolina                                                                                   |   |   |   |      |   |       |
| Fresh      Market Shoppes, 890 William Hilton Head Pkwy, Hilton Head                                  |   | (1)(3) |   | 86,120    |   | 436,000    |
| South      Carolina, Total                                                                            |   |        |   | 86,120    |   | 436,000    |

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Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Tennessee                                                                             |   |      |   |    |   |      |
|---------------------------------------------------------------------------------------|--------|-----------|--------|---------|--------|-----------|
| Bartlett Towne Center,      Bartlett Blvd. at Stage Rd., Bartlett           |   |      |   | 179,364 |   | 774,000   |
| Commons      at Dexter Lake Phase II, Dexter at N. Germantown,    Memphis        |   |      |   | 61,538  |   | 272,792   |
| Commons      at Dexter Lake, Dexter at N. Germantown, Memphis                    |   |      |   | 166,958 |   | 740,208   |
| Highland      Square, Summer at Highland, Memphis                                     |   |      |   | 14,490  |   | 84,000    |
| Mendenhall Commons,      South Mendenahall Rd. and Sanderlin Avenue, Memphis     |   |      |   | 80,206  |   | 250,000   |
| Ridgeway      Trace, Memphis                                                          |   | (2)       |   | 137,740 |   | 275,915   |
| Summer Center,      Summer Ave. at Waring Rd., Memphis                           |   |      |   | 148,708 |   | 560,000   |
| Tennessee,      Total                                                            |   |      |   | 789,004 |   | 2,956,915 |
| Texas                                                                                 |   |      |   |    |   |      |
| 10/Federal,      I-10 at Federal                                                      |   |      |   | 132,472 |   | 474,000   |
| Alabama-Shepherd,      S. Shepherd at W. Alabama                                      |   |      |   | 56,110  |   | 176,000   |
| Angelina Village,      Hwy. 59 at Loop 287, Lufkin                               |   |      |   | 256,940 |   | 1,835,000 |
| Bayshore Plaza,      Spencer Hwy. at Burke Rd.                                   |   |      |   | 121,966 |   | 196,000   |
| Bell Plaza,      45th Ave. at Bell St., Amarillo                                 |   |      |   | 130,529 |   | 682,000   |
| Bellaire      Boulevard, Bellaire at S. Rice                                          |   |      |   | 35,081  |   | 137,000   |
| Boswell Towne Center,      Highway 287 at Bailey Boswell Rd., Saginaw       |   |      |   | 87,835  |   | 137,000   |
| Braeswood      Square, N. Braeswood at Chimney Rock                                   |   |      |   | 103,336 |   | 422,000   |
| Broadway      , Broadway at 59th St., Galveston                                       |   |      |   | 74,477  |   | 220,000   |
| Broadway,      S. Broadway at W. 9th St., Tyler                                       |   |      |   | 60,400  |   | 259,000   |
| Brodie      Oaks, South Lamar Blvd. at Loop 360, Austin                               |   |      |   | 335,942 |   | 1,050,000 |
| Calder,      Calder at 24th St., Beaumont                                             |   |      |   | 34,641  |   | 95,000    |
| Cedar      Bayou, Bayou Rd., La Marque                                                |   |      |   | 45,561  |   | 51,000    |
| Central Plaza,      Loop 289 at Slide Rd., Lubbock                               |   |      |   | 151,196 |   | 529,000   |
| Centre      at Post Oak, Westheimer at Post Oak Blvd.                                 |   |      |   | 182,070 |   | 505,000   |
| Champions Village,  F.M.      1960 at Champions Forest Dr.             |   |      |   | 383,779 |   | 1,391,000 |
| Coronado,      34th St. at Wimberly Dr., Amarillo                                     |   |      |   | 46,829  |   | 201,000   |
| Crestview,      Bissonnet at Wilcrest                                                 |   |      |   | 8,970   |   | 35,000    |
| Crossroads,      I-10 at N. Main, Vidor                                               |   |      |   | 115,692 |   | 484,000   |
| Cullen      Place, Cullen at Reed                                                     |   |      |   | 7,316   |   | 30,000    |
| Cullen Plaza,      Cullen at Wilmington                                          |   |      |   | 84,517  |   | 318,000   |
| Custer Park,      SWC Custer Road at Parker Road, Plano                          |   |      |   | 180,568 |   | 376,000   |
| Cypress      Pointe, F.M. 1960 at Cypress Station                                     |   |      |   | 287,364 |   | 737,000   |
| Eastpark,      Mesa Rd. at Tidwell                                                    |   |      |   | 114,373 |   | 664,000   |
| Edgebrook,      Edgebrook at Gulf Fwy.                                                |   |      |   | 78,324  |   | 360,000   |
| Fiesta      Trails, I-10 at DeZavala Rd., San Antonio                                 |   |      |   | 488,370 |   | 1,589,000 |
| Fiesta Village,      Quitman at Fulton                                           |   |      |   | 30,249  |   | 80,000    |
| Fondren/West      Airport, Fondren at W. Airport                                      |   |      |   | 56,593  |   | 223,000   |
| Food      King Place, 25th St. at Avenue P, Galveston                                 |   |      |   | 28,062  |   | 78,000    |
| Galveston      Place, Central City Blvd. at 61st St., Galveston                       |   |      |   | 210,187 |   | 828,000   |
| Gateway      Station, I-35W and McAlister Rd., Burleson                               |   | (1)(2)    |   | 30,000  |   | 344,286   |
| Gillham      Circle, Gillham Circle at Thomas, Port Arthur                            |   |      |   | 33,134  |   | 94,000    |
| Glenbrook      Square, Telephone Road                                                 |   |      |   | 76,483  |   | 320,000   |
| Griggs      Road, Griggs at Cullen                                                    |   |      |   | 80,114  |   | 382,000   |
| Harrisburg Plaza,      Harrisburg at Wayside                                     |   |      |   | 93,438  |   | 334,000   |
| Heights Plaza,      20th St. at Yale                                             |   |      |   | 71,777  |   | 228,000   |
| Horne      Street Market, I-30 & Horne Street, Fort Worth                         |   | (2)       |   | 0       |   | 223,463   |
| Humblewood      Shopping Plaza, Eastex Fwy. at F.M. 1960                              |   |      |   | 277,837 |   | 784,000   |
| I-45/Telephone      Rd. Center, I-45 at Maxwell Street                                |   |      |   | 172,609 |   | 819,000   |
| Independence Plaza,      Town East Blvd., Mesquite                               |   |      |   | 179,182 |   | 787,000   |
| Island      Market Place, 6th St. at 9th Ave., Texas City                             |   |      |   | 27,277  |   | 90,000    |
| Jacinto City,      Market at Baca                                                |   | (1)       |   | 49,138  |   | 134,000   |
| Killeen      Marketplace, 3200 E. Central Texas Expressway, Killeen                   |   |      |   | 251,137 |   | 512,000   |
| Lake Pointe Market Center,      Dalrock Rd. at Lakeview Pkwy., Rowlett |   |      |   | 124,036 |   | 218,158   |
| Las      Tiendas Plaza, Expressway 83 at McColl Rd., McAllen                     |   | (1)(3)    |   | 530,067 |   | 910,000   |
| Lawndale,      Lawndale at 75th St.                                                   |   |      |   | 51,393  |   | 177,000   |
| League      City Plaza, I-45 at F.M. 518, League City                            |   |      |   | 126,990 |   | 680,000   |
| Little      York Plaza, Little York at E. Hardy                                  |   |      |   | 117,353 |   | 483,000   |
| Lone      Star Pavilions, Texas at Lincoln Ave., College Station                      |   |      |   | 106,907 |   | 439,000   |
| Lyons      Avenue, Lyons at Shotwell                                                  |   |      |   | 67,629  |   | 178,000   |
| Market      at Nolana, Nolana Ave and 29th St., McAllen                               |   | (1)(2)(3) |   | 222,248 |   | 508,000   |
| Market      at Sharyland Place, U.S. Expressway 83 and Shary Road,    Mission         |   | (1)(2)(3) |   | 91,411  |   | 543,000   |

----

Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Market      at Town Center, Town Center Blvd., Sugar Land                                |   |      |   | 375,820 |   | 1,733,000 |
|----------------------------------------------------------------------------------------------------|--------|-----------|--------|---------|--------|-----------|
| Market      at Westchase, Westheimer at Wilcrest                                                   |   |      |   | 84,084  |   | 318,000   |
| Montgomery Plaza,      Loop 336 West at I-45, Conroe                                          |   |      |   | 296,837 |   | 1,179,000 |
| Moore Plaza,      S. Padre Island Dr. at Staples, Corpus Christi                              |   |      |   | 533,577 |   | 1,491,000 |
| New      Boston Road, New Boston at Summerhill, Texarkana                                          |   |      |   | 97,000  |   | 335,000   |
| North      Creek Plaza, Del Mar Blvd. at Hwy. I-35, Laredo                                         |   |      |   | 448,756 |   | 1,251,000 |
| North      Main Square, Pecore at N. Main                                                          |   |      |   | 18,515  |   | 64,000    |
| North      Oaks, F.M. 1960 at Veterans Memorial                                                    |   |      |   | 417,279 |   | 1,646,000 |
| North      Park Plaza, Eastex Fwy. at Dowlen, Beaumont                                        |   | (1)(3)    |   | 281,401 |   | 636,000   |
| North      Sharyland Towne Crossing, Shary Rd. at North Hwy. 83,    Mission                        |   | (1)(2)(3) |   | 0       |   | 966,000   |
| North      Towne Plaza, U.S. 77 and 83 at SHFM 802, Brownsville                                    |   | (1)(2)    |   | 117,000 |   | 1,258,551 |
| North      Triangle , I-45 at F.M. 1960                                                            |   |      |   | 16,060  |   | 113,000   |
| Northbrook Center,      Northwest Fwy. at W. 34th                                             |   |      |   | 172,479 |   | 655,000   |
| Northcross,      N. 10th St. at Nolana Loop, McAllen                                               |   | (1)(3)    |   | 76,391  |   | 218,000   |
| Northway,      Northwest Fwy. at 34th                                                              |   |      |   | 217,136 |   | 793,000   |
| Northwest      Crossing, N.W. Fwy. at Hollister                                                    |   | (1)(3)    |   | 304,064 |   | 884,000   |
| Oak      Forest, W. 43rd at Oak Forest                                                             |   |      |   | 147,674 |   | 541,000   |
| Oak      Park Village, Nacogdoches at New Braunfels, San    Antonio                           |   |      |   | 64,287  |   | 221,000   |
| Old Navy Building,      1815 10th Street, McAllen                                        |   | (1)(3)    |   | 15,000  |   | 62,000    |
| Orchard      Green, Gulfton at Renwick                                                             |   |      |   | 74,983  |   | 273,000   |
| Overton Park Plaza,      SW Loop 820/Interstate 20 at South Hulen St.,    Ft. Worth |   |      |   | 463,302 |   | 1,636,000 |
| Palmer Plaza,      F.M. 1764 at 34th St., Texas City                                          |   |      |   | 196,506 |   | 367,000   |
| Parliament      Square II, W. Ave. at Blanco, San Antonio                                          |   |      |   | 54,541  |   | 220,919   |
| Parliament      Square, W. Ave. at Blanco, San Antonio                                             |   |      |   | 64,950  |   | 263,081   |
| Phelan      West, Phelan at 23rd St., Beaumont                                                     |   | (1)(3)    |   | 82,221  |   | 88,509    |
| Phelan,      Phelan at 23rd St, Beaumont                                                           |   |      |   | 12,000  |   | 63,000    |
| Pitman      Corners, Custer Road at West 15th, Plano                                               |   |      |   | 192,283 |   | 699,000   |
| Plantation      Centre, Del Mar Blvd. at McPherson Rd., Laredo                                     |   |      |   | 134,919 |   | 596,000   |
| Portairs,      Ayers St. at Horne Rd., Corpus Christi                                              |   |      |   | 118,233 |   | 416,000   |
| Preston      Shepard Place, Preston Rd. at Park Blvd.                                              |   | (1)(3)    |   | 363,337 |   | 1,359,072 |
| Randall's      /Cypress Station, F.M. 1960 at I-45                                                 |   |      |   | 138,974 |   | 618,000   |
| Randall's      /Kings Crossing, Kingwood Dr. at Lake Houston Pkwy.                                 |   |      |   | 127,525 |   | 624,000   |
| Randall's      /Norchester, Grant at Jones                                                         |   |      |   | 107,200 |   | 475,000   |
| Richmond      Square, Richmond Ave. at W. Loop 610                                                 |   |      |   | 93,870  |   | 135,000   |
| River      Oaks East, W. Gray at Woodhead                                                          |   |      |   | 71,265  |   | 206,000   |
| River      Oaks West, W. Gray at S. Shepherd                                                       |   |      |   | 234,198 |   | 609,000   |
| River      Pointe, I-45 at Loop 336, Conroe                                                        |   |      |   | 189,703 |   | 310,000   |
| Rockwall,      I-30 at Market Center Street, Rockwall                                              |   |      |   | 209,051 |   | 933,000   |
| Rose-Rich,      U.S. Hwy. 90A at Lane Dr., Rosenberg                                               |   |      |   | 103,385 |   | 386,000   |
| Sharyland      Towne Crossing, Shary Rd. at Hwy. 83, Mission                                       |   | (1)(2)(3) |   | 343,583 |   | 2,008,000 |
| Sheldon Forest      North , North, I-10 at Sheldon                                            |   |      |   | 22,040  |   | 131,000   |
| Sheldon Forest      South , North, I-10 at Sheldon                                            |   | (1)       |   | 75,340  |   | 328,000   |
| Shops      at Three Corners, S. Main at Old Spanish Trail                                          |   | (1)       |   | 252,140 |   | 1,007,143 |
| South      10th St. HEB, S. 10th St. at Houston St., McAllen                                       |   | (1)(3)    |   | 103,702 |   | 368,000   |
| Southcliff,      I-20 at Grandbury Rd., Ft. Worth                                             |   |      |   | 115,827 |   | 568,000   |
| Southgate,      Calder Ave. at 6th St., Beaumont                                                   |   |      |   | 33,555  |   | 118,000   |
| Southgate,      W. Fuqua at Hiram Clark                                                            |   |      |   | 125,440 |   | 533,000   |
| Spring Plaza,      Hammerly at Campbell                                                       |   |      |   | 56,166  |   | 202,000   |
| Starr      Plaza, U.S. Hwy. 83 at Bridge St., Rio Grande City                                      |   | (1)(2)(3) |   | 176,812 |   | 742,000   |
| Steeplechase,      Jones Rd. at F.M. 1960                                                          |   |      |   | 294,501 |   | 849,000   |
| Stella      Link , Stella Link at S. Braeswood                                                     |   |      |   | 96,396  |   | 423,588   |
| Stevens      Ranch, NEC SH 211 and Potranco Road, San Antonio                                      |   | (1)(2)    |   | 0       |   | 8,656,243 |
| Studemont,      Studewood at E. 14th St                                                            |   |      |   | 28,466  |   | 91,000    |

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Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Ten      Blalock Square, I-10 at Blalock                                                                        |   |      |   | 97,217     |   | 321,000    |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------|--------|------------|--------|------------|
| Thousand      Oaks, Thousand Oaks Dr. at Jones Maltsberger Rd., San    Antonio                                  |   |      |   | 162,882    |   | 730,000    |
| Tomball      Marketplace, FM 2920 and Future 249, Tomball                                                       |   | (2)       |   | 85,000     |   | 2,431,000  |
| Town      and Country, 4th St. at University, Lubbock                                                           |   |      |   | 30,743     |   | 339,000    |
| Valley      View, West Ave. at Blanco Rd., San Antonio                                                          |   |      |   | 89,859     |   | 341,000    |
| Village      Arcade, University at Kirby                                                                        |   |      |   | 57,219     |   | 276,503    |
| Village      Arcade-Phase II     , University at      Kirby                            |   |      |   | 28,371     |   | 60,099     |
| Village      Arcade-Phase III, University at Kirby                                                              |   |      |   | 106,879    |   | 231,156    |
| Westchase Center,      Westheimer at Wilcrest                                                              |   |      |   | 332,544    |   | 754,000    |
| Westhill Village,      Westheimer at Hillcroft                                                             |   |      |   | 130,562    |   | 479,000    |
| Westmont,      Dowlen at Phelan, Beaumont                                                                       |   |      |   | 98,071     |   | 507,000    |
| Westover      Square, 151 and Ingram, San Antonio                                                               |   | (1)(2)    |   | 0          |   | 369,741    |
| Westwood Center,      Culebra Road and Westwood Loop, San Antonio                                          |   | (2)       |   | 5,000      |   | 1,262,177  |
| Wolflin Village,      Wolflin Ave. at Georgia St., Amarillo                                                |   |      |   | 193,284    |   | 421,000    |
| Texas,      Total                                                                                               |   |           |   | 16,567,314 |   | 72,539,689 |
| Utah                                                                                                            |   |      |   |       |   |       |
| Alpine      Valley Center, Main St. at State St., American Fork                                            |   | (1)(3)    |   | 224,654    |   | 447,045    |
| Taylorsville Town Center,      West 4700 South at Redwood Rd., Taylorsville                           |   |      |   | 134,214    |   | 399,000    |
| West      Jordan Town Center, West 7000 South at S. Redwood Rd., West      Jordan                     |   |      |   | 304,899    |   | 814,000    |
| Utah,      Total                                                                                                |   |           |   | 663,767    |   | 1,660,045  |
| Washington                                                                                                      |   |      |   |       |   |       |
| Meridian Town Center,      Meridian Avenue East and 132nd Street East, Puyallup                       |   | (1)(3)    |   | 143,012    |   | 535,000    |
| Mukilteo Speedway Center,      Mukilteo Speedway, Lincoln Way, and Highway 99, Lynnwood               |   | (1)(3)    |   | 90,273     |   | 355,000    |
| Rainer Square Plaza,      Rainer Avenue South and South Charleston Street, Seattle                    |   | (1)(3)    |   | 107,423    |   | 345,000    |
| South Hill Center,      43rd Avenue Southwest and Meridian Street South, Puyallup                     |   | (1)(3)    |   | 134,020    |   | 515,000    |
| Village      at Liberty Lake, E. Country Vista Dr. at N. Liberty Rd.,      Liberty Lake               |   | (1)(2)(3) |   | 132,874    |   | 112,088    |
| Washington,      Total                                                                                          |   |           |   | 607,602    |   | 1,862,088  |
| Industrial                                                                                                 |   |      |   |       |   |       |
| California                                                                                                      |   |      |   |       |   |       |
| Siempre Viva Business Park,      Siempre Viva Rd. at Kerns St., San Diego                        |   | (1)(3)    |   | 726,766    |   | 1,760,000  |
| California,      Total                                                                                          |   |           |   | 726,766    |   | 1,760,000  |
| Florida                                                                                                         |   |      |   |       |   |       |
| 1801      Massaro, 1801 Massaro Blvd., Tampa                                                                    |   |      |   | 159,000    |   | 337,000    |
| Hopewell Industrial Center,      Old Hopewell Boulevard and U.S. Highway 301, Tampa                   |   |      |   | 224,483    |   | 486,000    |
| Lakeland Industrial Center,      I-4 at County Rd., Lakeland                                          |   |      |   | 600,000    |   | 1,535,000  |
| Lakeland Interestate Industrial      Park I, Interstate Drive and Kathleen Rd., Lakeland              |   |      |   | 168,400    |   | 425,000    |
| Tampa      East Industrial Portfolio, 1841 Massaro Blvd., Tampa                                                 |   |      |   | 512,923    |   | 1,342,000  |
| Florida,      Total                                                                                             |   |           |   | 1,664,806  |   | 4,125,000  |
| Georgia                                                                                                         |   |      |   |       |   |       |
| 6485      Crescent Drive, I-85 at Jimmy Carter Blvd., Norcross                                                  |   | (1)(3)    |   | 360,460    |   | 965,000    |
| Atlanta Industrial      Park , Atlanta Industrial Pkwy. at Atlanta Industrial Dr.,      Atlanta            |   |      |   | 120,200    |   | 381,918    |
| Atlanta Industrial      Park II & VI, Atlanta Industrial Pkwy. at Atlanta Industrial Dr.,      Atlanta |   |      |   | 382,100    |   | 1,214,068  |
| Atlanta      Industrial Parkway, Atlanta Industrial Pkwy. at Atlanta Industrial Dr.,      Atlanta               |   |      |   | 50,000     |   | 159,014    |
| Kennesaw      75, 3850-3900 Kennesaw Prkwy, Kennesaw                                                            |   |      |   | 178,467    |   | 491,000    |
| Riverview Distribution Center,      Fulton Industrial Blvd. at Camp Creek Parkway                     |   |      |   | 265,200    |   | 1,301,791  |
| Sears      Logistics, 3700 Southside Industrial Way, Atlanta                                                    |   | (1)(3)    |   | 402,554    |   | 890,000    |
| South      Park 3075, Anvil Block Rd and SouthPark Blvd, Atlanta                                                |   |      |   | 234,525    |   | 1,022,292  |
| Southside      Industrial Parkway, Southside Industrial Pkwy at Jonesboro Rd.,      Atlanta                     |   |      |   | 72,000     |   | 242,000    |
| Westlake      125, Camp Creek Parkway and Westlake Parkway, Atlanta                                             |   |      |   | 154,464    |   | 422,048    |
| Georgia,      Total                                                                                             |   |           |   | 2,219,970  |   | 7,089,131  |
| Tennessee                                                                                                       |   |      |   |       |   |       |
| Crowfarn      Drive Warehouse, Crowfarn Dr. at Getwell Rd., Memphis                                             |   | (1)(3)    |   | 158,849    |   | 315,000    |
| Outland Business Center,      Outland Center Dr., Memphis                                             |   | (1)(3)    |   | 410,138    |   | 1,215,000  |

