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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**_________________**

**FORM      10-K**

**ANNUAL      REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

| (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, 2006**                                                                                    |
| OR                                                                                                                                                |
| ¨ TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|                                                                                                                                              |
| **For                the transition period from [__________________] to                [________________]**                                       |

**Commission      file number 1-9876**

**WEINGARTEN      REALTY INVESTORS**

**(Exact      name of registrant as specified in its charter)**

| **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 |

**Securities      registered pursuant to Section 12(g) of the Act: None**

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**DOCUMENTS      INCORPORATED BY REFERENCE**

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*Table          of Contents*

**TABLE      OF CONTENTS**

| **Item                No.** |                                                                                                                                                                             | **Page                No.** |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                        |                                                                                                                                                                             |                        |
|                        | **PART                I**                                                                                                                                                        |                        |
|                        |                                                                                                                                                                             |                        |
| 1.                          | Business                                                                                                                                                                         | 2                           |
| 1A.                         | Risk                Factors                                                                                                                                                      | 4                           |
| 1B.                         | Unresolved                Staff Comments                                                                                                                                         | 9                           |
| 2.                          | Properties                                                                                                                                                                       | 10                          |
| 3.                          | Legal                Proceedings                                                                                                                                                 | 23                          |
| 4.                          | Submission                of Matters to a Vote of                Shareholders                                                                                                    | 23                          |
|                        |                                                                                                                                                                             |                        |
|                        |                                                                                                                                                                             |                        |
|                        | **PART                II**                                                                                                                                                       |                        |
|                        |                                                                                                                                                                             |                        |
| 5.                          | Market                for Registrant's Common Shares of Beneficial                Interest, Related Shareholder Matters and Issuer Purchases of Equity                Securities | 24                          |
| 6.                          | Selected                Financial Data                                                                                                                                           | 26                          |
| 7.                          | Management's                Discussion and Analysis of Financial                Condition and Results of Operations                                                              | 27                          |
| 7A.                         | Quantitative                and Qualitative Disclosures About                Market Risk                                                                                         | 44                          |
| 8.                          | Financial                Statements and Supplementary                Data                                                                                                        | 45                          |
| 9.                          | Changes                in and Disagreements with Accountants on                Accounting and Financial Disclosure                                                               | 74                          |
| 9A.                         | Controls                and Procedures                                                                                                                                           | 74                          |
| 9B.                         | Other                Information                                                                                                                                                 | 77                          |
|                        |                                                                                                                                                                             |                        |
|                        |                                                                                                                                                                             |                        |
|                        | **PART                III**                                                                                                                                                      |                        |
|                        |                                                                                                                                                                             |                        |
| 10.                         | Trust                Managers and Executive Officers of the                Registrant                                                                                            | 77                          |
| 11.                         | Executive                Compensation                                                                                                                                            | 77                          |
| 12.                         | Security                Ownership of Certain Beneficial Owners and                Management and Related Shareholder Matters                                                     | 78                          |
| 13.                         | Certain                Relationships, Related Transactions and Director                Independence                                                                              | 78                          |
| 14.                         | Principal                Accountant Fees and                Services                                                                                                             | 78                          |
|                        |                                                                                                                                                                             |                        |
|                        |                                                                                                                                                                             |                        |
|                        | **PART                IV**                                                                                                                                                       |                        |
|                        |                                                                                                                                                                             |                        |
| 15.                         | Exhibits                and Financial Statement                Schedules                                                                                                         | 79                          |

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*Table          of Contents*

**Forward-Looking      Statements**

**PART      I**

**ITEM      1.** **Business**

*General*

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*Table            of Contents*

*Investment      and Operating Strategy. *

*Location      of Properties*
*.*

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*Table            of Contents*

*Economic      Factors.*

*Competition*

*Materials      Available on Our Website*

*Financial      Information*

**ITEM      1A.** **Risk      Factors**

**The      economic performance and value of our shopping centers depend on many factors,      each of which could have an adverse impact on our cash flows and operating      results. **

| §   | 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 to                tenants; |
|--------------------|--------------------------------------------------------------------------------|

| §   | 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;                and |
|--------------------|------------------------------------------------------------------------------------------------------------------|

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

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*Table            of Contents*

**Our      acquisition activities may not produce the cash flows that we expect and may      be      limited by competitive pressures or other factors.**

| §   | 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 be                inaccurate; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | 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. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Our      dependence on rental income may adversely affect our ability to meet our debt      obligations and make distributions to our shareholders. **

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

| §   | Decline                to extend or renew leases upon                expiration; |
|--------------------|----------------------------------------------------------------------------------|

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

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

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*Table            of Contents*

**Our      development and construction activities could affect our operating      results.**

| §   | 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. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Real      estate property investments are illiquid, and therefore we may not be able      to      dispose of properties when appropriate or on favorable      terms.**

**Our      cash flows and operating results could be adversely affected by required      payments of debt or related interest and other risks of our debt      financing.**

| §   | 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                acquisitions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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*Table            of Contents*

**Property      ownership through partnerships and joint ventures could limit our control of      those investments and reduce our expected return. **

**Our      financial condition could be adversely affected by financial covenants.**

**If      we fail to qualify as a REIT in any taxable year, we will be subject to U.S.      federal income tax as a regular corporation and could have significant tax      liability. **

| §   | 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. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Compliance      with REIT requirements may negatively affect our operating decisions.**

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*Table            of Contents*

**Dividends      paid by REITs generally do not qualify for reduced tax rates.**

**Our      real estate investments may contain environmental risks that could adversely      affect our operating results.**

**An      uninsured loss or a loss that exceeds the policies on our properties could      subject us to lost capital or revenue on those properties.**

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*Table            of Contents*

**Compliance      with the Americans with Disabilities Act and fire, safety and other regulations      may require us to make unintended expenditures that adversely affect our cash      flows.**

**ITEM      1B.** **Unresolved      Staff Comments**

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*Table            of Contents*

**ITEM      2.** **Properties**

|                                                                         |   |   |               | **Building** |   | **Land**      |   |
|------------------------------------------------------------------------------|--------|--------|--------------------|--------------|--------|---------------|--------|
| **Center                and Location**                                       |   |   |               | **Total**    |   | **Total**     |   |
|                                                                         |   |   |               |         |   |          |   |
| **Houston                and Harris County, Total**                          |   |   |               |         |   | **6,804,000** |   |   | **23,395,000** |   |
| Alabama-Shepherd,                S. Shepherd at W. Alabama                   |   |   |               |         |   | 56,000        |   |   | 176,000 |   |
| Bayshore                Plaza, Spencer Hwy. at Burke Rd.                     |   |   |               |         |   | 122,000       |   |   | 196,000 |   |
| Bellaire                Boulevard, Bellaire at S. Rice                       |   |   |               |         |   | 35,000        |   |   | 137,000 |   |
| Braeswood                Square, N. Braeswood at Chimney Rock                |   |   |               |         |   | 103,000       |   |   | 422,000 |   |
| Centre                at Post Oak, Westheimer at Post Oak Blvd.              |   |   |               |         |   | 184,000       |   |   | 505,000 |   |
| Champions                Village, F.M. 1960 at Champions Forest Dr.          |   |   |               |         |   | 408,000       |   |   | 1,391,000 |   |
| Crestview,                Bissonnet at Wilcrest                              |   |   |               |         |   | 9,000         |   |   | 35,000 |   |
| Cullen                Place, Cullen at Reed                                  |   |   |               |         |   | 7,000         |   |   | 30,000 |   |
| Cullen                Plaza, Cullen at Wilmington                            |   |   |               |         |   | 85,000        |   |   | 318,000 |   |
| Cypress                Pointe, F.M. 1960 at Cypress Station                  |   |   |               |         |   | 288,000       |   |   | 737,000 |   |
| Eastpark,                Mesa Rd. at Tidwell                                 |   |   |               |         |   | 113,000       |   |   | 664,000 |   |
| Edgebrook,                Edgebrook at Gulf Fwy.                             |   |   |               |         |   | 78,000        |   |   | 360,000 |   |
| Fiesta                Village, Quitman at Fulton                             |   |   |               |         |   | 30,000        |   |   | 80,000 |   |
| Fondren/West                Airport, Fondren at W. Airport                   |   |   |               |         |   | 62,000        |   |   | 223,000 |   |
| Glenbrook                Square, Telephone Road                              |   |   |               |         |   | 76,000        |   |   | 320,000 |   |
| Griggs                Road, Griggs at Cullen                                 |   |   |               |         |   | 80,000        |   |   | 382,000 |   |
| Harrisburg                Plaza, Harrisburg at Wayside                       |   |   |               |         |   | 93,000        |   |   | 334,000 |   |
| Heights                Plaza, 20th St. at Yale                               |   |   |               |         |   | 72,000        |   |   | 228,000 |   |
| Humblewood                Shopping Plaza, Eastex Fwy. at F.M. 1960           |   |   |               |         |   | 279,000       |   |   | 784,000 |   |
| I-45/Telephone                Rd. Center, I-45 at Maxwell Street             |   |   |               |         |   | 164,000       |   |   | 819,000 |   |
| Jacinto                City, Market at Baca                                  |   |   | *                  |         |   | 50,000        |   |   | 134,000 |   |
| Landmark,                Gessner at Harwin                                   |   |   |               |         |   | 56,000        |   |   | 228,000 |   |
| Lawndale,                Lawndale at 75th St.                                |   |   |               |         |   | 54,000        |   |   | 177,000 |   |
| Little                York Plaza, Little York at E. Hardy                    |   |   |               |         |   | 117,000       |   |   | 483,000 |   |
| Lyons                Avenue, Lyons at Shotwell                               |   |   |               |         |   | 68,000        |   |   | 178,000 |   |
| Market                at Westchase, Westheimer at Wilcrest                   |   |   |               |         |   | 87,000        |   |   | 318,000 |   |
| Northbrook                Center, Northwest Fwy. at W. 34th                  |   |   |               |         |   | 174,000       |   |   | 655,000 |   |
| North                Main Square, Pecore at N. Main                          |   |   |               |         |   | 19,000        |   |   | 64,000 |   |
| North                Oaks, F.M. 1960 at Veterans Memorial                    |   |   |               |         |   | 425,000       |   |   | 1,646,000 |   |
| North                Triangle , I-45 at F.M. 1960                            |   |   |               |         |   | 16,000        |   |   | 113,000 |   |
| Northway,                Northwest Fwy. at 34th                              |   |   |               |         |   | 209,000       |   |   | 793,000 |   |
| Northwest                Crossing, N.W. Fwy. at Hollister (75%)              |   |   | *                ! |         |   | 299,000       |   |   | 884,000 |   |
| Oak                Forest, W. 43rd at Oak Forest                             |   |   |               |         |   | 164,000       |   |   | 541,000 |   |
| Orchard                Green, Gulfton at Renwick                             |   |   |               |         |   | 74,000        |   |   | 273,000 |   |
| Randall's                /Cypress Station, F.M. 1960 at I-45                 |   |   |               |         |   | 141,000       |   |   | 618,000 |   |
| Randall's                /Kings Crossing, Kingwood Dr. at Lake Houston Pkwy. |   |   |               |         |   | 128,000       |   |   | 624,000 |   |
| Randall's                /Norchester, Grant at Jones                         |   |   |               |         |   | 108,000       |   |   | 475,000 |   |
| Richmond                Square, Richmond Ave. at W. Loop 610                 |   |   |               |         |   | 91,000        |   |   | 135,000 |   |
| River                Oaks East, W. Gray at Woodhead                          |   |   |               |         |   | 71,000        |   |   | 206,000 |   |
| River                Oaks West, W. Gray at S. Shepherd                       |   |   |               |         |   | 235,000       |   |   | 609,000 |   |
| Sheldon                Forest North , North, I-10 at Sheldon                 |   |   | *                  |         |   | 22,000        |   |   | 131,000 |   |
| Sheldon                Forest South , North, I-10 at Sheldon                 |   |   | *                  |         |   | 76,000        |   |   | 328,000 |   |
| Shops                at Three Corners, S. Main at Old Spanish Trail (70%)    |   |   | *                  |         |   | 252,000       |   |   | 1,007,000 |   |
| Southgate,                W. Fuqua at Hiram Clark                            |   |   |               |         |   | 125,000       |   |   | 533,000 |   |
| Spring                Plaza, Hammerly at Campbell                            |   |   |               |         |   | 56,000        |   |   | 202,000 |   |
| Steeplechase,                Jones Rd. at F.M. 1960                          |   |   |               |         |   | 293,000       |   |   | 849,000 |   |
| Stella                Link , Stella Link at S. Braeswood                     |   |   |               |         |   | 68,000        |   |   | 261,000 |   |
| Studemont,                Studewood at E. 14th St                            |   |   |               |         |   | 28,000        |   |   | 91,000 |   |
| Ten                Blalock Square, I-10 at Blalock                           |   |   |               |         |   | 97,000        |   |   | 321,000 |   |
| 10/Federal,                I-10 at Federal                                   |   |   |               |         |   | 132,000       |   |   | 474,000 |   |
| Village                Arcade, University at Kirby                           |   |   |               |         |   | 191,000       |   |   | 413,000 |   |
| Westbury                Triangle, Chimney Rock at W. Bellfort                |   |   |               |         |   | 67,000        |   |   | 257,000 |   |

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*Table            of Contents*

| Westchase                Center, Westheimer at Wilcrest                                                   |   |   |                 |   |   | 336,000       |   |   | 754,000        |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|----------------|--------|
| Westhill                Village, Westheimer at Hillcroft                                                  |   |   |                 |   |   | 131,000       |   |   | 479,000        |   |
|                                                                                                      |   |   |                 |   |   |          |   |   |           |   |
| **Texas                (Excluding Houston & Harris Co.), Total**                                      |   |   |                 |   |   | **9,628,000** |   |   | **45,481,000** |   |
| Bell                Plaza, 45th Ave. at Bell St., Amarillo                                                |   |   |                 |   |   | 129,000       |   |   | 682,000        |   |
| Coronado,                34th St. at Wimberly Dr., Amarillo                                               |   |   |                 |   |   | 48,000        |   |   | 201,000        |   |
| Puckett                Plaza, Bell Road, Amarillo                                                         |   |   |                 |   |   | 133,000       |   |   | 621,000        |   |
| Wolflin                Village, Wolflin Ave. at Georgia St., Amarillo                                     |   |   |                 |   |   | 193,000       |   |   | 421,000        |   |
| Brodie                Oaks, South Lamar Blvd. at Loop 360, Austin                                         |   |   |                 |   |   | 354,000       |   |   | 1,050,000      |   |
| Southrigde                Plaza, William Cannon Dr. at S. 1st St., Austin                                 |   |   |                 |   |   | 143,000       |   |   | 565,000        |   |
| Calder,                Calder at 24th St., Beaumont                                                       |   |   |                 |   |   | 34,000        |   |   | 95,000         |   |
| North                Park Plaza, Eastex Fwy. at Dowlen, Beaumont                                          |   |   | *                !   |   |   | 238,000       |   |   | 636,000        |   |
| Phelan                West, Phelan at 23rd St., Beaumont (67%)                                            |   |   | *                !   |   |   | 83,000        |   |   | 89,000         |   |
| Phelan,                Phelan at 23rd St, Beaumont                                                        |   |   |                 |   |   | 12,000        |   |   | 63,000         |   |
| Southgate,                Calder Ave. at 6th St., Beaumont                                                |   |   |                 |   |   | 34,000        |   |   | 118,000        |   |
| Westmont,                Dowlen at Phelan, Beaumont                                                       |   |   |                 |   |   | 98,000        |   |   | 507,000        |   |
| North                Towne Plaza, U.S. 77 and 83 at SHFM 802, Brownsville (75%)                           |   |   | #                *   |   |   | -             |   |   | 1,629,000      |   |
| Gateway                Station, I-35W and McAlister Rd., Burleson (70%)                                   |   |   | #                *   |   |   | -             |   |   | 344,000        |   |
| Lone                Star Pavilions, Texas at Lincoln Ave., College Station                                |   |   |                 |   |   | 107,000       |   |   | 439,000        |   |
| Rock                Prairie Marketplace, Rock Prairie Rd. at Hwy. 6, College                Station       |   |   | #                    |   |   | -             |   |   | 2,590,000      |   |
| Montgomery                Plaza, Loop 336 West at I-45, Conroe                                            |   |   |                 |   |   | 317,000       |   |   | 1,179,000      |   |
| River                Pointe, I-45 at Loop 336, Conroe                                                     |   |   |                 |   |   | 190,000       |   |   | 310,000        |   |
| Moore                Plaza, S. Padre Island Dr. at Staples, Corpus Christi                                |   |   |                 |   |   | 535,000       |   |   | 1,491,000      |   |
| Portairs,                Ayers St. at Horne Rd., Corpus Christi                                           |   |   |                 |   |   | 117,000       |   |   | 416,000        |   |
| Shoppes                at Deer Creek, FM 731 at FM 1137, Crowley                                          |   |   |                 |   |   | 75,000        |   |   | 635,000        |   |
| Golden                Beach Market Place, Golden Triangle Blvd. at N. Beach St., Ft.                Worth |   |   |                 |   |   | 83,000        |   |   | 340,000        |   |
| Overton                Park Plaza, SW Loop 820/Interstate 20 at South Hulen St., Ft.                Worth |   |   |                 |   |   | 463,000       |   |   | 1,636,000      |   |
| Southcliff,                I-20 at Grandbury Rd., Ft. Worth                                               |   |   |                 |   |   | 116,000       |   |   | 568,000        |   |
| Broadway                , Broadway at 59th St., Galveston                                                 |   |   |                 |   |   | 76,000        |   |   | 220,000        |   |
| Galveston                Place, Central City Blvd. at 61st St., Galveston                                 |   |   |                 |   |   | 210,000       |   |   | 828,000        |   |
| Food                King Place, 25th St. at Avenue P, Galveston                                           |   |   |                 |   |   | 28,000        |   |   | 78,000         |   |
| Festival                Plaza, Helotes, TX                                                                |   |   | #                    |   |   | -             |   |   | 75,000         |   |
| Killeen                Marketplace, 3200 E. Central Texas Expressway, Killeen                             |   |   |                 |   |   | 251,000       |   |   | 512,000        |   |
| Cedar                Bayou, Bayou Rd., La Marque                                                          |   |   |                 |   |   | 46,000        |   |   | 51,000         |   |
| North                Creek Plaza, Del Mar Blvd. at Hwy. I-35, Laredo                                      |   |   |                 |   |   | 451,000       |   |   | 1,251,000      |   |
| Plantation                Centre, Del Mar Blvd. at McPherson Rd., Laredo                                  |   |   |                 |   |   | 135,000       |   |   | 596,000        |   |
| League                City Plaza, I-45 at F.M. 518, League City                                           |   |   |                 |   |   | 127,000       |   |   | 680,000        |   |
| Central                Plaza, Loop 289 at Slide Rd., Lubbock                                              |   |   |                 |   |   | 151,000       |   |   | 529,000        |   |
| Northtown                Plaza, 1st St. at University Plaza, Lubbock                                      |   |   |                 |   |   | 74,000        |   |   | 308,000        |   |
| Town                and Country, 4th St. at University, Lubbock                                           |   |   |                 |   |   | 51,000        |   |   | 339,000        |   |
| Angelina                Village, Hwy. 59 at Loop 287, Lufkin                                              |   |   |                 |   |   | 257,000       |   |   | 1,835,000      |   |
| Independence                Plaza, Town East Blvd., Mesquite                                              |   |   |                 |   |   | 179,000       |   |   | 787,000        |   |
| South                10th St. HEB, S. 10th St. at Houston St., McAllen                                    |   |   | *                !   |   |   | 104,000       |   |   | 368,000        |   |
| Las                Tiendas Plaza, Expressway 83 at McColl Rd., McAllen                                    |   |   | *                !   |   |   | 530,000       |   |   | 910,000        |   |
| Market                at Nolana, Nolana Ave and 29th St., McAllen                                         |   |   | #                * ! |   |   | -             |   |   | 508,000        |   |
| Northcross,                N. 10th St. at Nolana Loop, McAllen                                            |   |   | *                !   |   |   | 76,000        |   |   | 218,000        |   |
| Old                Navy Building, 1815 10th Street, McAllen                                               |   |   | *                !   |   |   | 16,000        |   |   | 62,000         |   |
| Market                at Sharyland Place, U.S. Expressway 83 and Shary Road,                Mission       |   |   | #                * ! |   |   | -             |   |   | 543,000        |   |
| Sharyland                Towne Crossing, U.S. Expressway 83 and Shary Road, Mission                       |   |   | *                ! # |   |   | 7,000         |   |   | 2,008,000      |   |
| North                Sharyland Crossing, Shary Rd. at North Hwy. 83, Mission                              |   |   | #                * ! |   |   | -             |   |   | 966,000        |   |
| Custer                Park, SWC Custer Road at Parker Road, Plano                                         |   |   |                 |   |   | 181,000       |   |   | 376,000        |   |
| Pitman                Corners, Custer Road at West 15th, Plano                                            |   |   |                 |   |   | 190,000       |   |   | 699,000        |   |
| Gillham                Circle, Gillham Circle at Thomas, Port Arthur                                      |   |   |                 |   |   | 33,000        |   |   | 94,000         |   |
| Starr                Plaza, U.S. Hwy. 83 at Bridge St., Rio Grande City                                   |   |   | *                ! # |   |   | 170,000       |   |   | 742,000        |   |
| Rockwall,                I-30 at Market Center Street, Rockwall                                           |   |   |                 |   |   | 209,000       |   |   | 933,000        |   |
| Plaza,                Ave. H at Eighth Street, Rosenberg                                                  |   |   | *                    |   |   | 82,000        |   |   | 270,000        |   |
| Rose-Rich,                U.S. Hwy. 90A at Lane Dr., Rosenberg                                            |   |   |                 |   |   | 104,000       |   |   | 386,000        |   |
| Lake                Pointe Market Center, Dalrock Rd. at Lakeview Pkwy.,                Rowlett           |   |   |                 |   |   | 121,000       |   |   | 294,000        |   |
| Boswell                Towne Center, Highway 287 at Bailey Boswell Rd., Saginaw                           |   |   |                 |   |   | 88,000        |   |   | 176,000        |   |
| Fiesta                Trails, I-10 at DeZavala Rd., San Antonio                                           |   |   |                 |   |   | 488,000       |   |   | 1,589,000      |   |
| Oak                Park Village, Nacogdoches at New Braunfels, San Antonio                                |   |   |                 |   |   | 66,000        |   |   | 221,000        |   |

