UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                       FORM 10-K

(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, 1997

                                          OR

/ /   TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934          (NO FEE REQUIRED)
                For the transition period from _________ to __________

                         Commission file number 333-34835-01

                    PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                    ----------------------------------------------
                (Exact name of Registrant as specified in its charter)
<TABLE>
<CAPTION>
<C>                                                <C>       87-0516235
                MARYLAND                                  (I.R.S. Employer
         (State of organization)                         Identification No.)

           35 CENTURY PARK-WAY                                      (801) 486-3911
       SALT LAKE CITY, UTAH 84115                   (Registrant's telephone number, including area code)
(Address of principal executive offices)
</TABLE>

             Securities registered pursuant to Section 12(b) of the Act: None
                                                                             
             Securities registered pursuant to Section 12(g) of the Act: None
                                                                                
     Indicate by check mark whether the Registrant (1)  has  filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during  the  preceding  12  months  (or  for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.                      Yes /x/ No



      Indicate  by check mark if disclosure of delinquent  filers  pursuant  to
Item 405 of Regulation  S-K is not contained herein, and will not be contained,
to the best of registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in  Part III of this Form 10-K or  any
amendment to this Form 10-K.

                            DOCUMENTS INCORPORATED BY REFERENCE

      Portions of JP Realty Inc.'s proxy statement for its 1998 Annual Meeting
of Stockholders to be held on April 29, 1998 are incorporated by reference into
Part III of this Annual Report on Form 10-K.

<PAGE> 2
      Certain matters  discussed  under  the captions "Business and Properties"
and "Management's Discussion and Analysis of Financial Condition and Results of
Operations"  and  elsewhere  in  this  Annual  Report  of  Form  10-K  and  the
information  incorporated  by reference herein may  constitute  forward-looking
statements for purposes of Section  21E of the Securities Exchange Act of 1934,
as amended, and as such may involve known  and unknown risks, uncertainties and
other factors which may cause the actual results,  performance and achievements
of JP Realty, Inc. to be materially different from future  results, performance
or achievements expressed or implied by such forward-looking statements.


                                        PART I

ITEMS 1 AND 2.  BUSINESS AND PROPERTIES

      General

      JP  Realty,  Inc.  (together  with  its subsidiaries, the "Company"), the
sole general  partner  of  Price  Development  Company,   Limited  Partnership  
(the"Operating  Partnership"), is a fully integrated, self-administered and 
self-managed real estate investment trust ("REIT") primarily engaged in the 
business of owning, leasing, managing, operating, developing, redeveloping and 
acquiring malls, community  centers  and  other commercial and retail properties
in Utah, Idaho, Colorado, Arizona, Nevada,  New  Mexico  and  Wyoming (the 
"Intermountain Region"), as well as in Oregon, Washington and California
(together with the Intermountain Region, the "Western States").   The
Company was formed on September 8, 1993 to continue and expand the business, 
commenced in 1957, of certain companies (the "Predecessor Companies") affliated 
with John Price, Chairman of the Board and Chief Executive Officer of the 
Company.  As of December 31, 1997,  the  Company,  through  the  Operating  
Partnership,  held a portfolio consisting of 48 properties ("Properties"), 
including 15 enclosed regional malls, 25 community centers and two free-
standing retail properties located in ten states and six mixed-use commercial 
properties located primarily in the Salt Lake City, Utah metropolitan area.   
Since 1976, the Company and the Predecessor Companies have been responsible for 
developing more retail malls in the Intermountain Region than any other 
developer having constructed, developed or redeveloped 11 malls in the region 
(as well as three other  malls  in Oregon and Washington).

      Based on gross leasable area (Company-owned leasable area plus any
tenant-owned leasable area within the Company's properties or "Total GLA"), the
Company owns and operates the largest retail property portfolio in each of the
states of Utah, Idaho and Wyoming, and is the leading owner and operator of
retail shopping center properties throughout the Intermountain Region.  As of
December 31, 1997, the Company's retail portfolio contained an aggregate of
10,909,652 square feet of total gross leasable area (together, Company-owned
leasable area within the Properties ("GLA") plus tenant-owned leasable area
within the Properties, "Total GLA") and its commercial portfolio contained an
aggregate of 1,417,667 square feet of GLA.  Based on Total GLA, the Company's
retail properties were approximately 94% leased as of December 31, 1997, and,
based on GLA, its commercial properties were approximately 92% leased as of
that date.  For the year ended December 31, 1997, the retail properites and
the commerical properities contributed approximately 90.5% and 9.5%,
respectively, to the Company's consolidated net operating income.
 
      The Company's strategy is to extend its dominant market position in the
Intermountain Region, and to continue to achieve cash flow growth and enhance
the value of the Properties by increasing their rental income and net operating
income over time.  The Company expects to achieve rental income and net
operating income growth through (i) contractual rent increases, which are
included in substantially all existing leases for the Properties, (ii) re-
leasing available space at higher rent levels and (iii) selectively renovating,
expanding and redeveloping the Properties.  In order to extend its market
position, the Company expects to concentrate its acquisition and other
development activities in the Western States.

<PAGE> 3                                    
      In January, 1994, the Company completed a series of transactions intended
to  allow  it  to  reorganize  and  continue  the  business  of the Predecessor
Companies  through  the Operating Partnership.  As part of these  transactions,
the Company issued 13,029,500  shares  of  common  stock  ("Common Stock") in a
public offering (the "Offering"), issued 200,000 shares of Price Group Stock to
Fairfax  Realty,  Inc.  ("Fairfax"),  a company controlled by John  Price,  and
incurred $95 million in fixed rate mortgage debt (the "Mortgage Debt") together
with $9 million in additional mortgage  debt  (the "Additional Mortgage Debt").
Net proceeds of the sale of Common Stock were used  by  the Company to purchase
its  general  partner  interest  in the Operating Partnership,  which  in  turn
utilized such proceeds, together with  the  net proceeds from the Mortgage Debt
and the Additional Mortgage Debt, to (i) retire  substantially  all of the then
existing  mortgage  debt encumbering 38 of the Properties and other  borrowings
relating to such Properties,  (ii)  purchase  the  equity interests held by two
partners in Cottonwood Mall and (iii) invest an additional  $4  million  in the
development   project  for  the  regional  mall  being  developed  in  Spokane,
Washington.

      In August, 1995, the Company completed an additional public offering (the
"1995 Offering")  raising approximately $56.4 million in gross proceeds through
the sale of 2,750,000  shares  of  Common  Stock.   The  Company  used  the net
proceeds  raised  in  the  1995 Offering to purchase additional general partner
interest ("OP Units") in the Operating Partnership.   The Operating Partnership
utilized $47 million of these funds to repay borrowings under a credit facility,
which borrowings  were  incurred  to fund the June 1995 acquisitions of the 
Eastridge Mall and Animas Valley Mall.

     On  January  28,  1997, JP Realty, Inc. completed a public offering  of
1,500,000 shares of Common  Stock,  raising  approximately $38.8 million in
net proceeds.  The Operating Partnership, which  received  the net proceeds
from  JP  Realty,  Inc.,  in  exchange for OP Units, used such proceeds  to
reduce outstanding borrowings under existing credit facilities.

     On  October  16,  1997, the Company  entered  into  a  $150.0  million
unsecured credit facility  (the "1997 Credit Facility") with a syndicate of
banks.  The Company used borrowings  under the 1997 Credit Facility to
repay  $67.1  million  outstanding  under   its  two  then-existing  credit
facilities, a $40.0 million credit facility (the  "1996  Credit  Facility")
and  a  $50.0  million  credit  facility (the "1995 Credit Facility").   On
December 18, 1997, the Company increased  the  total amount available under
the 1997 Credit Facility to $200.0 million.  The 1997 Credit Facility bears
interest,  at  the  option  of  the Operating Partnership,  at  one,  or  a
combination, of (i) the higher of  the  Federal  Funds  Rate  plus 50 basis
points  or  the  prime  rate,  (ii) LIBOR plus a spread of 70 to 130  basis
points  based on the credit rating  of  the  Operating  Partnership  (which
resulted  in  a  spread  of 90 basis points at  December 31, 1997) or (iii)
LIBOR plus a spread as offered  by  the  participating banks under a one to
three month bid rate auction option.  The  1997  Credit Facility has a term
of  three years and provides for monthly payments of  interest  only.   The
weighted  average  interest  rate  paid  on  1997 borrowings under the 1997
Credit Facility was 6.75%, and the balance outstanding at December 31, 1997
was  $127.0 million.  The 1997 Credit Facility  is  available  for  general
corporate   purposes,   including   development,  working  capital,  equity
investments, repayment of indebtedness and/or amortization payments.

     Each of the Company's regional malls  is the premier and dominant mall
and, in some cases, the only mall within its  trade  area  and is generally
considered  to  be  the financial, economic and social center for  a  given
geographic area.  The  trade  areas  surrounding the Company's malls have a
drawing radius, depending on the mall, ranging from five to over 150 miles.
The malls have attracted as anchor tenants some of the leading national and
regional retail companies such as JCPenney,  Nordstrom,  Wal-Mart,  The Bon
Marche,  Sears, Dillard's, Mervyn's and ZCMI.  The 15 regional malls in  the
portfolio  contain  and aggregate of approximately 7,745,000 square feet of
Total GLA and range in  size  from  approximately 296,000 to 876,000 square
feet  of  Total  GLA.   The  community  center  portfolio  consists  of  25
Properties in seven states containing over 3,159,000  square feet of Total
GLA.    The   two  freestanding  retail  properties  contain  a  total   of
approximately 5,000  square  feet  of GLA.  The commercial portfolio, which
includes 40 commercial buildings containing  approximately 1,418,000 square
feet of GLA, is primarily located in the Salt  Lake  City,  Utah area where
the Company's headquarters are located.

<PAGE> 4
Properties

The following tables set forth certain  information relating to the Properties,
all of which (except as otherwise indicated)  are  100%  owned by the Operating
Partnership.   The  Company  believes that all such Properties  are  adequately
covered by insurance.

<TABLE>
<CAPTION>
                                                RETAIL PROPERTIES
                                                  OCCUPANCY AS OF
                                                    12/31/97
                                                ---------------
                               Free                                                 Based
                             Standing   Tenant            Total          Tenant      on    Based  Tenant  Owner-
                    Property Stores(2) Shops(3) Anchors  GLA(4)  GLA(5)  Owned      Total   on     Shop    SHIP
Property  Location  Type (1)(Sq. Ft.)(Sq. Ft.)(Sq. Ft.)(Sq.Ft.)(Sq.Ft.) (Sq.Ft.)     GLA    GLA    Space  Type(6)   ANCHORS
--------  --------  -------- -------- -------- -------- ------- -------  -------   ------  ------ ------- --------  -------
<S>        <C>        <C>    <C>      <C>      <C>      <C>     <C>      <C>        <C>    <C>    <C>     <C>       <C>
Utah
----
Bank One   Nephi      FR        3,590       --       --   3,590   3,590       --     100.0% 100.0%    --    Fee     None

Cache
Valley
Mall(7)    Logan      RM       30,120   96,839  182,889 309,848 307,348    2,500      95.2%  95.2%  84.7%   Fee     JCPenney,
                                                                                                                    ZCMI,
                                                                                                                    Lamonts
Cottonwood
Mall(7)    Salt Lake
           City       RM       53,300  321,314  379,508 754,122 754,122       --      93.5%  93.5%  84.7% Fee/GL(8) JCPenney,
                                                                                                                    ZCMI
Cottonwood
Square     Salt Lake
           City       CC           --   35,371   41,612  76,983  76,983       --      93.3%  93.3%  85.4%   Fee/GL  Albertsons

Fort Union
Plaza      Salt Lake
           City       CC       29,240       --       --  29,240  29,240       --     100.0% 100.0%    --     GL     None

Gateway
Crossing   Bountiful  CC       35,620   65,932  174,047 275,599 145,639  129,960(9)  100.0% 100.0% 100.0%   Fee     Ernst
                                                                                                                    Home
                                                                                                                    Center(10),
                                                                                                                    ShopKo,
                                                                                                                    TJ Maxx
North
Temple
Shops      Salt Lake
           City       CC           --   10,085       --  10,085  10,085       --(11) 100.0% 100.0% 100.0%   Fee     Albertsons,
                                                                                                                    Payless Drug
Orem
Plaza-
Center
St.        Orem       CC       15,491   18,814   62,420  96,725  91,125    5,600     100.0% 100.0% 100.0%   Fee     Savers,
                                                                                                                   Showbiz Pizza
Orem
Plaza-
State
St.        Orem       CC        8,045   19,057       --  27,102  27,102       --(12)  89.3%  89.3%  84.8%   Fee     Payless Drug

Plaza
9400       Sandy      CC       34,510   55,445  136,745 226,700 226,700       --     100.0% 100.0% 100.0%    GL     Albertsons,
                                                                                                                    Fred Meyer,
                                                                                                                    Pep Boys
Red
Cliffs
Mall(7)    St. George RM       12,500   90,872  203,338 306,710 192,439  114,271(13)  97.4%  95.8%  91.2%   Fee     JCPenney,
                                                                                                                    ZCMI,
                                                                                                                    Wal-Mart
Red
Cliffs
Plaza      St. George CC        9,327       --   46,626  55,953  46,626    9,327      16.7%    --      --   Fee     Ernst
                                                                                                                    Home
                                                                                                                    Center(14)
River
Pointe
Plaza     West Jordan CC       18,522   56,120  135,707 210,349  56,120  154,229(15)  98.5%  94.3%  94.3%   Fee     Albertsons,
                                                                                                                    ShopKo
</TABLE>