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Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Southpoint      I & II, Pleasant Hill Rd. at Shelby Dr., Memphis                          |   |   |   | 570,940   |   | 1,127,000 |
|-----------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|-----------|
| Tennessee,      Total                                                                         |   |        |   | 1,139,927 |   | 2,657,000 |
| Texas                                                                                         |   |   |   |      |   |      |
| 1625      Diplomat Drive, SWC Diplomat Dr. at McDaniel Dr.,    Carrollton                     |   |   |   | 106,140   |   | 199,000   |
| 610      and 11th St. Warehouse, Loop 610 at 11th St.                                         |   | (1)(3) |   | 243,642   |   | 540,000   |
| 610      and 11th St. Warehouse, Loop 610 at 11th St.                                         |   |   |   | 104,975   |   | 202,000   |
| 610/288      Business Park , Cannon Street                                               |   | (1)(3) |   | 295,426   |   | 480,000   |
| Beltway      8 Business Park, Beltway 8 at Petersham Dr.                                 |   |   |   | 157,498   |   | 499,000   |
| Blankenship Building,      Kempwood Drive                                                |   |   |   | 59,729    |   | 175,000   |
| Braker      2 Business Center, Kramer Ln. at Metric Blvd., Austin                        |   |   |   | 27,359    |   | 93,000    |
| Brookhollow Business Center,      Dacoma at Directors Row                           |   |   |   | 133,553   |   | 405,000   |
| Central      Park Northwest VI, Central Pkwy. at Dacoma                                       |   |   |   | 175,348   |   | 518,000   |
| Central      Park Northwest VII, Central Pkwy. at Dacoma                                      |   |   |   | 103,602   |   | 283,000   |
| Central Plano Business Park,      Klein Rd. at Plano Pkwy., Plano              |   |   |   | 137,785   |   | 415,000   |
| Claywood Industrial      Park, Clay at Hollister                                         |   |   |   | 390,141   |   | 1,761,000 |
| Corporate      Center Park I and II, Putnam Dr. at Research Blvd.,      Austin           |   |   |   | 119,452   |   | 326,000   |
| Crosspoint      Warehouse, Crosspoint                                                         |   |   |   | 72,505    |   | 179,000   |
| Freeport Business Center,      13215 N. Promenade Blvd., Stafford                   |   |   |   | 251,385   |   | 635,000   |
| Freeport Commerce Center,      Sterling Street and Statesman Drive, Irving          |   |   |   | 50,590    |   | 196,000   |
| Houston      Cold Storage Warehouse, 7080 Express Lane                                        |   |   |   | 128,752   |   | 345,189   |
| Interwest Business Park,      Alamo Downs Parkway, San Antonio                      |   |   |   | 219,245   |   | 742,000   |
| Isom Business Park,      919-981 Isom Road, San Antonio                             |   |   |   | 175,200   |   | 462,000   |
| Jester Plaza Office Service Center,      West T.C. Jester                 |   |   |   | 100,605   |   | 244,000   |
| Jupiter Service Center,      Jupiter near Plano Pkwy., Plano                        |   |   |   | 78,480    |   | 234,000   |
| Kempwood      Industrial, Kempwood Dr. at Blankenship Dr.                                     |   |   |   | 113,218   |   | 327,000   |
| Kempwood      Industrial, Kempwood Dr. at Blankenship Dr.                                     |   | (1)(3) |   | 219,489   |   | 530,000   |
| Lathrop      Warehouse, Lathrop St. at Larimer St.                                            |   | (1)(3) |   | 251,890   |   | 435,000   |
| Manana Office Center,      I-35 at Manana, Dallas                                   |   |   |   | 223,128   |   | 470,000   |
| McGraw Hill Distribution Center,      420 E. Danieldale Rd, DeSoto             |   |   |   | 417,938   |   | 888,000   |
| Midpoint      I-20 Distribution Center, New York Avenue and Arbrook Boulevard,      Arlington |   |   |   | 253,165   |   | 593,000   |
| Midway Business Center,      Midway at Boyington, Carrollton                        |   |   |   | 141,246   |   | 309,000   |
| Navigation Business Park,      Navigation at N. York                                |   | (1)(3) |   | 238,321   |   | 555,000   |
| Newkirk Service Center,      Newkirk near N.W. Hwy., Dallas                         |   |   |   | 105,892   |   | 223,000   |
| Northeast      Crossing Office/Service Center, East N.W. Hwy. at Shiloh,      Dallas          |   |   |   | 78,700    |   | 199,000   |
| Northway      Park II, Loop 610 East at Homestead                                             |   | (1)(3) |   | 303,483   |   | 745,000   |
| Northwest      Crossing Office/Service Center, N.W. Hwy. at Walton Walker,      Dallas        |   |   |   | 126,984   |   | 290,000   |
| Oak Hills Industrial      Park, Industrial Oaks Blvd., Austin                       |   |   |   | 89,858    |   | 340,000   |
| O'Connor      Road Business Park, O’Connor Road, San Antonio                  |   |   |   | 150,091   |   | 459,000   |
| Railwood      F, Market at U.S. 90                                                            |   | (1)(3) |   | 300,000   |   | 560,000   |
| Railwood Industrial      Park, Mesa at U.S. 90                                           |   | (1)(3) |   | 497,656   |   | 1,060,000 |
| Railwood Industrial      Park, Mesa at U.S. 90                                           |   |   |   | 402,680   |   | 1,141,764 |
| Randol      Mill Place, Randol Mill Road, Arlington                                           |   |   |   | 54,639    |   | 178,000   |
| Redbird Distribution Center,      Joseph Hardin Drive, Dallas                       |   |   |   | 110,839   |   | 233,000   |
| Regal      Distribution Center, Leston Avenue, Dallas                                    |   |   |   | 202,559   |   | 318,000   |
| Rutland      10 Business Center, Metric Blvd. At Centimeter Circle,      Austin          |   |   |   | 54,000    |   | 139,000   |
| Sherman Plaza Business Park,      Sherman at Phillips, Richardson              |   |   |   | 101,137   |   | 312,000   |
| South Loop Business Park,      S. Loop at Long Dr.                             |   | (1)(3) |   | 92,450    |   | 206,000   |
| Southpark      A,B,C, East St. Elmo Rd. at Woodward St., Austin                               |   |   |   | 78,276    |   | 238,000   |
| Southpoint Service Center,      Burleson at Promontory Point Dr., Austin            |   |   |   | 57,667    |   | 234,000   |
| Southport Business Park      5, South Loop 610                                      |   |   |   | 160,653   |   | 358,000   |
| Southwest Park      II Service Center, Rockley Road                                 |   |   |   | 67,700    |   | 216,000   |
| Space Center Industrial      Park, Pulaski St. at Irving Blvd., Dallas              |   |   |   | 264,582   |   | 426,000   |
| Stonecrest Business Center,      Wilcrest at Fallstone                              |   |   |   | 110,641   |   | 308,000   |
| Town      & Country Commerce Center, I-10 at Beltway 8                          |   |   |   | 206,000   |   | 0         |

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Table of Contents

| Center      and Location |   | Building |   | Land |
|--------------------------|--------|----------|--------|------|
|                     |   | Area     |   | Area |

| Wells  Branch      Corporate Center, Wells Branch Pkwy., Austin                      |   |   |   | 59,144    |   | 183,000    |
|------------------------------------------------------------------------------------------------|--------|--------|--------|-----------|--------|------------|
| West      10 Business Center II, Wirt Rd. at I-10                                              |   |   |   | 82,658    |   | 147,000    |
| West Loop Commerce Center,      W. Loop N. at I-10                              |   |   |   | 34,256    |   | 91,000     |
| West-10      Business Center, Wirt Rd. at I-10                                            |   |   |   | 102,087   |   | 331,000    |
| Westgate Service Center,      Park Row Drive at Whiteback Dr.                        |   |   |   | 119,786   |   | 499,000    |
| Texas,      Total                                                                              |   |        |   | 9,004,225 |   | 22,474,953 |
| Virginia                                                                                       |   |   |   |      |   |       |
| Enterchange      at Meadowville, 2101 Bermuda Hundred Dr, Chester                              |   | (1)(3) |   | 226,809   |   | 845,717    |
| Enterchange      at Northlake A, 11900-11998 North Lakeridge Parkway,    Ashland               |   |   |   | 215,077   |   | 697,831    |
| Enterchange      at Northlake C, North Lakeridge Parkway & Northlake Park Dr,      Ashland |   | (1)(3) |   | 293,115   |   | 677,794    |
| Enterchange      at Walthall A & B, 1900-1998 Ruffin Mill Rd, Colonial      Heights        |   | (1)(3) |   | 606,780   |   | 1,467,536  |
| Enterchange      at Walthall C, 1936-1962 Ruffin Mill Rd, Colonial Heights                     |   | (1)(3) |   | 261,922   |   | 864,840    |
| Enterchange      at Walthall D, 1700-1798 Ruffin Mill Rd, Colonial Heights                     |   |   |   | 171,222   |   | 752,020    |
| Interport      Business Center A, 4800-4890 Eubank Road, Richmond                              |   | (1)(3) |   | 447,412   |   | 1,037,556  |
| Interport      Business Center B, 4700-4790 Eubank Road, Richmond                              |   | (1)(3) |   | 118,000   |   | 277,477    |
| Interport      Business Center C, 5300-5390 Laburnum Ave, Richmond                             |   | (1)(3) |   | 54,885    |   | 154,202    |
| Virginia,      Total                                                                           |   |        |   | 2,395,222 |   | 6,774,973  |
|                                                                                           |   |   |   |      |   |       |
| Other                                                                                     |   |   |   |      |   |       |
| Arizona                                                                                        |   |   |   |      |   |       |
| Arcadia Biltmore Plaza,      Campbell Ave. at North 36th St., Phoenix                |   |   |   | 13,879    |   | 74,000     |
| Arizona,      Total                                                                            |   |   |   | 13,879    |   | 74,000     |
| Texas                                                                                          |   |   |   |      |   |       |
| 1919      North Loop West, Hacket Drive at West Loop 610 North                                 |   |   |   | 132,978   |   | 157,000    |
| Citadel Plaza,      Citadel Plaza Dr.                                                     |   |   |   | 13,460    |   | 170,931    |
| Texas,      Total                                                                              |   |   |   | 146,438   |   | 327,931    |

----

Table of Contents

| Center      and Location |   |   |   | Land |
|--------------------------|--------|--------|--------|------|
|                     |   |   |   | Area |

| Unimproved      Land                                                                   |   |      |
|---------------------------------------------------------------------------------------------|--------|-----------|
| Arizona                                                                                     |   |      |
| Mohave      Crossroads                                                                      |   | 7,185     |
| Arizona,      Total                                                                         |   | 7,185     |
| Louisiana                                                                                   |   |      |
| 70th      St. at Mansfield Rd., Shreveport                                                  |   | 41,704    |
| U.S.      Highway 171 at Parish, DeRidder                                                   |   | 462,000   |
| Louisiana,      Total                                                                       |   | 503,704   |
| North      Carolina                                                                         |   |      |
| Crabtree      Towne Center, Creedmoor (Highway 50) and Crabtree Valley Avenue,      Raleigh |   | 576,000   |
| The      Shoppes at Caveness Farms                                                          |   | 3,380,000 |
| North      Carolina, Total                                                                  |   | 3,956,000 |
| Texas                                                                                       |   |      |
| 9th      Ave. at 25th St., Port Arthur                                                      |   | 243,000   |
| Bissonnet      at Wilcrest                                                                  |   | 84,629    |
| Citadel Plaza      at 610 North Loop                                                   |   | 137,000   |
| East      Orem                                                                              |   | 122,000   |
| Festival      Plaza, Helotes, TX                                                            |   | 75,000    |
| Highway      3 at Highway 1765, Texas City                                                  |   | 201,000   |
| Kirkwood      at Dashwood Drive                                                             |   | 322,000   |
| Mesa      Road at Tidwell                                                                   |   | 901,000   |
| Northwest      Freeway at Gessner                                                           |   | 340,456   |
| River      Pointe Drive at Interstate 45, Conroe                                            |   | 118,483   |
| Rock      Prairie Marketplace, Rock Prairie Rd. at Hwy. 6, College Station                  |   | 2,590,000 |
| Shaver      at Southmore, Pasadena                                                          |   | 17,000    |
| West      Little York at Interstate 45                                                      |   | 161,000   |
| West      Loop North at Interstate 10                                                       |   | 145,000   |
| Texas,      Total                                                                           |   | 5,457,568 |

----

Table of Contents

| Weingarten      Realty Investors           |
|--------------------------------------------|
| Property      Listing at December 31, 2007 |
|                                       |   |   |   |   |   |   |
| ALL      PROPERTIES BY STATE               |   | Number      ofProperties |   | Building      TotalSquare      Feet |   | Land      TotalSquare      Feet |
| Arizona                                    |   | 26 |   | 3,511,919 |   | 13,204,274 |
| Arkansas                                   |   | 3 |   | 357,740 |   | 1,489,000 |
| California                                 |   | 30 |   | 5,221,813 |   | 18,327,575 |
| Colorado                                   |   | 12 |   | 3,135,456 |   | 12,571,197 |
| Florida                                    |   | 50 |   | 10,621,084 |   | 42,772,724 |
| Georgia                                    |   | 24 |   | 5,034,164 |   | 20,731,167 |
| Illinois                                   |   | 1 |   | 303,566 |   | 1,013,380 |
| Kansas                                     |   | 2 |   | 250,855 |   | 454,000 |
| Kentucky                                   |   | 4 |   | 673,899 |   | 3,176,000 |
| Louisiana                                  |   | 15 |   | 2,888,420 |   | 8,490,415 |
| Maine                                      |   | 1 |   | 205,034 |   | 962,667 |
| Missouri                                   |   | 2 |   | 257,449 |   | 1,307,000 |
| Nevada                                     |   | 13 |   | 3,520,712 |   | 13,107,810 |
| New      Mexico                            |   | 6 |   | 1,418,615 |   | 4,489,000 |
| North      Carolina                        |   | 27 |   | 3,572,639 |   | 23,811,476 |
| Oklahoma                                   |   | 2 |   | 171,657 |   | 682,000 |
| Oregon                                     |   | 3 |   | 273,466 |   | 672,288 |
| South      Carolina                        |   | 1 |   | 86,120 |   | 436,000 |
| Tennessee                                  |   | 9 |   | 1,928,931 |   | 5,613,915 |
| Texas                                      |   | 167 |   | 25,717,977 |   | 100,800,141 |
| Utah                                       |   | 3 |   | 663,767 |   | 1,660,045 |
| Virginia                                   |   | 9 |   | 2,395,222 |   | 6,774,973 |
| Washington                                 |   | 5 |   | 607,602 |   | 1,862,088 |
| Grand      Total                           |   | 415 |   | 72,818,107 |   | 284,409,135 |
| Total      Retail                          |   | 335 |   | 55,506,874 |   | 229,201,690 |
| Total      Industrial                      |   | 77 |   | 17,150,916 |   | 44,881,057 |
| Total      Unimproved Land                 |   |   |   |   |   |        9,924,457 |
| Total      Other                           |   | 3 |   | 160,317 |   | 401,931 |

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ITEM3.                      LegalProceedings