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*Table            of Contents*

| Parliament                Square, W. Ave. at Blanco, San Antonio                                                                       |   |   |                 |   |   | 120,000       |   |   | 484,000        |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|----------------|--------|
| Thousand                Oaks, Thousand Oaks Dr. at Jones Maltsberger Rd., San                Antonio                                   |   |   |                 |   |   | 163,000       |   |   | 730,000        |   |
| Valley                View, West Ave. at Blanco Rd., San Antonio                                                                       |   |   |                 |   |   | 90,000        |   |   | 341,000        |   |
| Westover                Square, 151 and Ingram, San Antonio (67%)                                                                      |   |   | #                *   |   |   | -             |   |   | 501,000        |   |
| First                Colony Commons, Hwy. 59 at Williams Trace Blvd., Sugar                Land                                        |   |   |                 |   |   | 410,000       |   |   | 1,649,000      |   |
| Market                at Town Center, Town Center Blvd., Sugar Land                                                                    |   |   |                 |   |   | 345,000       |   |   | 1,733,000      |   |
| New                Boston Road, New Boston at Summerhill, Texarkana                                                                    |   |   |                 |   |   | 97,000        |   |   | 335,000        |   |
| Island                Market Place, 6th St. at 9th Ave., Texas City                                                                    |   |   |                 |   |   | 27,000        |   |   | 90,000         |   |
| Palmer                Plaza, F.M. 1764 at 34th St., Texas City                                                                         |   |   |                 |   |   | 197,000       |   |   | 367,000        |   |
| Tomball                Marketplace, FM 2920 and Future 249, Tomball                                                                    |   |   | #                    |   |   | -             |   |   | 2,431,000      |   |
| Broadway,                S. Broadway at W. 9th St., Tyler                                                                              |   |   |                 |   |   | 60,000        |   |   | 259,000        |   |
| Crossroads,                I-10 at N. Main, Vidor                                                                                      |   |   |                 |   |   | 116,000       |   |   | 484,000        |   |
|                                                                                                                                   |   |   |                 |   |   |          |   |   |           |   |
| **Florida,                Total**                                                                                                      |   |   |                 |   |   | **7,217,000** |   |   | **30,934,000** |   |
| Boca                Lyons, Glades Rd. at Lyons Rd., Boca Raton                                                                         |   |   |                 |   |   | 117,000       |   |   | 545,000        |   |
| Sunset                19, US Hwy. 19 at Sunset Pointe Rd., Clearwater                                                                  |   |   |                 |   |   | 273,000       |   |   | 1,078,000      |   |
| Embassy                Lakes, Sheraton St. at Hiatus Rd., Cooper City                                                                  |   |   |                 |   |   | 180,000       |   |   | 618,000        |   |
| Shoppes                at Paradise Isle, 34940 Emerald Coast Pkwy, Destin (25%)                                                        |   |   | *                !   |   |   | 172,000       |   |   | 765,000        |   |
| Hollywood                Hills Plaza, Hollywood Blvd. at North Park Rd., Hollywood                                                     |   |   |                 |   |   | 365,000       |   |   | 1,429,000      |   |
| Indian                Harbour Place, East Eau Gallie Boulevard, Indian Harbour Beach                (25%)                              |   |   | *                !   |   |   | 164,000       |   |   | 637,000        |   |
| Argyle                Village, Blanding at Argyle Forest Blvd., Jacksonville                                                           |   |   |                 |   |   | 305,000       |   |   | 1,329,000      |   |
| TJ                Maxx Plaza, 117th Avenue at Sunset Blvd., Kendall                                                                    |   |   |                 |   |   | 162,000       |   |   | 540,000        |   |
| Largo                Mall, Ulmerton Rd. at Seminole Ave., Largo                                                                        |   |   |                 |   |   | 576,000       |   |   | 1,888,000      |   |
| Palm                Lakes Plaza, Atlantic Boulevard and Rock Island Road, Maragate                (20%)                                |   |   | *                !   |   |   | 114,000       |   |   | 548,000        |   |
| Lake                Washington Crossing, Wickham Rd. at Lake Washington Rd., Melbourne                (25%)                            |   |   | *                !   |   |   | 119,000       |   |   | 580,000        |   |
| Lake                Washington Square, Wickham Rd. at Lake Washington Rd.,                Melbourne                                    |   |   |                 |   |   | 112,000       |   |   | 688,000        |   |
| Kendall                Corners, Kendall Drive and SW 127th Avenue, Miami (20%)                                                         |   |   | *                !   |   |   | 96,000        |   |   | 363,000        |   |
| South                Dade, South Dixie Highway and Eureka Drive, Miami (20%)                                                           |   |   | *                !   |   |   | 220,000       |   |   | 1,229,000      |   |
| Tamiami                Trail Shops, S.W. 8th St. at S.W. 137th Ave., Miami                                                             |   |   |                 |   |   | 111,000       |   |   | 515,000        |   |
| Northridge,                E. Commercial Blvd. at Dixie Hwy., Oakland Park                                                             |   |   |                 |   |   | 235,000       |   |   | 901,000        |   |
| Colonial                Plaza, E. Colonial Dr. at Primrose Dr., Orlando                                                                |   |   |                 |   |   | 488,000       |   |   | 2,009,000      |   |
| Colonial                Landing, East Colonial Dr. at Maguire Boulevard, Orlando                                                       |   |   | *                #   |   |   | 266,000       |   |   | 980,000        |   |
| International                Drive Value Center, International Drive and Touchstone Drive, Orlando                (20%)                |   |   | *                !   |   |   | 186,000       |   |   | 985,000        |   |
| Market                at Southside, Michigan Ave. at Delaney Ave., Orlando                                                             |   |   |                 |   |   | 162,000       |   |   | 349,000        |   |
| Phillips                Crossing, Interstate 4 and Sand Lake Road, Orlando                                                             |   |   | #                    |   |   | -             |   |   | 697,000        |   |
| Phillips                Landing, Turkey Lake Rd., Orlando                                                                              |   |   | #                    |   |   | -             |   |   | 311,000        |   |
| The                Marketplace at Dr. Phillips, Dr. Phillips Boulevard and Sand Lake                Road,                Orlando (20%) |   |   | *                !   |   |   | 328,000       |   |   | 1,496,000      |   |
| Westland                Terrace Plaza, SR 50 at Apopka Vineland Rd., Orlando                                                           |   |   |                 |   |   | 251,000       |   |   | 361,000        |   |
| Alafaya                Square, Alafaya Trail, Oviedo (20%)                                                                             |   |   | *                !   |   |   | 176,000       |   |   | 917,000        |   |
| University                Palms, Alafaya Trail at McCullough Rd., Oviedo                                                               |   |   |                 |   |   | 99,000        |   |   | 522,000        |   |
| East                Lake Woodlands, East Lake Road and Tampa Road, Palm Harbor                (20%)                                    |   |   | *                !   |   |   | 145,000       |   |   | 730,000        |   |
| Shoppes                at Parkland, Hillsboro Boulevard at State Road #7,                Parkland                                      |   |   |                 |   |   | 146,000       |   |   | 905,000        |   |
| Flamingo                Pines, Pines Blvd. at Flamingo Rd., Pembroke Pines                                                             |   |   |                 |   |   | 362,000       |   |   | 1,447,000      |   |
| Pembroke                Commons, University at Pines Blvd., Pembroke Pines                                                             |   |   |                 |   |   | 316,000       |   |   | 1,394,000      |   |
| Publix                at Laguna Isles, Sheridan St. at SW 196th Ave., Pembroke                Pines                                    |   |   |                 |   |   | 69,000        |   |   | 400,000        |   |
| Vizcaya                Square, Nob Hill Rd. at Cleary Blvd., Plantation                                                                |   |   |                 |   |   | 108,000       |   |   | 521,000        |   |
| Quesada                Commons, Quesada Avenue and Toledo Blade Boulevard, Port Charlotte                (25%)                         |   |   | *                !   |   |   | 59,000        |   |   | 313,000        |   |
| Shoppes                of Port Charlotte, Toledo Blade Boulevard and Tamiami Trail, Port                Charlotte (25%)                |   |   | *                !   |   |   | 41,000        |   |   | 276,000        |   |
| Marketplace                at Seminole Towne Center, Central Florida Greenway and Rinehart Rd,                Sanford                  |   |   |                 |   |   | 494,000       |   |   | 1,743,000      |   |
| Venice                Pines, Center Rd. at Jacaranda Blvd., Venice                                                                     |   |   |                 |   |   | 97,000        |   |   | 525,000        |   |
| Winter                Park Corners, Aloma Ave. at Lakemont Ave., Winter Park                                                           |   |   |                 |   |   | 103,000       |   |   | 400,000        |   |
|                                                                                                                                   |   |   |                 |   |   |          |   |   |           |   |
| **California,                Total**                                                                                                   |   |   |                 |   |   | **4,013,000** |   |   | **14,451,000** |   |
| Jess                Ranch Marketplace, Bear Valley Road at Jess Ranch Parkway, Apple                Valley                             |   |   | *                ! # |   |   | -             |   |   | -              |   |
| Centerwood                Plaza, Lakewood Blvd. at Alondra Dr., Bellflower                                                             |   |   |                 |   |   | 71,000        |   |   | 333,000        |   |
| Southampton                Center, IH-780 at Southampton Rd., Benecia                                                                  |   |   |                 |   |   | 162,000       |   |   | 596,000        |   |
| 580                Market Place, E. Castro Valley at Hwy. I-580, Castro                Valley                                          |   |   |                 |   |   | 100,000       |   |   | 444,000        |   |
| Chino                Hills Marketplace, Chino Hills Pkwy. at Pipeline Ave., Chino                Hills                                 |   |   |                 |   |   | 320,000       |   |   | 1,187,000      |   |
| Buena                Vista Marketplace, Huntington Dr. at Buena Vista St.,                Duarte                                       |   |   |                 |   |   | 91,000        |   |   | 322,000        |   |
| El                Camino Promenade, El Camino Real at Via Molena, Encinitas                                                            |   |   |                 |   |   | 111,000       |   |   | 451,000        |   |
| Freedom                Centre, Freedom Blvd. At Airport Blvd., Watsonville                                                             |   |   |                 |   |   | 151,000       |   |   | 543,000        |   |

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*Table            of Contents*

| Fremont                Gateway Plaza, Paseo Padre Pkwy. at Walnut Ave., Fremont                              |   |   |               |   |   | 195,000       |   |   | 650,000        |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|---------------|--------|--------|----------------|--------|
| Hallmark                Town Center, W. Cleveland Ave. at Stephanie Ln., Madera                              |   |   |               |   |   | 85,000        |   |   | 365,000        |   |
| Menifee                Town Center, Antelope Rd. at Newport Rd., Menifee                                     |   |   |               |   |   | 248,000       |   |   | 658,000        |   |
| Marshalls                Plaza, McHenry at Sylvan Ave., Modesto                                              |   |   |               |   |   | 79,000        |   |   | 218,000        |   |
| Prospectors                Plaza, Missouri Flat Rd. at US Hwy. 50, Placerville                               |   |   |               |   |   | 228,000       |   |   | 873,000        |   |
| Shasta                Crossroads, Churn Creek Rd. at Dana Dr., Redding                                       |   |   |               |   |   | 252,000       |   |   | 520,000        |   |
| Ralphs                Redondo, Hawthorne Blvd. at 182nd St., Redondo Beach                                   |   |   |               |   |   | 67,000        |   |   | 431,000        |   |
| Arcade                Square, Watt Ave. at Whitney Ave., Sacramento                                          |   |   |               |   |   | 76,000        |   |   | 234,000        |   |
| Discovery                Plaza, W. El Camino Ave. at Truxel Rd., Sacramento                                  |   |   |               |   |   | 93,000        |   |   | 417,000        |   |
| Summerhill                Plaza, Antelope Rd. at Lichen Dr., Sacramento                                      |   |   |               |   |   | 134,000       |   |   | 704,000        |   |
| Valley,                Franklin Boulevard and Mack Road, Sacramento                                          |   |   |               |   |   | 103,000       |   |   | 580,000        |   |
| Silver                Creek Plaza, E. Capital Expressway at Silver Creek Blvd., San                Jose      |   |   |               |   |   | 196,000       |   |   | 573,000        |   |
| Greenhouse                Marketplace, Lewelling Blvd. at Washington Ave., San                Leandro        |   |   |               |   |   | 238,000       |   |   | 578,000        |   |
| Rancho                San Marcos Village, San Marcos Blvd. at Rancho Santa Fe Rd., San                Marcos |   |   |               |   |   | 121,000       |   |   | 541,000        |   |
| San                Marcos Plaza, San Marcos Blvd. at Rancho Santa Fe Rd., San                Marcos          |   |   |               |   |   | 81,000        |   |   | 116,000        |   |
| Stony                Point Plaza, Stony Point Rd. at Hwy. 12, Santa Rosa                                     |   |   |               |   |   | 199,000       |   |   | 619,000        |   |
| Sunset                Center, Sunset Ave. at State Hwy. 12, Suisun City                                      |   |   |               |   |   | 85,000        |   |   | 359,000        |   |
| Creekside                Center, Alamo Dr. at Nut Creek Rd., Vacaville                                       |   |   |               |   |   | 116,000       |   |   | 400,000        |   |
| Westminster                Center, Westminster Blvd. at Golden West St., Westminster                         |   |   |               |   |   | 411,000       |   |   | 1,739,000      |   |
|                                                                                                         |   |   |               |   |   |          |   |   |           |   |
| **Louisiana,                Total**                                                                          |   |   |               |   |   | **3,058,000** |   |   | **9,206,000**  |   |
| Seigen                Plaza, Siegen Lane at Honore Lane, Baton Rouge                                         |   |   |               |   |   | 349,000       |   |   | 1,000,000      |   |
| Park                Terrace, U.S. Hwy. 171 at Parish, DeRidder                                               |   |   |               |   |   | 137,000       |   |   | 520,000        |   |
| Town                & Country Plaza, U.S. Hwy. 190 West, Hammond                                         |   |   |               |   |   | 227,000       |   |   | 645,000        |   |
| Manhattan                Place, Manhattan Blvd. at Gretna Blvd., Harvey                                      |   |   |               |   |   | 258,000       |   |   | 894,000        |   |
| Ambassador                Plaza, Ambassador Caffery at W. Congress, Lafayette                                |   |   |               |   |   | 102,000       |   |   | 196,000        |   |
| River                Marketplace, Ambassador Caffery at Kaliste Saloom, Lafayette                (20%)       |   |   | *                ! |   |   | 343,000       |   |   | 1,031,000      |   |
| Westwood                Village, W. Congress at Bertrand, Lafayette                                          |   |   |               |   |   | 141,000       |   |   | 942,000        |   |
| Conn's                Building, Ryan at 17th St., Lake Charles                                               |   |   |               |   |   | 23,000        |   |   | 36,000         |   |
| 14/Park                Plaza, Hwy. 14 at General Doolittle, Lake Charles                                     |   |   |               |   |   | 207,000       |   |   | 535,000        |   |
| K-Mart                Plaza, Ryan St., Lake Charles                                                          |   |   | *                ! |   |   | 210,000       |   |   | 126,000        |   |
| Prien                Lake Plaza, Prien Lake Rd. at Nelson Rd., Lake Charles                                  |   |   |               |   |   | 252,000       |   |   | 730,000        |   |
| Southgate,                Ryan at Eddy, Lake Charles                                                         |   |   |               |   |   | 171,000       |   |   | 511,000        |   |
| Orleans                Station, Paris, Robert E. Lee at Chatham, New Orleans                                 |   |   |               |   |   | 5,000         |   |   | 31,000         |   |
| Danville                Plaza, Louisville at 19th, Monroe                                                    |   |   |               |   |   | 144,000       |   |   | 539,000        |   |
| University                Place, 70th St. at Youree Dr., Shreveport (20%)                                    |   |   | *                ! |   |   | 376,000       |   |   | 1,077,000      |   |
| Westwood,                Jewella at Greenwood, Shreveport                                                    |   |   |               |   |   | 113,000       |   |   | 393,000        |   |
|                                                                                                         |   |   |               |   |   |          |   |   |           |   |
| **Nevada,                Total**                                                                             |   |   |               |   |   | **3,499,000** |   |   | **12,004,000** |   |
| Eastern                Horizon, Eastern Ave. at Horizon Ridge Pkwy., Henderson                               |   |   |               |   |   | 211,000       |   |   | 478,000        |   |
| Best                in the West, Rainbow at Lake Mead Rd., Las Vegas                                         |   |   |               |   |   | 437,000       |   |   | 1,516,000      |   |
| Charleston                Commons, Charleston and Nellis, Las Vegas                                          |   |   |               |   |   | 338,000       |   |   | 1,316,000      |   |
| Francisco                Centre, E. Desert Inn Rd. at S. Eastern Ave., Las Vegas                             |   |   |               |   |   | 148,000       |   |   | 639,000        |   |
| Mission                Center, Flamingo Rd. at Maryland Pkwy, Las Vegas                                      |   |   |               |   |   | 208,000       |   |   | 570,000        |   |
| Paradise                Marketplace, Flamingo Rd. at Sandhill, Las Vegas                                     |   |   |               |   |   | 149,000       |   |   | 537,000        |   |
| Rainbow                Plaza, Rainbow Blvd. at Charleston Blvd., Las Vegas                                   |   |   |               |   |   | 410,000       |   |   | 1,548,000      |   |
| Rancho                Towne & Country, Rainbow Blvd. at Charleston Blvd., Las                Vegas       |   |   |               |   |   | 87,000        |   |   | 350,000        |   |
| Tropicana                Beltway, Tropicana Beltway at Fort Apache Rd., Las Vegas                            |   |   | *                ! |   |   | 638,000       |   |   | 1,466,000      |   |
| Tropicana                Marketplace, Tropicana at Jones Blvd., Las Vegas                                    |   |   |               |   |   | 143,000       |   |   | 519,000        |   |
| Westland                Fair North, Charleston Blvd. At Decatur Blvd., Las Vegas                             |   |   |               |   |   | 566,000       |   |   | 2,344,000      |   |
| College                Park S.C., E. Lake Mead Blvd. at Civic Ctr. Dr., North Las                Vegas       |   |   |               |   |   | 164,000       |   |   | 721,000        |   |
|                                                                                                         |   |   |               |   |   |          |   |   |           |   |
| **North                Carolina, Total**                                                                     |   |   |               |   |   | **3,366,000** |   |   | **18,880,000** |   |
| Capital                Square, Capital Blvd. at Huntleigh Dr., Cary                                          |   |   |               |   |   | 157,000       |   |   | 607,000        |   |
| Harrison                Pointe, Harrison Ave. at Maynard Rd., Cary                                           |   |   |               |   |   | 124,000       |   |   | 1,343,000      |   |
| High                House Crossing, NC Hwy 55 at Green Level W. Rd., Cary                                    |   |   |               |   |   | 90,000        |   |   | 606,000        |   |
| Northwoods                Market, Maynard Rd. at Harrison Ave., Cary                                         |   |   |               |   |   | 78,000        |   |   | 431,000        |   |
| Parkway                Pointe, Cory Parkway at S. R. 1011, Cary                                              |   |   |               |   |   | 80,000        |   |   | 461,000        |   |
| Chatham                Crossing, US 15/501 at Plaza Dr., Chapel Hill (25%)                                   |   |   | *                ! |   |   | 96,000        |   |   | 425,000        |   |
| Galleria,                Galleria Boulevard and Sardis Road, Charlotte                                       |   |   |               |   |   | 316,000       |   |   | 799,000        |   |
| Johnston                Road Plaza, Johnston Rd. at McMullen Creek Pkwy.,                Charlotte           |   |   |               |   |   | 80,000        |   |   | 466,000        |   |