<PAGE> 5
<TABLE>
<CAPTION>
                                                RETAIL PROPERTIES - (CONTINUED)
                                                         OCCUPANCY AS OF
                                                             12/31/97
                                                         ---------------
                               FREE                                                 BASED
                             STANDING   TENANT            TOTAL          TENANT      ON    BASED  TENANT  OWNER-
                    PROPERTY STORES(2) SHOPS(3) ANCHORS  GLA(4)  GLA(5)  OWNED      TOTAL   ON     SHOP    SHIP
PROPERTY  LOCATION  TYPE (1) (SQ. FT.)(SQ. FT.)(SQ. FT) (SQ.FT) (SQ.FT) (SQ.FT.)     GLA    GLA    SPACE  TYPE(6)   ANCHORS
--------  --------  -------- -------- -------- -------- ------- -------  -------   ------  ------ ------- --------  -------
<S>        <C>        <C>    <C>      <C>      <C>      <C>     <C>      <C>        <C>    <C>    <C>     <C>       <C>
Utah
----
(continued)
---------
Riverside
Plaza      Provo      CC       10,050   11,363  156,454 177,867 174,867    3,000      65.7%  65.1%  84.8% Fee       Best
                                                                                                                    Products(16)
                                                                                                                    Payless Drug,
                                                                                                                    McFrugals,
                                                                                                                    Mini World
University
Crossing   Orem       CC       33,401   38,551  128,091 200,043 199,143      900     100.0% 100.0% 100.0% Fee       Burlington
                                                                                                                    Coat(17),
                                                                                                                    Office Max(18),
                                                                                                                    CompUSA
Idaho
-----
Alameda
Plaza      Pocatello  CC       19,049   27,346  143,946 190,341 190,341       --     100.0% 100.0% 100.0% Fee       Albertsons,
                                                                                                                    Fred Meyer

Baskin
Robbins
17th
Street     Idaho     
           Falls      FR        1,761       --       --   1,761   1,761       --     100.0% 100.0%     -- Fee       None

Boise
Towne
Square(7)  Boise      RM       84,418  339,050  452,037 875,505 480,368  395,137(19)  98.0%  96.4%  94.9% Fee/GL(20)JCPenney,
                                                                                                                    Sears, The
                                                                                                                    Bon Marche,
Boise
Plaza      Boise      CC           --       --  108,464 108,464 108,464       --     100.0% 100.0%     -- PI(21)    Burlington
                                                                                                                    Coat(17),
                                                                                                                    Albertsons
Boise
Towne
Plaza      Boise      CC           --       --   76,414  76,414  76,414       --     100.0% 100.0%     -- Fee       Circuit City,
                                                                                                                    Linens' n
                                                                                                                    Things
Grand
Teton
Mall       Idaho
           Falls      RM       29,089  172,056  323,925 525,070 519,450    5,620      94.1%  94.0%  81.9% Fee       JCPenney,
                                                                                                                    Sears, ZCMI,
                                                                                                                    The Bon
                                                                                                                    Marche
Pine
Ridge
Mall(7)    Pocatello  RM       25,818  148,976  436,528 611,322 499,822  111,500(9)   96.1%  95.2%  84.0% Fee/GL(22)JCPenney,
                                                                                                                    ZCMI,
                                                                                                                    The Bon Marche,
                                                                                                                    Sears, ShopKo
Silver
Lake
Mall(7)    Coeur
           d'Alene    RM       20,090   97,164  217,493 334,747 327,811    6,936      99.1%  99.1%  96.9% Fee       JCPenney,
                                                                                                                    Sears,
                                                                                                                    Emporium,
                                                                                                                    Lamonts
Twin
Falls
Crossing   Twin
           Falls      CC           --       --   37,680  37,680  37,680       --     100.0% 100.0%     -- Fee       None(23)

Yellow-
stone
Square     Idaho
           Falls      CC       16,865   38,950  166,733 222,548 220,748    1,800      87.6%  87.5%  59.5% PI(24)   Albertsons,
                                                                                                                   Fred Meyer
Washington
----------
Spokane
Valley
Mall(7)    Spokane    RM       46,125  273,673  369,184 688,982 447,405  241,577(25)  89.0%  83.1%  72.4% Fee       JCPenney,
                                                                                                                    Sears,
                                                                                                                    The Bon
                                                                                                                    Marche
</TABLE>

<PAGE> 6
<TABLE>
<CAPTION>
                                                             RETAIL PROPERTIES - (CONTINUED)
                                                              OCCUPANCY AS OF
                                                                  12/31/97
                                                              ---------------
                               FREE                                                 BASED
                             STANDING   TENANT            TOTAL          TENANT      ON    BASED  TENANT  OWNER-
                    PROPERTY STORES(2) SHOPS(3) ANCHORS  GLA(4)  GLA(5)  OWNED      TOTAL   ON     SHOP    SHIP
PROPERTY  LOCATION  TYPE (1) (SQ. FT.)(SQ. FT.)(SQ. FT) (SQ.FT) (SQ.FT) (SQ.FT.)     GLA    GLA    SPACE  TYPE(6)   ANCHORS
--------  --------  -------- -------- -------- -------- ------- -------  -------   ------  ------ ------- --------  -------
<S>        <C>        <C>    <C>      <C>      <C>      <C>     <C>      <C>        <C>    <C>    <C>     <C>       <C>
Washington
(Continued)
----------
Three
Rivers
Mall(7)    Kelso      RM      199,623  126,674  188,076 514,373 345,566  168,807(26)  97.3%  96.0%  89.1% Fee       JCPenney,
                                                                                                                    Sears,
                                                                                                                    The Bon Marche,
                                                                                                                    Emporium
Oregon
------
Bailey
Hills
Plaza      Eugene     CC       12,000   11,895  155,000 178,895  11,895  167,000(27) 100.0% 100.0% 100.0% Fee       Safeway,
                                                                                                                    ShopKo

Division
Crossing   Portland   CC        2,589   24,091   67,960  94,640  92,051    2,589      91.5%  91.3%  66.6% Fee       United Grocers,
                                                                                                                    Payless Drug

Halsey
Crossing   Gresham    CC        9,000   23,071   52,764  84,835   84,835      --      95.3%  95.3%  82.8%  GL       Safeway

Salem
Center     Salem      RM       45,000  167,500  438,000 650,500  212,500 438,000      96.8%  90.2%  87.6% Fee/GL(28)Nordstrom,
                                                                                                                    Meier & Frank
                                                                                                                    JCPenney
Wyoming
-------
Eastridge
Mall       Casper     RM       17,500  264,388  289,796 571,684  495,801  75,883(29)  90.9%  89.5%  80.3% Fee       Target, Sears,
                                                                                                                    JCPenney,
                                                                                                                    The Bon Marche
White
Mountain
Mall(7)    Rock
           Springs    RM       26,025  105,962  208,452 340,439  340,439      --      76.4%  76.4%  75.4% Fee       JCPenney,
                                                                                                                    Herbergers,
                                                                                                                    Wal-Mart
New Mexico
----------
Animas
Valley
Mall       Farmington RM       33,000  221,936  271,155 526,091  466,753  59,338(30)  78.5%  75.8%  71.7% Fee       JCPenney,
                                                                                                                    Sears,
                                                                                                                    Dillard's,
                                                                                                                    Beall's,
                                                                                                                    Best Products
North
Plains
Mall(7)    Clovis     RM       19,076   81,407  195,431 295,914  196,937  98,977(13)  96.3%  94.4%  86.6% Fee       JCPenney,
                                                                                                                    Sears,
                                                                                                                    Wal-Mart,
                                                                                                                    Beall's
Nevada
------
Fremont
Plaza      Las Vegas  CC        6,542   19,643   77,348 103,533  103,533      --     100.0% 100.0% 100.0%  GL       Smith's Food
                                                                                                                    & Drug,
                                                                                                                    Sav-On Drug

Plaza 800  Sparks     CC        5,985   21,846  139,607 167,438  167,438      --      95.7%  95.7%  67.0%  GL       Albertsons,
                                                                                                                    ShopKo
</TABLE>

<PAGE> 7
<TABLE>
<CAPTION>
                                                       RETAIL PROPERTIES - (CONTINUED)
                                                              OCCUPANCY AS OF
                                                                  12/31/97
                                                              ---------------
                               FREE                                                          BASED
                             STANDING   TENANT              TOTAL                TENANT       ON     BASED  TENANT  OWNER-
                    PROPERTY STORES(2) SHOPS(3)  ANCHORS    GLA(4)     GLA(5)    OWNED       TOTAL    ON     SHOP    SHIP
PROPERTY  LOCATION  TYPE (1)(SQ. FT.) (SQ. FT.) (SQ. FT)   (SQ.FT)    (SQ.FT)   (SQ.FT.)      GLA     GLA    SPACE  TYPE(6) ANCHORS
--------  --------  -------- -------- --------  --------  ---------- --------- -----------   ------  ------ ------- ------  -------
<S>        <C>        <C>    <C>      <C>       <C>       <C>        <C>       <C>           <C>    <C>     <C>     <C>    <C>
Colorado    
--------
Austin
Bluffs
Plaza      Colorado
           Springs      CC       9,447     35,859    71,543    116,849    78,902    37,947(31) 100.0%  100.0% 100.0%  Fee   Albert-
                                                                                                                            sons,
                                                                                                                            Longs
                                                                                                                            Drug
Arizona
-------
Fry's
Shopping
Plaza      Glendale    CC       8,564     38,781    71,919    119,264   119,264        --       98.0%   98.0%  93.8%  Fee   Fry's

Woodlands
Village    Flagstaff   CC       4,020     43,380   146,898    194,298    91,858   102,440(13)  100.0%  100.0% 100.0%  Fee   Bashas',
                                                                                                                            Wal-Mart

California
----------
Anaheim
Plaza      Anaheim     CC      10,000         --    67,433     77,433    77,433        --      100.0%  100.0%     --  PI(32)(33)

Visalia
Mall       Visalia    RM        8,510    174,206   257,000    439,716   439,716        --       97.8%   97.8%  94.5%   Fee   JC-
                              -------  --------- --------- ---------- ---------  --------     ------  ------ ------          Penney
                                                                                                                             Gotts-
                                                                                                                             chalk's
                              953,812  3,277,617 6,678,223 10,909,652 8,576,314 2,333,338      93.66%  91.94% 85.68%
                              =======  ========= ========= ========== ========= =========     ====== ======= ======  
</TABLE>
(1) Property  type  definitions  are  as  follows: Regional Mall--RM, Community
    Centers--CC, Freestanding Retail Properties--FR.
(2) Freestanding stores means leasable buildings or other structures located on
    a property which are not physically attached to a mall or community center.
(3) Tenant shops means non-anchor retail stores  located in a mall or community
    center.
(4) Represents  Operating  Partnership-owned  leasable  area  and  tenant-owned
    leasable area within the Properties.
(5) Represents Operating Partnership-owned leasable area within the Properties.
(6) Ownership  type  definitions  are  as  follows:   Fee,  Groundlease-GL  and
    Partnership Interest-PI.
(7) Secured Property as of December 31, 1997.
(8) The Operating Partnership owns a ground lease on one-half acre.
(9) Tenant owned space at this Property includes ShopKo.
(10)Ernst Home Center  has  filed  for protection  under  the  United  States
    Bankruptcy Code ("Bankruptcy Code")  but  continues  to  be responsible for
    lease payments and at December 31, 1997 was still paying rent  pursuant  to
    the terms of the lease and the Bankruptcy Code.
(11)Tenant-owned space at this Property includes Albertsons and Payless Drug.
(12)Tenant-owned space at this Property includes Payless Drug.
(13)Tenant-owned space at this Property includes Wal-Mart.
(14)Ernst  Home Center has filed for protection under the Bankruptcy Code.  The
    trustee  in  bankruptcy has rejected the terms of the lease and the Company
    is currently in the process of re-leasing the space.
(15)Tenant-owned space at this Property includes Albertsons and ShopKo.
(16)Best Products  has  filed  for  protection  under the Bankruptcy Code.  The
    trustee in bankruptcy has rejected the terms  of this lease and the Company
    is currently in the process of re-leasing the space.
(17)The Operating Partnership's lease is with Fred  Meyer  which  subleases the
    Property space to Burlington Coat.
(18)The  Operating  Partnership's lease is with Fred Meyer which subleases  the
    space to Burlington Coat.  33.6% of the space represented by the Burlington
    Coat sublease is further subleased to Office Max.
(19)Tenant-owned space at this Property includes JCPenney, Sears and Mervyn's.
(20)The Operating Partnership owns a ground lease on two acres.