ITEM4.                      Submissionof Matters to a Vote of Shareholders

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ITEM5.                      Marketfor Registrant's Common Shares of Beneficial Interest, Related ShareholderMatters and Issuer Purchases of Equity Securities

|   |   | High   |   |   | Low    |   |   | Dividends |   |
|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
|   |   |   |   |   |   |   |   |      |   |
| 2007:  |   |   |   |   |   |   |   |      |   |
| Fourth |   | $      | 44.82  |   |   | $      | 31.44  |      |   | $ | .495 |   |
| Third  |   |   | 42.15  |   |   |   | 36.34  |      |   |   | .495 |   |
| Second |   |   | 49.00  |   |   |   | 40.84  |      |   |   | .495 |   |
| First  |   |   | 52.16  |   |   |   | 46.06  |      |   |   | .495 |   |
|   |   |   |   |   |   |   |   |      |   |   |   |   |
| 2006:  |   |   |   |   |   |   |   |      |   |   |   |   |
| Fourth |   | $      | 47.83  |   |   | $      | 42.72  |      |   | $ | .465 |   |
| Third  |   |   | 43.26  |   |   |   | 38.19  |      |   |   | .465 |   |
| Second |   |   | 40.56  |   |   |   | 37.10  |      |   |   | .465 |   |
| First  |   |   | 41.76  |   |   |   | 38.66  |      |   |   | .465 |   |

|                                                        |   | Number      of shares to     |   | Weighted      average     |   |                     |
|-------------------------------------------------------------|--------|------------------------------|--------|---------------------------|--------|--------------------------|
|                                                        |   | be      issued upon exercise |   | exercise      price of    |   | Number      of shares    |
|                                                        |   | of      outstanding options, |   | outstanding      options, |   | remaining      available |
| Plan      category                                          |   | warrants      and rights     |   | warrants      and rights  |   | for      future issuance |
|                                                        |   |                         |   |                      |   |                     |
| Equity      compensation plans approved by shareholders     |   | 2,840,290                    |   | $      32.66              |   | 2,626,360                |
|                                                        |   |                         |   |                      |   |                     |
| Equity      compensation plans not approved by shareholders |   | ―                      |   | ―                   |   | ―                  |
|                                                        |   |                         |   |                      |   |                     |
| Total                                                       |   | 2,840,290                    |   | $      32.66              |   | 2,626,360                |

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|                             |   | 2003   |   |   | 2004   |   |   | 2005   |   |   | 2006   |   |   | 2007   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weingarten                       |   |   | 127.19 |   |   |   | 181.08 |   |   |   | 178.82 |   |   |   | 227.97 |   |   |   | 163.05 |   |
| S&P      500 Index           |   |   | 128.68 |   |   |   | 142.69 |   |   |   | 149.70 |   |   |   | 173.34 |   |   |   | 182.87 |   |
| The      NAREIT All Equity Index |   |   | 137.13 |   |   |   | 180.44 |   |   |   | 202.38 |   |   |   | 273.34 |   |   |   | 230.45 |   |

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|                                       |   | (a)            |      |   | (b)           |   |   | (c)                      |   |   | (d)                       |   |
|--------------------------------------------|--------|----------------|-----------|--------|---------------|--------|--------|--------------------------|--------|--------|---------------------------|--------|
|                                       |   | Total          |      |   | Average       |   |   | Total      Number of     |   |   | Maximum      Dollar       |   |
|                                       |   | Number         |      |   | Price         |   |   | Shares      Purchased    |   |   | Value      of Shares that |   |
|                                       |   | of      Shares |      |   | Paid      per |   |   | as      Part of Publicly |   |   | May      Yet be Purchased |   |
| Period                                     |   | Purchased      |      |   | Share         |   |   | Announced      Program   |   |   | Under      the Program    |   |
| November      1, 2007 to November 30, 2007 |   |           | 1,370,073 |   |          | $      | 36.47  |                     |   |   | 1,370,073                 |   |   | $ | 196,715,648 |   |
|                                       |   |           |      |   |          |   |   |                     |   |   |                      |   |   |   |   |   |

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ITEM6.                      SelectedFinancial Data

|                                                                                                                                                              |   |  (Amounts      in thousands, except per share amounts) |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|-----------|
|                                                                                                                                                              |   |  Year      Ended December 31,                          |      |
|                                                                                                                                                              |   | 2007                                                        |      |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                                                                                                                                                              |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      (primarily real estate rentals)                                                                                                                     |   | $                                                           | 599,054   |   |   | $ | 538,194 |   |   | $ | 487,856 |   |   | $ | 441,144 |   |   | $ | 361,757 |   |
| Expenses:                                                                                                                                                         |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Depreciation      and amortization                                                                                                        |   |                                                        | 131,708   |   |   |   | 121,471 |   |   |   | 110,956 |   |   |   | 98,727 |   |   |   | 78,139 |   |
|     Other                                                                                                                                     |   |                                                        | 201,798   |   |   |   | 174,471 |   |   |   | 146,778 |   |   |   | 137,674 |   |   |   | 110,360 |   |
|            Total                                                                                           |   |                                                        | 333,506   |   |   |   | 295,942 |   |   |   | 257,734 |   |   |   | 236,401 |   |   |   | 188,499 |   |
| Operating      Income                                                                                                                                             |   |                                                        | 265,548   |   |   |   | 242,252 |   |   |   | 230,122 |   |   |   | 204,743 |   |   |   | 173,258 |   |
| Interest      Expense                                                                                                                                             |   |                                                        | (148,829  | ) |   |   | (145,374 | ) |   |   | (129,160 | ) |   |   | (116,142 | ) |   |   | (90,214 | ) |
| Interest      and Other Income                                                                                                                                    |   |                                                        | 8,486     |   |   |   | 9,044 |   |   |   | 2,860 |   |   |   | 1,389 |   |   |   | 1,562 |   |
| Loss      on Redemption of Preferred Shares                                                                                                                       |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   | (3,566 | ) |   |   | (2,739 | ) |
| Equity      in Earnings of Real Estate Joint Ventures and Partnerships,      net                                                                                  |   |                                                        | 19,853    |   |   |   | 14,655 |   |   |   | 6,610 |   |   |   | 5,384 |   |   |   | 4,681 |   |
| Income      Allocated to Minority Interests                                                                                                                       |   |                                                        | (10,237   | ) |   |   | (6,414 | ) |   |   | (6,060 | ) |   |   | (4,928 | ) |   |   | (2,723 | ) |
| Gain      on Land and Merchant Development Sales                                                                                                                  |   |                                                        | 16,385    |   |   |   | 7,166 |   |   |   | 804 |   |   |   |   |   |   |   |   |   |
| Gain      on Sale of Properties                                                                                                                                   |   |                                                        | 4,086     |   |   |   | 22,493 |   |   |   | 22,306 |   |   |   | 1,562 |   |   |   | 667 |   |
| Provision      for Income Taxes                                                                                                                                   |   |                                                        | (4,073    | ) |   |   | (1,366 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from Continuing Operations                                                                                                                            |   |                                                        | 151,219   |   |   |   | 142,456 |   |   |   | 127,482 |   |   |   | 88,442 |   |   |   | 84,492 |   |
| Income      from Discontinued Operations (1)                                                                                                                      |   |                                                        | 86,798    |   |   |   | 162,554 |   |   |   | 92,171 |   |   |   | 52,939 |   |   |   | 31,788 |   |
| Net      Income                                                                                                                                                   |   | $                                                           | 238,017   |   |   | $ | 305,010 |   |   | $ | 219,653 |   |   | $ | 141,381 |   |   | $ | 116,280 |   |
|                                                                                                                                                              |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income Available to Common Shareholders                                                                                                                  |   | $                                                           | 212,642   |   |   | $ | 294,909 |   |   | $ | 209,552 |   |   | $ | 133,911 |   |   | $ | 97,880 |   |
| Per      Share Data - Basic:                                                                                                                                      |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Income      from Continuing Operations                                                                                              |   | $                                                           | 1.47      |   |   | $ | 1.51 |   |   | $ | 1.32 |   |   | $ | 0.94 |   |   | $ | 0.84 |   |
|      Net      Income                                                                                                                     |   | $                                                           | 2.49      |   |   | $ | 3.36 |   |   | $ | 2.35 |   |   | $ | 1.55 |   |   | $ | 1.24 |   |
|      Weighted      Average Number of Shares                                                                                              |   |                                                        | 85,504    |   |   |   | 87,719 |   |   |   | 89,224 |   |   |   | 86,171 |   |   |   | 78,800 |   |
| Per      Share Data - Diluted:                                                                                                                                    |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from Continuing Operations                                                                                                                            |   | $                                                           | 1.46      |   |   | $ | 1.50 |   |   | $ | 1.32 |   |   | $ | 0.94 |   |   | $ | 0.84 |   |
| Net      Income                                                                                                                                                   |   | $                                                           | 2.44      |   |   | $ | 3.27 |   |   | $ | 2.31 |   |   | $ | 1.54 |   |   | $ | 1.24 |   |
| Weighted      Average Number of Shares                                                                                                                            |   |                                                        | 88,893    |   |   |   | 91,779 |   |   |   | 93,166 |   |   |   | 89,511 |   |   |   | 81,574 |   |
|                                                                                                                                                              |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      (at cost)                                                                                                                                           |   | $                                                           | 4,972,344 |   |   | $ | 4,445,888 |   |   | $ | 4,033,579 |   |   | $ | 3,751,607 |   |   | $ | 3,200,091 |   |
| Total      Assets                                                                                                                                                 |   | $                                                           | 4,993,343 |   |   | $ | 4,373,887 |   |   | $ | 3,737,741 |   |   | $ | 3,470,318 |   |   | $ | 2,923,094 |   |
| Debt                                                                                                                                                              |   | $                                                           | 3,165,059 |   |   | $ | 2,941,039 |   |   | $ | 2,348,504 |   |   | $ | 2,138,842 |   |   | $ | 1,835,126 |   |
|                                                                                                                                                              |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                                                                                                                  |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Flows from Operating Activities                                                                                                                         |   | $                                                           | 223,309   |   |   | $ | 242,592 |   |   | $ | 200,525 |   |   | $ | 203,886 |   |   | $ | 162,316 |   |
| Cash      Flows from Investing Activities                                                                                                                         |   | $                                                           | (480,630  | ) |   | $ | (314,686 | ) |   | $ | (105,459 | ) |   | $ | (349,654 | ) |   | $ | (331,503 | ) |
| Cash      Flows from Financing Activities                                                                                                                         |   | $                                                           | 252,095   |   |   | $ | 100,407 |   |   | $ | (97,791 | ) |   | $ | 170,928 |   |   | $ | 168,623 |   |
| Cash      Dividends per Common Share                                                                                                                              |   | $                                                           | 1.98      |   |   | $ | 1.86 |   |   | $ | 1.76 |   |   | $ | 1.66 |   |   | $ | 1.56 |   |
|                                                                                                                                                              |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Funds      from Operations: (2)                                                                                                                                   |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net      Income Available to Common Shareholders                                                                                    |   | $                                                           | 212,642   |   |   | $ | 294,909 |   |   | $ | 209,552 |   |   | $ | 133,911 |   |   | $ | 97,880 |   |
|      Depreciation      and Amortization                                                                                                  |   |                                                        | 141,150   |   |   |   | 131,792 |   |   |   | 125,742 |   |   |   | 114,342 |   |   |   | 90,367 |   |
|      Gain      on Sale of Properties                                                                                                     |   |                                                        | (86,076   | ) |   |   | (172,056 | ) |   |   | (87,561 | ) |   |   | (26,316 | ) |   |   | (7,273 | ) |
|                           Total |   | $                                                           | 267,716   |   |   | $ | 254,645 |   |   | $ | 247,733 |   |   | $ | 221,937 |   |   | $ | 180,974 |   |

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| (1) | SFAS      No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets"      requires the operating results and gain (loss) on the sale of operating      properties to be reported as discontinued operations for all periods      presented. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      National Association of Real Estate Investment Trusts defines funds from      operations (“FFO”) as net income (loss) available to common shareholders      computed in accordance with generally accepted accounting principles,      excluding gains or losses from sales of operating real estate assets and      extraordinary items, plus depreciation and amortization of operating      properties, including our share of unconsolidated real estate joint      ventures and partnerships.  We calculate FFO in a manner      consistent with the NAREIT definition. Management      uses FFO as a supplemental measure to conduct and evaluate our business      because there are certain limitations associated with using GAAP net      income by itself as the primary measure of our operating      performance.  Historical cost accounting for real estate assets      in accordance with GAAP implicitly assumes that the value of real estate      assets diminishes predictably over time.  Since real estate      values instead have historically risen or fallen with market conditions,      management believes that the presentation of operating results for real      estate companies that uses historical cost accounting is insufficient by      itself.  There can be no assurance that FFO presented by us is      comparable to similarly titled measures of other REITs. FFO      should not be considered as an alternative to net income or other      measurements under GAAP as an indicator of our operating performance or to      cash flows from operating, investing or financing activities as a measure      of liquidity.  FFO does not reflect working capital changes,      cash expenditures for capital improvements or principal payments on      indebtedness.  |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM7.                      Management'sDiscussion and Analysis of Financial Condition and Results ofOperations

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|   | · | A      much greater focus on new development, including merchant development,      with $300 million in annual new development completions beginning in      2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased      use of joint ventures for acquisitions including the recapitalization (or      partial sale) of existing assets, which provide the opportunity to further      increase returns on investment through the generation of fee income from      leasing and management services we will provide to the      venture. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Further      recycling capital through the active disposition of non-core properties      and reinvesting the proceeds into properties with barriers to entry within      high growth metropolitan markets.  This, combined with our      continuous focus on our assets, produces a higher quality portfolio with      higher occupancy rates and much stronger internal revenue      growth. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  |   | December      31, |   |
|-----------------------|--------|-------------------|--------|
|                  |   | 2007              |   |   | 2006 |   |
|                  |   |              |   |   |   |   |
| Shopping      Centers |   |              | 95.1   | % |   |   | 95.0 | % |
| Industrial            |   |              | 92.0   | % |   |   | 91.2 | % |
| Total                 |   |              | 94.4   | % |   |   | 94.1 | % |

|                                                        |   | Year      Ended December 31, |    |
|-------------------------------------------------------------|--------|------------------------------|---------|
|                                                        |   | 2007                         |    |   | 2006 |   |
|                                                        |   |                         |    |   |   |   |
| Gross      interest expense                                 |   | $                            | 180,612 |   |   | $ | 160,454 |   |
| Over-market      mortgage adjustment of acquired properties |   |                         | (6,758  | ) |   |   | (7,464 | ) |
| Capitalized      interest                                   |   |                         | (25,025 | ) |   |   | (7,616 | ) |
|                                                        |   |                         |    |   |   |   |   |   |
| Total                                                       |   | $                            | 148,829 |   |   | $ | 145,374 |   |

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|                  |   | December      31, |   |
|-----------------------|--------|-------------------|--------|
|                  |   | 2006              |   |   | 2005 |   |
|                  |   |              |   |   |   |   |
| Shopping      Centers |   |              | 95.0   | % |   |   | 94.6 | % |
| Industrial            |   |              | 91.2   | % |   |   | 93.1 | % |
| Total                 |   |              | 94.1   | % |   |   | 94.2 | % |

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|                                                        |   | Year      Ended December 31, |    |
|-------------------------------------------------------------|--------|------------------------------|---------|
|                                                        |   | 2006                         |    |   | 2005 |   |
|                                                        |   |                         |    |   |   |   |
| Gross      interest expense                                 |   | $                            | 160,454 |   |   | $ | 138,845 |   |
| Over-market      mortgage adjustment of acquired properties |   |                         | (7,464  | ) |   |   | (7,056 | ) |
| Capitalized      interest                                   |   |                         | (7,616  | ) |   |   | (2,629 | ) |
|                                                        |   |                         |    |   |   |   |   |   |
| Total                                                       |   | $                            | 145,374 |   |   | $ | 129,160 |   |

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|                                       |   | 2008   |    |   | 2009   |   |    | 2010   |   |   | 2011    |   |   | 2012   |      |   | Thereafter |   |    | Total  |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|------------|--------|---------|--------|--------|
| Mortgages      and Notes Payable:(1)       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |      |   |       |   |    |   |   |
| Unsecured      Debt                        |   | $      | 156,400 |   |   | $      | 123,522 |   |   | $      | 394,810 |   |   | $      | 860,566   |   |       | $      | 242,216 |   |   | $ | 797,690 |   |   | $ | 2,575,204 |   |
| Secured      Debt                          |   |   | 249,818 |   |   |   | 134,079 |   |   |   | 116,324 |   |   |   | 141,532   |   |       |   | 167,306 |   |   |   | 555,800 |   |   |   | 1,364,859 |   |
|                                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |      |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Ground      Lease Payments                 |   |   | 2,436   |   |   |   | 2,961   |   |   |   | 2,917   |   |   |   | 2,862     |   |       |   | 2,821   |   |   |   | 113,568 |   |   |   | 127,565 |   |
|                                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |      |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Obligations      to Acquire  Projects |   |   | 8,306   |   |   |   | 1,824   |   |   |   |    |   |   |   |      |   |       |   |    |   |   |   |   |   |   |   | 10,130 |   |
|                                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |      |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Obligations      to Develop Projects       |   |   | 126,957 |   |   |   | 100,583 |   |   |   | 53,284  |   |   |   | 7,799     |   |       |   | 1,370   |   |   |   |   |   |   |   | 289,993 |   |
|                                       |   |   |    |   |   |   |    |   |   |   |    |   |   |   |      |   |       |   |    |   |   |   |   |   |   |   |   |   |
| Total      Contractual Obligations         |   | $      | 543,917 |   |   | $      | 362,969 |   |   | $      | 567,335 |   |   | $      | 1,012,759 |   |       | $      | 413,713 |   |   | $ | 1,467,058 |   |   | $ | 4,367,751 |   |

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|                                                                   |   |  Year      Ended December 31, |    |
|------------------------------------------------------------------------|--------|------------------------------------|---------|
|                                                                   |   | 2007                               |    |   | 2006 |   |   | 2005 |   |
|                                                                   |   |                               |    |   |   |   |   |   |   |
| Net      income available to common shareholders                       |   | $                                  | 212,642 |   |   | $ | 294,909 |   |   | $ | 209,552 |   |
| Depreciation      and amortization                                     |   |                               | 129,946 |   |   |   | 126,713 |   |   |   | 122,203 |   |
| Depreciation      and amortization of unconsolidated joint ventures    |   |                               | 11,204  |   |   |   | 5,079 |   |   |   | 3,539 |   |
| Gain      on sale of properties                                        |   |                               | (83,907 | ) |   |   | (168,004 | ) |   |   | (87,569 | ) |
| (Gain)      loss on sale of properties of unconsolidated jointventures |   |                               | (2,169  | ) |   |   | (4,052 | ) |   |   | 8 |   |
| Funds      from operations                                             |   |                               | 267,716 |   |   |   | 254,645 |   |   |   | 247,733 |   |
| Funds      from operations attributable to operating partnershipunits  |   |                               | 4,407   |   |   |   | 5,453 |   |   |   | 5,218 |   |
| Funds      from operations assuming conversion of OP units             |   | $                                  | 272,123 |   |   | $ | 260,098 |   |   | $ | 252,951 |   |
|                                                                   |   |                               |    |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding - basic                       |   |                               | 85,504  |   |   |   | 87,719 |   |   |   | 89,224 |   |
| Effect      of dilutive securities:                                    |   |                               |    |   |   |   |   |   |   |   |   |   |
| Share      options and awards                                          |   |                               | 891     |   |   |   | 926 |   |   |   | 860 |   |
| Operating      partnership units                                       |   |                               | 2,498   |   |   |   | 3,134 |   |   |   | 3,082 |   |
| Weighted      average shares outstanding - diluted                     |   |                               | 88,893  |   |   |   | 91,779 |   |   |   | 93,166 |   |