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*Table            of Contents*

| Steele                Creek Crossing, York Rd. at Steele Creek Rd., Charlotte                                             |   |   |                 |   |   | 77,000        |   |   | 491,000        |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|----------------|--------|
| Whitehall                Commons, NWC of Hwy. 49 at I-485, Charlotte                                                      |   |   |                 |   |   | 436,000       |   |   | 360,000        |   |
| Bull                City Market, Broad St. at West Main St., Durham                                                       |   |   |                 |   |   | 43,000        |   |   | 112,000        |   |
| Durham                Festival, Hillsborough Rd. at LaSalle St., Durham                                                   |   |   |                 |   |   | 134,000       |   |   | 487,000        |   |
| Mineral                Springs Village, Mineral Springs Rd. at Wake Forest Rd.,                Durham                     |   |   |                 |   |   | 58,000        |   |   | 572,000        |   |
| Ravenstone                Commons, Hwy 98 at Sherron Rd., Durham                                                          |   |   |                 |   |   | 60,000        |   |   | 374,000        |   |
| Waterford                Village, US Hwy 17 & US Hwy 74/76, Leland (75%)                                              |   |   | #                *   |   |   | -             |   |   | 1,264,000      |   |
| Pinecrest                Plaza, Hwy. 15-501 at Morganton Rd., Pinehurst                                                   |   |   |                 |   |   | 250,000       |   |   | 1,438,000      |   |
| Avent                Ferry, Avent Ferry Rd. at Gorman St., Raleigh                                                        |   |   |                 |   |   | 117,000       |   |   | 669,000        |   |
| Falls                Pointe, Neuce Rd. at Durant Rd., Raleigh                                                             |   |   |                 |   |   | 189,000       |   |   | 659,000        |   |
| Leesville                Town Centre, Leesville Rd. at Leesville Church Rd.,                Raleigh                       |   |   |                 |   |   | 114,000       |   |   | 904,000        |   |
| Lynnwood                Collection, Creedmoor Rd at Lynn Road, Raleigh                                                    |   |   |                 |   |   | 86,000        |   |   | 429,000        |   |
| Six                Forks Station, Six Forks Rd. at Strickland Rd., Raleigh                                                |   |   |                 |   |   | 468,000       |   |   | 1,843,000      |   |
| Little                Brier Creek, Little Brier Creek Lane and Brier Leaf Lane,                Raleigh                    |   |   |                 |   |   | 63,000        |   |   | 90,000         |   |
| Stonehenge                Market, Creedmoor Rd. at Bridgeport Dr., Raleigh                                                |   |   |                 |   |   | 188,000       |   |   | 669,000        |   |
| Surf                City Crossing, Highway 17 and Highway 210, Surf City                                                  |   |   | #                    |   |   | -             |   |   | 1,359,000      |   |
| Heritage                Station, Forestville Rd. at Rogers Rd., Wake Forest                                               |   |   |                 |   |   | 62,000        |   |   | 392,000        |   |
| The                Shoppes at Caveness Farms, Capitol Blvd and Caveness Farms Ave, Wake                Forest             |   |   | #                    |   |   | -             |   |   | 1,630,000      |   |
|                                                                                                                      |   |   |                 |   |   |          |   |   |           |   |
| **Arizona,                Total**                                                                                         |   |   |                 |   |   | **2,132,000** |   |   | **7,186,000**  |   |
| Palmilla                Center, Dysart Rd. at McDowell Rd., Avondale                                                      |   |   |                 |   |   | 170,000       |   |   | 264,000        |   |
| Raintree                Ranch, Ray Road at Price Road, Chandler                                                           |   |   | #                    |   |   | 60,000        |   |   | 759,000        |   |
| University                Plaza, Plaza Way at Milton Rd., Flagstaff                                                       |   |   |                 |   |   | 162,000       |   |   | 919,000        |   |
| Val                Vista Towne Center, Warner at Val Vista Rd., Gilbert                                                   |   |   |                 |   |   | 216,000       |   |   | 366,000        |   |
| Arrowhead                Festival S.C., 75th Ave. at W. Bell Rd., Glendale                                                |   |   |                 |   |   | 177,000       |   |   | 157,000        |   |
| Fry's                Ellsworth Plaza, Broadway Rd. at Ellsworth Rd., Mesa                                                 |   |   |                 |   |   | 74,000        |   |   | 58,000         |   |
| Monte                Vista Village Center, Baseline Rd. at Ellsworth Rd., Mesa                                            |   |   |                 |   |   | 104,000       |   |   | 353,000        |   |
| Red                Mountain Gateway, Power Rd. at McKellips Rd., Mesa                                                     |   |   |                 |   |   | 206,000       |   |   | 353,000        |   |
| Camelback                Village Square, Camelback at 7th Avenue, Phoenix                                                 |   |   |                 |   |   | 235,000       |   |   | 543,000        |   |
| Laveen                Village Market, Baseline Rd. at 51st St., Phoenix                                                   |   |   | #                    |   |   | 108,000       |   |   | 773,000        |   |
| Rancho                Encanto, 35th Avenue at Greenway Rd., Phoenix                                                       |   |   |                 |   |   | 74,000        |   |   | 290,000        |   |
| Squaw                Peak Plaza, 16th Street at Glendale Ave., Phoenix                                                    |   |   |                 |   |   | 61,000        |   |   | 220,000        |   |
| Fountain                Plaza, 77th St. at McDowell, Scottsdale                                                           |   |   |                 |   |   | 105,000       |   |   | 445,000        |   |
| Fry's                Valley Plaza, S. McClintock at E. Southern, Tempe                                                    |   |   |                 |   |   | 145,000       |   |   | 570,000        |   |
| Broadway                Marketplace, Broadway at Rural, Tempe                                                             |   |   |                 |   |   | 83,000        |   |   | 347,000        |   |
| Pueblo                Anozira, McClintock Dr. at Guadalupe Rd., Tempe                                                     |   |   |                 |   |   | 152,000       |   |   | 769,000        |   |
|                                                                                                                      |   |   |                 |   |   |          |   |   |           |   |
| **New                Mexico, Total**                                                                                      |   |   |                 |   |   | **1,473,000** |   |   | **4,489,000**  |   |
| Eastdale,                Candelaria Rd. at Eubank Blvd., Albuquerque                                                      |   |   |                 |   |   | 118,000       |   |   | 601,000        |   |
| North                Towne Plaza, Academy Rd. at Wyoming Blvd., Albuquerque                                               |   |   |                 |   |   | 103,000       |   |   | 607,000        |   |
| Pavillions                at San Mateo, I-40 at San Mateo, Albuquerque                                                    |   |   |                 |   |   | 196,000       |   |   | 791,000        |   |
| Plaza                at Cottonwood, Coors Bypass Blvd. at Seven Bar Loop Rd.,                Albuquerque                  |   |   |                 |   |   | 418,000       |   |   | 386,000        |   |
| Wyoming                Mall, Academy Rd. at Northeastern, Albuquerque                                                     |   |   |                 |   |   | 326,000       |   |   | 1,309,000      |   |
| De                Vargas, N. Guadalupe at Paseo de Peralta, Santa Fe                                                      |   |   |                 |   |   | 312,000       |   |   | 795,000        |   |
|                                                                                                                      |   |   |                 |   |   |          |   |   |           |   |
| **Colorado,                Total**                                                                                        |   |   |                 |   |   | **2,707,000** |   |   | **13,648,000** |   |
| Aurora                City Place, E. Alameda at I225, Aurora                                                              |   |   | *                    |   |   | 528,000       |   |   | 2,260,000      |   |
| Bridges                at Smoky Hill, Smoky Hill Rd. at S. Picadilly St., Aurora                                          |   |   | *                    |   |   | 59,000        |   |   | 272,000        |   |
| Buckingham                Square, Mississippi at Havana, Aurora                                                           |   |   | *                #   |   |   | -             |   |   | -              |   |
| Academy                Place, Academy Blvd. at Union Blvd., Colorado Springs                                              |   |   |                 |   |   | 261,000       |   |   | 404,000        |   |
| Uintah                Gardens, NEC 19th St. at West Uintah, Colorado Springs                                              |   |   |                 |   |   | 212,000       |   |   | 677,000        |   |
| Green                Valley Ranch Towne Center, Tower Rd. at 48th Ave., Denver                (37%)                       |   |   | *                !   |   |   | 104,000       |   |   | 421,000        |   |
| Lowry                Town Center, 2nd Ave. at Lowry Ave., Denver                                                          |   |   | *                    |   |   | 131,000       |   |   | 246,000        |   |
| Gold                Creek, Hwy. 86 at Elizabeth St., Elizabeth                                                            |   |   | *                    |   |   | 80,000        |   |   | 160,000        |   |
| CityCenter                Englewood, S. Santa Fe at Hampden Ave., Englewood (51%)                                         |   |   | *                    |   |   | 307,000       |   |   | 453,000        |   |
| Glenwood                Meadows, Midland Ave. at W. Meadows, Glenwood Springs                (41%)                        |   |   | *                ! # |   |   | 350,000       |   |   | 1,288,000      |   |
| Highlands                Ranch University Park, Highlands Ranch at University Blvd., Highlands                Ranch (40%) |   |   | *                !   |   |   | 88,000        |   |   | 534,000        |   |
| Crossing                at Stonegate, Jordon Rd. at Lincoln Ave., Parker (51%)                                            |   |   | *                    |   |   | 109,000       |   |   | 870,000        |   |
| River                Point at Sheridan, Highway 77 and Highway 88, Sheridan                                               |   |   | #                *   |   |   | -             |   |   | 4,270,000      |   |
| Thorncreek                Crossing, Washington St. at 120th St., Thornton (51%)                                           |   |   | *                    |   |   | 386,000       |   |   | 1,157,000      |   |
| Westminster                Plaza, North Federal Blvd. at 72nd Ave., Westminster                                           |   |   | *                    |   |   | 92,000        |   |   | 636,000        |   |

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*Table            of Contents*

| **Kansas,                Total**                                                                                                      |   |   |                 |   |   | **251,000**   |   |   | **454,000**   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|---------------|--------|
| Shawnee                Village, Shawnee Mission Pkwy. at Quivera Rd., Shawnee                                                         |   |   |                 |   |   | 135,000       |   |   | 10,000        |   |
| Kohl's,                Wanamaker Rd. at S.W. 17th St., Topeka                                                                         |   |   |                 |   |   | 116,000       |   |   | 444,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Oklahoma,                Total**                                                                                                    |   |   |                 |   |   | **174,000**   |   |   | **682,000**   |   |
| Market                Boulevard , E. Reno Ave. at N. Douglas Ave., Midwest City                                                       |   |   |                 |   |   | 36,000        |   |   | 142,000       |   |
| Town                and Country, Reno Ave at North Air Depot, Midwest City                                                            |   |   |                 |   |   | 138,000       |   |   | 540,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Arkansas,                Total**                                                                                                    |   |   |                 |   |   | **355,000**   |   |   | **1,489,000** |   |
| Markham                Square, W. Markham at John Barrow, Little Rock                                                                 |   |   |                 |   |   | 127,000       |   |   | 514,000       |   |
| Markham                West, 11400 W. Markham, Little Rock                                                                            |   |   |                 |   |   | 178,000       |   |   | 769,000       |   |
| Westgate,                Cantrell at Bryant, Little Rock                                                                              |   |   |                 |   |   | 50,000        |   |   | 206,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Tennessee,                Total**                                                                                                   |   |   |                 |   |   | **656,000**   |   |   | **3,396,000** |   |
| Bartlett                Towne Center, Bartlett Blvd. at Stage Rd., Bartlett                                                           |   |   |                 |   |   | 179,000       |   |   | 774,000       |   |
| Mendenhall                Commons, South Mendenahall Rd. and Sanderlin Avenue,                Memphis                                 |   |   |                 |   |   | 80,000        |   |   | 250,000       |   |
| Commons                at Dexter Lake, Dexter at N. Germantown, Memphis                                                               |   |   |                 |   |   | 229,000       |   |   | 1,013,000     |   |
| Highland                Square, Summer at Highland, Memphis                                                                           |   |   |                 |   |   | 14,000        |   |   | 84,000        |   |
| Ridgeway                Trace, Memphis                                                                                                |   |   | #                    |   |   | -             |   |   | 715,000       |   |
| Summer                Center, Summer Ave. at Waring Rd., Memphis                                                                      |   |   |                 |   |   | 154,000       |   |   | 560,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Missouri,                Total**                                                                                                    |   |   |                 |   |   | **259,000**   |   |   | **1,307,000** |   |
| Ballwin                Plaza, Manchester Rd. at Vlasis Dr., Ballwin                                                                   |   |   |                 |   |   | 203,000       |   |   | 653,000       |   |
| Western                Plaza, Hwy 141 at Hwy 30, Fenton                                                                               |   |   | *                !   |   |   | 56,000        |   |   | 654,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Georgia,                Total**                                                                                                     |   |   |                 |   |   | **2,167,000** |   |   | **8,199,000** |   |
| Lakeside                Marketplace, Cobb Parkway (US Hwy 41), Acworth                                                                |   |   |                 |   |   | 322,000       |   |   | 736,000       |   |
| Camp                Creek Marketplace II, Camp Creek Parkway and Carmia Drive,                Atlanta                                 |   |   |                 |   |   | 196,000       |   |   | 724,000       |   |
| Publix                at Princeton Lakes, Carmia Drive and Camp Creek Drive,                Atlanta                                   |   |   |                 |   |   | 68,000        |   |   | 336,000       |   |
| Brookwood                Square, East-West Connector at Austell Rd., Austell                                                          |   |   |                 |   |   | 253,000       |   |   | 971,000       |   |
| Dallas                Commons, US Highway 278 and Nathan Dean Boulevard, Dallas                                                       |   |   |                 |   |   | 95,000        |   |   | 244,000       |   |
| Reynolds                Crossing, Steve Reynolds and Old North Cross Rd., Duluth                                                      |   |   |                 |   |   | 116,000       |   |   | 407,000       |   |
| Thompson                Bridge Commons, Thompson Bridge Rd. at Mt. Vernon Rd.,                Gainesville                             |   |   |                 |   |   | 78,000        |   |   | 540,000       |   |
| Grayson                Commons, Grayson Hwy at Rosebud Rd., Grayson                                                                   |   |   |                 |   |   | 77,000        |   |   | 510,000       |   |
| Village                Shoppes of Sugarloaf, Sugarloaf Pkwy at Five Forks Trickum Rd.,                Lawrenceville                   |   |   |                 |   |   | 148,000       |   |   | 831,000       |   |
| Sandy                Plains Exchange, Sandy Plains at Scufflegrit, Marietta                                                           |   |   |                 |   |   | 73,000        |   |   | 452,000       |   |
| Brownsville                Commons, Brownsville Road and Hiram-Lithia Springs Road, Powder                Springs                     |   |   |                 |   |   | 82,000        |   |   | 205,000       |   |
| Roswell                Corners, Woodstock Rd. at Hardscrabble Rd., Roswell                                                            |   |   |                 |   |   | 319,000       |   |   | 784,000       |   |
| Brookwood                Marketplace, Peachtree Parkway at Mathis Airport Rd.,                Suwannee                                |   |   |                 |   |   | 340,000       |   |   | 1,459,000     |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Utah,                Total**                                                                                                        |   |   |                 |   |   | **633,000**   |   |   | **1,660,000** |   |
| Alpine                Valley Center, Main St. at State St., American Fork (33%)                                                       |   |   | *                !   |   |   | 200,000       |   |   | 447,000       |   |
| Taylorsville                Town Center, West 4700 South at Redwood Rd., Taylorsville                                                 |   |   |                 |   |   | 134,000       |   |   | 399,000       |   |
| West                Jordan Town Center, West 7000 South at S. Redwood Rd., West                Jordan                                 |   |   |                 |   |   | 299,000       |   |   | 814,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Illinois,                Total**                                                                                                    |   |   |                 |   |   | **394,000**   |   |   | **1,268,000** |   |
| Lincoln                Place, Hwy. 59, Fairview Heights                                                                               |   |   |                 |   |   | 224,000       |   |   | 503,000       |   |
| Lincoln                Place II, Route 159 at Hwy. 50, Fairview Heights                                                               |   |   |                 |   |   | 170,000       |   |   | 765,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Maine,                Total**                                                                                                       |   |   |                 |   |   | **205,000**   |   |   | **963,000**   |   |
| The                Promenade, Essex at Summit, Lewiston (75%)                                                                         |   |   | *                    |   |   | 205,000       |   |   | 963,000       |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Kentucky,                Total**                                                                                                    |   |   |                 |   |   | **683,000**   |   |   | **3,176,000** |   |
| Millpond                Center, Boston at Man O’War, Lexington                                                                  |   |   |                 |   |   | 144,000       |   |   | 773,000       |   |
| Tates                Creek, Tates Creek at Man O’ War, Lexington                                                                |   |   |                 |   |   | 185,000       |   |   | 660,000       |   |
| Regency                Shopping Centre, Nicholasville Rd.& West Lowry Lane,                Lexington                              |   |   |                 |   |   | 136,000       |   |   | 590,000       |   |
| Festival                at Jefferson Court, Outer Loop at Jefferson Blvd.,                Louisville                                  |   |   |                 |   |   | 218,000       |   |   | 1,153,000     |   |
|                                                                                                                                  |   |   |                 |   |   |          |   |   |          |   |
| **Washington,                Total**                                                                                                  |   |   |                 |   |   | **617,000**   |   |   | **1,888,000** |   |
| Village                at Liberty Lake, E. Country Vista Dr. at N. Liberty Rd., Liberty                Lake                           |   |   | *                ! # |   |   | 143,000       |   |   | 142,000       |   |
| Mukilteo                Speedway Center, Mukilteo Speedway, Lincoln Way, and Highway 99,                Lynnwood                (20%) |   |   | *                !   |   |   | 90,000        |   |   | 353,000       |   |

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*Table            of Contents*

| Meridian                Town Center, Meridian Avenue East and 132nd Street East, Puyallup                (20%)          |   |  *                ! |               |  143,000 |   |  535,000 |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------------------|---------------|--------|---------------|--------|
| South                Hill Center, 43rd Avenue Southwest and Meridian Street South, Puyallup                (20%)        |   |                     | *                ! |          |   | 134,000       |   |   | 514,000 |   |
| Rainier                Square Plaza, Rainer Avenue South and South Charleston Street, Seattle                (20%)      |   |                     | *                ! |          |   | 107,000       |   |   | 344,000 |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
| **Oregon                Total**                                                                                         |   |                     |               |          |   | **177,000**   |   |   | **382,000** |   |
| Clackamas                Square, SE 82nd Avenue and SE Causey Avenue, Portland                (20%)                     |   |                     | *                ! |          |   | 137,000       |   |   | 216,000 |   |
| Raleigh                Hills Plaza, SW Beaverton-Hillsdale Hwy and SW Scholls Ferry Road,                Portland (20%) |   |                     | *                ! |          |   | 40,000        |   |   | 166,000 |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
| **South                Carolina, Total**                                                                                |   |                     |               |          |   | **87,000**    |   |   | **436,000** |   |
| Fresh                Market Shoppes, 890 William Hilton Head Pkwy, Hilton Head                (25%)                     |   |                     | *                ! |          |   | 87,000        |   |   | 436,000 |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
| **INDUSTRIAL**                                                                                                          |   |                     |               |          |   |          |   |   |   |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
| **Houston                and Harris County, Total**                                                                     |   |                     |               |          |   | **5,242,000** |   |   | **13,308,000** |   |
| 1919                North Loop West, Hacket Drive at West Loop 610 North                                                |   |                     |               |          |   | 140,000       |   |   | 157,000 |   |
| Beltway                8 Business Park, Beltway 8 at Petersham Dr.                                                      |   |                     |               |          |   | 158,000       |   |   | 499,000 |   |
| Blankenship                Building, Kempwood Drive                                                                     |   |                     |               |          |   | 59,000        |   |   | 175,000 |   |
| Brookhollow                Business Center, Dacoma at Directors Row                                                     |   |                     |               |          |   | 133,000       |   |   | 405,000 |   |
| Central                Park Northwest VI, Central Pkwy. at Dacoma                                                       |   |                     |               |          |   | 175,000       |   |   | 518,000 |   |
| Central                Park Northwest VII, Central Pkwy. at Dacoma                                                      |   |                     |               |          |   | 103,000       |   |   | 283,000 |   |
| Claywood                Industrial Park, Clay at Hollister                                                              |   |                     |               |          |   | 330,000       |   |   | 1,761,000 |   |
| Crosspoint                Warehouse, Crosspoint                                                                         |   |                     |               |          |   | 73,000        |   |   | 179,000 |   |
| Jester                Plaza Office Service Center, West T.C. Jester                                                     |   |                     |               |          |   | 101,000       |   |   | 244,000 |   |
| Kempwood                Industrial, Kempwood Dr. at Blankenship Dr.                                                     |   |                     |               |          |   | 113,000       |   |   | 327,000 |   |
| Kempwood                Industrial, Kempwood Dr. at Blankenship Dr. (20%)                                               |   |                     | *                ! |          |   | 207,000       |   |   | 531,000 |   |
| Lathrop                Warehouse, Lathrop St. at Larimer St. (20%)                                                      |   |                     | *                ! |          |   | 253,000       |   |   | 435,000 |   |
| Navigation                Business Park, Navigation at N. York (20%)                                                    |   |                     | *                ! |          |   | 238,000       |   |   | 555,000 |   |
| Northway                Park II, Loop 610 East at Homestead (20%)                                                       |   |                     | *                ! |          |   | 304,000       |   |   | 746,000 |   |
| Railwood                F, Market at U.S. 90 (20%)                                                                      |   |                     | *                ! |          |   | 300,000       |   |   | 559,000 |   |
| Railwood                Industrial Park, Mesa at U.S. 90                                                                |   |                     |               |          |   | 616,000       |   |   | 1,651,000 |   |
| Railwood                Industrial Park, Mesa at U.S. 90 (20%)                                                          |   |                     | *                ! |          |   | 498,000       |   |   | 1,061,000 |   |
| South                Loop Business Park, S. Loop at Long Dr.                                                            |   |                     | *                ! |          |   | 92,000        |   |   | 206,000 |   |
| Southport                Business Park 5, South Loop 610                                                                |   |                     |               |          |   | 161,000       |   |   | 358,000 |   |
| Southwest                Park II Service Center, Rockley Road                                                           |   |                     |               |          |   | 68,000        |   |   | 216,000 |   |
| Stonecrest                Business Center, Wilcrest at Fallstone                                                        |   |                     |               |          |   | 111,000       |   |   | 308,000 |   |
| West-10                Business Center, Wirt Rd. at I-10                                                                |   |                     |               |          |   | 129,000       |   |   | 331,000 |   |
| West                10 Business Center II, Wirt Rd. at I-10                                                             |   |                     |               |          |   | 83,000        |   |   | 147,000 |   |
| Westgate                Service Center, Park Row Drive at Whiteback Dr.                                                 |   |                     |               |          |   | 119,000       |   |   | 499,000 |   |
| West                Loop Commerce Center, W. Loop N. at I-10                                                            |   |                     |               |          |   | 34,000        |   |   | 91,000 |   |
| 610                and 11th St. Warehouse, Loop 610 at 11th St.                                                         |   |                     |               |          |   | 105,000       |   |   | 202,000 |   |
| 610                and 11th St. Warehouse, Loop 610 at 11th St. (20%)                                                   |   |                     | *                ! |          |   | 244,000       |   |   | 539,000 |   |
| 610/288                Business Park , Cannon Street (20%)                                                              |   |                     | *                ! |          |   | 295,000       |   |   | 482,000 |   |
|                                                                                                                    |   |                     |               |          |   |          |   |   |   |   |
| **Texas                (excluding Houston & Harris Co.), Total**                                                    |   |                     |               |          |   | **3,879,000** |   |   | **9,515,000** |   |
| Midpoint                I-20 Distribution Center, New York Avenue and Arbrook Boulevard,                Arlington       |   |                     |               |          |   | 253,000       |   |   | 593,000 |   |
| Randol                Mill Place, Randol Mill Road, Arlington                                                           |   |                     |               |          |   | 55,000        |   |   | 178,000 |   |
| Braker                2 Business Center, Kramer Ln. at Metric Blvd., Austin                                             |   |                     |               |          |   | 27,000        |   |   | 93,000 |   |
| Corporate                Center Park I and II, Putnam Dr. at Research Blvd., Austin                                     |   |                     |               |          |   | 117,000       |   |   | 326,000 |   |
| Oak                Hills Industrial Park, Industrial Oaks Blvd., Austin                                                 |   |                     |               |          |   | 90,000        |   |   | 340,000 |   |
| Rutland                10 Business Center, Metric Blvd. At Centimeter Circle,                Austin                     |   |                     |               |          |   | 54,000        |   |   | 139,000 |   |
| Southpark                A,B,C, East St. Elmo Rd. at Woodward St., Austin                                               |   |                     |               |          |   | 78,000        |   |   | 238,000 |   |
| Southpoint                Service Center, Burleson at Promontory Point Dr., Austin                                      |   |                     |               |          |   | 54,000        |   |   | 234,000 |   |
| Wells                Branch Corporate Center, Wells Branch Pkwy., Austin                                                |   |                     |               |          |   | 59,000        |   |   | 183,000 |   |
| 1625                Diplomat Drive, SWC Diplomat Dr. at McDaniel Dr.,                Carrollton                         |   |                     |               |          |   | 106,000       |   |   | 199,000 |   |
| Midway                Business Center, Midway at Boyington, Carrollton                                                  |   |                     |               |          |   | 141,000       |   |   | 309,000 |   |
| Manana                Office Center, I-35 at Manana, Dallas                                                             |   |                     |               |          |   | 223,000       |   |   | 473,000 |   |
| Newkirk                Service Center, Newkirk near N.W. Hwy., Dallas                                                   |   |                     |               |          |   | 106,000       |   |   | 223,000 |   |
| Northaven                Business Center, Northaven Rd., Dallas                                                         |   |                     |               |          |   | 151,000       |   |   | 178,000 |   |
| Northeast                Crossing Office/Service Center, East N.W. Hwy. at Shiloh,                Dallas                |   |                     |               |          |   | 79,000        |   |   | 199,000 |   |