<PAGE> 8
                               Retail Properties - (Continued)

(21)The  Operating  Partnership's   ownership  represents  a  73.3  partnership
    interest in the current fee holder of the property.
(22)The Operating Partnership owns two  ground  leases  on  7.3  acres  and 1.2
    acres.
(23)The  Operating  Partnership's lease subleases the Property to several other
    retailers.
(24)The  Operating  Partnership's  ownership  represents  a  83.5%  partnership
    interest in the current fee holder of the Property.
(25)Tenant-owned space at this property includes Sears and The Bon Marche.
(26)Tenant-owned space at this Property includes Target and Top Foods.
(27)Tenant-owned space at this Property includes Safeway and ShopKo.
(28)The Operating Partnership  owns  seven  ground leases comprising a total of
    1.58 acres and 2.35 acres in fee.
(29)Tenant-owned space at this Property includes Target.
(30)Tenant-owned space at this Property includes  property  owned  by  a  third
    party which leases its space to Best Products.
(31)Tenant-owned space at this Property includes Longs Drugs.
(32)The Operating Partnership's ownership interest represents a 50% partnership
    interest in the current ground lease holder of the Property.
(33)Anchor space is vacant as of December 31, 1997.

<PAGE> 9
<TABLE>
<CAPTION>                                COMMERCIAL PROPERTIES
                                                               OCCUPANCY
                                         PROPERTY      GLA     BASED ON     OWNERSHIP
PROPERTY                LOCATION         TYPE(1)     (SQ.FT)      GLA         TYPE
--------                --------------   --------   ---------- -----------  ---------
<S>                     <C>              <C>        <C>        <C>          <C>
UTAH
----
Price Business Center-
Pioneer Square          Salt Lake City    BP           530,484      97.52%   Fee

Price Business Center-
South Main              Salt Lake City    BP           144,554      96.41%   Fee

Price Business Center-
Timesquare              Salt Lake City    BP           289,423      84.07%   Fee

Sears-Eastbay           Provo             CP            48,880     100.00%   Fee

Price Business Center-
Commerce Park           West Valley City  BP           393,268      89.74%   Fee

IDAHO
-----
Boise/FSB Plaza         Boise             CP            11,058      38.55%   Fee
                                                     ---------  ----------
                                                     1,417,667      92.13%
                                                     =========  ==========
</TABLE>
___________________
(1)  Property  type  definitions are as follows:  Business Park--BP, Commercial
Property--CP.

SIGNIFICANT PROPERTIES

     Boise Towne Square contributed in excess of 10% of the Company's total
aggregate gross revenue for the year ended December 31, 1997.  Additionally,
Spokane Valley Mall, comprised in excess of 10% of the Company's assets
the year ended December 31, 1997.   Certain additional information relating to
these Properties is set forth below.

<PAGE> 10
Boise Towne Square

      Boise Towne Square is centrally located in Boise, Idaho adjacent to the
main thoroughfare of the city.   Boise Towne Square was opened by the
Predecessor Companies in October of 1988.  Boise Towne Square is the dominant
regional mall in its trade area, with several community centers as its major
competition.  The  real  estate tax rate on the improvements for the year ended
December 31, 1997 was 1.9%, amounting to a total tax of $764,000 for the year.

      The  Company  leases  approximately  two  acres  which  is  utilized  for
perimeter parking and landscaping from Union Pacific Railroad Company on a year-
to-year basis from December 1  to  November  30  at  a  current rental rate of
$21,000  per year.  Boise Towne Square is part of the collateral  securing  the
Mortgage Debt  and the Company believes it is adequately insured.  Depreciation
is taken utilizing  a  straight line method over 40 years with a net book basis
of approximately $31,301,000,  $32,543,000 and  $33,687,000  at  December 31,
1997,  1996  and  1995,  respectively.   It is the Company's policy to renovate,
expand and upgrade as warranted by market conditions.

     The Company is currently constructing a 273,000  square foot expansion
at Boise Towne Square which upon completion will include  new  anchor
tenant space  for a fifth anchor tenant, additional anchor tenant space for
an existing anchor  tenant  and  additional shop tenant space.  The project
will add approximately 180,000 square  feet  of  Total  GLA  for  Dillards
department store, 30,000  square  feet  of GLA for the expansion of The Bon
Marche department store and approximately 63,000 square feet of GLA for
additional shops.
                                                                                
    As of December 31, 1997, 1996 and 1995, Boise  Towne  Square was 98%, 99%
and 98% occupied, respectively, with an average annual rent per  square foot of
$15.00, $14.80 and $14.65 for the years ended on those respective  dates.   Its
major  tenants occupying 10% or more of Total GLA are all department stores and
include  JCPenney,  Sears,  The  Bon  Marche and Mervyn's.  JCPenney, Sears and
Mervyn's own their own land and buildings  and  are  subject to a Construction,
Operation and Reciprocal Easement Agreement that expires in 2078, while The Bon
Marche's lease is for a term of 20 years, expiring in  2008,  with  two 20-year
extension  options.   Boise  Towne Square's leases will expire on the following
schedule:
<TABLE>
<CAPTION>
                                                                 Average
                                                Annualized  Annualized Base      Percentage Of GLA
                                                   Base     Rent Per Square Represented by Expiring Leases
                           Number   Approximate  Rent Under    Foot Under   Assuming No    Assuming Full
Lease Expiration          of Leases    GLA       Expiring      Expiring      Exercise of     Exercise of
Year Ending December 31,  Expiring  Square Feet   Leases        Leases(1)  Renewal Options Renewal Options
------------------------  --------  ----------- ------------  -----------  --------------- ---------------
<S>                       <C>       <C>         <C>           <C>          <C>             <C>
1998                          41         50,723  $ 1,107,101   $    21.83       10.56%           8.03%
1999                          27         72,434    1,253,000        17.30       15.08            7.94
2000                          28         60,650    1,132,938        18.68       12.63            9.69
2001                          14         43,144      798,535        18.51        8.98            8.84
2002                           8         14,492      228,181        15.75        3.02            1.65
2003                          14         25,795      588,623        22.82        5.37            5.14
2004                           3         10,625      212,214        19.97        2.21            1.93
2005                           1          3,710       68,635        18.50        0.77            0.77
2006                           5         13,525      240,281        17.77        2.82            1.56
2007                           4          9,185      227,900        24.81        1.91            1.91
2008 and thereafter            7        143,287    1,049,756         7.33       29.83            0.41
                           -----     ----------  -----------               ----------       ---------
   Total                     152        447,570                                93.18%          47.87%
                           =====     ==========                            ==========       =========
</TABLE>

(1) Excludes tenants paying percentage rents in lieu of minimum rents.

<PAGE> 11
Spokane Valley Mall

     On August 13, 1997, the Company held the grand opening of its  Spokane
Valley Mall, a two-level, 688,982 square foot regional mall, located  on an
85  acre  parcel  of  land overlooking the Spokane River and the Centennial
Trail in Spokane, Washington.   The  mall was 72% leased on August 13, 1997
and was 89% leased on December 31, 1997.   Its  major tenants occupying 10%
or more of Total GLA are department stores and include  JCPenney, Sears and
The Bon Marche.  Sears and The Bon Marche own their own land  and buildings
and  are  subject  to  a  Construction,  Operation  and Reciprocal Easement
Agreement that expires in 2046, while JCPenney's  lease is for a term of 20
years, expiring in 2017, with six five-year extension options.

Spokane Valley Mall's leases will expire on the following schedule:

<TABLE>
<CAPTION>
                                                                 Average
                                                 Annualized  Annualized Base     Percentage of GLA
                                                    Base     Rent Per Square Represented by Expiring Leases
                            Number   Approximate  Rent Under    Foot Under     Assuming No Assuming Full
Lease Expiration           of Leases    GLA       Expiring      Expiring        Exercise of  Exercise of
Year Ending December 31,   Expiring  Square Feet   Leases       Leases(1)    Renewal Options Renewal Options
------------------------   -------- ------------ ----------- --------------- --------------- ---------------
<S>                        <C>      <C>          <C>         <C>
1999                          1            120    $   15,600  $    130.00            0.03%        0.03%
2000                          9          5,295       159,317        30.09            1.18         1.18
2001                          1            120        14,400       120.00            0.03         0.03
2002                         12         18,971       378,627        19.96            4.24         4.24
2003                          2          1,740        36,656        21.07            0.39         0.39
2004                          2          1,780        43,807        24.61            0.40         0.40
2005                          1            899        22,475        25.00            0.20         0.20
2006                         --             --            --           --              --           --  
2007                         30         44,993     1,480,507        32.91           10.06        10.06
2008 and thereafter          17        207,053     1,832,536         8.85           46.28         7.45
                        -------      ---------                               -------------   ----------
   Total                     75        280,971                                      62.81%       23.98%
                        =======      =========                               =============   ==========
</TABLE>

(1) Excludes tenants paying percentage rents in lieu of minimum rents.

THE COMPANY'S LARGEST TENANTS

     Large stores (over 20,000 square feet per store) occupy  63.5%  of the
Total  GLA  of  the  Company's  regional  malls and community centers.  The
Company's  largest  tenants   include JCPenney,  ZCMI,  Wal-Mart,  The  Bon
Marche,  Sears,  Meier  &  Frank, Mervyn's  and  Gottschalk's.   No  tenant
represented more than 10% of  the  Company's  total  rental  revenues (I.E.
minimum rents plus percentage rents) for the year ended December 31, 1997.

     Anchors

     Regional malls and community centers usually contain one or more large
retail companies known as "anchors."  Anchors, which include traditional
department stores, general  merchandise  stores,  large  fashion  specialty
stores,  value  oriented  specialty  stores  and  discount  stores, usually
inventory a broad range of products that appeal to many shoppers.   Anchors
either  own their own stores (and sufficient parking) or lease their stores
from the  owner of the mall or center.  Although the rent and other charges
paid by anchors are usually much less (on a per square foot basis) than the
rent and other  charges  paid  by  other  tenants, their presence typically
attracts  many  shoppers and enhances the value  of  a  mall  or  community
center.

     Anchor tenants  in  the  regional  malls are JCPenney, ZCMI, Nordstrom,
Wal-Mart,  The  Bon  Marche,  Sears, Gottschalk's,  ShopKo,  The  Emporium,
Lamonts, Mervyn's, Meier & Frank,  Target  and  Dillard's.  Anchors in the
regional  malls  occupy  57.0%  of  Total GLA of the regional  malls.   The
following table summaries the Total GLA owned and leased as of December 31,
1997 by these anchors:

<PAGE> 12
<TABLE>
<CAPTION>
                                                          Anchor                Company-Owned
                  Number of  Company-owned Anchor-Owned Total GLA   Percent     Anchors as
Anchors         Anchor Stores Square Feet  Square Feet Square Feet Total GLA   % Of Revenue(1)
-------         ------------- -----------  ------------ ----------- ---------- ---------------
<S>             <C>           <C>          <C>          <C>         <C>        <C>
JCPenney                15         913,188      243,591   1,156,779      9.38%       3.52%

Sears                    9         471,669      227,780     699,499      5.67%       3.10%

The Bon Marche           6         354,794      120,420     475,215      3.85%       3.15%

ZCMI                     5         562,754           --     562,754      4.57%       2.67%

Wal-Mart                 3          86,944      210,128     297,072      2.41%         *

Meier & Frank            1              --      183,500     183,500      1.49%        --

Mervyn's                 2              --      159,648     159,648      1.30%        --

Gottschalk's             1         150,000           --     150,000      1.22%         *

ShopKo                   1              --      111,500     111,500      0.90%        --

The Emporium             2          84,261           --      84,261      0.68%         *

Lamonts                  2          80,953           --      80,953      0.66%         *

Target                   1              --       75,883      75,883      0.62%        --

Dillard's                1          72,212           --      72,212      0.59%         *

Nordstrom                1              --       72,000      72,000      0.58%        --
</TABLE>
---------------------------
*  Less than 1%
(1) Revenue defined as minimum rents plus percentage rents

<PAGE> 13
     Anchor tenants occupying the greatest  amount  of GLA in the Company's
community  centers  are  ShopKo, Fred Meyer, Albertsons,  Burlington  Coat,
Safeway,  Wal-Mart and Payless  Drug  Stores.   Anchors  in  the  community
centers occupy  approximately  71.2% of Total GLA of the community centers.
The  following table summarizes the  Total  GLA  owned  and  leased  as  of
December 31, 1997 by these anchors:

<TABLE>
<CAPTION>
                                                               Anchor              Company-Owned
                     Number of   Company-Owned Anchor-Owned  Total GLA  Percentage  Anchors As
  Anchor           Anchor Stores  Square Feet  Square Feet  Square Feet  Total GLA % Of Revenue(1)
------------       ------------- ------------- -----------  ----------- ---------- ---------------
<S>                <C>           <C>           <C>          <C>         <C>        <C>
ShopKo                   4             104,000     297,140      401,140      3.25%        *

Albertsons               8             269,098     41,407       310,505      2.52%       1.24%

Fred Meyer               3             309,944         --       309,944      2.51%       1.16%

Burlington Coat (2)      2             174,248         --       174,248      1.41%         *

Safeway                  2              52,764     53,000       105,764      0.86%         *

Wal-Mart                 1                  --    102,440       102,440      0.83%         --

Ernst Home Centers(3)    2              94,783         --        94,783      0.77%         *

PayLess Drug             2              70,583         --        70,583      0.57%         *

Best Products(4)         1              59,350         --        59,350      0.48%         *
</TABLE>
_________________
*   Less than 1%.
(1) Revenue defined as minimum rents plus percentage rents.
(2) Sublease from Fred Meyer, Inc.
(3) Ernst Home Center has filed for protection under the Bankruptcy Code but
    continues to be responsible for lease payment pursuant to the terms of the
    Gateway Crossing lease and the Bankruptcy Code.  The Ernst Home Center
    lease for space at the Red Cliffs Plaza has been rejected and the Company
    is currently in the process of releasing the space.
(4) Best Products lease for space at the Riverside Plaza has been rejected and
    the Company is currently in the process of re-leasing the space.