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Table of Contents

ITEM7A.                   Quantitativeand Qualitative Disclosures About Market Risk

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Table of Contents

ITEM8.                      FinancialStatements and Supplementary Data

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Table of Contents

STATEMENTS OF CONSOLIDATED INCOME AND COMPREHENSIVEINCOME

|                                                                             |   | Year      Ended December 31, |     |
|----------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                             |   | 2007                         |     |   | 2006 |   |   | 2005 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |
| Revenues:                                                                        |   |                         |     |   |   |   |   |   |   |
| Rentals                                                                          |   | $                            | 585,702  |   |   | $ | 531,353 |   |   | $ | 481,628 |   |
| Other                                                                            |   |                         | 13,352   |   |   |   | 6,841 |   |   |   | 6,228 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Total                                                                            |   |                         | 599,054  |   |   |   | 538,194 |   |   |   | 487,856 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                        |   |                         |     |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                               |   |                         | 131,708  |   |   |   | 121,471 |   |   |   | 110,956 |   |
| Operating                                                                        |   |                         | 106,259  |   |   |   | 88,018 |   |   |   | 73,218 |   |
| Ad      valorem taxes                                                            |   |                         | 68,560   |   |   |   | 62,652 |   |   |   | 56,181 |   |
| General      and administrative                                                  |   |                         | 26,979   |   |   |   | 23,801 |   |   |   | 17,379 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Total                                                                            |   |                         | 333,506  |   |   |   | 295,942 |   |   |   | 257,734 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Operating      Income                                                            |   |                         | 265,548  |   |   |   | 242,252 |   |   |   | 230,122 |   |
| Interest      Expense                                                            |   |                         | (148,829 | ) |   |   | (145,374 | ) |   |   | (129,160 | ) |
| Interest      and Other Income                                                   |   |                         | 8,486    |   |   |   | 9,044 |   |   |   | 2,860 |   |
| Equity      in Earnings of Real Estate Joint Ventures and Partnerships,      net |   |                         | 19,853   |   |   |   | 14,655 |   |   |   | 6,610 |   |
| Income      Allocated to Minority Interests                                      |   |                         | (10,237  | ) |   |   | (6,414 | ) |   |   | (6,060 | ) |
| Gain      on Sale of Properties                                                  |   |                         | 4,086    |   |   |   | 22,493 |   |   |   | 22,306 |   |
| Gain      on Land and Merchant Development Sales                                 |   |                         | 16,385   |   |   |   | 7,166 |   |   |   | 804 |   |
| Provision      for Income Taxes                                                  |   |                         | (4,073   | ) |   |   | (1,366 | ) |   |   |   |   |
| Income      from Continuing Operations                                           |   |                         | 151,219  |   |   |   | 142,456 |   |   |   | 127,482 |   |
| Operating      Income from Discontinued Operations                               |   |                         | 3,139    |   |   |   | 17,060 |   |   |   | 26,712 |   |
| Gain      on Sale of Properties from Discontinued Operations                     |   |                         | 83,659   |   |   |   | 145,494 |   |   |   | 65,459 |   |
| Income      from Discontinued Operations                                         |   |                         | 86,798   |   |   |   | 162,554 |   |   |   | 92,171 |   |
| Net      Income                                                                  |   |                         | 238,017  |   |   |   | 305,010 |   |   |   | 219,653 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Dividends      on Preferred Shares                                               |   |                         | (25,375  | ) |   |   | (10,101 | ) |   |   | (10,101 | ) |
| Net      Income Available to Common Shareholders                                 |   | $                            | 212,642  |   |   | $ | 294,909 |   |   | $ | 209,552 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Net      Income Per Common Share - Basic:                                        |   |                         |     |   |   |   |   |   |   |   |   |   |
| Income      from Continuing Operations                                           |   | $                            | 1.47     |   |   | $ | 1.51 |   |   | $ | 1.32 |   |
| Income      from Discontinued Operations                                         |   |                         | 1.02     |   |   |   | 1.85 |   |   |   | 1.03 |   |
| Net      Income                                                                  |   | $                            | 2.49     |   |   | $ | 3.36 |   |   | $ | 2.35 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Net      Income Per Common Share - Diluted:                                      |   |                         |     |   |   |   |   |   |   |   |   |   |
| Income      from Continuing Operations                                           |   | $                            | 1.46     |   |   | $ | 1.50 |   |   | $ | 1.32 |   |
| Income      from Discontinued Operations                                         |   |                         | .98      |   |   |   | 1.77 |   |   |   | .99 |   |
| Net      Income                                                                  |   | $                            | 2.44     |   |   | $ | 3.27 |   |   | $ | 2.31 |   |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Comprehensive      Income:                                                       |   |                         |     |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                  |   | $                            | 238,017  |   |   | $ | 305,010 |   |   | $ | 219,653 |   |
| Other      Comprehensive Loss:                                                   |   |                         |     |   |   |   |   |   |   |   |   |   |
| Unrealized      loss on derivatives                                              |   |                         | (5,014   | ) |   |   | (2,861 | ) |   |   | (1,943 | ) |
| Amortization      of loss on derivatives                                         |   |                         | 878      |   |   |   | 364 |   |   |   | 340 |   |
| Minimum      pension liability adjustment                                        |   |                         | 1,161    |   |   |   | (1,150 | ) |   |   | (1,704 | ) |
| Other      Comprehensive Loss                                                    |   |                         | (2,975   | ) |   |   | (3,647 | ) |   |   | (3,307 | ) |
|                                                                             |   |                         |     |   |   |   |   |   |   |   |   |   |
| Comprehensive      Income                                                        |   | $                            | 235,042  |   |   | $ | 301,363 |   |   | $ | 216,346 |   |

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| CONSOLIDATED BALANCE SHEETS                                                                                                                                                                               |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (In      thousands, except per share amounts)                                                                                                                                                             |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                                                                                                      |   | December      31, |   |   | December      31, |   |
|                                                                                                                                                                                                      |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                                    |   |   |   |   |   |   |
| Property                                                                                                                                                                                                  |   | $ | 4,972,344 |   |   | $ | 4,445,888 |   |
| Accumulated      Depreciation                                                                                                                                                                             |   |   | (774,321 | ) |   |   | (707,005 | ) |
| Property,      net                                                                                                                                                                                        |   |   | 4,198,023 |   |   |   | 3,738,883 |   |
| Investment      in Real Estate Joint Ventures and Partnerships                                                                                                                                            |   |   | 300,756 |   |   |   | 203,839 |   |
| Total                                                                                                                                                                                                     |   |   | 4,498,779 |   |   |   | 3,942,722 |   |
| Notes      Receivable from Real Estate Joint Ventures andPartnerships                                                                                                                                     |   |   | 81,818 |   |   |   | 3,971 |   |
| Unamortized      Debt and Lease Costs                                                                                                                                                                     |   |   | 114,969 |   |   |   | 112,873 |   |
| Accrued      Rent and Accounts Receivable (net of allowance for doubtful accounts      of $8,721 in 2007 and $5,995 in 2006)                                                                              |   |   | 94,607 |   |   |   | 78,893 |   |
| Cash      and Cash Equivalents                                                                                                                                                                            |   |   | 65,777 |   |   |   | 71,003 |   |
| Restricted      Deposits and Mortgage Escrows                                                                                                                                                             |   |   | 38,884 |   |   |   | 94,466 |   |
| Other                                                                                                                                                                                                     |   |   | 98,509 |   |   |   | 69,959 |   |
| Total                                                                                                                                                                                                     |   | $ | 4,993,343 |   |   | $ | 4,373,887 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Debt                                                                                                                                                                                                      |   | $ | 3,165,059 |   |   | $ | 2,941,039 |   |
| Accounts      Payable and Accrued Expenses                                                                                                                                                                |   |   | 155,137 |   |   |   | 132,821 |   |
| Other                                                                                                                                                                                                     |   |   | 104,439 |   |   |   | 86,566 |   |
| Total                                                                                                                                                                                                     |   |   | 3,424,635 |   |   |   | 3,160,426 |   |
| Minority      Interest                                                                                                                                                                                    |   |   | 96,885 |   |   |   | 87,680 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Commitments      and Contingencies                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Shareholders'      Equity:                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Preferred      Shares of Beneficial Interest - par value, $.03 per share; shares      authorized: 10,000                                                                                                  |   |   |   |   |   |   |   |   |
| 6.75%      Series D cumulative redeemable preferred shares of beneficial      interest;  100 shares issued and outstanding in      2007 and 2006; aggregate liquidation preference      $75,000 |   |   | 3 |   |   |   | 3 |   |
| 6.95%      Series E cumulative redeemable preferred shares of beneficial      interest; 29 shares issued and outstanding in 2007 and      2006; aggregate liquidation preference    $72,500               |   |   | 1 |   |   |   | 1 |   |
| 6.5%      Series F cumulative redeemable preferred shares of beneficial      interest; 80 shares issued and outstanding in 2007; aggregate      liquidation preference $200,000                           |   |   | 2 |   |   |   |   |   |
| Variable-rate      Series G cumulative redeemable preferred shares of beneficial      interest, 80 shares issued and outstanding in 2007; aggregate      liquidation preference $200,000                  |   |   | 2 |   |   |   |   |   |
| Common      Shares of Beneficial Interest - par value, $.03 per share; shares      authorized: 150,000; shares issued and outstanding:  85,146      in 2007 and 85,765 in 2006                       |   |   | 2,565 |   |   |   | 2,582 |   |
| Treasury      Shares of Beneficial Interest - par value, $.03 per share; 1,370      shares outstanding in 2007                                                                                            |   |   | (41 | )  |   |   |   |   |
| Accumulated      Additional Paid-In Capital                                                                                                                                                               |   |   | 1,442,027 |   |   |   | 1,136,481 |   |
| Net      Income in Excess of (Less Than) Accumulated Dividends                                                                                                                                            |   |   | 42,739 |   |   |   | (786 | ) |
| Accumulated      Other Comprehensive Loss                                                                                                                                                                 |   |   | (15,475 | ) |   |   | (12,500 | ) |
| Shareholders'      Equity                                                                                                                                                                                 |   |   | 1,471,823 |   |   |   | 1,125,781 |   |
| Total                                                                                                                                                                                                     |   | $ | 4,993,343 |   |   | $ | 4,373,887 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| See      Notes to Consolidated Financial Statements.                                                                                                                                                      |   |

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| STATEMENTS OF CONSOLIDATED CASH FLOWS                                                                         |   |
|---------------------------------------------------------------------------------------------------------------|--------|
| (In      thousands)                                                                                           |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   | Year      Ended December 31, |   |
|                                                                                                          |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Cash      Flows from Operating Activities:                                                                    |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                               |   | $ | 238,017 |   |   | $ | 305,010 |   |   | $ | 219,653 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                            |   |   | 134,676 |   |   |   | 131,992 |   |   |   | 128,573 |   |
| Equity      in earnings of real estate joint ventures and partnerships,      net                              |   |   | (19,853 | ) |   |   | (14,655 | ) |   |   | (6,681 | ) |
| Income      allocated to minority interests                                                                   |   |   | 10,237 |   |   |   | 6,414 |   |   |   | 6,060 |   |
| Gain      on land and merchant development sales                                                              |   |   | (16,385 | ) |   |   | (7,166 | ) |   |   | (804 | ) |
| Gain      on sales of properties                                                                              |   |   | (87,745 | ) |   |   | (167,987 | ) |   |   | (87,765 | ) |
| Distributions      of income from real estate joint ventures and      partnerships                            |   |   | 6,251 |   |   |   | 2,524 |   |   |   | 2,603 |   |
| Changes      in accrued rent and accounts receivable                                                          |   |   | (22,276 | ) |   |   | (18,056 | ) |   |   | (3,281 | ) |
| Changes      in other assets                                                                                  |   |   | (26,813 | ) |   |   | (37,607 | ) |   |   | (30,769 | ) |
| Changes      in accounts payable and accrued expenses                                                         |   |   | 4,852 |   |   |   | 43,641 |   |   |   | (27,964 | ) |
| Other,      net                                                                                               |   |   | 2,348 |   |   |   | (1,518 | ) |   |   | 900 |   |
| Net      cash provided by operating activities                                                                |   |   | 223,309 |   |   |   | 242,592 |   |   |   | 200,525 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Flows from Investing Activities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      in property                                                                                   |   |   | (753,462 | ) |   |   | (880,471 | ) |   |   | (259,730 | ) |
| Proceeds      from sales and disposition of property, net                                                     |   |   | 341,383 |   |   |   | 661,175 |   |   |   | 201,363 |   |
| Change      in restricted deposits and mortgage escrows                                                       |   |   | 56,331 |   |   |   | (79,737 | ) |   |   | 1,764 |   |
| Mortgage      bonds and notes receivable from real estate joint ventures      and partnerships:               |   |   |   |   |   |   |   |   |   |   |   |   |
|          Advances                                                                              |   |   | (145,735 | ) |   |   | (54,800 | ) |   |   | (30,852 | ) |
|          Collections                                                                           |   |   | 82,852 |   |   |   | 47,617 |   |   |   | 5,278 |   |
| Real      estate joint ventures and partnerships:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments                                                                                                   |   |   | (78,794 | ) |   |   | (21,547 | ) |   |   | (29,233 | ) |
| Distributions      of capital                                                                                 |   |   | 16,795 |   |   |   | 13,077 |   |   |   | 5,951 |   |
| Net      cash used in investing activities                                                                    |   |   | (480,630 | ) |   |   | (314,686 | ) |   |   | (105,459 | ) |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Flows from Financing Activities:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from issuance of:                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|   Debt                                                                                              |   |   | 270,092 |   |   |   | 780,782 |   |   |   | 148,347 |   |
| Common      shares of beneficial interest                                                                     |   |   | 4,010 |   |   |   | 4,570 |   |   |   | 2,829 |   |
| Preferred      shares of beneficial interest, net                                                             |   |   | 387,678 |   |   |   |   |   |   |   |   |   |
| Purchase      of marketable securities in connection with the legal defeasance      of mortgage notes payable |   |   | (22,536 | ) |   |   |   |   |   |   |   |   |
| Repurchase      of common shares of beneficial interest, net                                                  |   |   | (103,366 | ) |   |   | (167,573 | ) |   |   |   |   |
| Principal      payments of debt                                                                               |   |   | (89,419 | ) |   |   | (327,601 | ) |   |   | (82,810 | ) |
| Common      and preferred dividends paid                                                                      |   |   | (194,492 | ) |   |   | (173,010 | ) |   |   | (167,196 | ) |
| Debt      issuance cost paid                                                                                  |   |   | (1,451 | ) |   |   | (13,681 | ) |   |   |   |   |
| Other,      net                                                                                               |   |   | 1,579 |   |   |   | (3,080 | ) |   |   | 1,039 |   |
| Net      cash provided by (used in) financing activities                                                      |   |   | 252,095 |   |   |   | 100,407 |   |   |   | (97,791 | ) |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                                                     |   |   | (5,226 | ) |   |   | 28,313 |   |   |   | (2,725 | ) |
| Cash      and cash equivalents at January 1                                                                   |   |   | 71,003 |   |   |   | 42,690 |   |   |   | 45,415 |   |
| Cash      and cash equivalents at December 31                                                                 |   | $ | 65,777 |   |   | $ | 71,003 |   |   | $ | 42,690 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| See      Notes to Consolidated Financial Statements.                                                          |   |

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STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY

|                                                                                                         |   |       |   |   |       |   |   |       |   |   |        |    |   | Net              |      |   |          |     |     |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|---------|--------|------------------|-----------|--------|---------------|----------|----------|--------|--------|
|                                                                                                         |   | Preferred  |   |   | Common     |   |   | Treasury   |   |   |        |    |   | Income      in   |      |   |          |     |     |   |   |
|                                                                                                         |   | Shares     |   |   | Shares     |   |   | Shares     |   |   | Accumulated |    |   | Excess      of   |      |   | Accumulated   |     |     |   |   |
|                                                                                                         |   | of         |   |   | of         |   |   | of         |   |   | Additional  |    |   | (Less      Than) |      |   | Other         |     |     |   |   |
|                                                                                                         |   | Beneficial |   |   | Beneficial |   |   | Beneficial |   |   | Paid-In     |    |   | Accumulated      |      |   | Comprehensive |     |     |   |   |
|                                                                                                         |   | Interest   |   |   | Interest   |   |   | Interest   |   |   | Capital     |    |   | Dividends        |      |   | Loss          |     |     | Total  |   |
|                                                                                                         |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     |     |   |   |
| Balance,      January 1, 2005                                                                                |   | $          | 4      |   |       | $      | 2,672  |       |   |   |        |    | $      | 1,283,270        |      |   | $             | (185,243 | )        |   | $      | (4,743 | ) |   | $ | 1,095,960 |   |
| Net      income                                                                                              |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | 219,653  |     |   |   |   |   |   |   | 219,653 |   |
| Shares      issued in exchange for interests in limited partnerships                                         |   |       |   |   |       |   | 1      |       |   |   |        |    |   | 1,302            |      |   |          |     |     |   |   |   |   |   |   | 1,303 |   |
| Valuation      adjustment on shares issued in exchange for interests in      limited  partnerships |   |       |   |   |       |   |   |       |   |   |        |    |   | 550              |      |   |          |     |     |   |   |   |   |   |   | 550 |   |
| Shares      issued under benefit plans                                                                       |   |       |   |   |       |   | 13     |       |   |   |        |    |   | 3,310            |      |   |          |     |     |   |   |   |   |   |   | 3,323 |   |
| Dividends      declared – common shares (1)                                                            |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | (157,095 | )        |   |   |   |   |   |   | (157,095 | ) |
| Dividends      declared – preferred shares (2)                                                         |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | (10,101  | )        |   |   |   |   |   |   | (10,101 | ) |
| Other      comprehensive loss                                                                                |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     |     |   |   | (3,307 | ) |   |   | (3,307 | ) |
| Balance,      December 31, 2005                                                                              |   |       | 4      |   |       |   | 2,686  |       |   |   |        |    |   | 1,288,432        |      |   |          | (132,786 | )        |   |   | (8,050 | ) |   |   | 1,150,286 |   |
| Net      income                                                                                              |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | 305,010  |     |   |   |   |   |   |   | 305,010 |   |
| Shares      issued in exchange for interests in limited partnerships                                         |   |       |   |   |       |   | 7      |       |   |   |        |    |   | 7,988            |      |   |          |     |     |   |   |   |   |   |   | 7,995 |   |
| Shares      cancelled                                                                                        |   |       |   |   |       |   | (128   | )          |   |   |        |    |   | (167,445         | )         |   |          |     |     |   |   |   |   |   |   | (167,573 | ) |
| Shares      issued under benefit plans                                                                       |   |       |   |   |       |   | 17     |       |   |   |        |    |   | 7,506            |      |   |          |     |     |   |   |   |   |   |   | 7,523 |   |
| Dividends      declared – common shares (1)                                                            |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | (162,909 | )        |   |   |   |   |   |   | (162,909 | ) |
| Dividends      declared – preferred shares (2)                                                         |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | (10,101  | )        |   |   |   |   |   |   | (10,101 | ) |
| Adjustment      to initially apply FASB Statement No. 158                                                    |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     |     |   |   | (803 | ) |   |   | (803 | ) |
| Other      comprehensive loss                                                                                |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     |     |   |   | (3,647 | ) |   |   | (3,647 | ) |
| Balance,      December 31, 2006                                                                              |   |       | 4      |   |       |   | 2,582  |       |   |   |        |    |   | 1,136,481        |      |   |          | (786     | )        |   |   | (12,500 | ) |   |   | 1,125,781 |   |
| Net      income                                                                                              |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          | 238,017  |     |   |   |   |   |   |   | 238,017 |   |
| Issuance      of Series F preferred shares                                                                   |   |       | 2      |   |       |   |   |       |   |   |        |    |   | 193,972          |      |   |          |     |     |   |   |   |   |   |   | 193,974 |   |
| Issuance      of Series G preferred shares                                                                   |   |       | 2      |   |       |   |   |       |   |   |        |    |   | 193,548          |      |   |          |     |     |   |   |   |   |   |   | 193,550 |   |
| Shares      issued in exchange for interests in limited partnerships                                         |   |       |   |   |       |   | 17     |       |   |   |        |    |   | 13,562           |      |   |          |     |     |   |   |   |   |   |   | 13,579 |   |
| Shares      repurchased (4)                                                                                  |   |       |   |   |       |   |   |       |   | $      | (41         | )       |   |             | (49,966   | )      |          |     |     |   |   |   |   |   |   |   | (50,007 | ) |
| Shares      repurchased and cancelled                                                                        |   |       |   |   |       |   | (42    | )          |   |   |        |    |   |             | (53,317   | )      |          |     |     |   |   |   |   |   |   |   | (53,359 | ) |
| Shares      issued under benefit plans                                                                       |   |       |   |   |       |   | 8      |       |   |   |        |    |   |             | 7,747     |   |          |     |     |   |   |   |   |   |   |   | 7,755 |   |
| Dividends      declared – common shares (1)                                                            |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     | (169,117 | )      |   |   |   |   |   |   | (169,117 | ) |
| Dividends      declared – preferred shares (3)                                                         |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     | (25,375  | )      |   |   |   |   |   |   | (25,375 | ) |
| Other      comprehensive loss                                                                                |   |       |   |   |       |   |   |       |   |   |        |    |   |             |      |   |          |     |     |   |   |   | (2,975 | ) |   |   | (2,975 | ) |
| Balance,      December 31, 2007                                                                              |   | $          | 8      |   |       | $      | 2,565  |       |   | $      | (41         | )  |   | $                | 1,442,027 |   |          | $        | 42,739   |   |   | $ | (15,475 | ) |   | $ | 1,471,823 |   |