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*Table            of Contents*

| Northwest                Crossing Office/Service Center, N.W. Hwy. at Walton Walker,                Dallas                     |   |   |               |   |   | 127,000       |   |   | 290,000       |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|---------------|--------|--------|---------------|--------|
| Redbird                Distribution Center, Joseph Hardin Drive, Dallas                                                        |   |   |               |   |   | 111,000       |   |   | 233,000       |   |
| Regal                Distribution Center, Leston Avenue, Dallas                                                                |   |   |               |   |   | 203,000       |   |   | 318,000       |   |
| Space                Center Industrial Park, Pulaski St. at Irving Blvd.,                Dallas                                |   |   |               |   |   | 265,000       |   |   | 426,000       |   |
| McGraw                Hill Distribution Center, 420 E. Danieldale Rd, DeSoto                                                   |   |   |               |   |   | 418,000       |   |   | 888,000       |   |
| Freeport                Commerce Center, Sterling Street and Statesman Drive,                Irving                            |   |   |               |   |   | 51,000        |   |   | 196,000       |   |
| Central                Plano Business Park, Klein Rd. at Plano Pkwy., Plano                                                    |   |   |               |   |   | 138,000       |   |   | 415,000       |   |
| Jupiter                Service Center, Jupiter near Plano Pkwy., Plano                                                         |   |   |               |   |   | 78,000        |   |   | 234,000       |   |
| Sherman                Plaza Business Park, Sherman at Phillips, Richardson                                                    |   |   |               |   |   | 101,000       |   |   | 312,000       |   |
| Interwest                Business Park, Alamo Downs Parkway, San Antonio                                                       |   |   |               |   |   | 218,000       |   |   | 742,000       |   |
| Isom                Business Park, 919-981 Isom Road, San Antonio                                                              |   |   |               |   |   | 175,000       |   |   | 462,000       |   |
| O'Connor                Road Business Park, O’Connor Road, San Antonio                                                   |   |   |               |   |   | 150,000       |   |   | 459,000       |   |
| Freeport                Business Center, 13215 N. Promenade Blvd., Stafford                                                    |   |   |               |   |   | 251,000       |   |   | 635,000       |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **Georgia,                Total**                                                                                              |   |   |               |   |   | **1,568,000** |   |   | **4,343,000** |   |
| Atlanta                Industrial Park II & VI, Atlanta Industrial Pkwy. at Atlanta                Industrial Dr., Atlanta |   |   |               |   |   | 552,000       |   |   | 1,755,000     |   |
| Sears                Logistics, 3700 Southside Industrial Way, Atlanta (20%)                                                   |   |   | *                ! |   |   | 403,000       |   |   | 890,000       |   |
| Southside                Industrial Parkway, Southside Industrial Pkwy at Jonesboro Rd.,                Atlanta                |   |   |               |   |   | 72,000        |   |   | 242,000       |   |
| Kennesaw                75, 3850-3900 Kennesaw Prkwy, Kennesaw                                                                 |   |   |               |   |   | 178,000       |   |   | 491,000       |   |
| 6485                Crescent Drive, I-85 at Jimmy Carter Blvd., Norcross (20%)                                                 |   |   | *                ! |   |   | 363,000       |   |   | 965,000       |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **Tennessee,                Total**                                                                                            |   |   |               |   |   | **1,142,000** |   |   | **2,658,000** |   |
| Crowfarn                Drive Warehouse, Crowfarn Dr. at Getwell Rd., Memphis                (20%)                             |   |   | *                ! |   |   | 161,000       |   |   | 316,000       |   |
| Outland                Business Center, Outland Center Dr., Memphis (20%)                                                      |   |   | *                ! |   |   | 410,000       |   |   | 1,215,000     |   |
| Southpoint                I & II, Pleasant Hill Rd. at Shelby Dr., Memphis                                                 |   |   |               |   |   | 571,000       |   |   | 1,127,000     |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **Florida,                Total**                                                                                              |   |   |               |   |   | **1,496,000** |   |   | **3,700,000** |   |
| Lakeland                Industrial Center, I-4 at County Rd., Lakeland                                                         |   |   |               |   |   | 600,000       |   |   | 1,535,000     |   |
| 1801                Massaro, 1801 Massaro Blvd., Tampa                                                                         |   |   |               |   |   | 159,000       |   |   | 337,000       |   |
| Hopewell                Industrial Center, Old Hopewell Boulevard and U.S. Highway 301,                Tampa                   |   |   |               |   |   | 224,000       |   |   | 486,000       |   |
| Tampa                East Industrial Portfolio, 1841 Massaro Blvd., Tampa                                                      |   |   |               |   |   | 513,000       |   |   | 1,342,000     |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **California,                Total**                                                                                           |   |   |               |   |   | **1,043,000** |   |   | **2,548,000** |   |
| 1725                Dornoch, Donroch Court, San Diego                                                                          |   |   |               |   |   | 112,000       |   |   | 268,000       |   |
| 1855                Dornoch, Donroch Court, San Diego                                                                          |   |   |               |   |   | 205,000       |   |   | 520,000       |   |
| Siempre                Viva Business Park, Siempre Viva Rd. at Kerns St., San Diego                (20%)                       |   |   | *                ! |   |   | 726,000       |   |   | 1,760,000     |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **UNIMPROVED                LAND**                                                                                             |   |   |               |   |   |          |   |   |          |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **Houston                & Harris County, Total**                                                                          |   |   |               |   |   |          |   |   | **2,402,000** |   |
| Bissonnet                at Wilcrest                                                                                           |   |   |               |   |   |          |   |   | 175,000       |   |
| Citadel                Plaza at 610 North Loop                                                                                 |   |   |               |   |   |          |   |   | 137,000       |   |
| East                Orem                                                                                                       |   |   |               |   |   |          |   |   | 122,000       |   |
| Kirkwood                at Dashwood Drive                                                                                      |   |   |               |   |   |          |   |   | 322,000       |   |
| Mesa                Road at Tidwell                                                                                            |   |   |               |   |   |          |   |   | 901,000       |   |
| Northwest                Freeway at Gessner                                                                                    |   |   |               |   |   |          |   |   | 422,000       |   |
| Shaver                at Denham                                                                                                |   |   |               |   |   |          |   |   | 17,000        |   |
| West                Little York at Interstate 45                                                                               |   |   |               |   |   |          |   |   | 161,000       |   |
| West                Loop North at Interstate 10                                                                                |   |   |               |   |   |          |   |   | 145,000       |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **Texas                (excluding Houston & Harris Co.), Total**                                                           |   |   |               |   |   |          |   |   | **1,121,000** |   |
| River                Pointe Drive at Interstate 45, Conroe                                                                     |   |   | #                  |   |   |          |   |   | 590,000       |   |
| NEC                of US Hwy 380 & Hwy 75, McKinney                                                                        |   |   |               |   |   |          |   |   | 87,000        |   |
| 9th                Ave. at 25th St., Port Arthur                                                                               |   |   |               |   |   |          |   |   | 243,000       |   |
| Highway                3 at Highway 1765, Texas City                                                                           |   |   |               |   |   |          |   |   | 201,000       |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **Louisiana,                Total**                                                                                            |   |   |               |   |   |          |   |   | **462,000**   |   |
| U.S.                Highway 171 at Parish, DeRidder                                                                            |   |   |               |   |   |          |   |   | 462,000       |   |
|                                                                                                                           |   |   |               |   |   |          |   |   |          |   |
| **North                Carolina, Total**                                                                                       |   |   |               |   |   |          |   |   | **1,750,000** |   |
| The                Shoppes at Caveness Farms                                                                                   |   |   |               |   |   |          |   |   | 1,750,000     |   |

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*Table            of Contents*

| **Weingarten                Realty Investors**             |   |
|------------------------------------------------------------|--------|
| **Property                Listing at December 31, 2006**   |   |
|                                                       |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |
|                                                       |   | **NUMBER                OF** |   | **BUILDING** |   | **LAND** |   |
| **ALL                PROPERTIES-BY LOCATION**              |   | **PROPERTIES** |   | **TOTAL** |   | **TOTAL** |   |
|                                                       |   |   |   |   |   |   |   |
| **Grand                Total**                             |   |   | **389** |   |   | **64,925,000** |   |   | **246,781,000** |   |
| Texas                (excluding Houston and Harris County) |   |   | 96 |   |   | 13,507,000 |   |   | 56,117,000 |   |
| Houston                & Harris County                 |   |   | 77 |   |   | 12,046,000 |   |   | 39,105,000 |   |
| Florida                                                    |   |   | 41 |   |   | 8,713,000 |   |   | 34,634,000 |   |
| California                                                 |   |   | 30 |   |   | 5,056,000 |   |   | 16,999,000 |   |
| North                Carolina                              |   |   | 26 |   |   | 3,366,000 |   |   | 20,630,000 |   |
| Louisiana                                                  |   |   | 16 |   |   | 3,058,000 |   |   | 9,668,000 |   |
| Arizona                                                    |   |   | 16 |   |   | 2,132,000 |   |   | 7,186,000 |   |
| Colorado                                                   |   |   | 15 |   |   | 2,707,000 |   |   | 13,648,000 |   |
| Georgia                                                    |   |   | 18 |   |   | 3,735,000 |   |   | 12,542,000 |   |
| Nevada                                                     |   |   | 12 |   |   | 3,499,000 |   |   | 12,004,000 |   |
| Tennessee                                                  |   |   | 9 |   |   | 1,798,000 |   |   | 6,054,000 |   |
| New                Mexico                                  |   |   | 6 |   |   | 1,473,000 |   |   | 4,489,000 |   |
| Oklahoma                                                   |   |   | 2 |   |   | 174,000 |   |   | 682,000 |   |
| Arkansas                                                   |   |   | 3 |   |   | 355,000 |   |   | 1,489,000 |   |
| Utah                                                       |   |   | 3 |   |   | 633,000 |   |   | 1,660,000 |   |
| Kentucky                                                   |   |   | 4 |   |   | 683,000 |   |   | 3,176,000 |   |
| Kansas                                                     |   |   | 2 |   |   | 251,000 |   |   | 454,000 |   |
| Missouri                                                   |   |   | 2 |   |   | 259,000 |   |   | 1,307,000 |   |
| Illinois                                                   |   |   | 2 |   |   | 394,000 |   |   | 1,268,000 |   |
| Maine                                                      |   |   | 1 |   |   | 205,000 |   |   | 963,000 |   |
| Washington                                                 |   |   | 5 |   |   | 617,000 |   |   | 1,888,000 |   |
| South                Carolina                              |   |   | 1 |   |   | 87,000 |   |   | 436,000 |   |
| Oregon                                                     |   |   | 2 |   |   | 177,000 |   |   | 382,000 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |
| **ALLPROPERTIES-BY                CLASSIFICATION**         |   |   |   |   |   |   |   |   |   |   |
| **Grand                Total**                             |   |   | **389** |   |   | **64,925,000** |   |   | **246,781,000** |   |
| Shopping                Centers                            |   |   | 322 |   |   | 50,555,000 |   |   | 204,974,000 |   |
| Industrial                                                 |   |   | 67 |   |   | 14,370,000 |   |   | 36,072,000 |   |
| Unimproved                Land                             |   |   | 0 |   |   |   |   |   | 5,735,000 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |

** **

|   | * |   | Denotes                partial ownership. Our interest is 50% except where noted. The square                feet                figures represent the total property                amounts. |
|--------|---|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |  # | Denotes                  property under                  development. |
|--------|--------|---------|-----------------------------------------------------------------------|

|   | **!** |   | Denotes                properties of an unconsolidated joint venture. These properties are                not                consolidated in our financial                statements. |
|--------|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table            of Contents*

*General.*

*Shopping      Centers.*

----

*Table            of Contents*

----

*Table            of Contents*

| Center                  Name                          | Square                  Feet of Property* |   | Location                                | Anchors                                                                               |   | Occupancy                  at Acquisition Date |
|-------------------------------------------------------|-------------------------------------------|--------|-----------------------------------------|---------------------------------------------------------------------------------------|--------|------------------------------------------------|
| Brookwood                  Marketplace                | 253,000                                   |   | Suwannee                  (Atlanta), GA | SuperTarget*,                  Home Depot, OfficeMax                                  |   | 96%                                            |
| Camp                  Creek Phase II                  | 196,000                                   |   | Atlanta,                  GA            | SuperTarget*,                  Circuit City                                           |   | 99%                                            |
| Lakeside                  Marketplace                 | 322,000                                   |   | Acworth                  (Atlanta), GA  | SuperTarget*,                  Circuit City, Ross Dress for Less, PETCO, OfficeMax    |   | 100%                                           |
| Publix                  at Princeton Lakes            | 68,000                                    |   | Atlanta,                  GA            | Publix                                                                                |   | 100%                                           |
| Marketplace                  at Seminole Towne Center | 494,000                                   |   | Sanford                  (Orlando), FL  | SuperTarget*,                  Circuit City, Linens ‘n Things, Marshalls, PETCO |   | 99%                                            |

| Center                Name                                     | Square                Feet of Property |   | Location                                          | Anchors                                                               |   | Occupancy                at Acquisition Date |
|----------------------------------------------------------------|----------------------------------------|--------|---------------------------------------------------|-----------------------------------------------------------------------|--------|----------------------------------------------|
| Alafaya                Square                                  | 176,000                                |   | Oviedo                (Orlando), FL          | Publix,                Planet Fitness                                 |   | 100%                                         |
| Marketplace                at Dr. Phillips                     | 328,000                                |   | Orlando,                FL                        | Albertson’s,                Stein Mart, HomeGoods, Office Depot |   | 99%                                          |
| East                Lake Woodlands                             | 145,000                                |   | Palm                Harbor (Tampa), FL            | Publix,                Walgreens                                      |   | 91%                                          |
| International                Drive                Value Center | 186,000                                |   | Orlando,                FL                        | Bed                Bath & Beyond, Ross, TJ Maxx                   |   | 100%                                         |
| Kendall                Corners                                 | 96,000                                 |   | Miami,                FL                          | Ashley                Furniture                                       |   | 100%                                         |
| Palm                Lakes Plaza                                | 114,000                                |   | Maragate                (Ft. Lauderdale), FL | Publix,                CVS                                            |   | 99%                                          |
| South                Dade Shopping Center                      | 220,000                                |   | Miami,                FL                          | Publix,                Bed Bath & Beyond, PETCO                   |   | 100%                                         |

----

*Table            of Contents*

| Center                Name              | Square                Feet of Property |   | Location                              | Anchors                                                 |   | Occupancy                at Acquisition Date |
|-----------------------------------------|----------------------------------------|--------|---------------------------------------|---------------------------------------------------------|--------|----------------------------------------------|
| Mukilteo                Speedway Center | 90,000                                 |   | Lynnwood                (Seattle), WA | Food                Emporium, Bartell Drug              |   | 96%                                          |
| Meridian                Town Center     | 143,000                                |   | Puyallup                (Tacoma), WA  | Safeway,                JoAnn’s                   |   | 100%                                         |
| Rainier                Valley Square    | 107,000                                |   | Seattle,                WA            | Safeway,                Long Drugs                      |   | 100%                                         |
| South                Hill Center        | 134,000                                |   | Puyallup                (Tacoma), WA  | Best                Buy, Bed Bath & Beyond and Ross |   | 99%                                          |
| Clackamas                Square         | 137,000                                |   | Portland,                OR           | TJ                Maxx                                  |   | 100%                                         |
| Raleigh                Hills Plaza      | 40,000                                 |   | Portland,                OR           | Walgreen,                New Season Market              |   | 100%                                         |

*Industrial      Properties.*
*At      *

----

*Table            of Contents*

*Other*

*Unimproved      Land.*
** **

*New      Development Properties. *

**ITEM      3.** **Legal      Proceedings**

**ITEM      4.** **Submission      of Matters to a Vote of Shareholders**

----

*Table            of Contents*

**PART      II**

**ITEM      5.** ***Market      for Registrant's Common Shares of Beneficial Interest, Related Shareholder      Matters and Issuer Purchases of Equity Securities***

|   |   | **High** |   | **Low** |   | **Dividends** |   |
|--------|--------|----------|--------|---------|--------|---------------|--------|
|   |   |     |   |    |   |          |   |
| 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 |   |
|   |   |     |   |    |   |          |   |   |   |   |
| 2005:  |   |     |   |    |   |          |   |   |   |   |
| Fourth |   | $        | 38.98  |    | $      | 33.99         |   | $ | .44 |   |
| Third  |   |     | 40.50  |    |   | 36.83         |   |   | .44 |   |
| Second |   |     | 39.32  |    |   | 34.08         |   |   | .44 |   |
| First  |   |     | 39.97  |    |   | 33.49         |   |   | .44 |   |

----

*Table            of Contents*

**Performance      Graph**

**Comparison      of Five Year Cumulative Return**

|                                       |   | **2002** |   | **2003** |   | **2004** |   | **2005** |   | **2006** |   |
|--------------------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                                       |   |     |   |     |   |     |   |     |   |     |   |
| Weingarten                                 |   |     | 122.54 |     |   | 155.85   |   |     | 221.88 |     |   | 219.11 |   |   | 279.34 |   |
| S&P                500 Index           |   |     | 77.90  |     |   | 100.24   |   |     | 111.15 |     |   | 116.61 |   |   | 135.03 |   |
| The                NAREIT All Equity Index |   |     | 103.82 |     |   | 142.37   |   |     | 187.33 |     |   | 210.12 |   |   | 283.78 |   |