<PAGE> 14
Major Tenants

      Nonanchor  tenants  owned  by  major  national  retail  chains  lease   a
considerable  amount  of space in the Company's retail properties.  Such retail
chains include Amcena Corporation (Maurice's), Brown Group (Naturalizer Shoes),
Claire's (Claire's Boutique),  Edison  Brothers  (Bakers  Shoes, Jeans West, J.
Riggings,  5-7-9), Waldenbooks Books, Inc., The Limited (Lane  Bryant,  Lerner,
Limited  Express,  Victoria's  Secret,  Bath  &  Body  Works,  Structure),  May
Department Stores (PayLess ShoeSource), Kay-Bee Toys, Wilson's Suede & Leather,
Musicland   Land   Group  (Musicland,  Sam  Goody,  Suncoast  Pictures),  Tandy
Corporation  (Radio  Shack),   Woolworth  Corporation,  (Northern  Reflections,
Afterthoughts, Athletic X-press,  Foot  Locker,  Kinney Shoes, Lady Footlocker,
San  Francisco Music Box Company), B. Dalton (B. Dalton  Bookseller,  Barnes  &
Noble), Charming Shoppes, Inc. (Fashion Bug), Deb Shops, Regis Corporation, Jay
Jacobs,  County  Seat,  General  Mills (Olive Garden, Red Lobster), Gap Stores,
Inc. (Gap, GapKids), The Buckle, Eddie  Bauer, Zales Corporation, Gymboree, Fred
Meyer, Millers Outpost, Pearle Vision and Pendleton.

LEASES

      Most of the Company's leases are long-term leases that contain fixed base
rents  and step-ups in rent typically occurring  every  three  to  five  years.
These leases  generally pass through to the tenant the tenant's share of common
area charges, including  insurance costs and real estate taxes.  Generally, all
of the regional mall leases  and certain of the community center leases include
roof and structure repair costs  in  common area charges.  The Company's leases
also generally provide for additional  rents  based  on  a percentage of tenant
sales.  For the years ended December 31, 1996 and 1997, such percentage rents
accounted for approximately 7.2% and 6.1% respectively, of total rental income
from the Properties owned by the Company during such periods.

The following table sets forth information relating to the rental  revenue from
the Properties for the periods indicated:

<TABLE>
<CAPTION>
                                                   Years Ended December 31,
                                       ----------------------------------------------
     Property Type                        1997     1996      1995     1994    1993
     -------------                     --------- --------- -------- -------- --------
                                                    (Dollars in thousands)
                                       <C>       <C>       <C>      <C>      <C>
<S>
Regional Malls                          $ 44,005  $ 36,286 $ 29,299 $ 24,860 $ 22,882
Community Centers and
Free-Standing Retail Properties           13,192    13,591   12,173   10,658    9,453
Commercial Properties                      6,323     6,631    5,633    4,929    4,646
                                        -------- --------- -------- -------- --------
Total                                   $ 63,520 $  56,508 $ 47,105 $ 40,447 $ 36,981
                                        ======== ========= ======== ======== ========
</TABLE>

Vacant Space

     Approximately 803,000 square feet, or 6.51%, of Total GLA was vacant
as of December 31, 1997.  Of this vacant space, approximately 523,000
square feet was in the regional mall portfolio (20% of which is anchor and
80% of which is mall shop space), 168,171 square feet was in the community
center portfolio and 111,586 square feet was in the commercial portfolio.

     The following tables set forth information relating to lease
expirations for retail store and commercial property leases in effect as of
December 31, 1997, over the ten-year period commencing January 1, 1998 and
thereafter  for  large  stores  (over 20,000 square feet) and small stores
(20,000 square feet or less) at the retail properties and for all leases
at the commercial properties.   Unless otherwise indicated, all information 
set forth below assumes that none of the  tenants  exercise renewal options and
excludes leases that had not commenced as of December 31, 1997.

<PAGE> 15
<TABLE>
<CAPTION>

                                 Lease Expirations For
                    Retail Store Leases (Over 20,000 Square Feet)
                                                                                            Average
                                                                                         Annualized Base
            Lease Expiration           Number of      Approximate       Annualized Base  Rent Per Square
               Year Ending              Leases          GLA in            Rent Under       Foot Under
              December 31,             Expiring       Square Feet       Expiring Leases Expiring Leases(1)
              ------------             --------       -----------       --------------- ------------------
       <S>                             <C>            <C>               <C>             <C>
       1998                                 8            370,846         $    510,121    $      1.38
       1999                                 2            201,690              323,647           1.60
       2000                                 3            119,045              365,534           3.07
       2001                                 9            595,718            1,423,260           2.39
       2002                                 4            231,458              711,643           3.07
       2003                                 3            100,249              303,001           3.02
       2004                                 4            255,669              725,957           2.84
       2005                                 1             33,421              111,605           3.34
       2006                                 3            185,240              562,696           3.04
       2007 and thereafter                 40          2,409,564           11,874,088           4.93
                                       --------       ----------         
       Total                               77          4,502,900
                                       ========       ==========
</TABLE>
<TABLE>
<CAPTION>
                                Lease Expirations For
                  Retail Store Leases (20,000 Square Feet or Less)
                                                                                            Average
                                                                                         Annualized Base
            Lease Expiration           Number of      Approximate       Annualized Base  Rent Per Square
               Year Ending              Leases          GLA in            Rent Under       Foot Under
              December 31,             Expiring       Square Feet       Expiring Leases Expiring Leases(1)
              ------------             --------       -----------       --------------- ------------------
      <S>                              <C>            <C>               <C>             <C>
       1998                               177             294,545        $   3,847,377   $      13.06
       1999                               160             337,915            4,562,648          13.50
       2000                               177             347,098            5,403,907          15.57
       2001                               125             282,675            4,008,790          14.18
       2002                               134             331,438            4,273,324          12.89
       2003                                70             211,116            3,067,072          14.53
       2004                                63             181,666            3,094,598          17.03
       2005                                46             133,587            2,421,583          18.13
       2006                                51             144,223            2,745,303          19.04
       2007 and thereafter                150             509,436            9,418,638          18.49
                                       --------        ----------
       Total                             1,153          2,773,699
                                       ========        ==========
</TABLE>
<TABLE>
<CAPTION>
                                Lease Expirations For
                                Commercial Properties
                                                                                             Average
                                                                                         Annualized Base
            Lease Expiration           Number of      Approximate       Annualized Base  Rent Per Square
               Year Ending              Leases          GLA in            Rent Under       Foot Under
              December 31,             Expiring       Square Feet       Expiring Leases Expiring Leases(1)
              ------------             --------       -----------       --------------- -----------------
       <S>                             <C>            <C>               <C>             <C>
       1998                                15             363,165        $   1,616,563   $       4.45
       1999                                12             195,205              929,800           4.76
       2000                                12             422,641            2,002,513           4.74
       2001                                 3             113,115              922,213           8.15
       2002                                10             170,585            1,174,651           6.89
       2003                                 1              20,988              275,572          13.13
       2004                                 2              28,621              146,464           5.12
       2005                                --                  --                   --             --
       2006                                --                  --                   --             --
       2007 and thereafter                 --                  --                   --             --
                                       --------        ----------
       Total                               55           1,314,320
</TABLE>                               ========        ==========
_______________

(1) Excludes tenants paying percentage rents in lieu of minimum rents.

     As leases expire, the Company currently expects to be able to increase
rental revenue by re-leasing the underlying space  (either  to a new tenant
or  to an existing tenant) at rental rates that are at or higher  than  the
existing rates.

<PAGE> 16
OPERATIONS AND MANAGEMENT

      The  Company  performs  all  property   management   functions   for  the
Properties.   At  December  31,  1997  the  Company had 311 full-time employees
devoted exclusively to property management.  Each of the regional malls has on-
site management and maintenance personnel as  well  as  a  marketing  staff  to
assist  the  mall tenants in promoting and advertising their products.  Overall
supervision of  mall  operations,  headed by a Director of Enclosed Malls and a
Director of Marketing, is conducted  in  a centralized fashion in order to take
advantage of economies of scale and to deliver  a  uniform  presentation of all
management  functions.  The Company's internal property management  information
system enables  it  to  quickly  determine  tenant  status, tenant gross sales,
insurance, and other critical information in order to  effectively  manage  the
affairs   of  its  real  property  portfolio.   The  data  collected  regarding
percentage  sales  allows  the  Company to predict sales, to retain tenants and
enhance mall stability.

      The  Leasing/Development  Department   is   responsible  for  maintaining
relationships  with  tenants  that  afford the Company  opportunities  for  new
development and expansion.  The Company  conducts an active program of leasing,
within the common area space of its malls  and  community  centers,  kiosks and
other  promotional  displays  on  a  seasonal  basis.  In addition to increased
customer traffic, this approach generates additional  revenue  for  the Company
and offers an opportunity for entrepreneurial individuals interested in opening
stores on a more permanent basis within one of the Company's Properties.

      The  Company's  property  management efforts will continue to be directed
toward improving the attractiveness  and  appeal of its retail properties and a
pleasant shopping environment in order to increase  overall  tenant  sales  and
rents.   The  Company  strives to meet the needs of its tenants in the areas of
promotion, marketing and  ongoing  management  of  its  properties and seeks to
bring together a sufficient critical mass of complementary  upscale  and brand-
name tenants.  As part of its property management efforts, the Company monitors
tenant  mix,  store  size, sales results and store locations, and works closely
with tenants to improve  the  overall performance of their stores.  The Company
seeks to anticipate trends in the  retailing  industry and introduce new retail
names and concepts into its retail properties in response to these trends.  The
Company maintains its malls and community centers  to  very  high standards and
believes  that  the  aesthetics,  ambiance and cleanliness of these  Properties
contribute to repeat visits by customers.

ACQUISTION PROGRAM

      In June 1997, the Company acquired Silver Lake Mall, a 298,711 square
foot mall located in Coeur d'Alene, Idaho.  The Company, which had  held  a 30%
interest  in  Silver  Lake Mall, Ltd., a limited partnership owning Silver Lake
Mall, prior to its acquisition of the mall, acquired the remaining 70% interest
in such limited partnership  in  exchange  for  72,000  partnership  units ("OP
Units")  and  the  assumption  of  approximately  $24.8  million in outstanding
indebtedness.   Silver Lake Mall is anchored by JCPenney, Sears,  Emporium  and
Lamonts and contains  65  mall  shops.   Silver  Lake Mall was 99% leased as of
December 31, 1997.

      In June 1997, the Company also acquired Visalia  Mall,  a  439,716 square
foot  mall  located  in  Visalia,  California  for approximately $38.0 million.
Visalia  Mall is anchored by JCPenney and Gottschalk's  and  contains  68  mall
shops.  Prior  to  the Company's purchase of Visalia Mall, the mall underwent a
major renovation which  included  the  expansion  of  anchor  tenant space, the
addition of a new food court, the renovation and expansion of additional tenant
shop space and the construction of a new 1,000 stall parking facility.  Visalia
Mall was 98% leased as of December 31, 1997.

      In December 1997, the Company acquired the Salem Center, a 650,000 square
foot  enclosed mall located in Salem, Oregon.  The Company acquired  the  Salem
Center  for  approximately  $32.0  million  of  which  the  Company financed by
borrowing under the 1997 Credit Facility and assuming debt for  the  remainder.
Salem  Center  is  located in Salem's downtown business district covering  over
five contiguous city  blocks  and  is  anchored by Nordstrom, Meryvn's, Meier &
Frank,  JCPenney and a 7-screen, 2,300 seat  theater.   Salem  Center  was  97%
leased as of December 31, 1997.

<PAGE> 17
DEVELOPMENT

     Since  1976,  the  Company  and  the  Predecessor  Companies have been
responsible  for  developing more retail malls in the Intermountain  Region
than any other developer,  having  constructed, developed or redeveloped 11
malls  in  the  region  (as  well  as  three  other  malls  in  Oregon  and
Washington).  The Company maintains the  in-house  capability  to  bring  a
project from concept to completion.  The Leasing/Development Department had
a total of 30 full-time employees at December 31, 1997, including directors
of Leasing, Development, Tenant Coordination and Design/Drafting.

     In  August  1997, the Company held a grand opening for its development
of the Spokane Valley Mall, a two-level, 688,982 square foot regional mall,
located on an 85 acre  parcel of land overlooking the Spokane River and the
Centennial Trail in Spokane, Washington.  The mall is anchored by JCPenney,
Sears and The Bon Marche  and  contains 101 mall shops.  In addition to the
273,673 square feet of retail mall space, the mall contains a 40,000 square
foot 12-screen ACT III theater and  seven  out-parcel  pads  for retail and
restaurant development.

     In  early  1997,  the  Company  began developing Boise Towne Plaza,  a
105,664 square foot shopping center located  adjacent to Boise Towne Square
in Boise, Idaho.  The first phase of construction  at  Boise  Towne  Plaza,
containing 76,414 square feet of retail space, was completed and opened  in
November  1997.   The  second  phase  of construction at Boise Towne Plaza,
containing 29,250 square feet of retail  space, is expected to be completed
in the second quarter of 1998.  During 1997, the Company also completed the
construction of (i) a 76,411 square foot Sears department store at the Pine
Ridge Mall located in Pocatello, Idaho, (ii)  a 36,036 square foot addition
to the Sears department store at the Silver Lake  Mall  and  (iii)  a 5,500
square  foot  Applebees  restaurant  at  the  Animas Valley Mall located in
Farmington, New Mexico.