| (1) | Common      dividends per share were $1.98, $1.86 and $1.76 for the year ended      December 31, 2007, 2006 and 2005, respectively.                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Series      D and Series E preferred dividends per share were $50.63 and $173.75,      respectively, for both the year ended December 31, 2006 and      2005.   |
| (3) | Series      D, E, F and G preferred dividends per share were $50.63, $173.75, $142.64      and $34.88, respectively, for the year ended December 31,      2007. |
| (4) | A      total of 1.4 million common shares of beneficial interest were purchased      in 2007 and subsequently retired on January 11,  2008.                     |

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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|                                                             |   | Year      Ended December 31, |    |
|------------------------------------------------------------------|--------|------------------------------|---------|
|                                                             |   | 2007                         |    |   | 2006 |   |   | 2005 |   |
|                                                             |   |                         |    |   |   |   |   |   |   |
| Numerator:                                                       |   |                         |    |   |   |   |   |   |   |
| Net      income available to common shareholders – basic   |   | $                            | 212,642 |   |   | $ | 294,909 |   |   | $ | 209,552 |   |
| Income      attributable to operating partnership units          |   |                         | 4,407   |   |   |   | 5,453 |   |   |   | 5,218 |   |
| Net      income available to common shareholders – diluted |   | $                            | 217,049 |   |   | $ | 300,362 |   |   | $ | 214,770 |   |
|                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Denominator:                                                     |   |                         |    |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding – basic           |   |                         | 85,504  |   |   |   | 87,719 |   |   |   | 89,224 |   |
| Effect      of dilutive securities:                              |   |                         |    |   |   |   |   |   |   |   |   |   |
| Share      options and awards                                    |   |                         | 891     |   |   |   | 926 |   |   |   | 860 |   |
| Operating      partnership units                                 |   |                         | 2,498   |   |   |   | 3,134 |   |   |   | 3,082 |   |
| Weighted      average shares outstanding - diluted               |   |                         | 88,893  |   |   |   | 91,779 |   |   |   | 93,166 |   |

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|                                  |   | Year      Ended December 31, |   |
|---------------------------------------|--------|------------------------------|--------|
|                                  |   | 2007                         |   |   | 2006 |   |   | 2005 |   |
|                                  |   |                         |   |   |   |   |   |   |   |
| Debt                                  |   | $                            | 99,428 |   |   | $ | 140,740 |   |   | $ | 135,330 |   |
| Obligations      Under Capital Leases |   |                         | 12,888 |   |   |   |   |   |   |   |   |   |
| Minority      Interest                |   |                         | 27,932 |   |   |   | 15,816 |   |   |   | 6,871 |   |
| Net      Assets and Liabilities       |   |                         | 14,322 |   |   |   | 21,597 |   |   |   | 31,983 |   |

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|                                                           |   | December      31, |      |
|----------------------------------------------------------------|--------|-------------------|-----------|
|                                                           |   | 2007              |      |   | 2006 |   |
|                                                           |   |              |      |   |   |   |
| Debt      payable to 2030 at 4.5% to 8.8%                      |   | $                 | 2,876,445 |   |   | $ | 2,888,892 |   |
| Unsecured      notes payable under revolving credit agreements |   |              | 255,000   |   |   |   | 18,000 |   |
| Obligations      under capital leases                          |   |              | 29,725    |   |   |   | 29,725 |   |
| Industrial      revenue bonds payable to 2015 at 3.5% to 5.4%  |   |              | 3,889     |   |   |   | 4,422 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Total                                                          |   | $                 | 3,165,059 |   |   | $ | 2,941,039 |   |

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|                                                                          |   | December    31, |      |
|-------------------------------------------------------------------------------|--------|-----------------|-----------|
|                                                                          |   | 2007            |      |   | 2006 |   |
|                                                                          |   |            |      |   |   |   |
| As      to interest rate (including the effects of interest rate      swaps): |   |            |      |   |   |   |
| Fixed-rate      debt                                                          |   | $               | 2,843,320 |   |   | $ | 2,825,640 |   |
| Variable-rate      debt                                                       |   |            | 321,739   |   |   |   | 115,399 |   |
|                                                                          |   |            |      |   |   |   |   |   |
| Total                                                                         |   | $               | 3,165,059 |   |   | $ | 2,941,039 |   |
|                                                                          |   |            |      |   |   |   |   |   |
| As      to collateralization:                                                 |   |            |      |   |   |   |   |   |
| Unsecured      debt                                                           |   | $               | 2,095,506 |   |   | $ | 1,910,216 |   |
| Secured      debt                                                             |   |            | 1,069,553 |   |   |   | 1,030,823 |   |
|                                                                          |   |            |      |   |   |   |   |   |
| Total                                                                         |   | $               | 3,165,059 |   |   | $ | 2,941,039 |   |

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| 2008       |   | $      | 254,509 |   |
|------------|--------|--------|---------|--------|
| 2009       |   |   | 113,506 |   |
| 2010       |   |   | 119,183 |   |
| 2011       |   |   | 890,314 |   |
| 2012       |   |   | 333,112 |   |
| 2013       |   |   | 283,412 |   |
| 2014       |   |   | 373,787 |   |
| 2015       |   |   | 200,596 |   |
| 2016       |   |   | 142,667 |   |
| Thereafter |   |   | 148,616 |   |

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|                            |   | December      31, |      |
|---------------------------------|--------|-------------------|-----------|
|                            |   | 2007              |      |   | 2006 |   |
|                            |   |              |      |   |   |   |
| Land                            |   | $                 | 974,145   |   |   | $ | 847,295 |   |
| Land      held for development  |   |              | 62,033    |   |   |   | 21,405 |   |
| Land      under development     |   |              | 223,827   |   |   |   | 146,990 |   |
| Buildings      and improvements |   |              | 3,533,037 |   |   |   | 3,339,074 |   |
| Construction      in-progress   |   |              | 179,302   |   |   |   | 91,124 |   |
|                            |   |              |      |   |   |   |   |   |
| Total                           |   | $                 | 4,972,344 |   |   | $ | 4,445,888 |   |

|                  |   | Year      Ended December 31, |   |
|-----------------------|--------|------------------------------|--------|
|                  |   | 2007                         |   |   | 2006 |   |   | 2005 |   |
|                  |   |                         |   |   |   |   |   |   |   |
| Interest              |   | $                            | 25,025 |   |   | $ | 7,616 |   |   | $ | 2,629 |   |
| Ad      valorem taxes |   |                         | 1,985  |   |   |   | 780 |   |   |   | 293 |   |
|                  |   |                         |   |   |   |   |   |   |   |   |   |   |
| Total                 |   | $                            | 27,010 |   |   | $ | 8,396 |   |   | $ | 2,922 |   |

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|                                                           |   | December      31, |      |
|----------------------------------------------------------------|--------|-------------------|-----------|
|                                                           |   | 2007              |      |   | 2006 |   |
|                                                           |   |              |      |   |   |   |
| Combined      Condensed Balance Sheets                         |   |              |      |   |   |   |
|                                                           |   |              |      |   |   |   |
| Property                                                       |   | $                 | 1,660,915 |   |   | $ | 1,123,600 |   |
| Accumulated      depreciation                                  |   |              | (71,998   | ) |   |   | (41,305 | ) |
| Property      – net                                      |   |              | 1,588,917 |   |   |   | 1,082,295 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Other      assets                                              |   |              | 238,166   |   |   |   | 117,594 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Total                                                          |   | $                 | 1,827,083 |   |   | $ | 1,199,889 |   |
|                                                           |   |              |      |   |   |   |   |   |
|                                                           |   |              |      |   |   |   |   |   |
|                                                           |   |              |      |   |   |   |   |   |
| Debt      (primarily mortgage payable)                         |   | $                 | 378,206   |   |   | $ | 327,460 |   |
| Notes      and accounts payable to Weingarten Realty Investors |   |              | 87,191    |   |   |   | 22,657 |   |
| Other      liabilities                                         |   |              | 138,150   |   |   |   | 39,154 |   |
| Accumulated      equity                                        |   |              | 1,223,536 |   |   |   | 810,618 |   |
|                                                           |   |              |      |   |   |   |   |   |
| Total                                                          |   | $                 | 1,827,083 |   |   | $ | 1,199,889 |   |

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|                                             |   | Year      Ended December 31, |    |
|--------------------------------------------------|--------|------------------------------|---------|
|                                             |   | 2007                         |    |   | 2006 |   |   | 2005 |   |
|                                             |   |                         |    |   |   |   |   |   |   |
| Combined      Condensed Statements of Income     |   |                         |    |   |   |   |   |   |   |
|                                             |   |                         |    |   |   |   |   |   |   |
| Revenues                                         |   | $                            | 146,642 |   |   | $ | 65,002 |   |   | $ | 41,059 |   |
|                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Expenses:                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization               |   |                         | 38,574  |   |   |   | 15,390 |   |   |   | 9,322 |   |
| Interest                                         |   |                         | 23,093  |   |   |   | 17,398 |   |   |   | 10,565 |   |
| Operating                                        |   |                         | 22,396  |   |   |   | 8,750 |   |   |   | 5,480 |   |
| Ad      valorem taxes                            |   |                         | 15,767  |   |   |   | 6,187 |   |   |   | 4,756 |   |
| General      and administrative                  |   |                         | 1,243   |   |   |   | 783 |   |   |   | 301 |   |
|                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Total                                            |   |                         | 101,073 |   |   |   | 48,508 |   |   |   | 30,424 |   |
|                                             |   |                         |    |   |   |   |   |   |   |   |   |   |
| Gain      on land and merchant development sales |   |                         | 1,295   |   |   |   | 1,938 |   |   |   | 170 |   |
| Gain      (loss) on sale of properties           |   |                         | 5,422   |   |   |   | 5,991 |   |   |   | (20 | ) |
| Net      income                                  |   | $                            | 52,286  |   |   | $ | 24,423 |   |   | $ | 10,785 |   |

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|                                                                           |   | 2007   |     |   | 2006   |   |     | 2005   |   |
|--------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                           |   |   |     |   |   |   |     |   |   |
| Net      Income                                                                |   | $      | 238,017  |   |   | $      | 305,010  |   |   | $ | 219,653 |   |
| Net      income of taxable REIT subsidiaries included above                    |   |   | (6,352   | )      |   |   | (4,264   | )      |   |   | (923 | ) |
| Net      Income from REIT operations                                           |   |   | 231,665  |   |   |   | 300,746  |   |   |   | 218,730 |   |
| Book      depreciation and amortization including discontinued      operations |   |   | 134,676  |   |   |   | 131,992  |   |   |   | 126,930 |   |
| Tax      depreciation and amortization                                         |   |   | (98,238  | )      |   |   | (86,002  | )      |   |   | (80,922 | ) |
| Book/tax      difference on gains/losses from capital transactions             |   |   | (76,054  | )      |   |   | (128,628 | )      |   |   | (69,885 | ) |
| Other      book/tax differences, net                                           |   |   | 2,698    |   |   |   | (22,534  | )      |   |   | (32,336 | ) |
| REIT      taxable income                                                       |   |   | 194,747  |   |   |   | 195,574  |   |   |   | 162,517 |   |
| Dividends      paid deduction                                                  |   |   | (194,747 | )      |   |   | (195,574 | )      |   |   | (167,196 | ) |
| Dividends      paid in excess of taxable income                                |   | $      | -        |   |   | $      | -        |   |   | $ | (4,679 | ) |

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|                                          |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |   |   |   |   |
| Ordinary      income                          |   |   | 85.6   | %      |   |   | 76.2   | %      |   |   | 81.2 | % |
| Capital      gain distributions               |   |   | 14.4   |   |   |   | 23.8   |   |   |   | 9.7 |   |
| Return      of capital (generally nontaxable) |   |   |   |   |   |   |   |   |   |   | 9.1 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   |   | 100.0  | %      |   |   | 100.0  | %      |   |   | 100.0 | % |

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| 2008       |   | $      | 2,436   |   |
|------------|--------|--------|---------|--------|
| 2009       |   |   | 2,961   |   |
| 2010       |   |   | 2,917   |   |
| 2011       |   |   | 2,862   |   |
| 2012       |   |   | 2,821   |   |
| Thereafter |   |   | 113,568 |   |
|       |   | $      | 127,565 |   |

| 2008       |   | $      | 32,356  |   |
|------------|--------|--------|---------|--------|
| 2009       |   |   | 28,028  |   |
| 2010       |   |   | 23,814  |   |
| 2011       |   |   | 20,022  |   |
| 2012       |   |   | 16,222  |   |
| Thereafter |   |   | 68,544  |   |
|       |   | $      | 188,986 |   |

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|                                                                                 |   | December      31, |    |   | December      31, |   |
|--------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                                                 |   | 2007              |    |   | 2006              |   |
|                                                                                 |   |              |    |   |              |   |
| Identified      Intangible Assets:                                                   |   |              |    |   |              |   |
| Above-Market      Leases (included in Other Assets)                                  |   | $                 | 18,590  |   |              | $      | 14,686 |   |
| Above-Market      Leases – Accumulated Amortization                            |   |              | (7,323  | )      |              |   | (5,277 | ) |
| Below-Market      Assumed Mortgages (included in Debt)                               |   |              | 2,072   |   |              |   | 1,653 |   |
| Below-Market      Assumed Mortgages – Accumulated Amortization                 |   |              | (246    | )      |              |   |   |   |
| Valuation      of In Place Leases (included in Unamortized Debt and Lease      Cost) |   |              | 59,498  |   |              |   | 52,878 |   |
| Valuation      of In Place Leases – Accumulated Amortization                   |   |              | (22,308 | )      |              |   | (16,297 | ) |
|                                                                                 |   |              |    |   |              |   |   |   |
|                                                                                 |   | $                 | 50,283  |   |              | $      | 47,643 |   |
|                                                                                 |   |              |    |   |              |   |   |   |
| Identified      Intangible Liabilities:                                              |   |              |    |   |              |   |   |   |
| Below-Market      Leases (included in Other Liabilities)                             |   | $                 | 39,141  |   |              | $      | 24,602 |   |
| Below-Market      Leases – Accumulated Amortization                            |   |              | (11,949 | )      |              |   | (6,569 | ) |
| Above-Market      Assumed Mortgages (included in Debt)                               |   |              | 58,414  |   |              |   | 59,863 |   |
| Above-Market      Assumed Mortgages – Accumulated Amortization                 |   |              | (24,517 | )      |              |   | (18,123 | ) |
|                                                                                 |   |              |    |   |              |   |   |   |
|                                                                                 |   | $                 | 61,089  |   |              | $      | 59,773 |   |

| 2008 |   | $      | 3,321 |   |
|------|--------|--------|-------|--------|
| 2009 |   |   | 2,771 |   |
| 2010 |   |   | 1,940 |   |
| 2011 |   |   | 1,369 |   |
| 2012 |   |   | 1,115 |   |

| 2008 |   | $      | 7,187 |   |
|------|--------|--------|-------|--------|
| 2009 |   |   | 6,255 |   |
| 2010 |   |   | 5,227 |   |
| 2011 |   |   | 4,042 |   |
| 2012 |   |   | 3,229 |   |

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| 2008 |   | $      | 5,804 |   |
|------|--------|--------|-------|--------|
| 2009 |   |   | 4,476 |   |
| 2010 |   |   | 3,823 |   |
| 2011 |   |   | 2,526 |   |
| 2012 |   |   | 1,355 |   |