----

*Table            of Contents*

**ITEM      6.** ***Selected      Financial Data***

|                                                       |   | *(Amounts                in thousands, except per share amounts)* |      |
|------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|
|                                                       |   | Year                Ended December 31,                            |      |
|                                                       |   | 2006                                                              |      | 2005 |   | 2004 |   | 2003 |   | 2002 |   |
|                                                       |   |                                                              |      |   |   |   |   |   |   |   |   |
| Revenues                (primarily real estate rentals)    |   | $                                                                 | 561,380   |   | $ | 510,401 |   | $ | 460,914 |   | $ | 372,016 |   | $ | 317,119 |   |
| Expenses:                                                  |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization               |   |                                                              | 127,613   |   |   | 117,062 |   |   | 103,870 |   |   | 80,776 |   |   | 65,803 |   |
| Other                                                      |   |                                                              | 180,751   |   |   | 152,932 |   |   | 143,178 |   |   | 113,128 |   |   | 97,253 |   |
| Total                                                      |   |                                                              | 308,364   |   |   | 269,994 |   |   | 247,048 |   |   | 193,904 |   |   | 163,056 |   |
| Operating                income                            |   |                                                              | 253,016   |   |   | 240,407 |   |   | 213,866 |   |   | 178,112 |   |   | 154,063 |   |
| Interest                expense                            |   |                                                              | (146,943  | ) |   | (130,761 | ) |   | (117,096 | ) |   | (90,269 | ) |   | (67,171 | ) |
| Interest                and other income                   |   |                                                              | 9,045     |   |   | 2,867 |   |   | 1,390 |   |   | 1,563 |   |   | 1,053 |   |
| Loss                on redemption of preferred shares      |   |                                                              |      |   |   |   |   |   | (3,566 | ) |   | (2,739 | ) |   |   |   |
| Equity                in earnings of joint ventures, net   |   |                                                              | 14,655    |   |   | 6,610 |   |   | 5,384 |   |   | 4,681 |   |   | 3,930 |   |
| Income                allocated to minority interests      |   |                                                              | (6,414    | ) |   | (6,060 | ) |   | (4,928 | ) |   | (2,723 | ) |   | (3,553 | ) |
| Gain                on land and merchant development sales |   |                                                              | 7,166     |   |   | 804 |   |   |   |   |   |   |   |   |   |   |
| Gain                on sale of properties                  |   |                                                              | 22,467    |   |   | 22,306 |   |   | 1,562 |   |   | 665 |   |   | 188 |   |
| Provision                for Income Taxes                  |   |                                                              | (1,366    | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations           |   |                                                              | 151,626   |   |   | 136,173 |   |   | 96,612 |   |   | 89,290 |   |   | 88,510 |   |
| Income                from discontinued operations (1)     |   |                                                              | 153,384   |   |   | 83,480 |   |   | 44,769 |   |   | 26,990 |   |   | 43,357 |   |
| Net                income                                  |   | $                                                                 | 305,010   |   | $ | 219,653 |   | $ | 141,381 |   | $ | 116,280 |   | $ | 131,867 |   |
|                                                       |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income available to common shareholders |   | $                                                                 | 294,909   |   | $ | 209,552 |   | $ | 133,911 |   | $ | 97,880 |   | $ | 112,111 |   |
| Per                share data - basic:                     |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations           |   | $                                                                 | 1.61      |   | $ | 1.41 |   | $ | 1.04 |   | $ | .92 |   | $ | .89 |   |
| Net                income                                  |   | $                                                                 | 3.36      |   | $ | 2.35 |   | $ | 1.55 |   | $ | 1.24 |   | $ | 1.44 |   |
| Weighted                average number of shares           |   |                                                              | 87,719    |   |   | 89,224 |   |   | 86,171 |   |   | 78,800 |   |   | 77,866 |   |
| Per                share data - diluted:                   |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations           |   | $                                                                 | 1.60      |   | $ | 1.41 |   | $ | 1.04 |   | $ | .92 |   | $ | .89 |   |
| Net                income                                  |   | $                                                                 | 3.27      |   | $ | 2.31 |   | $ | 1.54 |   | $ | 1.24 |   | $ | 1.43 |   |
| Weighted                average number of shares           |   |                                                              | 91,779    |   |   | 93,166 |   |   | 89,511 |   |   | 81,574 |   |   | 80,041 |   |
|                                                       |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                (at cost)                          |   | $                                                                 | 4,445,888 |   | $ | 4,033,579 |   | $ | 3,751,607 |   | $ | 3,200,091 |   | $ | 2,695,286 |   |
| Total                assets                                |   | $                                                                 | 4,375,540 |   | $ | 3,737,741 |   | $ | 3,470,318 |   | $ | 2,923,094 |   | $ | 2,423,241 |   |
| Debt                                                       |   | $                                                                 | 2,900,952 |   | $ | 2,299,855 |   | $ | 2,105,948 |   | $ | 1,810,706 |   | $ | 1,330,369 |   |
|                                                       |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                data:                                 |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                flows from operating activities        |   | $                                                                 | 242,592   |   | $ | 200,525 |   | $ | 203,886 |   | $ | 162,316 |   | $ | 167,095 |   |
| Cash                flows from investing activities        |   | $                                                                 | (314,686  | ) | $ | (105,459 | ) | $ | (349,654 | ) | $ | (331,503 | ) | $ | (182,161 | ) |
| Cash                flows from financing activities        |   | $                                                                 | 100,407   |   | $ | (97,791 | ) | $ | 170,928 |   | $ | 168,623 |   | $ | 23,451 |   |
| Cash                dividends per common share             |   | $                                                                 | 1.86      |   | $ | 1.76 |   | $ | 1.66 |   | $ | 1.56 |   | $ | 1.48 |   |
| Funds                from operations: (2)                  |   |                                                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income available to common shareholders |   | $                                                                 | 294,909   |   | $ | 209,552 |   | $ | 133,911 |   | $ | 97,880 |   | $ | 112,111 |   |
| Depreciation                and amortization               |   |                                                              | 131,792   |   |   | 125,742 |   |   | 114,342 |   |   | 90,367 |   |   | 78,111 |   |
| Gain                on sale of properties                  |   |                                                              | (172,056  | ) |   | (87,561 | ) |   | (26,316 | ) |   | (7,273 | ) |   | (18,614 | ) |
| Total                                                      |   | $                                                                 | 254,645   |   | $ | 247,733 |   | $ | 221,937 |   | $ | 180,974 |   | $ | 171,608 |   |

| (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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Table            of Contents*

| (2) | The                National Association of Real Estate Investment Trusts defines funds                from                operations as net income (loss) available to common shareholders                computed                in accordance with generally accepted accounting principles, excluding                gains or losses from sales of operating properties and extraordinary                items, plus depreciation and amortization of real estate assets,                including                our share of unconsolidated partnerships and joint ventures. We calculate                FFO in a manner consistent with the NAREIT definition. We believe                FFO is                an appropriate supplemental measure of operating performance because                it                helps investors compare our operating performance relative to other                REITs.                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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      7.** **Management's      Discussion and Analysis of Financial Condition and Results of      Operations**

**Executive      Overview**

----

*Table            of Contents*

| ·   | 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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**New      Development**

**Acquisitions      and Joint Ventures**

----

*Table            of Contents*

| ·   | We                acquired seven neighborhood/community shopping centers in South Florida                in                a new joint venture with TIAA-CREF Global Real Estate; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                partnership with AEW Capital Management, on behalf of its institutional                client, we acquired four grocery-anchored centers and two power centers                in                Oregon and Washington, marking our entry into two desirable markets                -                Portland, Oregon and Seattle/Tacoma, Washington; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                also formed a joint venture with Mercantile Real Estate Advisors                and its                client, the AFL-CIO Building Investment Trust, to acquire and operate                industrial properties within target markets across the United States.                We                sold $123 million of our existing assets to the joint venture upon                formation. Including the $123 million, the partners plan to invest                up to                $500 million in total capital over the next two                years. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Dispositions**

**Summary      of Critical Accounting Policies**

*Revenue      Recognition*

----

*Table            of Contents*

*Partially      Owned Joint Ventures and Partnerships*

*Property*

*Interest      Capitalization*

----

*Table            of Contents*

*Deferred      Charges*

*Sales      of Real Estate*

*Accrued      Rent and Accounts Receivable*

*Income      Taxes*

**Results      of Operations**

*Revenues*

----

*Table            of Contents*

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

*Expenses*

*Interest      Expense*

|                                                                  |   | Year                Ended December 31, |    |
|-----------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                  |   | 2006                                   |    | 2005 |   |
|                                                                  |   |                                   |    |   |   |
| Gross                interest expense                                 |   | $                                      | 161,894 |   | $ | 140,317 |   |
| Over-market                mortgage adjustment of acquired properties |   |                                   | (7,335  | ) |   | (6,927 | ) |
| Capitalized                interest                                   |   |                                   | (7,616  | ) |   | (2,629 | ) |
|                                                                  |   |                                   |    |   |   |   |   |
| Total                                                                 |   | $                                      | 146,943 |   | $ | 130,761 |   |

*Interest      and Other Income*

*Equity      in Earnings of Joint Ventures*

*Gain      on Sale of Properties*

*.*

----

*Table            of Contents*

*Gain      on Land and Merchant Development Sales*

*Provision      for Income Taxes*

*Income      from Discontinued Operations*

**Results      of Operations**

*Revenues*

|                            |   | **December                31,** |   |
|---------------------------------|--------|---------------------------------|--------|
|                            |   | **2005**                        |   | **2004** |   |
|                            |   |                            |   |   |   |
| Shopping                Centers |   |                            | 94.6   | % |   | 94.8 | % |
| Industrial                      |   |                            | 93.1   | % |   | 92.6 | % |
| Total                           |   |                            | 94.2   | % |   | 94.3 | % |

*Expenses*

----

*Table            of Contents*

*Interest      Expense*

|                                                                        |   | **Year                Ended December 31,** |    |
|-----------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                        |   | **2005**                                   |    | **2004** |   |
|                                                                        |   |                                       |    |   |   |
| Gross                interest expense                                       |   | $                                          | 140,317 |   | $ | 125,069 |   |
| Interest                on preferred shares subject to mandatory redemption |   |                                       |    |   |   | 2,007 |   |
| Over-market                mortgage adjustment of acquired properties       |   |                                       | (6,927  | ) |   | (4,988 | ) |
| Capitalized                interest                                         |   |                                       | (2,629  | ) |   | (4,992 | ) |
|                                                                        |   |                                       |    |   |   |   |   |
| Total                                                                       |   | $                                          | 130,761 |   | $ | 117,096 |   |

*Loss      on Redemption of Preferred Shares*

*Equity      in Earnings of Joint Ventures*

*Income      Allocated to Minority Interests*

*Gain      on Sale of Properties*

*Gain      on Land and Merchant Development Sales*

----

*Table            of Contents*

*Income      from Discontinued Operations*

**Effects      of Inflation**

**Capital      Resources and Liquidity**

***Investing      Activities:***

***Acquisitions***

*Retail      Properties.*

----

*Table            of Contents*

| Center                  Name                          | Square                  Feet of Property* |   | Location                                | Anchors                                                                               |   | Occupancy                  at Acquisition Date |
|-------------------------------------------------------|-------------------------------------------|--------|-----------------------------------------|---------------------------------------------------------------------------------------|--------|------------------------------------------------|
| Brookwood                  Marketplace                | 253,000                                   |   | Suwannee                  (Atlanta), GA | SuperTarget*,                  Home Depot, OfficeMax                                  |   | 96%                                            |
| Camp                  Creek Phase II                  | 196,000                                   |   | Atlanta,                  GA            | SuperTarget*,                  Circuit City                                           |   | 99%                                            |
| Lakeside                  Marketplace                 | 322,000                                   |   | Acworth                  (Atlanta), GA  | SuperTarget*,                  Circuit City, Ross Dress for Less, PETCO, OfficeMax    |   | 100%                                           |
| Publix                  at Princeton Lakes            | 68,000                                    |   | Atlanta,                  GA            | Publix                                                                                |   | 100%                                           |
| Marketplace                  at Seminole Towne Center | 494,000                                   |   | Sanford                  (Orlando), FL  | SuperTarget*,                  Circuit City, Linens ‘n Things, Marshalls, PETCO |   | 99%                                            |

----

*Table            of Contents*

| Center                Name                                     | Square                Feet of Property |   | Location                                          | Anchors                                                               |   | Occupancy                at Acquisition Date |
|----------------------------------------------------------------|----------------------------------------|--------|---------------------------------------------------|-----------------------------------------------------------------------|--------|----------------------------------------------|
| Alafaya                Square                                  | 176,000                                |   | Oviedo                (Orlando), FL          | Publix,                Planet Fitness                                 |   | 100%                                         |
| Marketplace                at Dr. Phillips                     | 328,000                                |   | Orlando,                FL                        | Albertson’s,                Stein Mart, HomeGoods, Office Depot |   | 99%                                          |
| East                Lake Woodlands                             | 145,000                                |   | Palm                Harbor (Tampa), FL            | Publix,                Walgreens                                      |   | 91%                                          |
| International                Drive                Value Center | 186,000                                |   | Orlando,                FL                        | Bed                Bath & Beyond, Ross, TJ Maxx                   |   | 100%                                         |
| Kendall                Corners                                 | 96,000                                 |   | Miami,                FL                          | Ashley                Furniture                                       |   | 100%                                         |
| Palm                Lakes Plaza                                | 114,000                                |   | Maragate                (Ft. Lauderdale), FL | Publix,                CVS                                            |   | 99%                                          |
| South                Dade Shopping Center                      | 220,000                                |   | Miami,                FL                          | Publix,                Bed Bath & Beyond, PETCO                   |   | 100%                                         |

| Center                Name              | Square                Feet of Property |   | Location                              | Anchors                                                 |   | Occupancy                at Acquisition Date |
|-----------------------------------------|----------------------------------------|--------|---------------------------------------|---------------------------------------------------------|--------|----------------------------------------------|
| Mukilteo                Speedway Center | 90,000                                 |   | Lynnwood                (Seattle), WA | Food                Emporium, Bartell Drug              |   | 96%                                          |
| Meridian                Town Center     | 143,000                                |   | Puyallup                (Tacoma), WA  | Safeway,                JoAnn’s                   |   | 100%                                         |
| Rainier                Valley Square    | 107,000                                |   | Seattle,                WA            | Safeway,                Long Drugs                      |   | 100%                                         |
| South                Hill Center        | 134,000                                |   | Puyallup                (Tacoma), WA  | Best                Buy, Bed Bath & Beyond and Ross |   | 99%                                          |
| Clackamas                Square         | 137,000                                |   | Portland,                OR           | TJ                Maxx                                  |   | 100%                                         |
| Raleigh                Hills Plaza      | 40,000                                 |   | Portland,                OR           | Walgreen,                New Season Market              |   | 100%                                         |

----

*Table            of Contents*

*Industrial      Properties.*

***Dispositions***

*Retail      Properties.*

*Industrial      Properties.*

***New      Development and Capital Expenditures***

----

*Table            of Contents*

***Financing      Activities:***

***Debt***

----

*Table            of Contents*

***Equity***

**Contractual      Obligations**

|                                               |   | 2007   |    | 2008   |   | 2009    |   | 2010   |    | 2011   |   | Thereafter |   | Total  |    |
|----------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|------------|--------|--------|---------|
|                                               |   |   |    |   |   |    |   |   |    |   |   |       |   |   |    |
| Mortgages                and Notes Payable:**(1)** |   |   |    |   |   |    |   |   |    |   |   |       |   |   |    |
| Unsecured                Debt                      |   | $      | 196,651 |   | $      | 154,680 |   | $      | 121,802 |   | $      | 138,090    |   | $      | 665,301 |   | $ | 1,207,200 |   | $ | 2,483,724 |   |
| Secured                Debt                        |   |   | 93,857  |   |   | 246,031 |   |   | 129,297 |   |   | 111,517    |   |   | 136,720 |   |   | 626,882 |   |   | 1,344,304 |   |
|                                               |   |   |    |   |   |    |   |   |    |   |   |       |   |   |    |   |   |   |   |   |   |   |
| Ground                Lease Payments               |   |   | 1,876   |   |   | 1,782   |   |   | 1,737   |   |   | 1,691      |   |   | 1,626   |   |   | 39,459 |   |   | 48,171 |   |
|                                               |   |   |    |   |   |    |   |   |    |   |   |       |   |   |    |   |   |   |   |   |   |   |
| Obligations                to Acquire Projects     |   |   | 218,322 |   |   |    |   |   |    |   |   |       |   |   |    |   |   |   |   |   | 218,322 |   |
|                                               |   |   |    |   |   |    |   |   |    |   |   |       |   |   |    |   |   |   |   |   |   |   |
| Obligations                to Develop Projects     |   |   | 149,614 |   |   | 71,312  |   |   | 37,891  |   |   | 22,796     |   |   |    |   |   |   |   |   | 281,613 |   |
|                                               |   |   |    |   |   |    |   |   |    |   |   |       |   |   |    |   |   |   |   |   |   |   |
| Total                Contractual Obligations       |   | $      | 660,320 |   | $      | 473,805 |   | $      | 290,727 |   | $      | 274,094    |   | $      | 803,647 |   | $ | 1,873,541 |   | $ | 4,376,134 |   |

**(1)**

----

*Table            of Contents*

**Funds        from Operations**

|                                                                                             |   | **Year                Ended December 31,** |     |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|
|                                                                                             |   | **2006**                                   |     | **2005** |   | **2004** |   |
|                                                                                             |   |                                       |     |   |   |   |   |
| Net                income available to common shareholders                                       |   | $                                          | 294,909  |   | $ | 209,552 |   | $ | 133,911 |   |
| Depreciation                and amortization                                                     |   |                                       | 126,713  |   |   | 122,203 |   |   | 111,211 |   |
| Depreciation                and amortization of unconsolidated joint ventures                    |   |                                       | 5,079    |   |   | 3,539 |   |   | 3,131 |   |
| Gain                on sale of properties                                                        |   |                                       | (168,004 | ) |   | (87,569 | ) |   | (26,403 | ) |
| (Gain)                loss on sale of properties of unconsolidated joint                ventures |   |                                       | (4,052   | ) |   | 8 |   |   | 87 |   |
| Funds                from operations                                                             |   |                                       | 254,645  |   |   | 247,733 |   |   | 221,937 |   |
| Funds                from operations attributable to operating partnership                units  |   |                                       | 5,453    |   |   | 5,218 |   |   | 3,798 |   |
| Funds                from operations assuming conversion of OP units                             |   | $                                          | 260,098  |   | $ | 252,951 |   | $ | 225,735 |   |
|                                                                                             |   |                                       |     |   |   |   |   |   |   |   |
| Weighted                average shares outstanding - basic                                       |   |                                       | 87,719   |   |   | 89,224 |   |   | 86,171 |   |
| Effect                of dilutive securities:                                                    |   |                                       |     |   |   |   |   |   |   |   |
| Share                options and awards                                                          |   |                                       | 926      |   |   | 860 |   |   | 827 |   |
| Operating                partnership units                                                       |   |                                       | 3,134    |   |   | 3,082 |   |   | 2,513 |   |
| Weighted                average shares outstanding - diluted                                     |   |                                       | 91,779   |   |   | 93,166 |   |   | 89,511 |   |

----

*Table            of Contents*

**Newly        Adopted Accounting Pronouncements**

|                                                                                                                                       |   | **Year                Ended December 31,** |    |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                                       |   | **2005**                                   |    | **2004** |   |
|                                                                                                                                       |   |                                       |    |   |   |
| Net                income available to common shareholders                                                                                 |   | $                                          | 209,552 |   | $ | 133,911 |   |
| Stock-based                employee compensation included in net income available to common                shareholders                    |   |                                       | 434     |   |   | 193 |   |
| Stock-based                employee compensation determined under the fair value-based method                for all                awards |   |                                       | (849    | ) |   | (567 | ) |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
| Pro                forma net income available to common shareholders                                                                       |   | $                                          | 209,137 |   | $ | 133,537 |   |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
| Net                income per common share:                                                                                                |   |                                       |    |   |   |   |   |
| Basic                - as reported                                                                                                         |   | $                                          | 2.35    |   | $ | 1.55 |   |
| Basic                - pro forma                                                                                                           |   | $                                          | 2.34    |   | $ | 1.55 |   |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
| Net                income per common share:                                                                                                |   |                                       |    |   |   |   |   |
| Diluted                - as reported                                                                                                       |   | $                                          | 2.31    |   | $ | 1.54 |   |
| Diluted                - pro forma                                                                                                         |   | $                                          | 2.30    |   | $ | 1.53 |   |

----

*Table            of Contents*

----

**ITEM      7A.** **Quantitative      and Qualitative Disclosures About Market Risk**

----

*Table            of Contents*

**ITEM      8.** **Financial      Statements and Supplementary Data**

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

*Internal      Control—Integrated Framework*

----

*Table            of Contents*

**STATEMENTS      OF CONSOLIDATED INCOME AND COMPREHENSIVE      INCOME**

**(In      thousands, except per share amounts)**

|                                                                   |   | **Year                Ended December 31,** |     |
|------------------------------------------------------------------------|--------|--------------------------------------------|----------|
|                                                                   |   | **2006**                                   |     | **2005** |   | **2004** |   |
|                                                                   |   |                                       |     |   |   |   |   |
| Revenues:                                                              |   |                                       |     |   |   |   |   |
| Rentals                                                                |   | $                                          | 554,361  |   | $ | 504,034 |   | $ | 452,567 |   |
| Other                                                                  |   |                                       | 7,019    |   |   | 6,367 |   |   | 8,347 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Total                                                                  |   |                                       | 561,380  |   |   | 510,401 |   |   | 460,914 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Expenses:                                                              |   |                                       |     |   |   |   |   |   |   |   |
| Depreciation                and amortization                           |   |                                       | 127,613  |   |   | 117,062 |   |   | 103,870 |   |
| Operating                                                              |   |                                       | 91,422   |   |   | 76,630 |   |   | 71,540 |   |
| Ad                valorem taxes                                        |   |                                       | 65,528   |   |   | 58,923 |   |   | 51,966 |   |
| General                and administrative                              |   |                                       | 23,801   |   |   | 17,379 |   |   | 16,122 |   |
| Impairment                loss                                         |   |                                       |     |   |   |   |   |   | 3,550 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Total                                                                  |   |                                       | 308,364  |   |   | 269,994 |   |   | 247,048 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Operating                Income                                        |   |                                       | 253,016  |   |   | 240,407 |   |   | 213,866 |   |
| Interest                Expense                                        |   |                                       | (146,943 | ) |   | (130,761 | ) |   | (117,096 | ) |
| Interest                and Other Income                               |   |                                       | 9,045    |   |   | 2,867 |   |   | 1,390 |   |
| Loss                on Redemption of Preferred Shares                  |   |                                       |     |   |   |   |   |   | (3,566 | ) |
| Equity                in Earnings of Joint Ventures, net               |   |                                       | 14,655   |   |   | 6,610 |   |   | 5,384 |   |
| Income                Allocated to Minority Interests                  |   |                                       | (6,414   | ) |   | (6,060 | ) |   | (4,928 | ) |
| Gain                on Sale of Properties                              |   |                                       | 22,467   |   |   | 22,306 |   |   | 1,562 |   |
| Gain                on Land and Merchant Development Sales             |   |                                       | 7,166    |   |   | 804 |   |   |   |   |
| Provision                for Income Taxes                              |   |                                       | (1,366   | ) |   |   |   |   |   |   |
| Income                from Continuing Operations                       |   |                                       | 151,626  |   |   | 136,173 |   |   | 96,612 |   |
| Operating                Income from Discontinued Operations           |   |                                       | 7,864    |   |   | 18,021 |   |   | 19,886 |   |
| Gain                on Sale of Properties from Discontinued Operations |   |                                       | 145,520  |   |   | 65,459 |   |   | 24,883 |   |
| Income                from Discontinued Operations                     |   |                                       | 153,384  |   |   | 83,480 |   |   | 44,769 |   |
| Net                Income                                              |   | $                                          | 305,010  |   | $ | 219,653 |   | $ | 141,381 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Dividends                on Preferred Shares                           |   |                                       | (10,101  | ) |   | (10,101 | ) |   | (7,470 | ) |
| Net                Income Available to Common Shareholders             |   | $                                          | 294,909  |   | $ | 209,552 |   | $ | 133,911 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Net                Income Per Common Share - Basic:                    |   |                                       |     |   |   |   |   |   |   |   |
| Income                from Continuing Operations                       |   | $                                          | 1.61     |   | $ | 1.41 |   | $ | 1.04 |   |
| Income                from Discontinued Operations                     |   |                                       | 1.75     |   |   | .94 |   |   | .51 |   |
| Net                Income                                              |   | $                                          | 3.36     |   | $ | 2.35 |   | $ | 1.55 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Net                Income Per Common Share - Diluted:                  |   |                                       |     |   |   |   |   |   |   |   |
| Income                from Continuing Operations                       |   | $                                          | 1.60     |   | $ | 1.41 |   | $ | 1.04 |   |
| Income                from Discontinued Operations                     |   |                                       | 1.67     |   |   | .90 |   |   | .50 |   |
| Net                Income                                              |   | $                                          | 3.27     |   | $ | 2.31 |   | $ | 1.54 |   |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Net                Income                                              |   | $                                          | 305,010  |   | $ | 219,653 |   | $ | 141,381 |   |
| Other                Comprehensive Loss:                               |   |                                       |     |   |   |   |   |   |   |   |
| Unrealized                loss on derivatives                          |   |                                       | (2,861   | ) |   | (1,943 | ) |   | (4,038 | ) |
| Amortization                of loss on derivatives                     |   |                                       | 364      |   |   | 340 |   |   | 236 |   |
| Minimum                pension liability adjustment                    |   |                                       | (1,150   | ) |   | (1,704 | ) |   | (590 | ) |
| Other                Comprehensive Loss                                |   |                                       | (3,647   | ) |   | (3,307 | ) |   | (4,392 | ) |
|                                                                   |   |                                       |     |   |   |   |   |   |   |   |
| Comprehensive                Income                                    |   | $                                          | 301,363  |   | $ | 216,346 |   | $ | 136,989 |   |