     The Company is currently expanding Boise Towne Square which will add
Dillard's as a fifth anchor.  The project will add approximately 273,000
Total GLA with approximately 180,000 Total GLA for Dillard's, 30,000 GLA
for the expansion of The Bon Marche and approximately 63,000 GLA for
additional shops.

     The Company is also developing Provo Towne  Centre,  a  750,000 square
foot  enclosed  regional mall, located in Provo, Utah.  Provo Towne  Center
will be anchored  by  JCPenney, Sears, and Dillard's and will include space for
more  than  80  mall  shops.    Additionally,   the  Company  is  currently
contemplating  the  expansion  and  renovation  of  several  other  of  its
Properties as well as other developments and acquisitions.

    Further, the Properties contain approximately 48  acres of vacant land
suitable   for   additional  retail  expansion  projects.   Likewise,   the
Properties include  additional  improved  land  ready  for  development  of
approximately  263,000  square  feet  of  free  standing retail space.  The
Company  will  seek  to  expand these and other Properties  in  its  retail
portfolio, as well as newly acquired properties, depending on tenant demand
and market conditions.

THIRD PARTY MANAGEMENT

     The Company provides third-party property management for an office
building and a commercial building located in the greater Salt Lake City,
Utah  metropolitan  area, a commercial building located in Albuquerque, New
Mexico and Silver Lake Plaza, a community center, located in Coeur d'Alene,
Idaho.  In addition to  these  arrangements,  the  Company  plans to pursue
other  property  management  opportunities.   Because  property  management
facilitates  an understanding of a property's value and potential for  cash
flow growth, the  Company believes that, in addition to generating property
management fees, third-party   property  management  arrangements  can be a
source  of  future  acquisitions for the Company.  For example, the Company
was the property manger  for  Eastridge  Mall and Silver Lake Mall prior to
their acquisitions by the Company.

EMPLOYEES

      The Company had over 506 employees at  December  31,  1997.   The Company
believes  its  relationship  with  its  employees  is  very  good.  None of the
Company's employees are unionized.

<PAGE> 18
ITEM 3.     LEGAL PROCEEDINGS

      The  Operating  Partnership  is  not  aware of any pending or threatened
litigation  at  this time that will have a materially  adverse  effect  on  the
Operating Partnership or any of the Properties or it's development parcels.


ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted to the Operating Partnership's security holders
during the fourth quarter of the period covered by this report.


ITEM 4A.   EXECUTIVE OFFICERS OF THE REGISTRANTS

      The following table sets forth certain information with respect to the
executive officers of the Company as of December 31, 1997.

<TABLE>
<CAPTION>        
Name                       Age Position
-----------                --- --------
<S>                        <C> <C>
John Price                  64  Chairman of the Board of Directors and Chief Executive Officer

G. Rex Frazier              54  President, Chief Operating Officer and Director

Paul K. Mendenhall          50  Vice President--Chief Investment Officer and Secretary

Martin G. Peterson          51  Vice President--Administration

Thomas L. Mulkey            45  Vice President--Leasing/Development

Greg Curtis                 47  Vice President--Management

David R. Sabey              45  Vice President and General Counsel

M. Scott Collins            42  Vice President--Chief Financial Officer and Treasurer
</TABLE>

      Set forth below is a summary of the business experience of the executive
officers of the Company:

      John Price has served as Chairman  of  the  Board  of Directors and Chief
Executive Officer since September, 1993.  Mr. Price formed Fairfax Realty, Inc.
("Fairfax"), the principal entity through which the business of the Predecessor
Companies was conducted, in 1972, and it's predecessor, John  Price Associates,
Inc.,  a  construction  company,  in 1957.  Mr. Price has developed  and  built
substantial retail and commercial real estate properties during his 40 years in
the real estate industry and has been  involved  in  all  facets of real estate
development, construction, leasing, management and financing.   Mr.  Price is a
member  of  the  Board  of  Directors  and  the  Executive  Committee  of  Alta
Industries-Utah,  Inc.  (a  distributor  of ferrous and nonferrous metals and a
manufacturer of roofing, siding, and other  structural  components).  Mr. Price
is also a member of the NAREIT Legislative Advisory Council,  a  trustee of the
University  of  Utah,  a  member  of  the Board of Directors of the Utah  State
Fairpark Corporation which operates the  Utah State Fairgrounds and a member of
the Advisory Board of the First Security Bank  of  Utah,  N.A.   Mr. Price is a
graduate of the University of Utah.

      G. Rex Frazier has served as President, Chief Operating Officer  and  a
Director since September,  1993.  Mr. Frazier has served as President and Chief
Operating Officer of Fairfax  since  1986,  prior  to  which  he  had served as
Executive Vice- President, Vice President-Finance and Director of Finance.  Mr.
Frazier  has  been involved in the real estate industry since 1976.   He  is  a
certified public  accountant  and, prior to joining Fairfax, worked as an audit
supervisor with Touche Ross & Company.   Mr.  Frazier  is  a  graduate  of  the
University of Utah.

      Paul K. Mendenhall has served as Vice President-Chief Investment Officer
and Secretary  since  May,  1997,  prior  to which he served as Vice President-
Finance and Secretary.  Mr. Mendenhall has served as Vice President-Finance and
Secretary  of  Fairfax since 1986, prior to which  he  served  as  Director  of
Finance and as Financial Analyst.  Mr. Mendenhall has been involved in the real
estate industry  since 1977.  He is a certified public accountant and, prior to
joining Fairfax, worked  as  a  senior  auditor for Touche Ross & Company.  Mr.
Mendenhall  is  a former President and Director  of  the  Utah  Association  of
Certified Public  Accountants  (UACPA).   Mr.  Mendenhall  is a graduate of the
University of Utah.

<PAGE> 19
      Martin G. Peterson  has  served as Vice President-Administration  since
September,   1993,   prior   to   which   he    served   as   Vice   President-
Administration/Accounting and Treasurer and as Assistant  Vice  President.   In
addition,   Mr.  Peterson  has  served  as  Vice  President-Administration  and
Treasurer of  Fairfax  since  1978.  Mr. Peterson has been involved in the real
estate industry since 1975.  He  is a certified public accountant and, prior to
joining Fairfax, worked as a senior  auditor  for  Price  Waterhouse & Co.  Mr.
Peterson is a member of the Advisory Board of the Marriott School of Management
at  Brigham  Young  University.   Mr. Peterson is a graduate of  Brigham  Young
University.

      Thomas L. Mulkey has served as  Vice  President-Leasing/Development since
September, 1993.  In addition, Mr. Mulkey has  served  as  the  Vice President-
Leasing/Development  of  Fairfax  since  1987,  prior  to which he oversaw  the
development of many of the Company's properties.  Mr. Mulkey  has been involved
in the real estate industry since 1974.  Prior to joining Fairfax,  Mr.  Mulkey
was  a  project  manager  for the May Stores Centers, Inc. (a retail department
store company).  Mr. Mulkey is a graduate of the University of Missouri.

      Greg Curtis has served  as  Vice  President-Management  since  September,
1993.   In  addition,  Mr.  Curtis  has served as Vice President-Management  of
Fairfax since 1982, prior to which he  served as Director of Enclosed Malls and
as a Mall Manager.  Mr. Curtis has been  involved  in  real  estate since 1977.
Mr. Curtis is a graduate of Brigham Young University.

      David R. Sabey has served as Vice President and General Counsel since
September, 1993.   In  addition,  Mr.  Sabey  has  served as Vice President and
General  Counsel of Fairfax since 1990.  Prior to joining  Fairfax,  Mr.  Sabey
worked as  Assistant  General  Counsel for the Longs Drug Stores Corporation (a
retail drug store company).  Mr.  Sabey  has been in the retail and real estate
industry since 1983.  Mr. Sabey is a graduate of McGeorge School of Law and the
University of Utah.

      M. Scott Collins has served as Vice President-Chief Financial Officer and
Treasurer since May, 1997.  From November,  1992 through May, 1997, Mr. Collins
served as Vice President-Finance and Administration,  Chief  Financial  Officer
and Secretary of Park City Group, Inc. (a software development company).  Prior
to  his employment with Park City Group, Mr. Collins worked as a senior manager
for Price  Waterhouse where he was also involved with the real estate industry.
Mr. Collins is a certified public accountant and is a graduate of Brigham Young
University.

<PAGE> 20
ITEM  5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

     At December  31,  1997, there was no established public trading market
for the Operating Partnership's OP Units.  As of March 10, 1998, there were
64  holders  of  OP  Units.    The   following  table  sets  forth  to  the
distributions paid per OP Unit for each of the quarters presented:

                                    Distribution
                                    Per OP Unit
                                    ------------
  Year Ended 12/31/96
    First Quarter                    $  .420
    Second Quarter                      .420
    Third Quarter                       .420
    Fourth Quarter                      .435

  Year Ended 12/31/97
    First Quarter                    $  .435
    Second Quarter                      .435
    Third Quarter                       .435
    Fourth Quarter                      .450

    During 1997 and 1996, the Operating Partnership recorded  regular
quarterly    distributions,   totaling   $37,220,000  and  $33,977,000,
respectively, or $1.755 and $1.695 per OP Unit, respectively.  On behalf of
the Operating  Partnership,  the  Board  of  Directors  of  the Company has
declared a quarterly distribution, payable to holder of OP Units  of record
as  of April 3, 1998, of $.45 per OP Unit which is an amount equivalent  to
an annual  distribution of $1.80 per OP Unit.  Future distributions will be
determined by the Board of Directors of the Company, the general partner of
the Operating  Partnership,  and  will be dependent upon cash available for
distribution, financial position and  cash  requirements of the Company and
the Operating Partnership.

    On June 1, 1997, the Operating Partnership  acquired  the  remaining  70%
partner  interest  in  Silver Lake Mall, Ltd., a limited partnership owning
Silver Lake Mall, from Roebbelen  Engineering,  Inc. in exchange for 72,000
OP Units, which at the time of acquisition had a  value  of $1,863,000, and
the  assumption  of  debt  totaling  $24,755,000.  In connection  with  the
issuance  of  the  OP  Units, the Operating  Partnership  relied  upon  the
exemption from registration contained in Section 4(2) of the Securities Act
and the rules and regulations  of  the Commission thereunder.  The OP Units
are convertible on a one-for-one basis  into  shares of Common Stock of the
Company.

ITEM 6. SELECTED FINANCIAL DATA

     The following table sets forth selected financial  and other data for (i)
the  Operating  Partnership for the years ended December  31,  1997,  1996,
1995, and for the  period  January  21,  1994 through December 31, 1994 and
(ii) for the Predecessor Companies for the  period  January 1, 1994 through
January 20, 1994 and for the year ended December 31,  1993.  The historical
financial  information  for  all  the  periods have been derived  from  the
audited historical consolidated and combined financial statements.

    The following selected financial information should  be read in conjunction
with   all   of   the  financial  statements  included  elsewhere  herein   and
"Management's Discussion  and  Analysis  of  Financial Condition and Results of
Operations."

<PAGE> 21
<TABLE>
<CAPTION>
                                                       SELECTED FINANCIAL DATA
                                        (Dollars in Thousands Except Per Share Data)

                                                                                                   
                                                                  Operating Partnership            Predecessor  Predecessor 
                                                 _________________________________________________  Companies    Companies
                                                  Company     Company      Company      January 2,   January 1,     Year
                                                 Year Ended  Year Ended   Year Ended    1994 to       1994 to       Ended
                                                December 31, December 31, December 31, December 31,  January 20, December 31,
                                                    1997       1996         1995         1994(1)       1994         1993
                                                ----------- ------------  ----------- ------------- ------------ ------------
<S>                                             <C>         <C>           <C>         <C>           <C>          <C>
REVENUES                                         $   82,973  $    72,949   $   60,950  $     50,071  $     2,578  $    47,728
                                                 ----------  -----------   ----------  ------------  -----------  -----------
EXPENSES
Operating Expenses before Interest,
 Depreciation and Amortization                       27,434       24,405       20,389        17,090          893       17,226

Interest                                              9,066        7,776        6,623         5,873          893       18,482

Depreciation and Amortization                        13,410       11,979       11,528         8,734          430        8,530
                                                 ----------  -----------   ----------  ------------  -----------  -----------
   Total                                             49,910       44,160       38,540        31,697        2,149       44,238
                                                 ----------  -----------   ----------  ------------  -----------  -----------
                                                     33,063       28,789       22,410        18,374          429        3,490
Minority Interest in Income of Consolidated
Partnerships                                           (394)        (389)        (421)         (277)          --         (251)

Equity in Net Loss of Partnership Interest               --            --         (184)         (82)           7         (238)

Gain of Sales of Real Estate                            339           94          918            --           --          607
                                                 ----------  -----------   ----------  ------------  -----------  -----------
Income Before Extraordinary Item                     33,008       28,494       22,723        18,015          436        3,608