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|                             |   | Year      Ended December 31, |   |
|----------------------------------|--------|------------------------------|--------|
|                             |   | 2007                         |   |   | 2006 |   |   | 2005 |   |
|                             |   |                         |   |   |   |   |   |   |   |
| Fair      value per share option |   | $                            | 4.29   |   |   | $ | 4.97 |   |   | $ | 3.02 |   |
| Dividend      yield              |   |                         | 5.5    | % |   |   | 5.7 | % |   |   | 6.3 | % |
| Expected      volatility         |   |                         | 18.1   | % |   |   | 18.2 | % |   |   | 16.8 | % |
| Expected      life (in years)    |   |                         | 6.0    |   |   |   | 5.9 |   |   |   | 6.7 |   |
| Risk-free      interest rate     |   |                         | 4.1    | % |   |   | 4.4 | % |   |   | 4.4 | % |

|                                |   |   |      |   | Weighted |   |
|-------------------------------------|--------|--------|-----------|--------|----------|--------|
|                                |   | Shares |      |   | Average  |   |
|                                |   | Under  |      |   | Exercise |   |
|                                |   | Option |      |   | Price    |   |
|                                |   |   |      |   |     |   |
| Outstanding,      January 1, 2005   |   |   | 3,011,790 |   |     | $      | 24.77 |   |
| Granted                             |   |   | 537,319   |   |     |   | 37.40 |   |
| Forfeited      or expired           |   |   | (30,797   | )      |     |   | 28.10 |   |
| Exercised                           |   |   | (338,666  | )      |     |   | 19.17 |   |
| Outstanding,      December 31, 2005 |   |   | 3,179,646 |   |     |   | 27.47 |   |
| Granted                             |   |   | 544,346   |   |     |   | 47.41 |   |
| Forfeited      or expired           |   |   | (65,996   | )      |     |   | 28.63 |   |
| Exercised                           |   |   | (510,843  | )      |     |   | 20.73 |   |
| Outstanding,      December 31, 2006 |   |   | 3,147,153 |   |     |   | 31.99 |   |
| Granted                             |   |   | 7,821     |   |     |   | 42.63 |   |
| Forfeited      or expired           |   |   | (73,156   | )      |     |   | 35.78 |   |
| Exercised                           |   |   | (241,528  | )      |     |   | 23.24 |   |
| Outstanding,      December 31, 2007 |   |   | 2,840,290 |   |     | $      | 32.66 |   |

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|                 |                |   | Outstanding |      |        | Exercisable    |           |
|----------------------|---------------------|--------|-------------|-----------|-------------|----------------|----------------|
|                 |                |   |        |      | Weighted    |           |           |   |   |   |   |   |   |   |   |   |   | Weighted |   |   |   |
|                 |                |   |        |      | Average     |           | Weighted       |   |   | Aggregate |   |   |   |   |   | Weighted |   | Average |   | Aggregate |   |
|                 |                |   |        |      | Remaining   |           | Average        |   |   | Intrinsic |   |   |   |   |   | Average |   | Remaining |   | Intrinsic |   |
| Range      of        |                |   |        |      | Contractual |           | Exercise       |   |   | Value |   |   |   |   |   | Exercise |   | Contractual |   | Value |   |
| Exercise      Prices |                |   | Number      |      | Life        |           | Price          |   |   |   | (000’s) |   |   | Number |   |   | Price |   | Life |   |   | (000’s) |   |
|                 |                |   |        |      |        |           |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                    | 17.89      - $26.83 |   |        |      | 1,059,744   |           | 4.0      years |   | $ | 21.95 |   |   |   |   |   |   |   | 860,045 |   |   | $ | 21.55 |   | 3.8      years |   |   |   |   |
|                 |                |   |        |      |        |           |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                    | 26.84      - $40.26 |   |        |      | 1,262,966   |           | 7.0      years |   | $ | 35.58 |   |   |   |   |   |   |   | 818,749 |   |   | $ | 34.91 |   | 6.8      years |   |   |   |   |
|                 |                |   |        |      |        |           |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                    | 40.27      - $49.62 |   |        |      | 517,580     |           | 8.9      years |   | $ | 47.47 |   |   |   |   |   |   |   | 113,702 |   |   | $ | 47.46 |   | 8.9      years |   |   |   |   |
|                 |                |   |        |      |        |           |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                |                |   |        | 2,840,290 |        | 6.2      years |           | $ | 32.66 |   |   | $ | -            |   |   |   | 1,792,496 |   |   | $ | 29.30 |   | 5.5      years |   | $ | 3,836 |   |

|                                |   | Unvested   |    |   | Weighted             |   |
|-------------------------------------|--------|------------|---------|--------|----------------------|--------|
|                                |   | Restricted |    |   | Average      Grant   |   |
|                                |   | Shares     |    |   | Date      Fair Value |   |
|                                |   |       |    |   |                 |   |
| Outstanding,      January 1, 2007   |   |       | 172,255 |   |                 | $      | 40.80 |   |
| Granted                             |   |       | 10,412  |   |                 |   | 48.43 |   |
| Vested                              |   |       | (55,841 | )      |                 |   | 40.63 |   |
| Forfeited                           |   |       | (9,287  | )      |                 |   | 42.04 |   |
| Outstanding,      December 31, 2007 |   |       | 117,539 |   |                 | $      | 41.45 |   |

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|                                                                           |   | Fiscal      Year End |   |
|--------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                           |   | 2007                 |   |   | 2006 |   |
| Change      in Projected Benefit Obligation:                                   |   |                 |   |   |   |   |
| Benefit      obligation at beginning of year                                   |   | $                    | 38,997 |   |   | $ | 32,456 |   |
| Service      cost                                                              |   |                 | 3,846  |   |   |   | 3,090 |   |
| Interest      cost                                                             |   |                 | 2,175  |   |   |   | 2,309 |   |
| Plan      amendments                                                           |   |                 |   |   |   |   | 63 |   |
| Actuarial      (gains) losses                                                  |   |                 | (1,325 | ) |   |   | 1,882 |   |
| Benefit      payments                                                          |   |                 | (2,610 | ) |   |   | (803 | ) |
| Benefit      obligation at end of year                                         |   | $                    | 41,083 |   |   | $ | 38,997 |   |
|                                                                           |   |                 |   |   |   |   |   |   |
| Change      in Plan Assets:                                                    |   |                 |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year                            |   | $                    | 17,933 |   |   | $ | 15,213 |   |
| Actual      return on plan assets                                              |   |                 | 1,185  |   |   |   | 1,901 |   |
| Employer      contributions                                                    |   |                 | 3,926  |   |   |   | 1,622 |   |
| Benefit      payments                                                          |   |                 | (2,610 | ) |   |   | (803 | ) |
| Fair      value of plan assets at end of year                                  |   | $                    | 20,434 |   |   | $ | 17,933 |   |
|                                                                           |   |                 |   |   |   |   |   |   |
| Unfunded      Status at End of Year:                                           |   | $                    | 20,649 |   |   | $ | 21,064 |   |
|                                                                           |   |                 |   |   |   |   |   |   |
| Accumulated      benefit obligation                                            |   | $                    | 40,101 |   |   | $ | 38,194 |   |
|                                                                           |   |                 |   |   |   |   |   |   |
| Amounts      recognized in accumulated other comprehensive loss consist    of: |   |                 |   |   |   |   |   |   |
| Net      loss                                                                  |   | $                    | 4,287  |   |   | $ | 5,565 |   |
| Prior      service credit                                                      |   |                 | (587   | ) |   |   | (704 | ) |
| Total      amount recognized                                                   |   | $                    | 3,700  |   |   | $ | 4,861 |   |

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|                                |   | 2007   |   |   | 2006   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |   |   |
| Projected      benefit obligation   |   | $      | 41,083 |   |   | $      | 38,997 |   |
| Accumulated      benefit obligation |   |   | 40,101 |   |   |   | 38,194 |   |
| Fair      value of plan assets      |   |   | 20,434 |   |   |   | 17,933 |   |

|                                                                                          |   | 2007   |   |    | 2006   |   |   | 2005   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
|                                                                                          |   |   |   |    |   |   |   |   |   |
| Net      gain                                                                                 |   | $      | (925   | )  |   |   | N/A    |   |   |   | N/A |   |
| Amortization      of net gain                                                                 |   |   | (353   | )  |   |   | N/A    |   |   |   | N/A |   |
| Amortization      of prior service cost                                                       |   |   | 117    |    |   |   | N/A    |   |   |   | N/A |   |
|                                                                                          |   |   |   |    |   |   |   |   |   |   |   |   |
| Total      recognized in other comprehensive income                                           |   | $      | (1,161 | )  |   |   | N/A    |   |   |   | N/A |   |
|                                                                                          |   |   |   |    |   |   |   |   |   |   |   |   |
|  Total      recognized in net periodic benefit costs and other comprehensive      income |   | $      | 3,511  |    |   |   | N/A    |   |   |   | N/A |   |

|                                |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |   |   |   |
| Service      cost                   |   | $      | 3,846  |   |   | $      | 3,090  |   |   | $ | 2,641 |   |
| Interest      cost                  |   |   | 2,175  |   |   |   | 2,309  |   |   |   | 1,724 |   |
| Expected      return on plan assets |   |   | (1,500 | )      |   |   | (1,385 | )      |   |   | (1,192 | ) |
| Prior      service cost             |   |   | (117   | )      |   |   | (128   | )      |   |   | (128 | ) |
| Recognized      loss                |   |   | 269    |   |   |   | 407    |   |   |   | 159 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                               |   | $      | 4,673  |   |   | $      | 4,293  |   |   | $ | 3,204 |   |

|                                                            |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                            |   |   |   |   |   |   |   |   |   |
| Discount      rate – Retirement Plan                      |   |   | 5.75   | %      |   |   | 5.75   | %      |   |   | 6.00 | % |
| Salary      scale increases – Retirement Plan             |   |   | 4.00   | %      |   |   | 4.00   | %      |   |   | 4.00 | % |
| Salary      scale increases – SRP                         |   |   | 5.00   | %      |   |   | 5.00   | %      |   |   | 5.00 | % |
| Long-term      rate of return on assets – Retirement Plan |   |   | 8.50   | %      |   |   | 8.50   | %      |   |   | 8.50 | % |

|                                                |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                |   |   |   |   |   |   |   |   |   |
| Discount      rate – Retirement Plan          |   |   | 6.25   | %      |   |   | 5.75   | %      |   |   | 5.75 | % |
| Salary      scale increases – Retirement Plan |   |   | 4.00   | %      |   |   | 4.00   | %      |   |   | 4.00 | % |
| Salary      scale increases – SRP             |   |   | 5.00   | %      |   |   | 5.00   | %      |   |   | 5.00 | % |

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|                                   |   | December      31, |   |
|----------------------------------------|--------|-------------------|--------|
|                                   |   | 2007              |   |   | 2006 |   |
|                                   |   |              |   |   |   |   |
| Cash      and short-term investments   |   |              | 3      | % |   |   | 3 | % |
| Mutual      funds – equity       |   |              | 69     | % |   |   | 69 | % |
| Mutual      funds – fixed income |   |              | 28     | % |   |   | 28 | % |
|                                   |   |              |   |   |   |   |   |   |
| Total                                  |   |              | 100    | % |   |   | 100 | % |

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|                                                                                    |   | Shopping |      |   |       |   |    |   |   |   |    |   |
|-----------------------------------------------------------------------------------------|--------|----------|-----------|--------|------------|--------|---------|--------|--------|--------|---------|--------|
|                                                                                    |   | Center   |      |   | Industrial |   |    | Other  |   |   | Total   |   |
|                                                                                    |   |     |      |   |       |   |    |   |   |   |    |   |
| Year      Ended December 31, 2007:                                                      |   |     |      |   |       |   |    |   |   |   |    |   |
| Revenues                                                                                |   | $        | 533,815   |   |       | $      | 54,355  |   |   | $      | 10,884  |   |   | $ | 599,054 |   |
| Net      Operating Income                                                               |   |     | 382,092   |   |       |   | 37,610  |   |   |   | 4,533   |   |   |   | 424,235 |   |
| Equity      in Earnings of Real Estate Joint Ventures and Partnerships,      net        |   |     | 18,309    |   |       |   | 1,348   |   |   |   | 196     |   |   |   | 19,853 |   |
| Capital      Expenditures                                                               |   |     | 771,590   |   |       |   | 91,881  |   |   |   | 24,874  |   |   |   | 888,345 |   |
|                                                                                    |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Year      Ended December 31, 2006:                                                      |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Revenues                                                                                |   | $        | 481,388   |   |       | $      | 54,118  |   |   | $      | 2,688   |   |   | $ | 538,194 |   |
| Net      Operating Income (Loss)                                                        |   |     | 350,145   |   |       |   | 37,784  |   |   |   | (405    | )      |   |   | 387,524 |   |
| Equity      in Earnings of Real Estate Joint Ventures and Partnerships,      net        |   |     | 13,713    |   |       |   | 377     |   |   |   | 565     |   |   |   | 14,655 |   |
| Capital      Expenditures                                                               |   |     | 920,017   |   |       |   | 96,504  |   |   |   | 5,582   |   |   |   | 1,022,103 |   |
|                                                                                    |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Year      Ended December 31, 2005:                                                      |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Revenues                                                                                |   | $        | 439,005   |   |       | $      | 46,715  |   |   | $      | 2,136   |   |   | $ | 487,856 |   |
| Net      Operating Income                                                               |   |     | 323,861   |   |       |   | 33,711  |   |   |   | 885     |   |   |   | 358,457 |   |
| Equity      in Earnings (Loss) of Real Estate Joint Ventures and Partnerships,      net |   |     | 6,533     |   |       |   | 87      |   |   |   | (10     | )      |   |   | 6,610 |   |
| Capital      Expenditures                                                               |   |     | 339,328   |   |       |   | 89,066  |   |   |   | 646     |   |   |   | 429,040 |   |
|                                                                                    |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| As      of December 31, 2007:                                                           |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Investment      in Real Estate Joint Ventures and Partnerships                          |   | $        | 261,293   |   |       | $      | 35,103  |   |   | $      | 4,360   |   |   | $ | 300,756 |   |
| Total      Assets                                                                       |   |     | 3,908,105 |   |       |   | 353,157 |   |   |   | 732,081 |   |   |   | 4,993,343 |   |
|                                                                                    |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| As      of December 31, 2006:                                                           |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Investment      in Real Estate Joint Ventures and Partnerships                          |   | $        | 174,587   |   |       | $      | 25,156  |   |   | $      | 4,096   |   |   | $ | 203,839 |   |
| Total      Assets                                                                       |   |     | 3,516,080 |   |       |   | 324,343 |   |   |   | 533,464 |   |   |   | 4,373,887 |   |
|                                                                                    |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| As      of December 31, 2005                                                            |   |     |      |   |       |   |    |   |   |   |    |   |   |   |   |   |
| Investment      in Real Estate Joint Ventures and Partnerships                          |   | $        | 82,092    |   |       | $      | 480     |   |   | $      | 1,776   |   |   | $ | 84,348 |   |
| Total      Assets                                                                       |   |     | 3,035,964 |   |       |   | 355,848 |   |   |   | 345,929 |   |   |   | 3,737,741 |   |

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|                                                                                  |   | 2007   |     |   | 2006   |   |     | 2005   |   |
|---------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                  |   |   |     |   |   |   |     |   |   |
| Total      Segment Net Operating Income                                               |   | $      | 424,235  |   |   | $      | 387,524  |   |   | $ | 358,457 |   |
| Depreciation      and Amortization                                                    |   |   | (131,708 | )      |   |   | (121,471 | )      |   |   | (110,956 | ) |
| General      and Administrative                                                       |   |   | (26,979  | )      |   |   | (23,801  | )      |   |   | (17,379 | ) |
| Interest      Expense                                                                 |   |   | (148,829 | )      |   |   | (145,374 | )      |   |   | (129,160 | ) |
| Interest      and Other Income                                                        |   |   | 8,486    |   |   |   | 9,044    |   |   |   | 2,860 |   |
| Equity      in Earnings of Real Estate Joint Ventures      and Partnerships, net |   |   | 19,853   |   |   |   | 14,655   |   |   |   | 6,610 |   |
| Income      Allocated to Minority Interests                                           |   |   | (10,237  | )      |   |   | (6,414   | )      |   |   | (6,060 | ) |
| Gain      on Land and Merchant Development Sales                                      |   |   | 16,385   |   |   |   | 7,166    |   |   |   | 804 |   |
| Gain      on Sale of Properties                                                       |   |   | 4,086    |   |   |   | 22,493   |   |   |   | 22,306 |   |
| Provision      for Income Taxes                                                       |   |   | (4,073   | )      |   |   | (1,366   | )      |   |   |   |   |
| Income      from Continuing Operations                                                |   | $      | 151,219  |   |   | $      | 142,456  |   |   | $ | 127,482 |   |

|                                             |   | First  |    | Second |   |    |   | Third  |   |   |    | Fourth |   |   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
|                                             |   |   |    |   |   |    |   |   |   |   |    |   |   |   |   |
| 2007:                                            |   |   |    |   |   |    |   |   |   |   |    |   |   |   |   |
| Revenues      (2)                                |   | $      | 143,507 |   | $      | 145,027 |   |   |   | $      | 156,116 |   |   |   | $      | 154,404 |   |   |   |
| Net      income available to common shareholders |   |   | 46,657  |   |   | 70,002  |   | (1)    |   |   | 38,281  |   |   |   |   | 57,702 |   | (1) |   |
| Net      income per common share – basic   |   |   | 0.61    |   |   | 0.81    |   | (1)    |   |   | 0.45    |   |   |   |   | 0.68 |   | (1) |   |
| Net      income per common share – diluted |   |   | 0.53    |   |   | 0.79    |   | (1)    |   |   | 0.44    |   |   |   |   | 0.67 |   | (1) |   |
|                                             |   |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |   |
| 2006:                                            |   |   |    |   |   |    |   |   |   |   |    |   |   |   |   |   |   |   |   |
| Revenues      (2)                                |   | $      | 128,300 |   | $      | 130,621 |   |   |   | $      | 138,557 |   |   |   | $      | 140,716 |   |   |   |
| Net      income available to common shareholders |   |   | 52,084  |   |   | 87,741  |   | (1)    |   |   | 103,223 |   | (1)    |   |   | 51,861 |   |   |   |
| Net      income per common share – basic   |   |   | 0.58    |   |   | 0.98    |   | (1)    |   |   | 1.19    |   | (1)    |   |   | 0.61 |   |   |   |
| Net      income per common share – diluted |   |   | 0.57    |   |   | 0.95    |   | (1)    |   |   | 1.15    |   | (1)    |   |   | 0.59 |   |   |   |

|   | (1) | The      quarter results include gains on the sale of  properties. |
|--------|-----|--------------------------------------------------------------------|

|   | (2) | Revenues      from the sale of operating properties have been reclassified and reported      as operating income from discontinued operations for all periods      presented. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM9.                     Changesin and Disagreements with Accountants on Accounting and FinancialDisclosure

ITEM9A.                  Controlsand Procedures

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ITEM9B.                  OtherInformation

ITEM10.                   Trust Managers, Executive Officers and CorporateGovernance