----

*Table            of Contents*

**CONSOLIDATED      BALANCE SHEETS**

**(In      thousands, except per share amounts)**

|                                                                                                                                                                                                                        |   | **December                31,** |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                                                                                                                                                                                        |   | **2006**                        |      | **2005** |   |
| ASSETS                                                                                                                                                                                                                      |   |                            |      |   |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |
| Property                                                                                                                                                                                                                    |   | $                               | 4,445,888 |   | $ | 4,033,579 |   |
| Accumulated                Depreciation                                                                                                                                                                                     |   |                            | (707,005  | ) |   | (679,642 | ) |
| Property                - net                                                                                                                                                                                               |   |                            | 3,738,883 |   |   | 3,353,937 |   |
| Investment                in Real Estate Joint Ventures                                                                                                                                                                     |   |                            | 203,839   |   |   | 84,348 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Total                                                                                                                                                                                                                       |   |                            | 3,942,722 |   |   | 3,438,285 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Notes                Receivable from Real Estate Joint Ventures and                Partnerships                                                                                                                             |   |                            | 3,971     |   |   | 42,195 |   |
| Unamortized                Debt and Lease Costs                                                                                                                                                                             |   |                            | 112,873   |   |   | 95,616 |   |
| Accrued                Rent and Accounts Receivable (net of allowance for doubtful accounts                of                $5,995 in 2006 and $4,673 in 2005)                                                             |   |                            | 78,893    |   |   | 60,905 |   |
| Cash                and Cash Equivalents                                                                                                                                                                                    |   |                            | 71,003    |   |   | 42,690 |   |
| Restricted                Deposits and Mortgage Escrows                                                                                                                                                                     |   |                            | 94,466    |   |   | 11,747 |   |
| Other                                                                                                                                                                                                                       |   |                            | 71,612    |   |   | 46,303 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Total                                                                                                                                                                                                                       |   | $                               | 4,375,540 |   | $ | 3,737,741 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| LIABILITIES                AND SHAREHOLDERS' EQUITY                                                                                                                                                                         |   |                            |      |   |   |   |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Debt                                                                                                                                                                                                                        |   | $                               | 2,900,952 |   | $ | 2,299,855 |   |
| Accounts                Payable and Accrued Expenses                                                                                                                                                                        |   |                            | 132,821   |   |   | 102,143 |   |
| Other                                                                                                                                                                                                                       |   |                            | 128,306   |   |   | 102,099 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Total                                                                                                                                                                                                                       |   |                            | 3,162,079 |   |   | 2,504,097 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Minority                Interest                                                                                                                                                                                            |   |                            | 87,680    |   |   | 83,358 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| 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 2006 and 2005; liquidation preference                $75,000               |   |                            | 3         |   |   | 3 |   |
| 6.95%                Series E cumulative redeemable preferred shares of beneficial interest;                29                shares issued and outstanding in 2006 and 2005; liquidation preference                $72,500 |   |                            | 1         |   |   | 1 |   |
| Common                Shares of Beneficial Interest - par value, $.03 per share; shares                authorized: 150,000; shares issued and outstanding: 85,765 in 2006                and                89,403 in 2005  |   |                            | 2,582     |   |   | 2,686 |   |
| Additional                Paid-In Capital                                                                                                                                                                                   |   |                            | 1,136,481 |   |   | 1,288,432 |   |
| Accumulated                Dividends in Excess of Net Income                                                                                                                                                                |   |                            | (786      | ) |   | (132,786 | ) |
| Accumulated                Other Comprehensive Loss                                                                                                                                                                         |   |                            | (12,500   | ) |   | (8,050 | ) |
| Shareholders'                Equity                                                                                                                                                                                         |   |                            | 1,125,781 |   |   | 1,150,286 |   |
|                                                                                                                                                                                                                        |   |                            |      |   |   |   |   |
| Total                                                                                                                                                                                                                       |   | $                               | 4,375,540 |   | $ | 3,737,741 |   |

----

*Table            of Contents*

**STATEMENTS      OF CONSOLIDATED CASH FLOWS**

**(In      thousands)**

|                                                                                                            |   | **Year                Ended December 31,** |     |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|
|                                                                                                            |   | **2006**                                   |     | **2005** |   | **2004** |   |
|                                                                                                            |   |                                       |     |   |   |   |   |
| Cash                Flows from Operating Activities:                                                            |   |                                       |     |   |   |   |   |
| Net                income                                                                                       |   | $                                          | 305,010  |   | $ | 219,653 |   | $ | 141,381 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                       |     |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                    |   |                                       | 131,992  |   |   | 128,573 |   |   | 117,053 |   |
| Impairment                loss                                                                                  |   |                                       |     |   |   |   |   |   | 3,550 |   |
| Loss                on redemption of preferred shares                                                           |   |                                       |     |   |   |   |   |   | 3,566 |   |
| Equity                in earnings of joint ventures, net                                                        |   |                                       | (14,655  | ) |   | (6,681 | ) |   | (5,572 | ) |
| Income                allocated to minority interests                                                           |   |                                       | 6,414    |   |   | 6,060 |   |   | 4,928 |   |
| Gain                on land and merchant development sales                                                      |   |                                       | (7,166   | ) |   | (804 | ) |   |   |   |
| Gain                on sale of properties                                                                       |   |                                       | (167,987 | ) |   | (87,765 | ) |   | (26,418 | ) |
| Distributions                of income from unconsolidated entities                                             |   |                                       | 2,524    |   |   | 2,603 |   |   | 1,204 |   |
| Changes                in accrued rent and accounts receivable                                                  |   |                                       | (18,056  | ) |   | (3,281 | ) |   | (17,926 | ) |
| Changes                in other assets                                                                          |   |                                       | (37,607  | ) |   | (30,769 | ) |   | (36,122 | ) |
| Changes                in accounts payable and accrued expenses                                                 |   |                                       | 43,641   |   |   | (27,964 | ) |   | 17,342 |   |
| Other,                net                                                                                       |   |                                       | (1,518   | ) |   | 900 |   |   | 900 |   |
| Net                cash provided by operating activities                                                        |   |                                       | 242,592  |   |   | 200,525 |   |   | 203,886 |   |
|                                                                                                            |   |                                       |     |   |   |   |   |   |   |   |
| Cash                Flows from Investing Activities:                                                            |   |                                       |     |   |   |   |   |   |   |   |
| Investment                in properties                                                                         |   |                                       | (880,471 | ) |   | (259,730 | ) |   | (403,987 | ) |
| Proceeds                from sales and disposition of property, net                                             |   |                                       | 661,175  |   |   | 201,363 |   |   | 52,475 |   |
| Changes                in restricted deposits and mortgage escrows                                              |   |                                       | (79,737  | ) |   | 1,764 |   |   | 488 |   |
| Notes                receivable:                                                                                |   |                                       |     |   |   |   |   |   |   |   |
| Advances                                                                                                        |   |                                       | (54,800  | ) |   | (30,852 | ) |   | (24,920 | ) |
| Collections                                                                                                     |   |                                       | 47,617   |   |   | 5,278 |   |   | 43,224 |   |
|                         Real estate joint ventures and partnerships:    |   |                                       |     |   |   |   |   |   |   |   |
| Investments                                                                                                     |   |                                       | (21,547  | ) |   | (29,233 | ) |   | (24,906 | ) |
| Distributions                                                                                                   |   |                                       | 13,077   |   |   | 5,951 |   |   | 7,972 |   |
| Net                cash used in investing activities                                                            |   |                                       | (314,686 | ) |   | (105,459 | ) |   | (349,654 | ) |
|                                                                                                            |   |                                       |     |   |   |   |   |   |   |   |
| Cash                Flows from Financing Activities:                                                            |   |                                       |     |   |   |   |   |   |   |   |
| Proceeds                from issuance of:                                                                       |   |                                       |     |   |   |   |   |   |   |   |
| Debt                                                                                                            |   |                                       | 780,782  |   |   | 148,347 |   |   | 443,770 |   |
| Common                shares of beneficial interest                                                             |   |                                       | 4,570    |   |   | 2,829 |   |   | 221,578 |   |
| Preferred                shares of beneficial interest                                                          |   |                                       |     |   |   |   |   |   | 70,000 |   |
| Redemption                of preferred shares of beneficial interest                                            |   |                                       |     |   |   |   |   |   | (112,940 | ) |
| Repurchase                of common shares of beneficial interest                                               |   |                                       | (167,573 | ) |   |   |   |   |   |   |
| Principal                payments of debt                                                                       |   |                                       | (327,601 | ) |   | (82,810 | ) |   | (300,144 | ) |
| Common                and preferred dividends paid                                                              |   |                                       | (173,010 | ) |   | (167,196 | ) |   | (152,390 | ) |
|         Debt              issuance cost paid                            |   |                                       | (13,681  | ) |   |   |   |   |   |   |
| Other,                net                                                                                       |   |                                       | (3,080   | ) |   | 1,039 |   |   | 1,054 |   |
| Net                cash provided by (used in) financing activities                                              |   |                                       | 100,407  |   |   | (97,791 | ) |   | 170,928 |   |
|                                                                                                            |   |                                       |     |   |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                             |   |                                       | 28,313   |   |   | (2,725 | ) |   | 25,160 |   |
| Cash                and cash equivalents at January 1                                                           |   |                                       | 42,690   |   |   | 45,415 |   |   | 20,255 |   |
|                                                                                                            |   |                                       |     |   |   |   |   |   |   |   |
| Cash                and cash equivalents at December 31                                                         |   | $                                          | 71,003   |   | $ | 42,690 |   | $ | 45,415 |   |

----

*Table            of Contents*

**STATEMENTS      OF CONSOLIDATED SHAREHOLDERS'      EQUITY**

**(In      thousands, except per share amounts)**

|                                                                                                                  |   | Preferred                |   | Common                   |   |       |   | Accumulated                 |      | Accumulated   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------------------------|--------|------------|--------|-----------------------------|-----------|---------------|--------|
|                                                                                                                  |   | Shares                of |   | Shares                of |   | Additional |   | Dividends                in |      | Other         |   |
|                                                                                                                  |   | Beneficial               |   | Beneficial               |   | Paid-In    |   | Excess                of    |      | Comprehensive |   |
|                                                                                                                  |   | Interest                 |   | Interest                 |   | Capital    |   | Net                Income   |      | Loss          |   |
|                                                                                                                  |   |                     |   |                     |   |       |   |                        |      |          |   |
| Balance,                January 1, 2004                                                                               |   | $                        | 3      |                     | $      | 2,488      |   | $                           | 993,657   |          | $      | (174,234 | ) | $ | (351 | ) |
| Net                income                                                                                             |   |                     |   |                     |   |       |   |                        |      |          |   | 141,381 |   |   |   |   |
| Issuance                of Series E preferred shares                                                                  |   |                     | 1      |                     |   |       |   |                        | 69,999    |          |   |   |   |   |   |   |
| Issuance                of common shares                                                                              |   |                     |   |                     |   | 168        |   |                        | 219,256   |          |   |   |   |   |   |   |
| Shares                issued in exchange for interests in limited partnerships                                        |   |                     |   |                     |   | 1          |   |                        | 852       |          |   |   |   |   |   |   |
| Valuation                adjustment on shares issued in exchange for interests in limited                partnerships |   |                     |   |                     |   |       |   |                        | (2,934    | )             |   |   |   |   |   |   |
| Shares                issued under benefit plans                                                                      |   |                     |   |                     |   | 15         |   |                        | 2,440     |          |   |   |   |   |   |   |
| Dividends                declared - common shares (1)                                                                 |   |                     |   |                     |   |       |   |                        |      |          |   | (144,920 | ) |   |   |   |
| Dividends                declared - preferred shares (2)                                                              |   |                     |   |                     |   |       |   |                        |      |          |   | (7,470 | ) |   |   |   |
| Other                comprehensive loss                                                                               |   |                     |   |                     |   |       |   |                        |      |          |   |   |   |   | (4,392 | ) |
| Balance,                December 31, 2004                                                                             |   |                     | 4      |                     |   | 2,672      |   |                        | 1,283,270 |          |   | (185,243 | ) |   | (4,743 | ) |
| Net                income                                                                                             |   |                     |   |                     |   |       |   |                        |      |          |   | 219,653 |   |   |   |   |
| Shares                issued in exchange for interests in limited partnerships                                        |   |                     |   |                     |   | 1          |   |                        | 1,302     |          |   |   |   |   |   |   |
| Valuation                adjustment on shares issued in exchange for interests in limited                partnerships |   |                     |   |                     |   |       |   |                        | 550       |          |   |   |   |   |   |   |
| Shares                issued under benefit plans                                                                      |   |                     |   |                     |   | 13         |   |                        | 3,310     |          |   |   |   |   |   |   |
| Dividends                declared - common shares (1)                                                                 |   |                     |   |                     |   |       |   |                        |      |          |   | (157,095 | ) |   |   |   |
| Dividends                declared - preferred shares (3)                                                              |   |                     |   |                     |   |       |   |                        |      |          |   | (10,101 | ) |   |   |   |
| Other                comprehensive loss                                                                               |   |                     |   |                     |   |       |   |                        |      |          |   |   |   |   | (3,307 | ) |
| Balance,                December 31, 2005                                                                             |   |                     | 4      |                     |   | 2,686      |   |                        | 1,288,432 |          |   | (132,786 | ) |   | (8,050 | ) |
| Net                income                                                                                             |   |                     |   |                     |   |       |   |                        |      |          |   | 305,010 |   |   |   |   |
| Shares                issued in exchange for interests in limited partnerships                                        |   |                     |   |                     |   | 7          |   |                        | 7,988     |          |   |   |   |   |   |   |
| Shares                cancelled                                                                                       |   |                     |   |                     |   | (128       | )      |                        | (167,445  | )             |   |   |   |   |   |   |
| Shares                issued under benefit plans                                                                      |   |                     |   |                     |   | 17         |   |                        | 7,506     |          |   |   |   |   |   |   |
| Dividends                declared - common shares (1)                                                                 |   |                     |   |                     |   |       |   |                        |      |          |   | (162,909 | ) |   |   |   |
| Dividends                declared - preferred shares (3)                                                              |   |                     |   |                     |   |       |   |                        |      |          |   | (10,101 | ) |   |   |   |
| Adjustment                to initially apply FASB Statement No. 158                                                   |   |                     |   |                     |   |       |   |                        |      |          |   |   |   |   | (803 | ) |
| Other                comprehensive loss                                                                               |   |                     |   |                     |   |       |   |                        |      |          |   |   |   |   | (3,647 | ) |
| Balance,                December 31, 2006                                                                             |   | $                        | 4      |                     | $      | 2,582      |   | $                           | 1,136,481 |          | $      | (786 | ) | $ | (12,500 | ) |

| (1) | Common                dividends per share were $1.86, $1.76 and $1.66 for the year ended                December 31, 2006, 2005 and 2004, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Series                D and Series E preferred dividends per share were $50.63 and $83.01,                respectively.                                 |
| (3) | Series                D and Series E preferred dividends per share were $50.63 and $173.75,                respectively.                                |

----

*Table            of Contents*

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note      1.**
**Summary      of Significant Accounting Policies**

*Business*

*Basis      of Presentation*

*Revenue      Recognition*

*Partially      Owned Joint Ventures and Partnerships*

*Property*

----

*Table            of Contents*

*Interest      Capitalization*

*Deferred      Charges*

*Sales      of Real Estate*

----

*Table            of Contents*

*Accrued        Rent and Accounts Receivable*

*Restricted      Deposits and Mortgage Escrows*

*Other      Assets*

*Per      Share Data*

|                                                                 |   | **Year                Ended December 31,** |    |
|----------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                 |   | **2006**                                   |    | **2005** |   | **2004** |   |
|                                                                 |   |                                       |    |   |   |   |   |
| Numerator:                                                           |   |                                       |    |   |   |   |   |
| Net                income available to common shareholders - basic   |   | $                                          | 294,909 |   | $ | 209,552 |   | $ | 133,911 |   |
| Income                attributable to operating partnership units    |   |                                       | 5,453   |   |   | 5,218 |   |   | 3,798 |   |
| Net                income available to common shareholders - diluted |   | $                                          | 300,362 |   | $ | 214,770 |   | $ | 137,709 |   |
|                                                                 |   |                                       |    |   |   |   |   |   |   |   |
| Denominator:                                                         |   |                                       |    |   |   |   |   |   |   |   |
| Weighted                average shares outstanding - basic           |   |                                       | 87,719  |   |   | 89,224 |   |   | 86,171 |   |
| Effect                of dilutive securities:                        |   |                                       |    |   |   |   |   |   |   |   |
| Share                options and awards                              |   |                                       | 926     |   |   | 860 |   |   | 827 |   |
| Operating                partnership units                           |   |                                       | 3,134   |   |   | 3,082 |   |   | 2,513 |   |
| Weighted                average shares outstanding - diluted         |   |                                       | 91,779  |   |   | 93,166 |   |   | 89,511 |   |

----

*Table              of Contents*

*Income        Taxes*

*Cash      Flow Information*

*Reclassifications*

**Note      2.**
**Newly      Adopted Accounting Pronouncements**

----

*Table            of Contents*

|                                                                                                                                       |   | **Year                Ended December 31,** |    |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                                       |   | **2005**                                   |    | **2004** |   |
|                                                                                                                                       |   |                                       |    |   |   |
| Net                income available to common shareholders                                                                                 |   | $                                          | 209,552 |   | $ | 133,911 |   |
| Stock-based                employee compensation included in net income available to common                shareholders                    |   |                                       | 434     |   |   | 193 |   |
| Stock-based                employee compensation determined under the fair value-based method                for all                awards |   |                                       | (849    | ) |   | (567 | ) |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
| Pro                forma net income available to common shareholders                                                                       |   | $                                          | 209,137 |   | $ | 133,537 |   |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
| Net                income per common share:                                                                                                |   |                                       |    |   |   |   |   |
| Basic                - as reported                                                                                                         |   | $                                          | 2.35    |   | $ | 1.55 |   |
| Basic                - pro forma                                                                                                           |   | $                                          | 2.34    |   | $ | 1.55 |   |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
|                                                                                                                                       |   |                                       |    |   |   |   |   |
| Net                income per common share:                                                                                                |   |                                       |    |   |   |   |   |
| Diluted                - as reported                                                                                                       |   | $                                          | 2.31    |   | $ | 1.54 |   |
| Diluted                - pro forma                                                                                                         |   | $                                          | 2.30    |   | $ | 1.53 |   |

----

*Table            of Contents*

**Note      3.**
**Derivatives      and Hedging**

----

*Table              of Contents*

**Note      4.**
**Debt**

|                                                                           |   | **December                31,** |      |
|--------------------------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                                           |   | **2006**                        |      | **2005** |   |
|                                                                           |   |                            |      |   |   |
| Debt                payable to 2030 at 4.5% to 8.9%                            |   | $                               | 2,848,805 |   | $ | 2,049,470 |   |
| Unsecured                notes payable under revolving credit agreements       |   |                            | 18,000    |   |   | 210,000 |   |
| Obligations                under capital leases                                |   |                            | 29,725    |   |   | 33,460 |   |
| Industrial                revenue bonds payable to 2015 at 4.0% to 6.19%  |   |                            | 4,422     |   |   | 6,925 |   |
|                                                                           |   |                            |      |   |   |   |   |
| Total                                                                          |   | $                               | 2,900,952 |   | $ | 2,299,855 |   |

|                                                                                              |   | **December                31**, |      |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                                                              |   | **2006**                        |      | **2005** |   |
|                                                                                              |   |                            |      |   |   |
| As                to interest rate (including the effects of interest rate                swaps): |   |                            |      |   |   |
| Fixed-rate                debt                                                                    |   | $                               | 2,785,553 |   | $ | 1,986,059 |   |
| Variable-rate                debt                                                                 |   |                            | 115,399   |   |   | 313,796 |   |
|                                                                                              |   |                            |      |   |   |   |   |
| Total                                                                                             |   | $                               | 2,900,952 |   | $ | 2,299,855 |   |
|                                                                                              |   |                            |      |   |   |   |   |
| As                to collateralization:                                                           |   |                            |      |   |   |   |   |
| Unsecured                debt                                                                     |   | $                               | 1,910,216 |   | $ | 1,457,805 |   |
| Secured                debt                                                                       |   |                            | 990,736   |   |   | 842,050 |   |
|                                                                                              |   |                            |      |   |   |   |   |
| Total                                                                                             |   | $                               | 2,900,952 |   | $ | 2,299,855 |   |

----

*Table              of Contents*

| 2007       | $      | 114,098 |   |
|------------|--------|---------|--------|
| 2008       |   | 252,768 |   |
| 2009       |   | 113,624 |   |
| 2010       |   | 119,310 |   |
| 2011       |   | 890,450 |   |
| 2012       |   | 308,032 |   |
| 2013       |   | 324,696 |   |
| 2014       |   | 334,466 |   |
| 2015       |   | 176,228 |   |
| Thereafter |   | 233,284 |   |