Extraordinary Item - Loss on Extinguishment
 of Debt                                               (162)          --           --        (6,670)          --           --
                                                 ----------  -----------   ----------  ------------  -----------  -----------
 Net Income                                      $   32,846  $    28,494   $   22,723  $     11,345  $       436  $     3,608
                                                 ==========  ===========   ==========  ============  ===========  ===========
Basic Earnings Per OP Unit (2):
 Income Before Extraordinary Item                      1.57         1.45         1.26          1.07
 Extraordinary Item                                    (.01)          --           --          (.40)
                                                 ----------  -----------   ----------   -----------
 Net Income                                      $     1.56  $      1.45   $     1.26   $       .67
                                                 ==========  ===========   ==========   ===========
Diluted Earnings Per OP Unit (2):
 Income Before Extraordinary Item                $     1.55  $      1.44   $     1.26   $      1.07
 Extraordinary Item                                    (.01)          --           --          (.40)
                                                 ----------  -----------   ----------   -----------
 Net Income                                      $     1.54  $      1.44   $     1.26   $       .67
                                                 ==========  ===========   ==========   ===========
Distributions per OP Unit                        $    1.755  $     1.695   $    1.635   $     1.525
                                                 ==========  ===========   ==========   ===========
</TABLE>

<PAGE> 22
<TABLE>
<CAPTION>
                                                       SELECTED FINANCIAL DATA
                                        (Dollars in Thousands Except Per Share Data)                            
                                                                                                   
                                                                  Operating Partnership            Predecessor  Predecessor 
                                                 _________________________________________________  Companies    Companies
                                                                                       January 21,   January 1,     Year
                                                 Year Ended  Year Ended   Year Ended    1994 to       1994 to       Ended
                                                December 31, December 31, December 31, December 31,  January 20, December 31,
                                                    1997       1996         1995         1994(1)       1994         1993
                                                ----------- ------------  ----------- ------------- ------------ ------------
<S>                                            <C>          <C>          <C>          <C>          <C>         <C>
Balance Sheet Data
Real Estate, before Accumulated Depreciation    $  619,371   $ 453,241     $ 388,205   $ 321,242        N/A   $ 286,719

Total Assets                                       545,684     381,360       327,061     281,696        N/A     236,482

Total Debt                                         283,390     162,375       106,406     108,741        N/A     235,799

Shareholders' Equity (Deficit)                     207,986     172,556       175,754     127,593        N/A     (6,951)

Other Data

Funds From Operations (3)                           44,523      39,098        32,139      26,083        859      10,792

Net Operating Income                                55,539      48,544        40,561      32,981      1,685      30,502

</TABLE>
<TABLE>
<CAPTION>
                                           NUMBER OF PROPERTIES/TOTAL GLA AT DECEMBER 31,
    
                                                    1997        1996        1995        1994        1993
                                                 ----------  ----------  ----------  ----------  -----------
<S>                                              <C>         <C>         <C>         <C>         <C>
Number of Properties at Year End                      48          44          43          40           38

 Total GLA in square feet at Year End:

Malls                                             7,745,000   5,553,000   5,020,000   3,898,000    3,855,000

Community Centers and Free-Standing Retail
Properties                                        3,164,000   3,091,000   3,091,000   2,997,000    2,742,000

Commercial Properties                             1,418,000   1,418,000   1,394,000   1,113,000    1,113,000
                                                 ----------  ----------  ----------  ----------  -----------
   Total                                         12,327,000  10,062,000   9,505,000   8,008,000    7,710,000
                                                 ==========  ==========  ==========  ==========  ===========       
  </TABLE>
___________________
(1)   The  Company closed its initial public offering of shares of Common Stock
      on January 21, 1994.
(2)   Basic  Earnings  Per  OP Unit based on 21,119,000, 19,668,000, 18,037,000
      and 16,923,000 weighted  average  number  of OP Units outstanding for the
      years  ended  December  31,  1997,  1996,  1995 and  1994,  respectively.
      Diluted Earnings Per OP Unit based on 21,285,000,  19,753,000, 18,103,000
      and  16,992,000 weighted diluted average number of OP  Units  outstanding
      for years ended December 31, 1997, 1996, 1995, and 1994, respectively.
(3)   The Company,  the general partner of the Operating Partnership, considers
      funds from operations  to be an appropriate measure of the performance of
      an equity REIT.  Funds from operations ("FFO") is defined by the National
      Association of Real Estate  Investment  Trusts  ("NAREIT") as "net income
      (computed  in accordance with generally accepted accounting  principles),
      excluding  gains  (or  losses)  from  debt  restructuring  and  sales  of
      property, plus  depreciation  and  amortization and after adjustments for
      unconsolidated  partnerships  and joint  ventures."   While  the  Company
      believes that FFO is the most relevant  and  widely  used  measure of its
      operating  performance,  it  does  not  represent  cash  generated   from
      operating  activities  in  accordance  with generally accepted accounting
      principles and is not indicative of cash  available  to  fund cash needs.
      FFO  should  not  be  considered  as an alternative to net income  as  an
      indication  of  the Company's or the  Operating  Partnership's  operating
      performance or as  an alternative to cash flow as a measure of liquidity.
      The Company's presentation  of  FFO,  however,  may  not be comparable to
      other  similarly  titled  measures  used  by  other  equity  REITs.   See
      "Management's Discussion and Analysis of Financial Condition and  Results
      of Operations - Liquidity and Capital Resources."

 <PAGE> 23
ITEM 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS

OVERVIEW

      The  following  discussion  should  be read in conjunction with "Selected
Financial  Data" and the Consolidated Financial  Statements  of  the  Operating
Partnership and the Notes thereto appearing elsewhere herein.

      JP Realty,  Inc.  completed  its  initial  public offering on January 21,
1994, and conducts all of its business operations  through,  and  holds  an 83%
controlling  general  partner  interest  in, Price Development Company, Limited
Partnership ("the Operating Partnership")  as of December 31, 1997.  JP Realty,
Inc. together with its subsidiaries which included  Price  Development Company,
Limited Partnership will herein be referred to as the Company.

      The  Company  is  a fully integrated, self-administered and  self-managed
REIT  primarily  engaged in  the  ownership,  leasing,  management,  operation,
development,  redevelopment   and  acquisition  of  retail  properties  in  the
Intermountain Region, as well as  in  Oregon,  Washington  and California.  The
Company's existing portfolio consists of 48 properties, including  15  enclosed
regional  malls,  25 community centers, two freestanding retail properties  and
six mixed-use commercial  properties  ("Properties").   The Company's financial
condition and results of operations were positively impacted  by  the Operating
Partnership's June 1997 acquisitions of the Silver Lake Mall, Visalia Mall, the
August 13, 1997 opening of the Spokane Valley Mall, the 1996 acquisition of the
Grand Teton Mall and the 1995 acquisition of two regional malls, Eastridge Mall
and  Animas  Valley  Mall,  and  one community center, Cottonwood Square.   The
Company also acquired Salem Center  on December 30, 1997 which has not affected
financial  results  in  1997.   The  Company's   acquisition   and  development
activities  added a combined 2,798,000 square feet of Total GLA to  the  retail
portfolio and 24,000 square feet of GLA to the commercial portfolio during 1996
and 1997.

      The Company  completed  an  additional  public  offering  in August 1995,
raising  approximately  $56.4  million  in gross proceeds through the  sale  of
2,750,000  shares  of  its Common Stock.  An  additional  public  offering  was
completed  in  January 1997,  raising  approximately  $40.7  million  in  gross
proceeds through the sale of 1,500,000 shares of Common Stock.

    During 1995, the Company obtained a $50 million credit facility (the "1995
Credit Facility") to fund working capital  and  property acquisition, expansion
and  development  activities.  On January 22, 1996,  the  Company  obtained  an
additional $25 million  credit  facility  (the "1996 Credit Facility," together
with the 1995 Credit Facility, the "Credit Facilities") which was available for
the same purposes as the 1995 Credit Facility.  In October 1997 the 1996 Credit
Facility  was  increased to $40 million.  On  November  7,  1997  these  Credit
Facilities were paid off and canceled.

    On October 16,  1997, the Company  obtained a $150 million unsecured Credit
Facility  (the  "1997  Credit  Facility") to  fund  working  capital,  property
acquisition, expansion and development  activities,  to  pay off and cancel the
$50  million  1995  Credit  Facility  and  pay off and cancel the  1996  Credit
Facility which were obtained for the same purpose  as the 1997 Credit Facility.
On December 18, 1997, the $150 million 1997 Credit Facility  was  increased  to
$200 million.

RESULTS OF OPERATIONS

    Comparison of Year Ended December 31, 1997 to Year Ended December 31, 1996

    For the year ended December 31, 1997, income before extraordinary item and
minority interest of the Operating Partnership Unitholders increased $4,515,000
or 16% when compared  to  the year ended December 31, 1996.  The improvement in
operations was primarily attributable to the following factors:  an increase in
minimum rents of $7,177,000;  and  an  increase  in  recoveries from tenants of
$2,642,000 and an increase in other revenues of $373,000.  These increases were
offset by an increase in operating expenses of $1,775,000; an increase in taxes
and insurance of $867,000; an increase in general and administrative expense of
$387,000; an increase in interest expense of $1,290,000  and  a net increase in
depreciation and amortization of $1,431,000.

   Funds from operations increased $5,425,000 or 14% primarily as a result of
acquisitions and developments as discussed herein.

<PAGE> 24
    Total revenues for the year ended December 31, 1997 increased $10,024,000 or
14% to $82,973,000  as  compared  to  $72,949,000  in  1996.   This increase is
primarily  attributable  to  a $7,177,000 or 14% increase in minimum  rents  to
$59,624,000 as compared to $52,447,000  in 1996.  Additionally, recoveries from
tenants increased $2,642,000 or 17% to $18,199,000  as  compared to $15,557,000
in 1996 and other income increased $373,000 due to development and leasing fees
relating to the opening of Spokane Valley Mall.  Recoveries  from  Tenants as a
percentage of operating expenses were 83% in 1997, compared to 80% in 1996.

   The April 1996 acquisition of Grand Teton Mall, the June 1997 acquisitions of
Silver  Lake  Mall and Visalia Mall and the August 13, 1997 opening of  Spokane
Valley Mall contributed  $6,923,000 to the minimum rent increase and $2,453,000
of  the increase in recoveries  from  tenants.   Minimum  rent  growth  in  the
remaining  portfolio  was  offset by certain unexpected vacancies in the retail
and commercial properties.

   Property operating expenses, including operating and maintenance and real
estate  taxes  and insurance increased $1,775,000 or 15% and $867,000  or  11%,
respectively.  These  increases  were attributable to the acquisitions of Grand
Teton Mall, Silver Lake Mall, Visalia  Mall  and  the opening of Spokane Valley
Mall.   These  properties contributed $1,804,000 to operating  and  maintenance
costs and $885,000 to taxes and insurance.

    General and administrative expenses increased $387,000 or 8% to $5,447,000
as compared to $5,060,000.   The increase is primarily due to payroll costs from
additional personnel added to support the Company's growth.

    Interest expense increased $1,290,000 or 17% to $9,066,000 as compared to
$7,776,000 in 1996.  This increase is the result of additional interest on new
borrowings  to  acquire  Silver  Lake  Mall, Visalia Mall and to the opening of
Spokane Valley Mall.

    Depreciation expense increased $1,572,000 or 15% to $11,802,000 as compared
to $10,230,000 in 1996.  This increase is primarily  due  to the acquisition of
Grand Teton Mall, Silver Lake Mall, Visalia Mall, the opening  of  the  Spokane
Valley Mall and tenant allowances given on existing GLA.

Comparison of Year Ended December 31, 1996 to Year Ended December 31, 1995

    For the year ended December 31, 1996, income before extraordinary item  and
minority interest of the Operating Partnership Unitholders increased $5,790,000
or 25% when compared  to  the year ended December 31, 1995.  The improvement in
operations was primarily attributable to the following factors:  an increase in
minimum rents of $8,807,000;  an  increase  in  percentage and overage rents of
$596,000;  and  an increase in recoveries from tenants  of  $3,305,000.   These
increases were offset  by  a decrease in interest and other income of $709,000;
an increase in operating expenses  of  $3,041,000;  an  increase  in  taxes and
insurance  of  $787,000;  an increase in general and administrative expense  of
$215,000; and an increase in  interest  expense of $1,153,000.  These were also
offset by an increase in depreciation and amortization of $451,000.

    Funds from operations increased $6,959,000 or 22% primarily as a result of
acquisitions, minimum rent increases and percentage and  overage rent increases
as discussed herein.

    Total revenues for the year ended December 31, 1996 increased $11,999,000 or
20%  to  $72,949,000  as  compared  to  $60,950,000 in 1995.  This increase  is
primarily attributable to an $8,807,000 or  20%  increase  in  minimum rents to
$52,447,000  as compared to $43,640,000 in 1995.  Additionally, percentage  and
overage rents increased $596,000 or 17% to $4,061,000 as compared to $3,465,000
in 1995.

    The April 1996 acquisition  of  the  Grand  Teton  Mall,  the  June  1995
acquisitions of the Eastridge  Mall and the Animas Valley Mall and the December
1995 acquisition of Cottonwood Square  contributed a combined $6,915,000 to the
minimum rent increase and $459,000 to the  percentage and overage rent increase
in 1996.