ITEM11.                   ExecutiveCompensation

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ITEM12.                   SecurityOwnership of Certain Beneficial Owners and Management and Related ShareholderMatter

|                                                        |   | Number      of shares to     |   | Weighted      average     |   |                     |
|-------------------------------------------------------------|--------|------------------------------|--------|---------------------------|--------|--------------------------|
|                                                        |   | be      issued upon exercise |   | exercise      price of    |   | Number      of shares    |
|                                                        |   | of      outstanding options, |   | outstanding      options, |   | remaining      available |
| Plan      category                                          |   | warrants      and rights     |   | warrants      and rights  |   | for      future issuance |
|                                                        |   |                         |   |                      |   |                     |
| Equity      compensation plans approved by shareholders     |   | 2,840,290                    |   | $      32.66              |   | 2,626,360                |
|                                                        |   |                         |   |                      |   |                     |
| Equity      compensation plans not approved by shareholders |   | ―                      |   | ―                   |   | ―                  |
|                                                        |   |                         |   |                      |   |                     |
| Total                                                       |   | 2,840,290                    |   | $      32.66              |   | 2,626,360                |

ITEM13.                  Certain Relationships and Related Transactions, and Trust ManagerIndependence

ITEM14.                  Principal Accountant Fees and Services

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ITEM15.                  Exhibits and Financial Statement Schedules

| (a)    |   | Financial      Statements and Financial Statement Schedules: | Page                                                         |
|--------|--------|--------------------------------------------------------------|--------------------------------------------------------------|
|   |   |                                                         |                                                         |   |
|   | (1)    | (A)                                                          | Report of Independent Registered Public Accounting      Firm | 49 |
|   |   | (B)                                                          | Financial      Statements                                    |   |
|   |   |                                                         | (i)                                                          | Statements of Consolidated Income and Comprehensive Income      for the year ended December 31, 2007, 2006 and 2005 | 50 |
|   |   |                                                         | (ii)                                                         | Consolidated Balance Sheets as of December 31, 2007 and      2006 | 51 |
|   |   |                                                         | (iii)                                                        | Statements of Consolidated Cash Flows for the year ended      December 31, 2007, 2006 and 2005 | 52 |
|   |   |                                                         | (iv)                                                         | Statements of Consolidated Shareholders' Equity for the      year ended December 31, 2007, 2006 and 2005 | 53 |
|   |   |                                                         | (v)                                                          | Notes to Consolidated Financial    Statements | 54 |

|   | (2)    | Financial      Statement Schedules:                          |
|--------|--------|--------------------------------------------------------------|
|   |   |                                                         |   |   |
|   |   | Report of Independent Registered Public Accounting      Firm | 91 |
|   |   | Schedule                                                     |   |
|   |   |                                                         |
|   |   |                                                         | II | Valuation and Qualifying Accounts | 92 |
|   |   |                                                         | III | Real Estate and Accumulated      Depreciation | 93 |
|   |   |                                                         | IV | Mortgage Loans on Real Estate | 95 |

|   |    |                                                                                                                                                                                                                                                                                                       |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)    |    | Exhibits:                                                                                                                                                                                                                                                                                                  |
|   |    |                                                                                                                                                                                                                                                                                                       |
| 3.1    | — | Restated      Declaration of Trust (filed as Exhibit 3.1 to WRI's Registration Statement      on Form 8-A dated January 19, 1999 and incorporated herein by      reference).                                                                                                                               |
| 3.2    | — | Amendment      of the Restated Declaration of Trust (filed as Exhibit 3.2 to WRI's      Registration Statement on Form 8-A dated January 19, 1999 and incorporated      herein by reference).                                                                                                              |
| 3.3    | — | Second      Amendment of the Restated Declaration of Trust (filed as Exhibit 3.3 to      WRI's Registration Statement on Form 8-A dated January 19, 1999 and      incorporated herein by reference).                                                                                                       |
| 3.4    | — | Third      Amendment of the Restated Declaration of Trust (filed as Exhibit 3.4 to      WRI's Registration Statement on Form 8-A dated January 19, 1999 and      incorporated herein by reference).                                                                                                        |
| 3.5    | — | Fourth      Amendment of the Restated Declaration of Trust dated April 28, 1999 (filed      as Exhibit 3.5 to WRI's Annual Report on Form 10-K for the year ended      December 31, 2001 and incorporated herein byreference).                                                                             |
| 3.6    | — | Fifth      Amendment of the Restated Declaration of Trust dated April 20, 2001 (filed      as Exhibit 3.6 to WRI's Annual Report on Form 10-K for the year ended      December 31, 2001 and incorporated herein byreference).                                                                              |
| 3.7    | — | Amended      and Restated Bylaws of WRI (filed as Exhibit 99.2 to WRI's Registration      Statement on Form 8-A dated February 23, 1998 and incorporated herein by      reference).                                                                                                                        |
| 3.8    | — | Amendment      of Bylaws-Direct Registration System, Section 7.2(a) dated May 3,      2007 (filed as Exhibit 3.8 to WRI’s Form 10-Q for the quarter ended June      30, 2007 and incorporated herein by reference).                                                                             |
| 4.1    | — | Subordinated      Indenture dated as of May 1, 1995 between WRI and Chase Bank of Texas,      National Association (formerly, Texas Commerce Bank National Association)      (filed as Exhibit 4(a) to WRI's Registration Statement on Form S-3 (No.      33-57659) and incorporated herein by reference). |
| 4.2    | — | Subordinated      Indenture dated as of May 1, 1995 between WRI and Chase Bank of Texas,      National Association (formerly, Texas Commerce Bank National Association)      (filed as Exhibit 4(b) to WRI's Registration Statement on Form S-3 (No.      33-57659) and incorporated herein byreference).  |

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| 4.3         | — | Form      of Fixed Rate Senior Medium Term Note (filed as Exhibit 4.19 to WRI’s      Annual Report on Form 10-K for the year ended December 31, 1998 and      incorporated herein by reference).                                                                                                                    |
|-------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.4         | — | Form      of Floating Rate Senior Medium Term Note (filed as Exhibit 4.20 to WRI’s      Annual Report on Form 10-K for the year ended December 31, 1998 and      incorporated herein by reference).                                                                                                                 |
| 4.5         | — | Form      of Fixed Rate Subordinated Medium Term Note (filed as Exhibit 4.21 to      WRI’s Annual Report on Form 10-K for the year ended December 31, 1998 and      incorporated herein by reference).                                                                                                              |
| 4.6         | — | Form      of Floating Rate Subordinated Medium Term Note (filed as Exhibit 4.22 to      WRI’s Annual Report on Form 10-K for the year ended December 31, 1998 and      incorporated herein by reference).                                                                                                           |
| 4.7         | — | Statement      of Designation of 6.75% Series D Cumulative Redeemable Preferred Shares      (filed as Exhibit 3.1 to WRI’s Registration Statement on Form 8-A dated      April 17, 2003 and incorporated herein by reference).                                                                                      |
| 4.8         | — | Statement      of Designation of 6.95% Series E Cumulative Redeemable Preferred Shares      (filed as Exhibit 3.1 to WRI’s Registration Statement on Form 8-A dated      July 8, 2004 and incorporated herein by reference).                                                                                        |
| 4.9         | — | Statement      of Designation of 6.50% Series F Cumulative Redeemable Preferred Shares      (filed as Exhibit 3.1 to WRI’s Registration Statement on Form 8-A dated      January 29, 2007 and incorporated herein by reference).                                                                                    |
| 4.10        | — | Statement      of Designation of Adjustable Rate Series G Cumulative Redeemable Preferred      Shares (filed as Exhibit 3.1 to WRI’s Form 8-K dated September 25, 2007      and incorporated herein by reference).                                                                                                  |
| 4.11        | — | 6.75%      Series D Cumulative Redeemable Preferred Share Certificate (filed as      Exhibit 4.2 to WRI’s Registration Statement on Form 8-A dated April 17,      2003 and incorporated herein by reference).                                                                                                       |
| 4.12        | — | 6.95%      Series E Cumulative Redeemable Preferred Share Certificate (filed as      Exhibit 4.2 to WRI’s Registration Statement on Form 8-A dated July 8, 2004      and incorporated herein by reference).                                                                                                         |
| 4.13        | — | 6.50%      Series F Cumulative Redeemable Preferred Share Certificate (filed as      Exhibit 4.2 to WRI’s Registration Statement on Form 8-A dated January 29,      2007 and incorporated herein by reference).                                                                                                     |
| 4.14        | — | Form      of Receipt for Depositary Shares, each representing 1/30 of a share of      6.75% Series D Cumulative Redeemable Preferred Shares, par value $.03 per      share (filed as Exhibit 4.3 to WRI’s Registration Statement on Form 8-A      dated April 17, 2003 and incorporated herein by  reference).      |
| 4.15        | — | Form      of Receipt for Depositary Shares, each representing 1/100 of a share of      6.95% Series E Cumulative Redeemable Preferred Shares, par value $.03 per      share (filed as Exhibit 4.3 to WRI’s Registration Statement on Form 8-A      dated July 8, 2004 and incorporated herein by  reference).       |
| 4.16        | — | Form      of Receipt for Depositary Shares, each representing 1/100 of a share of      6.50% Series F Cumulative Redeemable Preferred Shares, par value $.03 per      share (filed as Exhibit 4.3 to WRI’s Registration Statement on Form 8-A      dated January 29, 2007 and incorporated herein by    reference). |
| 4.17        | — | Purchase      Agreement for Depositary Shares, each representing 1/100 of a share of      Adjustable Rate Series G Cumulative Redeemable Preferred Shares, par value      $.03 per share (filed as Exhibit 10.1 to WRI’s Form 8-K dated September      25, 2007 and incorporated herein by reference).              |
| 4.18        | — | Form      of 7% Notes due 2011 (filed as Exhibit 4.17 to WRI’s Annual Report on Form      10-K for the year ended December 31, 2001 and incorporated herein by      reference).                                                                                                                                     |
| 4.19        | — | Form      of 3.95% Convertible Senior Notes due 2026 (filed as Exhibit 4.2 to WRI’s      Form 8-K on August 2, 2006 and incorporated herein by      reference).                                                                                                                                                     |
| 10.1† | — | 1988      Share Option Plan of WRI, as amended (filed as Exhibit 10.1 to WRI’s      Annual Report on Form 10-K for the year ended December 31, 1990 and      incorporated herein by reference).                                                                                                                     |
| 10.2† | — | The      Savings and Investment Plan for Employees of Weingarten Realty Investors      dated December 17, 2003 (filed as Exhibit 10.34 on WRI’s Annual Report on      Form 10-K for the year ended December 31, 2005 and incorporated herein by      reference).                                                    |
| 10.3† | — | The      Savings and Investment Plan for Employees of WRI, as amended (filed as      Exhibit 4.1 to WRI’s Registration Statement on Form S-8 (No. 33-25581) and      incorporated herein by reference).                                                                                                             |
| 10.4† | — | First      Amendment to the Savings and Investment Plan for Employees of Weingarten      Realty Investors dated August 1, 2005 (filed as Exhibit 10.25 on WRI’s      Form 10-Q for the quarter ended September 30, 2005 and incorporated herein      by reference).                                                 |
| 10.5† | — | The      Fifth Amendment to Savings and Investment Plan for Employees of WRI (filed      as Exhibit 4.1.1 to WRI’s Post-Effective Amendment No. 1 to Registration      Statement on Form S-8 (No. 33-25581) and incorporated herein by      reference).                                                             |

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| 10.6†  | — | Mandatory      Distribution Amendment for the Savings and Investment Plan for Employees      of Weingarten Realty Investors dated August 1, 2005 (filed as Exhibit      10.26 on WRI’s Form 10-Q for the quarter ended September 30, 2005 and      incorporated herein by reference).                                                                                               |
|--------------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.7†  | — | The      1993 Incentive Share Plan of WRI (filed as Exhibit 4.1 to WRI’s      Registration Statement on Form S-8 (No. 33-52473) and incorporated herein      by reference).                                                                                                                                                                                                         |
| 10.8†  | — | 1999      WRI Employee Share Purchase Plan (filed as Exhibit 10.6 to WRI’s Annual      Report on Form 10-K for the year ended December 31, 1999 and incorporated      herein by reference).                                                                                                                                                                                         |
| 10.9†  | — | 2001      Long Term Incentive Plan (filed as Exhibit 10.7 to WRI’s Annual Report on      Form 10-K for the year ended December 31, 2001 and incorporated herein by      reference).                                                                                                                                                                                                 |
| 10.10        | — | Master      Promissory Note in the amount of $20,000,000 between WRI, as payee, and      Chase Bank of Texas, National Association (formerly, Texas Commerce Bank      National Association), as maker, effective December 30, 1998 (filed as      Exhibit 4.15 to WRI’s Annual Report on Form 10-K for the year ended      December 31, 1999 and incorporated herein byreference). |
| 10.11† | — | Weingarten      Realty Retirement Plan restated effective April 1, 2002 (filed as Exhibit      10.29 on WRI’s Annual Report on Form 10-K for the year ended December 31,      2005 and incorporated herein by reference).                                                                                                                                                           |
| 10.12† | — | First      Amendment to the Weingarten Realty Retirement Plan, dated December 31,      2003 (filed as Exhibit 10.33 on WRI’s Annual Report on Form 10-K for the      year ended December 31, 2005 and incorporated herein by      reference).                                                                                                                                       |
| 10.13† | — | First      Amendment to the Weingarten Realty Pension Plan, dated August 1, 2005      (filed as Exhibit 10.27 on WRI’s Form 10-Q for the quarter ended September      30, 2005 and incorporated herein by reference).                                                                                                                                                               |
| 10.14† | — | Mandatory      Distribution Amendment for the Weingarten Realty Retirement Plan dated      August 1, 2005 (filed as Exhibit 10.28 on WRI’s Form 10-Q for the quarter      ended September 30, 2005 and incorporated herein by      reference).                                                                                                                                      |
| 10.15† | — | Weingarten      Realty Investors Supplemental Executive Retirement Plan amended and      restated effective September 1, 2002 (filed as Exhibit 10.10 on WRI’s Form      10-Q for the quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                                                       |
| 10.16† | — | First      Amendment to the Weingarten Realty Investors Supplemental Executive      Retirement Plan amended on November 3, 2003 (filed as Exhibit 10.11 on      WRI’s Form 10-Q for the quarter ended June 30, 2005 and incorporated      herein by reference).                                                                                                                     |
| 10.17† | — | Second      Amendment to the Weingarten Realty Investors Supplemental Executive      Retirement Plan amended October 22, 2004 (filed as Exhibit 10.12 on WRI’s      Form 10-Q for the quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                                                       |
| 10.18† | — | Third      Amendment to the Weingarten Realty Investors Supplemental Executive      Retirement Plan amended October 22, 2004 (filed as Exhibit 10.13 on WRI’s      Form 10-Q for the quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                                                        |
| 10.19† | — | Weingarten      Realty Investors Retirement Benefit Restoration Plan adopted effective      September 1, 2002 (filed as Exhibit 10.14 on WRI’s Form 10-Q for the      quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                                                                       |
| 10.20† | — | First      Amendment to the Weingarten Realty Investors Retirement Benefit      Restoration Plan amended on November 3, 2003 (filed as Exhibit 10.15 on      WRI’s Form 10-Q for the quarter ended June 30, 2005 and incorporated      herein by reference).                                                                                                                        |
| 10.21† | — | Second      Amendment to the Weingarten Realty Investors Retirement Benefit      Restoration Plan amended October 22, 2004 (filed as Exhibit 10.16 on WRI’s      Form 10-Q for the quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                                                          |
| 10.22† | — | Third      Amendment to the Weingarten Realty Pension Plan dated December 23, 2005      (filed as Exhibit 10.30 on WRI’s Annual Report on Form 10-K for the year      ended December 31, 2005 and incorporated herein by    reference).                                                                                                                                             |
| 10.23† | — | Weingarten      Realty Investors Deferred Compensation Plan amended and restated as a      separate and independent plan effective September 1, 2002 (filed as      Exhibit 10.17 on WRI’s Form 10-Q for the quarter ended June 30, 2005 and      incorporated herein by reference).                                                                                                |
| 10.24† | — | Supplement      to the Weingarten Realty Investors Deferred Compensation Plan amended on      April 25, 2003 (filed as Exhibit 10.18 on WRI’s Form 10-Q for the quarter      ended June 30, 2005 and incorporated herein by  reference).                                                                                                                                            |

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| 10.25†  | — | First      Amendment to the Weingarten Realty Investors Deferred Compensation Plan      amended on November 3, 2003 (filed as Exhibit 10.19 on WRI’s Form 10-Q for      the quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                                     |
|---------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.26†  | — | Second      Amendment to the Weingarten Realty Investors Deferred Compensation Plan,      as amended, dated October 13, 2005 (filed as Exhibit 10.29 on WRI’s Form      10-Q for the quarter ended September 30, 2005 and incorporated herein by      reference).                                                                                       |
| 10.27†  | — | Trust      Under the Weingarten Realty Investors Deferred Compensation Plan amended      and restated effective October 21, 2003 (filed as Exhibit 10.21 on WRI’s      Form 10-Q for the quarter ended June 30, 2005 and incorporated herein by      reference).                                                                                        |
| 10.28†  | — | Fourth      Amendment to the Weingarten Realty Investors Deferred Compensation Plan,      dated December 23, 2005 (filed as Exhibit 10.31 on WRI’s Annual Report on      Form 10-K for the year ended December 31, 2005 and incorporated herein by      reference).                                                                                     |
| 10.29†  | — | Trust      Under the Weingarten Realty Investors Retirement Benefit Restoration Plan      amended and restated effective October 21, 2003 (filed as Exhibit 10.22 on      WRI’s Form 10-Q for the quarter ended June 30, 2005 and incorporated      herein by reference).                                                                               |
| 10.30†  | — | Trust      Under the Weingarten Realty Investors Supplemental Executive Retirement      Plan amended and restated effective October 21, 2003 (filed as Exhibit      10.23 on WRI’s Form 10-Q for the quarter ended June 30, 2005 and      incorporated herein by reference).                                                                            |
| 10.31†  | — | First      Amendment to the Trust Under the Weingarten Realty Investors Deferred      Compensation Plan, Supplemental Executive Retirement Plan, and Retirement      Benefit Restoration Plan amended on March 16, 2004 (filed as Exhibit 10.24      on WRI’s Form 10-Q for the quarter ended June 30, 2005 and incorporated      herein by reference). |
| 10.32†  | — | Third      Amendment to the Weingarten Realty Investors Deferred Compensation Plan      dated August 1, 2005 (filed as Exhibit 10.30 on WRI’s Form 10-Q for the      quarter ended September 30, 2005 and incorporated herein by      reference).                                                                                                       |
| 10.33         | — | Amended      and Restated Credit Agreement dated February 22, 2006 among Weingarten      Realty Investors, the Lenders Party Hereto and JPMorgan Chase Bank, N.A.,      as Administrative Agent (filed as Exhibit 10.32 on WRI’s Form 10-K for the      year ended December 31, 2005 and incorporated by    reference).                                 |
| 10.34         | — | Amendment      Agreement dated November 7, 2007 to the Amended and Restated Credit      Agreement (filed as Exhibit 10.34 on WRI’s Form 10-Q for the quarter ended      September 30, 2007 and incorporated herein by  reference).                                                                                                                      |
| 10.35†  | — | Fifth      Amendment to the Weingarten Realty Investors Deferred Compensation Plan      (filed as Exhibit 10.34 to WRI’s Form 10-Q for quarter ended June 30, 2006      and incorporated herein by reference).                                                                                                                                          |
| 10.36†  | — | Restatement      of the Weingarten Realty Investors Supplemental Executive Retirement Plan      dated August 4, 2006 (filed as Exhibit 10.35 to WRI’s Form 10-Q for the      quarter ended September 30, 2006 and incorporated herein by      reference).                                                                                               |
| 10.37†  | — | Restatement      of the Weingarten Realty Investors Deferred Compensation Plan dated August      4, 2006 (filed as Exhibit 10.36 to WRI’s Form 10-Q for the quarter ended      September 30, 2006 and incorporated herein by  reference).                                                                                                               |
| 10.38†  | — | Restatement      of the Weingarten Realty Investors Retirement Benefit Restoration Plan      dated August 4, 2006 (filed as Exhibit 10.37 to WRI’s Form 10-Q for the      quarter ended September 30, 2006 and incorporated herein by      reference).                                                                                                  |
| 10.39†  | — | Amendment      No. 1 to the Weingarten Realty Investors Supplemental Executive Retirement      Plan dated December 15, 2006 (filed as Exhibit 10.38 on WRI’s Form 10-K      for the year ended December 31, 2006 and incorporated by      reference).                                                                                                   |
| 10.40†  | — | Amendment      No. 1 to the Weingarten Realty Investors Retirement Benefit Restoration      Plan dated December 15, 2006 (filed as Exhibit 10.39 on WRI’s Form 10-K      for the year ended December 31, 2006 and incorporated by      reference).                                                                                                      |
| 10.41†  | — | Amendment      No. 1 to the Weingarten Realty Investors Deferred Compensation Plan dated      December 15, 2006 (filed as Exhibit 10.40 on WRI’s Form 10-K for the year      ended December 31, 2006 and incorporated by reference).                                                                                                                    |
| 10.42†  | — | Final      401(k)/401(m) Regulations Amendment dated December 15, 2006 (filed as      Exhibit 10.41 on WRI’s Form 10-K for the year ended December 31, 2006 and      incorporated by reference).                                                                                                                                                        |
| 10.43†* | — | Amendment No. 2 to the Weingarten Realty Investors      Retirement Benefit Restoration Plan dated November 9,      2007.                                                                                                                                                                                                                                      |