----

*Table            of Contents*

**Note      5.**
**Preferred      Shares**

----

*Table              of Contents*

**Note      6.**
**Common      Shares**

**Note      7.**
**Property**

|                                      |   | **December                31,** |      |
|-------------------------------------------|--------|---------------------------------|-----------|
|                                      |   | **2006**                        |      | **2005** |   |
|                                      |   |                            |      |   |   |
| Land                                      |   | $                               | 847,295   |   | $ | 761,454 |   |
| Land                held for development  |   |                            | 21,405    |   |   | 20,634 |   |
| Land                under development     |   |                            | 146,990   |   |   | 16,895 |   |
| Buildings                and improvements |   |                            | 3,339,074 |   |   | 3,195,207 |   |
| Construction                in-progress   |   |                            | 91,124    |   |   | 39,389 |   |
|                                      |   |                            |      |   |   |   |   |
| Total                                     |   | $                               | 4,445,888 |   | $ | 4,033,579 |   |

|                            |   | **Year                Ended December 31,** |   |
|---------------------------------|--------|--------------------------------------------|--------|
|                            |   | **2006**                                   |   | **2005** |   | **2004** |   |
|                            |   |                                       |   |   |   |   |   |
| Interest                        |   | $                                          | 7,616  |   | $ | 2,629 |   | $ | 4,992 |   |
| Ad                valorem taxes |   |                                       | 780    |   |   | 293 |   |   | 653 |   |
|                            |   |                                       |   |   |   |   |   |   |   |   |
| Total                           |   | $                                          | 8,396  |   | $ | 2,922 |   | $ | 5,645 |   |

----

*Table              of Contents*

**Note      8.**
**Discontinued      Operations**

**Note      9.**
**Related      Party Transactions**

** **

----

*Table              of Contents*

**Note      10.**
**Investment      in Real Estate Joint Ventures**

|                                                          |   | **December                31,** |      |
|---------------------------------------------------------------|--------|---------------------------------|-----------|
|                                                          |   | **2006**                        |      | **2005** |   |
|                                                          |   |                            |      |   |   |
| Combined                Balance Sheets                        |   |                            |      |   |   |
|                                                          |   |                            |      |   |   |
| Property                                                      |   | $                               | 1,123,600 |   | $ | 397,689 |   |
| Accumulated                depreciation                       |   |                            | (41,305   | ) |   | (32,032 | ) |
| Property                - net                                 |   |                            | 1,082,295 |   |   | 365,657 |   |
|                                                          |   |                            |      |   |   |   |   |
| Other                assets                                   |   |                            | 118,642   |   |   | 61,543 |   |
|                                                          |   |                            |      |   |   |   |   |
| Total                                                         |   | $                               | 1,200,937 |   | $ | 427,200 |   |
|                                                          |   |                            |      |   |   |   |   |
|                                                          |   |                            |      |   |   |   |   |
|                                                          |   |                            |      |   |   |   |   |
| Debt                                                          |   | $                               | 327,695   |   | $ | 136,182 |   |
| Amounts                payable to Weingarten Realty Investors |   |                            | 22,657    |   |   | 43,239 |   |
| Other                liabilities                              |   |                            | 39,967    |   |   | 12,081 |   |
| Accumulated                equity                             |   |                            | 810,618   |   |   | 235,698 |   |
|                                                          |   |                            |      |   |   |   |   |
| Total                                                         |   | $                               | 1,200,937 |   | $ | 427,200 |   |

|                                             |   | **Year                Ended December 31,** |   |
|--------------------------------------------------|--------|--------------------------------------------|--------|
|                                             |   | **2006**                                   |   | **2005** |   | **2004** |   |
|                                             |   |                                       |   |   |   |   |   |
| Combined                Statements of Income     |   |                                       |   |   |   |   |   |
|                                             |   |                                       |   |   |   |   |   |
| Revenues                                         |   | $                                          | 65,002 |   | $ | 41,059 |   | $ | 32,117 |   |
|                                             |   |                                       |   |   |   |   |   |   |   |   |
| Expenses:                                        |   |                                       |   |   |   |   |   |   |   |   |
| Interest                                         |   |                                       | 17,398 |   |   | 10,565 |   |   | 7,061 |   |
| Depreciation                and amortization     |   |                                       | 15,390 |   |   | 9,322 |   |   | 7,203 |   |
| Operating                                        |   |                                       | 8,750  |   |   | 5,480 |   |   | 5,041 |   |
| Ad                valorem taxes                  |   |                                       | 6,187  |   |   | 4,756 |   |   | 3,645 |   |
| General                and administrative        |   |                                       | 783    |   |   | 301 |   |   | 395 |   |
|                                             |   |                                       |   |   |   |   |   |   |   |   |
| Total                                            |   |                                       | 48,508 |   |   | 30,424 |   |   | 23,345 |   |
|                                             |   |                                       |   |   |   |   |   |   |   |   |
| Gain                on land sales                |   |                                       | 1,938  |   |   | 170 |   |   |   |   |
| Gain                (loss) on sale of properties |   |                                       | 5,991  |   |   | (20 | ) |   | (182 | ) |
| Net                income                        |   | $                                          | 24,423 |   | $ | 10,785 |   | $ | 8,590 |   |

----

*Table              of Contents*

**Note      11.**
**Federal      Income Tax Considerations **

----

*Table              of Contents*

|                                                                                                   |   | **2006** |     |   |   |  **2005** |   | **2004** |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|----------|--------|--------|----------------|--------|----------|--------|
|                                                                                                   |   |     |     |   |   |      |   |     |   |
| Net                  Income                                                                            |   | $        | 305,010  |   |   |           | $      | 219,653  |   | $ | 141,381 |   |
| Net                  (income) loss of taxable REIT subsidiaries included above                         |   |     | (4,264   | )      |   |           |   | (923     | )      |   | 143 |   |
| Net                  Income from REIT operations                                                       |   |     | 300,746  |   |   |           |   | 218,730  |   |   | 141,524 |   |
| Book                  depreciation and amortization including discontinued                  operations |   |     | 127,613  |   |   |           |   | 117,062  |   |   | 103,870 |   |
| Tax                  depreciation and amortization                                                     |   |     | (86,002  | )      |   |           |   | (80,922  | )      |   | (76,432 | ) |
| Book/tax                  difference on gains/losses from capital transactions                         |   |     | (128,628 | )      |   |           |   | (69,885  | )      |   | (12,716 | ) |
| Other                  book/tax differences, net                                                       |   |     | (18,155  | )      |   |           |   | (22,468  | )      |   | (6,285 | ) |
| REIT                  taxable income                                                                   |   |     | 195,574  |   |   |           |   | 162,517  |   |   | 149,961 |   |
| Dividends                  paid deduction                                                              |   |     | (195,574 | )      | (1)    |           |   | (167,196 | )      |   | (155,029 | ) |
| Dividends                  paid in excess of taxable income                                            |   | $        | 0        |   |   |           | $      | (4,679   | )      | $ | (5,068 | ) |

| (1) | The                dividend deduction includes designated dividends from 2007 of $22.5                million. |
|-----|----------------------------------------------------------------------------------------------------------------|

|                                                    |   | **2006** |   | **2005** |   | **2004** |   |
|---------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
|                                                    |   |     |   |     |   |     |   |
| Ordinary                income                          |   |     | 76.2   | %        |   | 81.2     | %      |   | 84.0 | % |
| Return                of capital (generally nontaxable) |   |     | 0.0    |     |   | 9.1      |   |   | 7.1 |   |
| Capital                gain distributions               |   |     | 23.8   |     |   | 9.7      |   |   | 8.9 |   |
|                                                    |   |     |   |     |   |     |   |   |   |   |
| Total                                                   |   |     | 100.0  | %        |   | 100.0    | %      |   | 100.0 | % |

----

*Table              of Contents*

**Note      12.**
**Leasing      Operations**

**Note      13.**
**Commitments      and Contingencies**

| 2007       |   | $      | 1,876  |   |
|------------|--------|--------|--------|--------|
| 2008       |   |   | 1,782  |   |
| 2009       |   |   | 1,737  |   |
| 2010       |   |   | 1,691  |   |
| 2011       |   |   | 1,626  |   |
| Thereafter |   |   | 39,459 |   |
|       |   | $      | 48,171 |   |

| 2007       |   | $      | 30,299  |   |
|------------|--------|--------|---------|--------|
| 2008       |   |   | 25,897  |   |
| 2009       |   |   | 21,538  |   |
| 2010       |   |   | 18,062  |   |
| 2011       |   |   | 15,006  |   |
| Thereafter |   |   | 63,626  |   |
|       |   | $      | 174,428 |   |

----

*Table              of Contents*

----

*Table              of Contents*

**Note      14.**
**Identified      Intangible Assets and Liabilities**

|                                                                                                    |   | December                31, |    | December                31, |   |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|-----------------------------|--------|
|                                                                                                    |   | 2006                        |    | 2005                        |   |
|                                                                                                    |   |                        |    |                        |   |
| Identified                Intangible Assets:                                                            |   |                        |    |                        |   |
| Above-Market                Leases (included in Other Assets)                                           |   | $                           | 14,686  |                        | $      | 12,838 |   |
| Above-Market                Leases - Accumulated Amortization                                           |   |                        | (5,277  | )                           |   | (3,393 | ) |
| Above-Market                Assumed Mortgages (included in Other Assets)                                |   |                        | 1,653   |                        |   |   |   |
| Valuation                of In Place Lease (included in Unamortized Debt and Lease                Cost) |   |                        | 52,878  |                        |   | 42,772 |   |
| Valuation                of In Place Lease - Accumulated Amortization                                   |   |                        | (16,297 | )                           |   | (10,822 | ) |
|                                                                                                    |   |                        |    |                        |   |   |   |
|                                                                                                    |   | $                           | 47,643  |                        | $      | 41,395 |   |
|                                                                                                    |   |                        |    |                        |   |   |   |
| Identified                Intangible Liabilities (included in Other Liabilities):                       |   |                        |    |                        |   |   |   |
| Below-Market                Leases                                                                      |   | $                           | 24,602  |                        | $      | 17,012 |   |
| Below-Market                Leases - Accumulated Amortization                                           |   |                        | (6,569  | )                           |   | (3,735 | ) |
| Below-Market                Assumed Mortgages                                                           |   |                        | 59,863  |                        |   | 60,792 |   |
| Below-Market                Assumed Mortgages - Accumulated Amortization                                |   |                        | (18,123 | )                           |   | (12,143 | ) |
|                                                                                                    |   |                        |    |                        |   |   |   |
|                                                                                                    |   | $                           | 59,773  |                        | $      | 61,926 |   |

| 2007 |   | $      | 1,649 |   |
|------|--------|--------|-------|--------|
| 2008 |   |   | 1,477 |   |
| 2009 |   |   | 1,389 |   |
| 2010 |   |   | 753   |   |
| 2011 |   |   | 364   |   |

| 2007 |   | $      | 6,797 |   |
|------|--------|--------|-------|--------|
| 2008 |   |   | 6,021 |   |
| 2009 |   |   | 5,127 |   |
| 2010 |   |   | 4,293 |   |
| 2011 |   |   | 3,379 |   |

| 2007 |   | $      | 6,774 |   |
|------|--------|--------|-------|--------|
| 2008 |   |   | 6,011 |   |
| 2009 |   |   | 4,671 |   |
| 2010 |   |   | 4,019 |   |
| 2011 |   |   | 2,722 |   |

----

*Table              of Contents*

**Note      15.**
**Fair      Value of Financial Instruments**

**Note      16.**
**Share      Options and Awards**

----

*Table              of Contents*

|                                    |   | **Year                ended December 31,** |   |
|-----------------------------------------|--------|--------------------------------------------|--------|
|                                    |   | **2006**                                   |   | **2005** |   | **2004** |   |
|                                    |   |                                       |   |   |   |   |   |
| Fair                value per share     |   | $                                          | 4.97   |   | $ | 3.02 |   | $ | 2.72 |   |
| Dividend                yield           |   |                                       | 5.7    | % |   | 6.3 | % |   | 6.5 | % |
| Expected                volatility      |   |                                       | 18.2   | % |   | 16.8 | % |   | 16.3 | % |
| Expected                life (in years) |   |                                       | 5.9    |   |   | 6.7 |   |   | 6.9 |   |
| Risk-free                interest rate  |   |                                       | 4.4    | % |   | 4.4 | % |   | 4.1 | % |

|                                          |   | Shares |      | Weighted                      |   |
|-----------------------------------------------|--------|--------|-----------|-------------------------------|--------|
|                                          |   | Under  |      | Average                       |   |
|                                          |   | Option |      | Exercise                Price |   |
| Outstanding,                January 1, 2004   |   |   | 3,092,536 |                          | $      | 22.01 |   |
| Granted                                       |   |   | 380,071   |                          |   | 39.69 |   |
| Forfeited                or expired           |   |   | (13,000   | )                             |   | 23.40 |   |
| Exercised                                     |   |   | (447,817  | )                             |   | 18.42 |   |
| Outstanding,                December 31, 2004 |   |   | 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 |   |

|                           |   | 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 |   |        | 1,273,216 |        |   | 4.78                years |   | $ | 21.72 |   |   |   |   |   | 844,091 |   | $ | 21.20 |   |   | 4.54                years |   |   |   |   |
|                           |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $26.84                - $40.26 |   |        | 1,333,391 |        |   | 7.98                years |   | $ | 35.53 |   |   |   |   |   | 600,580 |   | $ | 34.21 |   |   | 7.60                years |   |   |   |   |
|                           |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $40.27                - $47.50 |   |        | 540,546   |        |   | 9.92                years |   | $ | 47.46 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |        |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   |        | 3,147,153 |        |   | 7.02                years |   | $ | 31.99 |   | $ | 44,438 |   |   | 1,444,671 |   | $ | 26.61 |   |   | 5.81                years |   | $ | 28,171 |   |

----

*Table              of Contents*

|                                          |   | Nonvested  |    | Weighted                       |   |
|-----------------------------------------------|--------|------------|---------|--------------------------------|--------|
|                                          |   | Restricted |    | Average                Grant   |   |
|                                          |   | Shares     |    | Date                Fair Value |   |
| Outstanding,                January 1, 2006   |   |       | 142,268 |                           |   | 36.32 |   |
| Granted                                       |   |       | 83,057  |                           |   | 46.34 |   |
| Vested                                        |   |       | (50,029 | )                              |   | 37.56 |   |
| Forfeited                                     |   |       | (3,041  | )                              |   | 36.24 |   |
| Outstanding,                December 31, 2006 |   |       | 172,255 |                           | $      | 40.80 |   |

**Note      17.**
**Employee      Benefit Plans**

----

*Table              of Contents*

|                                                                                                 |   | **Fiscal                Year End** |   |
|------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|
|                                                                                                 |   | **2006**                           |   | **2005** |   |
| Change                in Projected Benefit Obligation:                                               |   |                               |   |   |   |
| Benefit                obligation at beginning of year                                               |   | $                                  | 32,456 |   | $ | 27,207 |   |
| Service                cost                                                                          |   |                               | 3,090  |   |   | 2,641 |   |
| Interest                cost                                                                         |   |                               | 2,309  |   |   | 1,724 |   |
| Plan                amendments                                                                       |   |                               | 63     |   |   |   |   |
| Actuarial                losses                                                                      |   |                               | 1,882  |   |   | 1,539 |   |
| Benefit                payments                                                                      |   |                               | (803   | ) |   | (655 | ) |
| Benefit                obligation at end of year                                                     |   | $                                  | 38,997 |   | $ | 32,456 |   |
|                                                                                                 |   |                               |   |   |   |   |   |
| Change                in Plan Assets:                                                                |   |                               |   |   |   |   |   |
| Fair                value of plan assets at beginning of year                                        |   | $                                  | 15,213 |   | $ | 13,019 |   |
| Actual                return on plan assets                                                          |   |                               | 1,901  |   |   | 1,014 |   |
| Employer                contributions                                                                |   |                               | 1,622  |   |   | 1,835 |   |
| Benefit                payments                                                                      |   |                               | (803   | ) |   | (655 | ) |
| Fair                value of plan assets at end of year                                              |   | $                                  | 17,933 |   | $ | 15,213 |   |
|                                                                                                 |   |                               |   |   |   |   |   |
| Unfunded                Status at End of Year:                                                       |   | $                                  | 21,064 |   | $ | 17,243 |   |
| Unrecognized                actuarial loss                                                           |   |                               |   |   |   | (4,607 | ) |
| Unrecognized                prior service credit                                                     |   |                               |   |   |   | 895 |   |
| Pension                liability                                                                     |   |                               |   |   | $ | 13,531 |   |
|                                                                                                 |   |                               |   |   |   |   |   |
| Amounts                recognized in the balance sheets:                                             |   |                               |   |   |   |   |   |
| Pension                liabilities - SRP                                                             |   | $                                  | 16,262 |   | $ | 16,438 |   |
| Other                                                                                                |   |                               | (58    | ) |   |   |   |
| Accumulated                other comprehensive loss - Retirement Plan                                |   |                               | 4,860  |   |   | 2,907 |   |
| Net                amounts recognized                                                                |   | $                                  | 21,064 |   | $ | 13,531 |   |
|                                                                                                 |   |                               |   |   |   |   |   |
| Accumulated                benefit obligation                                                        |   | $                                  | 38,194 |   | $ | 31,653 |   |
|                                                                                                 |   |                               |   |   |   |   |   |
| Amounts                recognized in accumulated other comprehensive loss consist                of: |   |                               |   |   |   |   |   |
| Net                loss                                                                              |   | $                                  | 5,565  |   |   | N/A |   |
| Prior                service credit                                                                  |   |                               | (704   | ) |   | N/A |   |
| Total                amount recognized                                                               |   | $                                  | 4,861  |   |   | N/A |   |

|                                                                          |   | Before                Application of SFAS No. 158 |      | Adjustments |   | After                Application of SFAS No. 158 |   |
|-------------------------------------------------------------------------------|--------|---------------------------------------------------|-----------|-------------|--------|--------------------------------------------------|--------|
|                                                                          |   |                                              |      |        |   |                                             |   |
| Liability                for pension benefits (included in Other Liabilities) |   | $                                                 | 3,999     |        | $      | 803                                              |   | $ | 4,802 |   |
| Total                liabilities                                              |   |                                              | 3,161,276 |        |   | 803                                              |   |   | 3,162,079 |   |
| Accumulated                other comprehensive loss                           |   |                                              | 11,697    |        |   | 803                                              |   |   | 12,500 |   |
| Total                shareholders’ equity                               |   |                                              | 1,126,584 |        |   | 803                                              |   |   | 1,125,781 |   |

----

*Table              of Contents*

|                                          |   | 2006   |   | 2005   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|
| Projected                benefit obligation   |   | $      | 38,997 |   | $      | 32,456 |   |
| Accumulated                benefit obligation |   |   | 38,194 |   |   | 31,653 |   |
| Fair                value of plan assets      |   |   | 17,933 |   |   | 15,213 |   |

|                                          |   | **2006** |   | **2005** |   | **2004** |   |
|-----------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
|                                          |   |     |   |     |   |     |   |
| Service                cost                   |   | $        | 3,090  |     | $      | 2,641    |   | $ | 2,004 |   |
| Interest                cost                  |   |     | 2,309  |     |   | 1,724    |   |   | 1,756 |   |
| Expected                return on plan assets |   |     | (1,385 | )        |   | (1,192   | )      |   | (1,028 | ) |
| Prior                service cost             |   |     | (128   | )        |   | (128     | )      |   | (128 | ) |
| Recognized                loss                |   |     | 407    |     |   | 159      |   |   | 110 |   |
|                                          |   |     |   |     |   |     |   |   |   |   |
| Total                                         |   | $        | 4,293  |     | $      | 3,204    |   | $ | 2,714 |   |

|                                                    |   | **2006** |   | **2005** |   | **2004** |   |
|---------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
|                                                    |   |     |   |     |   |     |   |
| Discount                rate                            |   |     | 5.75   | %        |   | 6.00     | %      |   | 6.25 | % |
| 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       |   |     | 8.50   | %        |   | 8.50     | %      |   | 8.75 | % |

|                                                    |   | **2006** |   | **2005** |   | **2004** |   |
|---------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
|                                                    |   |     |   |     |   |     |   |
| Discount                rate                            |   |     | 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 | % |

----

*Table              of Contents*

|                                           |   | **December                31,** |   |
|------------------------------------------------|--------|---------------------------------|--------|
|                                           |   | **2006**                        |   | **2005** |   |
|                                           |   |                            |   |   |   |
| Cash                and short-term investments |   |                            | 3      | % |   | 3 | % |
| Mutual                funds - equity           |   |                            | 69     | % |   | 71 | % |
| Mutual                funds - fixed income     |   |                            | 28     | % |   | 26 | % |
|                                           |   |                            |   |   |   |   |   |
| Total                                          |   |                            | 100    | % |   | 100 | % |