<PAGE> 25
    Recoveries from tenants increased $3,305,000  or  27%  to  $15,557,000  as
compared  to  $12,252,000  in 1995.   Property  operating  expenses,  including
operating  and  maintenance and  real  estate  taxes  and  insurance  increased
$3,014,000 or 35%  and  $787,000  or  11%,  respectively.   These increases are
mainly due to the 1995 and 1996 property acquisitions.  Recoveries from tenants
as  a percentage of property operating expenses were 80% in 1996,  compared  to
79% in 1995.

    Interest expense increased $1,153,000 or 17% to $7,776,000 as compared to
$6,623,000 in 1995.  This increase resulted from  additional borrowings used to
acquire the Grand Teton Mall in April 1996.
   
    Depreciation  increased  $620,000 or  6%  to  $10,230,000  as compared to
$9,610,000  in  1995.   This  increase  is primarily due to the 1995  and  1996
property acquisitions and the development of additional GLA at the Properties.

LIQUIDITY AND CAPITAL RESOURCES

    The Company's principal uses of its liquidity and capital resources  have
historically  been  for  distributions,  property  development,  expansion  and
renovation  programs  and  debt  repayment.  To maintain its qualification as a
REIT under the Internal Revenue Code  of  1986,  as  amended  (the "Code"), the
Company is required to distribute to its shareholders at least 95% of its "Real
Estate  Investment Trust Taxable Income" as defined in the Code.   The  Company
declared   quarterly  distributions  aggregating  $1.755  per  share  in  1997.
Approximately 11% of the distributions represented a return of capital.  Future
distributions will be determined based on actual results of operations and cash
available for distribution.

    The Company's principal source of liquidity is its cash flow from operations
generated from its  real  estate  investments.   As  of  December 31, 1997, the
Company's cash and restricted cash amounted to approximately  $8.1 million.  In
addition to its cash and restricted cash, unused capacity under its 1997 Credit
Facility  totaled  $73 million at year end.  On January 28, 1997,  the  Company
completed an additional  public  offering  of 1,500,000 shares of Common Stock,
raising approximately $40.7 million in gross  proceeds.   The  net  proceeds of
approximately  $38.8  million  were  used  to pay costs of the offering and  to
reduce  outstanding  borrowings under the Credit  Facilities  by  approximately
$38.6 million.

    The Company generally intends to distribute approximately 80% to 85% of its
funds from operations with the remaining  20%  to  15%  to  be held for capital
expenditures  and  additional  growth.  The Company expects to meet  its  other
short-term cash requirements, through undistributed funds from operations, cash
balances and advances under the 1997 Credit Facility.
   
    The Company prepares an annual capital expenditure and maintenance budget
for each Property which includes provisions for all necessary recurring capital
improvements.    The  Company  believes  that  its  undistributed  funds   from
operations will provide  the  necessary  funding  for  these requirements.  The
Company believes that these funds will be sufficient to cover (i) tenant finish
costs associated with the renewal or replacement of current  tenant  leases  as
existing  leases  expire  and  (ii)  capital  expenditures  which  will  not be
reimbursed  by  tenants.   During  1997,  the Company had capital expenditures,
excluding  acquisitions,  totaling  approximately   $51,683,000.   This  amount
consists  of  $49,166,000  in revenue enhancing construction  and  development,
$1,167,000 in revenue enhancing  tenant  allowances,  $567,000  in  non-revenue
enhancing tenant allowances and $783,000 in other non-revenue enhancing capital
expenditures.  The Company also had $1,132,000 in leasing commissions  paid  to
outside  parties.   Of this amount, $1,003,000 was considered revenue enhancing
and $129,000 was considered  non-revenue  enhancing.  Exclusive of construction
and development, capital expenditures (both  revenue and non-revenue enhancing)
for  the  existing  Properties  are  budgeted  in  1998   to  be  approximately
$5,000,000.

    The Company's principal long-term  liquidity  requirements   will  be  the
repayment of principal on the $95 million mortgage debt, which matures  in 2001
and  which may require principal payments in an amount necessary to reduce  the
debt to  $83.1  million  as  of  January  21,  2000,  and to retire outstanding
balances under the 1997 Credit Facility.

<PAGE> 26
    An additional long-term capital need of the Company is the construction of
the regional mall in Spokane, Washington, through its consolidated partnership,
Spokane  Mall  Development Company Limited Partnership.  On July 30, 1996, this
consolidated partnership  entered  into  a $50 million construction facility to
meet its development and construction needs regarding the Spokane project.  The
mall opened August 13, 1997, and contains  approximately 689,000 square feet of
Total GLA.  Continued payments for initial tenant  construction  allowances and
completion of construction will increase borrowings on the loan.   The  Company
estimates  the  total  cost  of this project will be approximately $67 million.
The difference between the estimated  cost  of  the  project  and amount of the
construction facility is comprised of costs incurred to date for  the  purchase
of  land  and payment of fees and other development costs.  As of December  31,
1997, borrowings on the loan were approximately $43.0 million.

    The Operating  Partnership  has initiated  the  development of Provo Towne
Centre,  an  enclosed  regional  mall  in  Provo, Utah through its consolidated
partnership  Provo Mall Development Company,  Ltd.   This  property  will  also
represent a future long-term capital need for the Company.  The Company expects
to fund this project  through  advances  under  its  1997  Credit  Facility  in
combination with construction financing.

  The  Company is also contemplating the expansion and renovation of several of
its existing properties and additional development projects and acquisitions as
a means  to  expand  its  portfolio.   The  Company does not expect to generate
sufficient funds from operations to meet such  long-term  needs  and intends to
finance these costs primarily through advances under the 1997 Credit  Facility,
together with equity and debt offerings and individual property financing.

  On September 2, 1997 the Company and the Operating Partnership filed  a shelf
registration  statement on Form S-3 with the Securities and Exchange Commission
for the purpose  of  registering  common  stock,  preferred  stock,  depositary
shares,   common   stock   warrants,  debt  securities  and  guaranties.   This
registration statement, when  combined with the Company's unused portion of its
previous shelf registration, would  allow  for up to $400 million of securities
to be offered by the Company and the Operating  Partnership.  On March 11, 1998
the Operating Partnership under its shelf registration,  issued $100 million of
ten year senior unsecured notes bearing annual interest at  a  rate  of  7.29%.
Principal  payments of $25 million are due annually beginning March 2005.   The
proceeds were  used  to  partially  repay outstanding borrowings under the 1997
Credit Facility.

    The Company intends to fund  its  distribution,  development,  expansion,
renovation, acquisition and debt repayment  activities from its credit facility
as well as other debt and equity financing, including  public  financing,  in a
manner  consistent  with  its intention to operate with a conservative debt-to-
total market capitalization  ratio  of  less  than 50%.  The Company's ratio of
debt-to-total market capitalization was approximately  34%  as  of December 31,
1997.

    The Company believes  that  to  facilitate  a  clear  understanding of  the
consolidated  historical  operating  results  of  the  Company and  Predecessor
Companies,  net  income  should  be  examined in conjunction  with  funds  from
operations.  The Company considers funds  from  operations to be an appropriate
measure of the performance of an equity REIT.  Funds from operations ("FFO") is
defined by the National Association of Real Estate Investment Trusts ("NAREIT")
as  "net  income  (computed  in accordance with generally  accepted  accounting
principles), excluding gains (or  losses)  from debt restructuring and sales of
property,  plus  depreciation  and  amortization   and  after  adjustments  for
unconsolidated partnerships and joint ventures."  While  the  Company  believes
that  FFO  is  the  most  relevant  and  widely  used  measure of its operating
performance, it does not represent cash generated from operating  activities in
accordance with generally accepted accounting principles and is not  indicative
of  cash  available  to  fund  cash needs.  FFO should not be considered as  an
alternative  to  net  income  as  an  indication  of  the  Company's  operating
performance or as an alternative to  cash  flow as a measure of liquidity.  The
Company's  presentation  of  FFO,  however, may  not  be  comparable  to  other
similarly titled measures used by other equity REITs.

<PAGE> 27
    The Company's calculation of funds from operations is as follows:
<TABLE>
<CAPTION>
                                (DOLLARS IN THOUSANDS)

                                                  COMPANY           COMPANY
                                                HISTORICAL        HISTORICAL
                                                YEAR ENDED        YEAR ENDED
                                               DECEMBER 31,      DECEMBER 31,
                                                   1997              1996
                                               ------------      ------------       
<S>                                            <C>               <C>

Income from Operations before Equity in
 Net Income of Partnership Investment and
 Minority Interests in Income of
 Consolidated Partnerships                      $    33,063       $     28,789

Add:  Depreciation Buildings & Improvements          11,599             10,011
Add:  Amortization of Deferred Leasing Costs            639                664
Less: Minority Interests in Income of
      Consolidated Partnerships                        (273)              (269)
Less: Straight-Line Rent Accrual                       (505)               (97)
                                                -----------       ------------
Funds From Operations                           $    44,523       $     39,098
                                                ===========       ============
</TABLE>
INFLATION

      Inflation has remained relatively low during the past three years and has
had   minimal   impact   on   the  operating  performance  of  the  Properties.
Nonetheless, substantially all of the retail tenants' leases contain provisions
designed to protect the Company  from the impact of inflation.  Such provisions
include clauses enabling the Company  to  receive  percentage  rents  based  on
tenants'   gross  sales,  which  generally  increase  as  prices  rise,  and/or
escalation clauses,  which  generally  increase  rents  during the terms of the
leases.   In addition, many of the leases are for terms less  than  ten  years,
which may enable  the  Company  to  replace  existing leases with new leases at
higher base and/or percentage rents if rents of  the  existing leases are below
then-existing market rates.  Substantially all of the leases,  other than those
for  anchors,  require  the  tenants to pay a proportionate share of  operating
expenses, including common area  maintenance,  real estate taxes and insurance,
thereby reducing the Company's exposure to increases  in  costs  and  operating
expenses resulting from inflation.

      However,  inflation  may  have a negative impact on some of the Company's
other operating items.  Interest and general and administrative expenses may be
adversely affected by inflation as  these  specified  costs could increase at a
rate higher than rents.  Also, for tenant leases with specified rent increases,
inflation may have a negative effect as the specified rent  increases  in these
leases  could  be  lower  than  the increase in the inflation rate at any given
time.

      All  forward  looking  statements  included in this document are based on
information available to the Operating Partnership  on the date hereof, and the
Operating Partnership assumes no obligation to update  any such forward looking
statement.   It  is  important to note that the Operating Partnership's  actual
results could differ materially  from those in such forward looking statements.
Certain factors that might cause such  differences  include  those  relating to
changes  in  economic  climate,  local  conditions,  law  and  regulations, the
relative illiquidity of real property investments, the potential  bankruptcy of
tenants and the development, redevelopment or expansion of properties.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

      Not applicable

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

      The financial statements  and  supplementary data are listed in the Index
to Financial Statements and Financial Statement Schedules appearing on Page F-1
of this Form 10-K.

<PAGE> 28
ITEM 9. CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
        FINANCIAL DISCLOSURE.

      During the two most recent fiscal years, the Operating Partnership has not
experienced any changes in or disagreements with its independent auditors.


                             PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

     The Company is the sole general partner of the Operating Partnership.  The
information  required  by this  item  regarding  Directors  and  Section  16(a)
Beneficial Ownership Reporting  Compliance  is incorporated herein by reference
from the Company's proxy statement for its 1998  Annual Meeting of Stockholders
to be filed with the Commission pursuant to Regulation  14A.   The  information
required by this item regarding Executive Officers appears in Item 4A  of  this
Annual Report on Form 10-K.


ITEM 11. EXECUTIVE COMPENSATION

    The information required by this item regarding Executive Compensation is
incorporated herein by reference from the Company's proxy statement for its
1998 Annual Meeting of Stockholders to be filed with the Commission pursuant to
Regulation 14A.


ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The information required by this item regarding Security Ownership of
Certain Beneficial Owners and Management is incorporated herein by reference
from the Company's proxy statement for its 1998 Annual Meeting of Stockholders
to be filed with the Commission  pursuant to Regulation 14A.


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

  The information required by this  time  regarding  Certain  Relationships and
Related  Transactions  is  incorporated herein by reference from the  Company's
proxy statement for its 1998  Annual  Meeting  of Stockholders to be filed with
the Commission pursuant to Regulation 14A.


                                    PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

  (a)  (1) and (2) Financial Statements and Financial Statements Schedules

      See  Index  to  Financial  Statements and Financial  Statement  Schedules
      appearing on page F-1 of this Form 10-K

  (b) Reports on Form 8-K

      None

  (c) Exhibits

<PAGE> 29 

ITEM 14A.   SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT
            TO SECTION 15(d) OF THE EXCHANGE ACT BY REGISTRANTS WHICH HAVE NOT
            REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE EXCHANGE ACT

      No annual report to security holders or any proxy statement, form of proxy
or other proxy solicitating material will be sent by the Registrant to security
holders.