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| 10.44†* | — | Amendment No. 2 to the Weingarten Realty Investors      Deferred Compensation Plan dated November 9, 2007.                                                                                                                                       |
|---------------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.45†* | — | Amendment No. 2 to the Weingarten Realty Investors      Supplemental Executive Retirement Plan dated November 9,      2007.                                                                                                                      |
| 10.46†* | — | Severance Benefit and Stay Pay Bonus Plan      dated September 20, 2007.                                                                                                                                                                    |
| 10.47†* | — | 2007 Reduction in Force Severance Pay Plan dated      November 6, 2007.                                                                                                                                                                          |
| 12.1*         | — | Computation of Fixed Charges  Ratios.                                                                                                                                                                                                            |
| 14.1          | — | Code      of Ethical Conduct for Senior Financial Officers – Andrew M. Alexander      (filed as Exhibit 14.1 to WRI’s Annual Report on Form 10-K for the year      ended December 31, 2003 and incorporated herein by    reference). |
| 14.2          | — | Code      of Ethical Conduct for Senior Financial Officers – Stephen C. Richter      (filed as Exhibit 14.2 to WRI’s Annual Report on Form 10-K for the year      ended December 31, 2003 and incorporated herein by    reference).  |
| 14.3          | — | Code      of Ethical Conduct for Senior Financial Officers – Joe D. Shafer (filed as      Exhibit 14.3 to WRI’s Annual Report on Form 10-K for the year ended      December 31, 2003 and incorporated herein byreference).           |
| 23.1*         | — | Consent of Deloitte & Touche  LLP.                                                                                                                                                                                                           |
| 31.1*         | — | Certification pursuant to Section 302(a) of the      Sarbanes-Oxley Act of 2002 (Chief Executive  Officer).                                                                                                                                      |
| 31.2*         | — | Certification pursuant to Section 302(a) of the      Sarbanes-Oxley Act of 2002 (Chief Financial  Officer).                                                                                                                                      |
| 32.1**        | — | Certification pursuant to 18 U.S.C. Sec. 1350, as      adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002 (Chief      Executive Officer).                                                                                            |
| 32.2**        | — | Certification pursuant to 18 U.S.C. Sec. 1350, as      adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002 (Chief      Financial Officer).                                                                                            |

| * | Filed      with this report. |
|---|------------------------------|

| ** | Furnished      with this report. |
|----|----------------------------------|

| † | Management      contract or compensation plan orarrangement. |
|---------|--------------------------------------------------------------|

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SIGNATURES

|   | WEINGARTEN      REALTY INVESTORS |
|--------|----------------------------------|
|   |                             |   |
|   |                             |   |
|   | By:                              | /s/  Andrew      M. Alexander |
|   |                             | Andrew      M. Alexander |
|   |                             | Chief      Executive Officer |

|   | Signature                                | Title                            | Date                   |
|--------|------------------------------------------|----------------------------------|------------------------|
|   |                                     |                             |                   |
|   |                                     |                             |                   |
|   |                                     |                             |                   |
| By:    | /s/  Stanford      Alexander   | Chairman                         | February      29, 2008 |
|   | Stanford      Alexander                  | and      Trust Manager           |                   |
|   |                                     |                             |                   |
| By:    | /s/  Andrew      M. Alexander  | Chief      Executive Officer,    | February      29, 2008 |
|   | Andrew      M. Alexander                 | President      and Trust Manager |                   |
|   |                                     |                             |                   |
| By:    | /s/  James      W. Crownover   | Trust      Manager               | February      29, 2008 |
|   | James      W. Crownover                  |                             |                   |
|   |                                     |                             |                   |
| By:    | /s/  Robert      J. Cruikshank | Trust      Manager               | February      29, 2008 |
|   | Robert      J. Cruikshank                |                             |                   |
|   |                                     |                             |                   |
| By:    | /s/  Martin      Debrovner     | Vice      Chairman               | February      29, 2008 |
|   | Martin      Debrovner                    |                             |                   |

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| By:    | /s/  Melvin      Dow           | Trust      Manager                           | February      29, 2008 |
|--------|------------------------------------------|----------------------------------------------|------------------------|
|   | Melvin      Dow                          |                                         |                   |
|   |                                     |                                         |                   |
| By:    | /s/  Stephen      A. Lasher    | Trust      Manager                           | February      29, 2008 |
|   | Stephen      A. Lasher                   |                                         |                   |
|   |                                     |                                         |                   |
| By:    | /s/  Stephen      C. Richter   | Executive      Vice President and            | February      29, 2008 |
|   | Stephen      C. Richter                  | Chief      Financial Officer                 |                   |
|   |                                     |                                         |                   |
| By:    | /s/  Douglas      W. Schnitzer | Trust      Manager                           | February      29, 2008 |
|   | Douglas      W. Schnitzer                |                                         |                   |
|   |                                     |                                         |                   |
| By:    | /s/  Joe      D. Shafer        | Vice      President/Chief Accounting Officer | February      29, 2008 |
|   | Joe      D. Shafer                       | (Principal      Accounting Officer)          |                   |
|   |                                     |                                         |                   |
| By:    | /s/  C.      Park Shaper       | Trust      Manager                           | February      29, 2008 |
|   | C.      Park Shaper                      |                                         |                   |
|   |                                     |                                         |                   |
| By:    | /s/  Marc      J. Shapiro      | Trust      Manager                           | February      29, 2008 |
|   | Marc      J. Shapiro                     |                                         |                   |
|   |                                     |                                         |                   |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

consolidated financial statement schedules of the Company listedin Item 15.  These 
consolidated financial statementschedules are the responsibility of the Company's management.  Ourresponsibility is to express an opinion based on our audits.  In ouropinion, such 
consolidated financial statement schedules,when considered in relation to the basic consolidated financial statements takenas a whole, present fairly, in all material respects, the information set forththerein.

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VALUATION AND QUALIFYING ACCOUNTS

|                                 |   |            |   |   | Charged       |   |   |       |   |   |           |   |
|--------------------------------------|--------|-----------------|--------|--------|---------------|--------|--------|------------|--------|--------|----------------|--------|
|                                 |   | Balance      at |   |   | to      costs |   |   |       |   |   | Balance        |   |
|                                 |   | beginning       |   |   | and           |   |   | Deductions |   |   | at      end of |   |
| Description                          |   | of      period  |   |   | expenses      |   |   | (A)        |   |   | period         |   |
|                                 |   |            |   |   |          |   |   |       |   |   |           |   |
| 2007                                 |   |            |   |   |          |   |   |       |   |   |           |   |
| Allowance      for Doubtful Accounts |   | $               | 5,995  |   |          | $      | 5,929  |       |   | $      | 3,203          |   |   | $ | 8,721 |   |
| 2006                                 |   |            |   |   |          |   |   |       |   |   |           |   |   |   |   |   |
| Allowance      for Doubtful Accounts |   | $               | 4,673  |   |          | $      | 3,917  |       |   | $      | 2,595          |   |   | $ | 5,995 |   |
| 2005                                 |   |            |   |   |          |   |   |       |   |   |           |   |   |   |   |   |
| Allowance      for Doubtful Accounts |   | $               | 4,205  |   |          | $      | 3,720  |       |   | $      | 3,252          |   |   | $ | 4,673 |   |

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REAL ESTATE AND ACCUMULATED DEPRECIATION

|                                                      |   | Total      Cost |    |   |         |   |      |        |   |   |    |   |
|-----------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|-----------|-------------|--------|--------|---------|--------|
|                                                      |   |            |    |   | Buildings    |   |      | Projects    |   |   | Total   |   |   |   |   |   |   |   |
|                                                      |   |            |    |   | and          |   |      | Under       |   |   | Cost    |   |   | Accumulated |   |   | Encumbrances |   |
|                                                      |   | Land            |    |   | Improvements |   |      | Development |   |   | (B)     |   |   | Depreciation |   |   | (A) |   |
|                                                      |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |
| SHOPPING      CENTERS:                                    |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |
| Texas                                                     |   | $               | 180,711 |   |         | $      | 804,127   |        |   |   |    |   | $ | 984,838 |   |   | $ | 333,815 |   |   | $ | 82,906 |   |
| Other      States                                         |   |            | 711,702 |   |         |   | 2,315,769 |        |   |   |    |   |   | 3,027,471 |   |   |   | 341,921 |   |   |   | 860,244 |   |
| Total      Shopping Centers                               |   |            | 892,413 |   |         |   | 3,119,896 |        |   |   |    |   |   | 4,012,309 |   |   |   | 675,736 |   |   |   | 943,150 |   |
| INDUSTRIAL:                                               |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas                                                     |   |            | 47,185  |   |         |   | 225,438   |        |   |   |    |   |   | 272,623 |   |   |   | 65,442 |   |   |   |   |   |
| Other      States                                         |   |            | 30,905  |   |         |   | 131,816   |        |   |   |    |   |   | 162,721 |   |   |   | 8,173 |   |   |   | 16,083 |   |
| Total      Industrial                                     |   |            | 78,090  |   |         |   | 357,254   |        |   |   |    |   |   | 435,344 |   |   |   | 73,615 |   |   |   | 16,083 |   |
| OTHER:                                                    |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas                                                     |   |            | 1,871   |   |         |   | 23,600    |        |   |   |    |   |   | 25,471 |   |   |   | 10,647 |   |   |   |   |   |
| Other      States                                         |   |            | 1,771   |   |         |   | 3,233     |        |   |   |    |   |   | 5,004 |   |   |   | 74 |   |   |   |   |   |
| Total      Other                                          |   |            | 3,642   |   |         |   | 26,833    |        |   |   |    |   |   | 30,475 |   |   |   | 10,721 |   |   |   |   |   |
|                                                      |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Improved Properties                            |   |            | 974,145 |   |         |   | 3,503,983 |        |   |   |    |   |   | 4,478,128 |   |   |   | 760,072 |   |   |   | 959,233 |   |
| LAND      UNDER DEVELOPMENT OR HELD FOR DEVELOPMENT:      |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas                                                     |   |            |    |   |         |   |      |        |   | $      | 118,106 |   |   | $ | 118,106 |   |   |   |   |   |   |   |   |   |
| Other      States                                         |   |            |    |   |         |   |      |        |   |   | 167,754 |   |   |   | 167,754 |   |   |   |   |   |   |   |   |   |
| Total      Land Under Development or Held for Development |   |            |    |   |         |   |      |        |   |   | 285,860 |   |   |   | 285,860 |   |   |   |   |   |   |   |   |   |
| SHOPPING      CENTERS UNDER CAPITAL LEASE:                |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      States                                         |   |            |    |   |         |   | 29,054    |        |   |   |    |   |   |   | 29,054 |   |   |   | 14,249 |   |   |   | 8,732 |   |
| Total      Leased Property Under Capital Lease            |   |            |    |   |         |   | 29,054    |        |   |   |    |   |   |   | 29,054 |   |   |   | 14,249 |   |   |   | 8,732 |   |
| CONSTRUCTION      IN PROGRESS:                            |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Texas                                                     |   |            |    |   |         |   |      |        |   |   | 57,721  |   |   |   | 57,721 |   |   |   |   |   |   |   |   |   |
| Other      States                                         |   |            |    |   |         |   |      |        |   |   | 121,581 |   |   |   | 121,581 |   |   |   |   |   |   |   |   |   |
| Total      Construction in Progress                       |   |            |    |   |         |   |      |        |   |   | 179,302 |   |   |   | 179,302 |   |   |   |   |   |   |   |   |   |
|                                                      |   |            |    |   |         |   |      |        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      OF ALL PROPERTIES                              |   | $               | 974,145 |   |         | $      | 3,533,037 |        |   | $      | 465,162 |   |   | $ | 4,972,344 |   |   | $ | 774,321 |   |   | $ | 967,965 |   |

| Note      A  - | Encumbrances      do not include $15.7 million outstanding under a $30 million 20-year term      loan, payable to a group of insurance companies secured by a property      collateral pool including two shoppingcenters. |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      B  - | The      book value of our net fixed asset exceeds the tax basis by $275 million at      December 31, 2007. |
|--------------------------|-------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                              |   | 2007   |      |   | 2006   |   |      | 2005   |   |
|-----------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                              |   |   |      |   |   |   |      |   |   |
| Balance      at beginning of year |   | $      | 4,445,888 |   |   | $      | 4,033,579 |   |   | $ | 3,751,607 |   |
| Additions      at cost            |   |   | 888,345   |   |   |   | 1,022,103 |   |   |   | 429,040 |   |
| Retirements      or sales         |   |   | (361,889  | )      |   |   | (609,794  | )      |   |   | (147,068 | ) |
|                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Balance      at end of year       |   | $      | 4,972,344 |   |   | $      | 4,445,888 |   |   | $ | 4,033,579 |   |

|                              |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                              |   |   |    |   |   |   |    |   |   |
| Balance      at beginning of year |   | $      | 707,005 |   |   | $      | 679,642 |   |   | $ | 609,772 |   |
| Additions      at cost            |   |   | 114,956 |   |   |   | 110,406 |   |   |   | 107,901 |   |
| Retirements      or sales         |   |   | (47,640 | )      |   |   | (83,043 | )      |   |   | (38,031 | ) |
|                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Balance      at end of year       |   | $      | 774,321 |   |   | $      | 707,005 |   |   | $ | 679,642 |   |

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Table of Contents

MORTGAGE LOANS ON REAL ESTATE

|                                     |   |     |   | Final    |   | Periodic                   |   | Face               |   | Carrying           |
|------------------------------------------|--------|----------|--------|----------|--------|----------------------------|--------|--------------------|--------|--------------------|
|                                     |   | Interest |   | Maturity |   | Payment                    |   | Amount      of     |   | Amount      of     |
|                                     |   | Rate     |   | Date     |   | Terms                      |   | Mortgages          |   | Mortgages(A)       |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| SHOPPING      CENTERS:                   |   |     |   |     |   |                       |   |               |   |               |
| FIRST      MORTGAGES:                    |   |     |   |     |   |                       |   |               |   |               |
| Eastex      Venture                      |   |     |   |     |   |                       |   |               |   |               |
| Beaumont,      TX                        |   | 8.00%    |   | 10-31-09 |   | $317      Annual P & I |   | $  1,145 |   | $  1,145 |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| 363-410      Burma, LLC                  |   | 6.50%    |   | 07-01-11 |   | $212      Annual P & I |   | 2,563              |   | 2,563              |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| WRI-SRP      Cole Park Plaza, LLC        |   |     |   |     |   |                       |   |               |   |               |
| Chappel      Hill, NC                    |   | 5.66%    |   | 02-01-12 |   | At      Maturity           |   | 6,200              |   | 6,200              |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| SHOPPING      CENTERS:                   |   |     |   |     |   |                       |   |               |   |               |
| CONSTRUCTION      LOANS:                 |   |     |   |     |   |                       |   |               |   |               |
| Shary      Retail, Ltd.                  |   | 6.75%    |   | 11-14-08 |   | At      Maturity           |   | 17,111             |   | 17,111             |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| WRI      Alliance Riley Venture          |   | 7.50%    |   | 02-28-08 |   | At      Maturity           |   | 17,054             |   | 17,054             |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| WRI      Alliance Riley Venture III      |   | 7.50%    |   | 02-28-08 |   | At      Maturity           |   | 613                |   | 613                |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| Weingarten      Sheridan, LLC            |   | 6.75%    |   | 12-15-10 |   | At      Maturity           |   | 35,212             |   | 35,212             |
|                                     |   |     |   |     |   |                       |   |               |   |               |
| TOTAL      MORTGAGE LOANS ON REAL ESTATE |   |     |   |     |   |                       |   | $      79,898      |   | $      79,898      |

| Note      A - | The      aggregate cost at December 31, 2007 for federal income tax purposes is      $79,898.                   |
|---------------|-----------------------------------------------------------------------------------------------------------------|
| Note      B - | Changes      in mortgage loans for the years ended December 31, 2007, 2006, and 2005      are summarized below. |

|                             |   | 2007   |    |   | 2006   |   |   | 2005   |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                             |   |   |    |   |   |   |   |   |   |
| Balance,      Beginning of Year  |   | $      | 5,308   |   |   | $      | 2,791  |   |   | $ | 3,057 |   |
| Additions      to Existing Loans |   |   | 155,855 |   |   |   | 3,347  |   |   |   | 339 |   |
| Collections      of Principal    |   |   | (81,265 | )      |   |   | (830   | )      |   |   | (605 | ) |
|                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance,      End of Year        |   | $      | 79,898  |   |   | $      | 5,308  |   |   | $ | 2,791 |   |

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