**Note      18.**
**Segment      Information**

----

*Table              of Contents*

|                                                     |   | **Shopping** |      |           |   |      |   |      |    |
|----------------------------------------------------------|--------|--------------|-----------|----------------|--------|-----------|--------|-----------|---------|
|                                                     |   | **Center**   |      | **Industrial** |   | **Other** |   | **Total** |    |
|                                                     |   |         |      |           |   |      |   |      |    |
| 2006                                                     |   |         |      |           |   |      |   |      |    |
| Revenues                                                 |   | $            | 503,655   |           | $      | 55,037    |   | $         | 2,688   |   | $ | 561,380 |   |
| Net                operating income (loss)               |   |         | 366,426   |           |   | 38,409    |   |      | (405    | ) |   | 404,430 |   |
| Equity                in earnings of joint ventures, net |   |         | 13,713    |           |   | 377       |   |      | 565     |   |   | 14,655 |   |
| Investment                in real estate joint ventures  |   |         | 174,587   |           |   | 25,156    |   |      | 4,096   |   |   | 203,839 |   |
| Total                assets                              |   |         | 3,517,733 |           |   | 324,343   |   |      | 533,464 |   |   | 4,375,540 |   |
| Capital                expenditures                      |   |         | 920,017   |           |   | 96,504    |   |      | 5,582   |   |   | 1,022,103 |   |
|                                                     |   |         |      |           |   |      |   |      |    |   |   |   |   |
| 2005                                                     |   |         |      |           |   |      |   |      |    |   |   |   |   |
| Revenues                                                 |   | $            | 460,661   |           | $      | 47,604    |   | $         | 2,136   |   | $ | 510,401 |   |
| Net                operating income                      |   |         | 339,661   |           |   | 34,302    |   |      | 885     |   |   | 374,848 |   |
| Equity                in earnings of joint ventures, net |   |         | 6,533     |           |   | 87        |   |      | (10     | ) |   | 6,610 |   |
| Investment                in real estate joint ventures  |   |         | 82,092    |           |   | 480       |   |      | 1,776   |   |   | 84,348 |   |
| Total                assets                              |   |         | 3,035,964 |           |   | 355,848   |   |      | 345,929 |   |   | 3,737,741 |   |
| Capital                expenditures                      |   |         | 339,328   |           |   | 89,066    |   |      | 646     |   |   | 429,040 |   |
|                                                     |   |         |      |           |   |      |   |      |    |   |   |   |   |
| 2004                                                     |   |         |      |           |   |      |   |      |    |   |   |   |   |
| Revenues                                                 |   | $            | 415,595   |           | $      | 43,869    |   | $         | 1,450   |   | $ | 460,914 |   |
| Net                operating income                      |   |         | 305,556   |           |   | 31,413    |   |      | 439     |   |   | 337,408 |   |
| Equity                in earnings of joint ventures, net |   |         | 5,441     |           |   | 96        |   |      | (153    | ) |   | 5,384 |   |
| Investment                in real estate joint ventures  |   |         | 46,861    |           |   | 539       |   |      | 982     |   |   | 48,382 |   |
| Total                assets                              |   |         | 2,897,772 |           |   | 288,480   |   |      | 284,066 |   |   | 3,470,318 |   |
| Capital                expenditures                      |   |         | 579,912   |           |   | 12,089    |   |      | 2,793   |   |   | 594,794 |   |

|                                                       |   | **2006** |     | **2005** |   | **2004** |   |
|------------------------------------------------------------|--------|----------|----------|----------|--------|----------|--------|
|                                                       |   |     |     |     |   |     |   |
| Total                segment net operating income          |   | $        | 404,430  |     | $      | 374,848  |   | $ | 337,408 |   |
| Depreciation                and amortization               |   |     | (127,613 | )        |   | (117,062 | )      |   | (103,870 | ) |
| General                and administrative                  |   |     | (23,801  | )        |   | (17,379  | )      |   | (16,122 | ) |
| Impairment                loss                             |   |     |     |     |   |     |   |   | (3,550 | ) |
| Interest                expense                            |   |     | (146,943 | )        |   | (130,761 | )      |   | (117,096 | ) |
| Interest                and other income                   |   |     | 9,045    |     |   | 2,867    |   |   | 1,390 |   |
| Loss                on redemption of preferred shares      |   |     |     |     |   |     |   |   | (3,566 | ) |
| Income                allocated to minority interests      |   |     | (6,414   | )        |   | (6,060   | )      |   | (4,928 | ) |
| Equity                in earnings of joint ventures, net   |   |     | 14,655   |     |   | 6,610    |   |   | 5,384 |   |
| Gain                on land and merchant development sales |   |     | 7,166    |     |   | 804      |   |   |   |   |
| Gain                on sale of properties                  |   |     | 22,467   |     |   | 22,306   |   |   | 1,562 |   |
| Provision                for income taxes                  |   |     | (1,366   | )        |   |     |   |   |   |   |
| Income                from Continuing Operations           |   | $        | 151,626  |     | $      | 136,173  |   | $ | 96,612 |   |

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*Table              of Contents*

**Note      19.**
**Quarterly      Financial Data (Unaudited)**

|                                                       |   | **First** |    | **Second** |   |    | **Third** |   |   | **Fourth** |    |
|------------------------------------------------------------|--------|-----------|---------|------------|--------|---------|-----------|--------|--------|------------|---------|
|                                                       |   |      |    |       |   |    |      |   |   |       |    |
| 2006:                                                      |   |      |    |       |   |    |      |   |   |       |    |
| Revenues                                                   |   | $         | 135,479 |       | $      | 136,963 |      |   |   | $          | 147,150 |   |   |   | $ | 150,833 |   |
| 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 |   |
|                                                       |   |      |    |       |   |    |      |   |   |       |    |   |   |   |   |   |   |
| 2005:                                                      |   |      |    |       |   |    |      |   |   |       |    |   |   |   |   |   |   |
| Revenues                                                   |   | $         | 123,270 |       | $      | 127,614 |      |   |   | $          | 131,307 |   |   |   | $ | 131,077 |   |
| Net                income available to common shareholders |   |      | 34,037  |       |   | 67,679  |      | (1     | )      |       | 58,958  |   | (1 | ) |   | 48,878 |   |
| Net                income per common share - basic         |   |      | 0.38    |       |   | 0.76    |      | (1     | )      |       | 0.66    |   | (1 | ) |   | 0.55 |   |
| Net                income per common share - diluted       |   |      | 0.38    |       |   | 0.74    |      | (1     | )      |       | 0.65    |   | (1 | ) |   | 0.54 |   |

********

**ITEM      9.** ***Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure***

**ITEM      9A.** ***Controls      and Procedures***

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*Table              of Contents*

**MANAGEMENT'S      REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

*Internal      Control—Integrated Framework*

----

*Table            of Contents*

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

*Internal      Control—Integrated Framework*

*Internal      Control—Integrated Framework*
*Internal      Control—Integrated Framework*

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*Table            of Contents*

**ITEM      9B.** ***Other      Information***

**PART      III**

**ITEM      10.** ***Trust      Managers and Executive Officers*** ***of      the*** ***Registrant***

**Code      of Ethics**

**Governance      Guidelines**

**ITEM      11.** ***Executive      Compensation***

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*Table            of Contents*

**ITEM      12.** ******Security      Ownership of Certain Beneficial Owners and Management and Related Shareholder      Matters******

|                                                                  |   | 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     |   | 3,147,153                              |   | $                31.99              |   | 2,756,937                          |
|                                                                  |   |                                   |   |                                |   |                               |
| Equity                compensation plans not approved by shareholders |   | ―                                |   | ―                             |   | ―                            |
|                                                                  |   |                                   |   |                                |   |                               |
| Total                                                                 |   | 3,147,153                              |   | $                31.99              |   | 2,756,937                          |

**ITEM      13.** ***Certain      Relationships, Related Transactions and Director      Independence***

**ITEM      14.** ***Principal      Accountant Fees and Services***

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*Table            of Contents*

**PART        IV**

**ITEM        15.** ***Exhibits        and Financial Statement Schedules***

| (a)    |   | Financial                  Statements and Financial Statement Schedules: | **Page**                                                                                 |
|--------|--------|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|   |   |                                                                     |                                                                                     |   |
|   | (1)    | (A)                                                                      | Independent                  Registered Public Accounting Firm's                  Report | 45 |
|   |   | (B)                                                                      | Financial                  Statements                                                    |   |
|   |   |                                                                     | (i)                                                                                      | Statements                  of Consolidated Income and Comprehensive Income for                  the year ended December 31, 2006, 2005 and 2004 | 46 |
|   |   |                                                                     | (ii)                                                                                     | Consolidated                  Balance Sheets as of December 31, 2006 and                  2005 | 47 |
|   |   |                                                                     | (iii)                                                                                    | Statements                  of Consolidated Cash Flows for the year ended                  December 31, 2006, 2005 and 2004 | 48 |
|   |   |                                                                     | (iv)                                                                                     | Statements                  of Consolidated Shareholders' Equity for the year                  ended December 31, 2006, 2005 and 2004 | 49 |
|   |   |                                                                     | (v)                                                                                      | Notes                  to Consolidated Financial Statements | 50 |

|   | (2)    | Financial                  Statement Schedules: |
|--------|--------|-------------------------------------------------|
|   |   |                                            |   |   |
|   |   | Schedule                                        |
|   |   |                                            |   |   |
|   |   |                                            | II | Valuation                  and Qualifying Accounts | 86 |
|   |   |                                            | III | Real                  Estate and Accumulated Depreciation | 87 |
|   |   |                                            | IV | Mortgage                  Loans on Real Estate | 89 |

| All                    other schedules are omitted since the required information is                    not present                    or is not present in amounts sufficient to require submission                    of the                    schedule or because the information required is included in the                    consolidated financial statements and notes hereto. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |
| (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 by                    reference). |
| 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 by                    reference). |
| 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). |
| 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 by reference). |
| 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). |

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*Table              of Contents*

| 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        | — | 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).                                                                                                                                            |
| 4.11        | — | 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).                                                                                                                                              |
| 4.12        | — | 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).                                                                                                                                          |
| 4.13        | — | 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).    |
| 4.14        | — | 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).     |
| 4.15        | — | 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). |
| 4.16        | — | 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).                                                                                                                                                                          |
| 4.17        | — | 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).                                                                                        |
| 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).                                                                                                                                                                      |

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*Table            of Contents*

| 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 by reference). |
|--------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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).                                                                                                                                                                                                |
| 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).                                                                                                                                              |

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*Table            of Contents*

| 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†  | — | 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).                                                                                                                                                              |
| 10.35†  | — | 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                31, 2006 and incorporated herein by reference).                                                                                                         |
| 10.36†  | — | 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                31, 2006 and incorporated herein by reference).                                                                                                                     |
| 10.37†  | — | 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                31, 2006 and incorporated herein by reference).                                                                                                            |
| 10.38†* | — | Amendment                No. 1 to the Weingarten Realty Investors Supplemental Executive Retirement                Plan dated December 15, 2006.                                                                                                                                                                                                                                                                               |
| 10.39†* | — | Amendment                No. 1 to the Weingarten Realty Investors Retirement Benefit Restoration                Plan dated December 15, 2006.                                                                                                                                                                                                                                                                                  |
| 10.40†* | — | Amendment                No. 1 to the Weingarten Realty Investors Deferred Compensation Plan                dated                December 15, 2006.                                                                                                                                                                                                                                                                            |
| 10.41†* | — | Final                401(k)/401(m) Regulations Amendment dated December 15,                2006.                                                                                                                                                                                                                                                                                                                               |
| 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 by                reference).                                                                                                                                  |
| 21.1*         | — | Subsidiaries                of the Registrant.                                                                                                                                                                                                                                                                                                                                                                                 |
| 23.1*         | — | Consent                of Deloitte & Touche LLP.                                                                                                                                                                                                                                                                                                                                                                           |
| 24.1*         | — | Power                of Attorney (included on first signature page).                                                                                                                                                                                                                                                                                                                                                           |
| 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).                                                                                                                                                                                                                                                                                            |

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*Table            of Contents*

| 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 or                arrangement. |
|---------|----------------------------------------------------------------------------------------|

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*Table            of Contents*

**SIGNATURES**

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

|   | **Signature**                           | **Title**                                  | **Date**                                    |
|--------|-----------------------------------------|--------------------------------------------|---------------------------------------------|
|   |                                    |                                       |                                        |
|   |                                    |                                       |                                        |
|   |                                    |                                       |                                        |
| By:    | /s/                Stanford Alexander   | Chairman                                   | March                1,                2007 |
|   | Stanford                Alexander       | and                Trust Manager           |                                        |
|   |                                    |                                       |                                        |
| By:    | /s/                Andrew M. Alexander  | Chief                Executive Officer,    | March                1,                2007 |
|   | Andrew                M. Alexander      | President                and Trust Manager |                                        |
|   |                                    |                                       |                                        |
| By:    | /s/                James W. Crownover   | Trust                Manager               | March                1,                2007 |
|   | James                W. Crownover       |                                       |                                        |
|   |                                    |                                       |                                        |
| By:    | /s/                Robert J. Cruikshank | Trust                Manager               | March                1,                2007 |
|   | Robert                J. Cruikshank     |                                       |                                        |
|   |                                    |                                       |                                        |
| By:    | /s/                Martin Debrovner     | Vice                Chairman               | March                1,                2007 |
|   | Martin                Debrovner         |                                       |                                        |

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*Table            of Contents*

| By:    | /s/                Melvin Dow           | Trust                Manager                           | March                1,                2007 |
|--------|-----------------------------------------|--------------------------------------------------------|---------------------------------------------|
|   | Melvin                Dow               |                                                   |                                        |
|   |                                    |                                                   |                                        |
| By:    | /s/                Stephen A. Lasher    | Trust                Manager                           | March                1,                2007 |
|   | Stephen                A. Lasher        |                                                   |                                        |
|   |                                    |                                                   |                                        |
| By:    | /s/                Stephen C. Richter   | Executive                Vice President and            | March                1,                2007 |
|   | Stephen                C. Richter       | Chief                Financial Officer                 |                                        |
|   |                                    |                                                   |                                        |
| By:    | /s/                Douglas W. Schnitzer | Trust                Manager                           | March                1,                2007 |
|   | Douglas                W. Schnitzer     |                                                   |                                        |
|   |                                    |                                                   |                                        |
| By:    | /s/                Marc J. Shapiro      | Trust                Manager                           | March                1,                2007 |
|   | Marc                J. Shapiro          |                                                   |                                        |
|   |                                    |                                                   |                                        |
| By:    | /s/                Joe D. Shafer        | Vice                President/Chief Accounting Officer | March                1,                2007 |
|   | Joe                D. Shafer            | (Principal                Accounting Officer)          |                                        |

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*Table            of Contents*

**Schedule      II**

**WEINGARTEN      REALTY INVESTORS**

**VALUATION      AND QUALIFYING ACCOUNTS**

**December      31, 2006, 2005, and 2004**

**(Amounts      in thousands)**

|                                           |   |                      |   |                    |   |                    |   |       |   |                     |   |
|------------------------------------------------|--------|---------------------------|--------|-------------------------|--------|-------------------------|--------|------------|--------|--------------------------|--------|
|                                           |   |                      |   | Charged                 |   |                    |   |       |   |                     |   |
|                                           |   | Balance                at |   | to                costs |   | Charged                 |   |       |   | Balance                  |   |
|                                           |   | beginning                 |   | and                     |   | to                other |   | Deductions |   | at                end of |   |
| Description                                    |   | of                period  |   | expenses                |   | accounts                |   | (A)        |   | period                   |   |
|                                           |   |                      |   |                    |   |                    |   |       |   |                     |   |
| 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 |   |
| 2004                                           |   |                      |   |                    |   |                    |   |       |   |                     |   |   |   |   |   |   |
| Allowance                for Doubtful Accounts |   | $                         | 4,066  |                    | $      | 3,325                   |   |       |   |                     | $      | 3,186 |   | $ | 4,205 |   |

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*Table          of Contents*

**Schedule      III**

**WEINGARTEN      REALTY INVESTORS**

**REAL      ESTATE AND ACCUMULATED DEPRECIATION**

**DECEMBER      31, 2006**

**(Amounts      in thousands)**

|                                                                |   | Total                Cost |    |         |   |        |   |   |    |
|---------------------------------------------------------------------|--------|---------------------------|---------|--------------|--------|-------------|--------|--------|---------|
|                                                                |   |                      |    | Buildings    |   | Projects    |   |   |    |   |   |   |   |
|                                                                |   |                      |    | and          |   | Under       |   | Total  |    | Accumulated |   | Encumbrances |   |
|                                                                |   | Land                      |    | Improvements |   | Development |   | Cost   |    | Depreciation |   | (A) |   |
|                                                                |   |                      |    |         |   |        |   |   |    |   |   |   |   |
| SHOPPING                CENTERS:                                    |   |                      |    |         |   |        |   |   |    |   |   |   |   |
| Texas                                                               |   | $                         | 196,253 |         |   | 865,182     |   |   |    |   | $ | 1,061,435 |   | $ | 325,769 |   | $ | 89,070 |   |
| Other                States                                         |   |                      | 573,845 |         |   | 2,109,904   |   |   |    |   |   | 2,683,749 |   |   | 293,748 |   |   | 838,562 |   |
| Total                Shopping Centers                               |   |                      | 770,098 |         |   | 2,975,086   |   |   |    |   |   | 3,745,184 |   |   | 619,517 |   |   | 927,632 |   |
| INDUSTRIAL:                                                         |   |                      |    |         |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Texas                                                               |   |                      | 46,272  |         |   | 226,916     |   |   |    |   |   | 273,188 |   |   | 59,361 |   |   |   |   |
| Other                States                                         |   |                      | 30,392  |         |   | 93,787      |   |   |    |   |   | 124,179 |   |   | 5,529 |   |   | 11,192 |   |
| Total                Industrial                                     |   |                      | 76,664  |         |   | 320,703     |   |   |    |   |   | 397,367 |   |   | 64,890 |   |   | 11,192 |   |
| OTHER:                                                              |   |                      |    |         |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Texas                                                               |   |                      | 533     |         |   | 14,231      |   |   |    |   |   | 14,764 |   |   | 9,532 |   |   |   |   |
| Total                Improved Properties                            |   |                      | 847,295 |         |   | 3,310,020   |   |   |    |   |   | 4,157,315 |   |   | 693,939 |   |   | 938,824 |   |
| LAND                UNDER DEVELOPMENT OR HELD FOR DEVELOPMENT:      |   |                      |    |         |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Texas                                                               |   |                      |    |         |   |        |   | $      | 63,912  |   | $ | 63,912 |   |   |   |   |   |   |   |
| Other                States                                         |   |                      |    |         |   |        |   |   | 104,483 |   |   | 104,483 |   |   |   |   |   |   |   |
| Total                Land Under Development or Held for Development |   |                      |    |         |   |        |   |   | 168,395 |   |   | 168,395 |   |   |   |   |   |   |   |
| SHOPPING                CENTERS UNDER CAPITAL LEASE:                |   |                      |    |         |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Other                States                                         |   |                      |    |         |   | 29,054      |   |   |    |   |   | 29,054 |   |   | 13,066 |   |   | 8,732 |   |
| Total                Leased Property Under Capital Lease            |   |                      |    |         |   | 29,054      |   |   |    |   |   | 29,054 |   |   | 13,066 |   |   | 8,732 |   |
| CONSTRUCTION                IN PROGRESS:                            |   |                      |    |         |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Texas                                                               |   |                      |    |         |   |        |   |   | 29,984  |   |   | 29,984 |   |   |   |   |   |   |   |
| Other                States                                         |   |                      |    |         |   |        |   |   | 61,140  |   |   | 61,140 |   |   |   |   |   |   |   |
| Total                Construction in Progress                       |   |                      |    |         |   |        |   |   | 91,124  |   |   | 91,124 |   |   |   |   |   |   |   |
|                                                                |   |                      |    |         |   |        |   |   |    |   |   |   |   |   |   |   |   |   |   |
| TOTAL                OF ALL PROPERTIES                         |   | $                         | 847,295 |         | $      | 3,339,074   |   | $      | 259,519 |   | $ | 4,445,888 |   | $ | 707,005 |   | $ | 947,556 |   |

| Note                A - | Encumbrances                do not include $17.2 million outstanding under a $30 million 20-year                term                loan, payable to a group of insurance companies secured by a property                collateral pool including all or part of three shopping                centers. |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table          of Contents*

**Schedule      III**

**(Continued)**

|                                        |   | **2006** |      | **2005** |   | **2004**  |   |
|---------------------------------------------|--------|----------|-----------|----------|--------|-----------|--------|
|                                        |   |     |      |     |   |      |   |
| Balance                at beginning of year |   | $        | 4,033,579 |     | $      | 3,751,607 |   | $ | 3,200,091 |   |
| Additions                at cost            |   |     | 1,022,103 |     |   | 429,040   |   |   | 594,794 |   |
| Retirements                or sales         |   |     | (609,794  | )        |   | (147,068  | )      |   | (43,278 | ) |
|                                        |   |     |      |     |   |      |   |   |   |   |
| Balance                at end of year       |   | $        | 4,445,888 |     | $      | 4,033,579 |   | $ | 3,751,607 |   |

|                                        |   | **2006** |    | **2005** |   | **2004** |   |
|---------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
|                                        |   |     |    |     |   |     |   |
| Balance                at beginning of year |   | $        | 679,642 |     | $      | 609,772  |   | $ | 527,375 |   |
| Additions                at cost            |   |     | 110,406 |     |   | 107,901  |   |   | 100,074 |   |
| Retirements                or sales         |   |     | (83,043 | )        |   | (38,031  | )      |   | (17,677 | ) |
|                                        |   |     |    |     |   |     |   |   |   |   |
| Balance                at end of year       |   | $        | 707,005 |     | $      | 679,642  |   | $ | 609,772 |   |

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*Table            of Contents*

**Schedule      IV**

**WEINGARTEN      REALTY INVESTORS**

**MORTGAGE      LOANS ON REAL ESTATE**

**DECEMBER      31, 2006**

**(Amounts      in thousands)**

|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |
|-----------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|--------------------------|-------------------------------------|--------------------------|--------|
|                                                      |   |     |   | 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 |                     | $      | 1,693 |   | $ | 1,693 |   |
|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| 363-410                Burma, LLC                         |   |     | 6.50   | %        |   | 07-01-11 |   | $                        | 212                Annual P & I |                     |   | 2,607 |   |   | 2,607 |   |
|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| INDUSTRIAL:                                               |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| FIRST                MORTGAGES:                           |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| South                Loop Business Park                   |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| Houston,                TX                                |   |     | 9.25   | %        |   | 11-01-07 |   | $                        | 74                Annual P & I  |                     |   | 112 |   |   | 112 |   |
|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| SHOPPING                CENTERS:                          |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| CONSTRUCTION                LOANS:                        |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| WRI                LLA Venture                            |   |     | 7.75   | %        |   | 12-31-07 |   |                     | At                Maturity          |                     |   | 896 |   |   | 896 |   |
|                                                      |   |     |   |     |   |     |   |                     |                                |                     |   |   |   |   |   |   |
| TOTAL                MORTGAGE LOANS ON REAL ESTATE   |   |     |   |     |   |     |   |                     |                                |                     | $      | 5,308 |   | $ | 5,308 |   |

| Note                A - | The                aggregate cost at December 31, 2006 for federal income tax purposes                is                $5,308.                    |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Note                B - | Changes                in mortgage loans for the years ended December 31, 2006, 2005, and                2004                are summarized below. |

|                                       |   | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
|                                       |   |     |   |     |   |     |   |
| Balance,                Beginning of Year  |   | $        | 2,791  |     | $      | 3,057    |   | $ | 3,621 |   |
| Additions                to Existing Loans |   |     | 3,347  |     |   | 339      |   |   |   |   |
| Collections                of Principal    |   |     | (830   | )        |   | (605     | )      |   | (564 | ) |
|                                       |   |     |   |     |   |     |   |   |   |   |
| Balance,                End of Year        |   | $        | 5,308  |     | $      | 2,791    |   | $ | 3,057 |   |

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