<PAGE> 30
                                 EXHIBIT INDEX         
                                  Description
                                  -----------

Exhibit                                                                Page
Number                                                                Number
------                                                                ------
4.1  Form of Debt Security (4.6)*
4.2  Indenture, dated March 11, 1998,  by and between the Operating
     Partnership and The Chase Manhattan Bank as trustee (4.8)*
4.3  First Supplemental Indenture, dated  March  11,  1998,  by and
     between the Operating Partnership and The Chase Manhattan Bank
     as trustee (4.9)*
10.1 Amended and Restated Agreement of Limited Partnership of Price
     Development Company, Limited Partnership (10(a))**
10.2 Agreement of Limited Partnership of Price Financing Partnership,
     L.P. (10(b))**
10.3 Loan Agreements related to Mortgage Debt and related documents
     (10(c))**
     i)   Deed of Trust, Mortgage, Security Agreement  and  Assignment
          of Leases and Rents of Price Financing Partnership, L.P.
     ii)  Intentionally Omitted
     iii) Indenture between Price Capital Corp. and a Trustee
     iv)  Limited  Guarantee  Agreement  (Guarantee of Collection)
          for outside investors
     v)   Limited  Guarantee Agreement (Guarantee of Collection) for
          Price Group Investors
     vi)  Cash Collateral Account Security, Pledge and Assignment
          Agreement among Price Financing  Partnership, L.P., Price
          Capital Corp. and Continental Bank N.A.
     vii) Note Issuance Agency Agreement between Price Capital Corp.
          and Price Financing Partnership, L.P.
     viii)Management and Leasing Agreement among Price Financing
          Partnership, L.P.and Price Development Company, Limited
          Partnership
     ix)  Assignment of Management and Leasing Agreement of Price
          Financing Partnership, L.P.
10.6  Registration Rights Agreement among the Company and the Limited
      Partners of Price Development Company, Limited Partnership (10(g))**
10.7  Amendment No. 1 to Registration Rights Agreement, dated August 1,
      1995, among the Company and the Limited Partners of Price
      Development Company, Limited Partnership**
10.8  Exchange Agreement among the Company and the Limited Partners of
      Price Development Company, Limited Partnership (10(h))**
10.10 Amendment to Groundlease between Price Development Company and Alvin
      Malstrom as Trustee and C.F. Malstrom, dated December 31, 1985.
      (Groundlease for Plaza 9400) (10(j))**
10.11 Lease Agreement between The Corporation of the President of the
      Church of Jesus Christ of Latter Day Saints and Price-James
      and Assumptions, dated September 24, 1979. (Groundlease for Anaheim
      Plaza) (10(k))**
10.12 Indenture of Lease between Ambrose and Zelda Motta and Cordova
      Village, dated July 26, 1974, and Amendments and Transfers thereto.
      (Groundlease for Fort Union Plaza) (10(l))**
10.13 Lease Agreement  between Advance Management Corporation and Price
      Rentals, Inc. and dated August 1, 1975 and Amendments thereto.
      (Groundlease for Price Fremont) (10(m))**
10.14 Groundlease between Aldo Rossi and Price Development Company, dated
      June 1, 1989, and related documents.   (Groundlease for Halsey
      Crossing) (10(n))**
23.   Consent of Independent Accountants                                      33

*Documents were previously filed with the Operating Partnership's Current
Report on Form 8-K dated March 12, 1998, under the exhibit numbered in
the parenthetical, and are incorporated herein by reference.

**Documents were previously filed with the Company's Registration Statement
on Form S-11, File  No. 33-68844, under the exhibit numbered in the
parenthetical, and are incorporated herein by reference.

<PAGE> 31
                                    SIGNATURES

      Pursuant to  the  requirements  of  Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly  caused  this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                  PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP

                                  BY: JP Realty, Inc. as a General Partner



Date:  March 25, 1998              By: /s/ John Price
                                      --------------------------
                                      John Price
                                      Chairman of the Board of Directors
                                      and Chief Executive Officer

      Pursuant to the requirements of the Securities Exchange Act of 1934, this
report  has  been  signed  below  by  the  following persons on behalf  of  the
Registrant and in the capacities and on the dates indicated.

                 ----------------------------

        NAME                       TITLE                       DATE
         
<TABLE>
<CAPTION>

<S>                               <C>                         <C>



/s/ John Price
----------------                   Chairman of the Board       March 25, 1998
John Price                         of Directors, Chief
                                   Executive Officer and
                                   Director of JP Realty,                                   (Principal Executive
                                   Inc. (Principal Executive
                                   Officer)


/s/ G. Rex Frazier
---------------------              President, Chief            March 25, 1998
G. Rex Frazier                     Operating Officer
                                   and Director
                                   of JP Realty, Inc.



/s/ M. Scott Collins
---------------------              Vice President, Chief       March 25, 1998
M. Scott Collins                   Financial Officer and     
                                   Treasurer of JP Realty,
                                   Inc. (Principal
                                   Financial and
                                   Accounting Officer)


/s/ Warren P. King
-----------------------            Director of JP               March 25, 1998
Warren P. King                     Realty, Inc.


/s/ Sam W. Souvall
-----------------------            Director of JP              March 25, 1998
Sam W. Souvall                     Realty, Inc.

<PAGE> 32
                                 EXHIBIT INDEX         
                                  Description
                                  -----------

Exhibit                                                                Page
Number                                                                Number
------                                                                ------
4.1  Form of Debt Security (4.6)*
4.2  Indenture, dated March 11, 1998,  by and between the Operating
     Partnership and The Chase Manhattan Bank as trustee (4.8)*
4.3  First Supplemental Indenture, dated  March  11,  1998,  by and
     between the Operating Partnership and The Chase Manhattan Bank
     as trustee (4.9)*
10.1 Amended and Restated Agreement of Limited Partnership of Price
     Development Company, Limited Partnership (10(a))**
10.2 Agreement of Limited Partnership of Price Financing Partnership,
     L.P. (10(b))**
10.3 Loan Agreements related to Mortgage Debt and related documents
     (10(c))**
     i)   Deed of Trust, Mortgage, Security Agreement  and  Assignment
          of Leases and Rents of Price Financing Partnership, L.P.
     ii)  Intentionally Omitted
     iii) Indenture between Price Capital Corp. and a Trustee
     iv)  Limited  Guarantee  Agreement  (Guarantee of Collection)
          for outside investors
     v)   Limited  Guarantee Agreement (Guarantee of Collection) for
          Price Group Investors
     vi)  Cash Collateral Account Security, Pledge and Assignment
          Agreement among Price Financing  Partnership, L.P., Price
          Capital Corp. and Continental Bank N.A.
     vii) Note Issuance Agency Agreement between Price Capital Corp.
          and Price Financing Partnership, L.P.
     viii)Management and Leasing Agreement among Price Financing
          Partnership, L.P.and Price Development Company, Limited
          Partnership
     ix)  Assignment of Management and Leasing Agreement of Price
          Financing Partnership, L.P.
10.6  Registration Rights Agreement among the Company and the Limited
      Partners of Price Development Company, Limited Partnership (10(g))**
10.7  Amendment No. 1 to Registration Rights Agreement, dated August 1,
      1995, among the Company and the Limited Partners of Price
      Development Company, Limited Partnership**
10.8  Exchange Agreement among the Company and the Limited Partners of
      Price Development Company, Limited Partnership (10(h))**
10.10 Amendment to Groundlease between Price Development Company and Alvin
      Malstrom as Trustee and C.F. Malstrom, dated December 31, 1985.
      (Groundlease for Plaza 9400) (10(j))**
10.11 Lease Agreement between The Corporation of the President of the
      Church of Jesus Christ of Latter Day Saints and Price-James
      and Assumptions, dated September 24, 1979. (Groundlease for Anaheim
      Plaza) (10(k))**
10.12 Indenture of Lease between Ambrose and Zelda Motta and Cordova
      Village, dated July 26, 1974, and Amendments and Transfers thereto.
      (Groundlease for Fort Union Plaza) (10(l))**
10.13 Lease Agreement  between Advance Management Corporation and Price
      Rentals, Inc. and dated August 1, 1975 and Amendments thereto.
      (Groundlease for Price Fremont) (10(m))**
10.14 Groundlease between Aldo Rossi and Price Development Company, dated
      June 1, 1989, and related documents.   (Groundlease for Halsey
      Crossing) (10(n))**
23.   Consent of Independent Accountants                                      33

*Documents were previously filed with the Operating Partnership's Current
Report on Form 8-K dated March 12, 1998, under the exhibit numbered in
the parenthetical, and are incorporated herein by reference.

**Documents were previously filed with the Company's Registration Statement
on Form S-11, File  No. 33-68844, under the exhibit numbered in the
parenthetical, and are incorporated herein by reference.

<PAGE> 33
                CONSENT OF INDEPENDENT ACCOUNTANTS
                ----------------------------------

   We hereby consent to the incorporation by reference in the Prospectus
constituting part of the Registration Statements on Form S-3 (No. 333-34835
and No. 333-34835-01) of Price Development Company, Limited Partnership of
our report dated February 4, 1998 appearing on page F-2 of this Form 10-K.


/s/ Price Waterhouse LLP
--------------------
Price Waterhouse LLP
Salt Lake City, Utah
March 24, 1998

<PAGE> 33
                          INDEX TO FINANCIAL STATEMENTS



PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP

                                                                    PAGE
                                                                    ----


Report of Independent Accountants                                    F-2

Consolidated Balance Sheet as of December 31, 1997 and 1996          F-3

Consolidated Statement of Operations
 for the years ended December 31, 1997, 1996 and 1995                F-4

Consolidated Statement of Partners' Capital                          F-5

Consolidated Statement of Cash Flows
 for the years ended December 31, 1997, 1996 and 1995                F-6

Notes to Consolidated Financial Statements                           F-7

Schedule II - Valuation and Qualifying Accounts                     F-18

Schedule III - Real Estate and Accumulated Depreciation             F-19
                          

<PAGE> 34

                       REPORT OF INDEPENDENT ACCOUNTANTS


To the Partners
of Price Development Company, Limited Partnership


     In our opinion, the consolidated financial statements listed in the
accompanying index, present fairly, in all material aspects, the financial
position of Price Development Company, Limited Partnership and its subsidiaries
at December 31, 1997 and 1996, and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 1997,
in conformity with generally accepted accounting principles.  These financial
statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits.  We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement.  An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for the
opinion expressed above.


/s/ Price Waterhouse LLP
------------------------
Price Waterhouse LLP
Salt Lake City, Utah
February 4, 1998


                                    F-2

<PAGE> 35
                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                          CONSOLIDATED BALANCE SHEET
                            (DOLLARS IN THOUSANDS)



</TABLE>
<TABLE>
<CAPTION>
                                                  DECEMBER 31,     DECEMBER 31,
                                                      1997            1996
                                                  ------------     ------------
<S>                                               <C>              <C>
ASSETS
Real Estate Assets
  Land                                             $   95,523      $  69,714
  Buildings                                           490,183        353,500
                                                   ----------      ---------
                                                      585,706        423,214
Less:  Accumulated Depreciation                       (98,404)       (87,318)
                                                   ----------      ---------
  Operating Real Estate Assets                        487,302        335,896
Real Estate Under Development                          33,665         30,027
                                                   ----------      ---------
   Net Real Estate Assets                             520,967        365,923
Cash                                                    5,603          1,750
Restricted Cash                                         2,465          2,372
Accounts Receivable, Net                                5,759          3,498
Deferred Charges, Net                                   7,536          6,512
Other Assets                                            3,354          1,305
                                                   ----------      ---------

                                                   $  545,684      $ 381,360
                                                   ==========      =========

LIABILITIES AND PARTNERS' CAPITAL
Borrowings                                         $  283,390      $ 162,375
Accounts Payable and Accrued Expenses                  18,840         11,611
Accumulated Losses in Excess of Equity Investment          --          1,555
Other Liabilities                                         617            485
                                                   ----------      ---------
                                                      302,847        176,026
                                                   ----------      ---------
Minority Interests                                      1,830            668
                                                   ----------      ---------

Commitments and Contingencies

PARTNERS' CAPITAL
 General Partner                                      207,581        172,286
 Limited Partners                                      33,426         32,380
                                                   ----------      ---------
                                                      241,007        204,666
                                                   ----------      ---------

                                                   $  545,684      $ 381,360
                                                   ==========      =========

</TABLE>
           See accompanying notes to consolidated financial statements.
                                    F-3
<PAGE> 36
                      PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                           CONSOLIDATED STATEMENT OF OPERATIONS
               (DOLLARS IN THOUSANDS - EXCEPT PER PARTNERSHIP UNIT AMOUNTS)


<TABLE>
<CAPTION>

                                                             FOR THE YEAR ENDED DECEMBER 31,
                                                         ----------------------------------------
                                                            1997           1996          1995
                                                         ---------      ---------     ----------
<S>                                                      <C>            <C>            <C>
REVENUES
Minimum Rents                                            $  59,624      $  52,447     $   43,640
Percentage and Overage Rents                                 3,896          4,061          3,465
Recoveries from Tenants                                     18,199         15,557         12,252
Interest                                                       546            549          1,231
Other                                                          708            335            362
                                                         ---------      ---------     ----------

                                                            82,973         72,949         60,950
                                                         ---------      ---------     ----------
EXPENSES
Operating and Maintenance                                   12,990         11,240          8,288
Real Estate Taxes and Insurance                              8,546          7,679          6,892
Advertising and Promotions                                     451            426            364
General and Administrative                                   5,447          5,060          4,845
Depreciation                                                11,802         10,230          9,610
Amortization of Deferred Financing Costs                       969          1,085          1,256
Amortization of Deferred Leasing Costs                         639            664            662
Interest                                                     9,066          7,776          6,623
                                                         ---------      ---------     ----------

                                                            49,910         44,160         38,540
                                                         ---------      ---------     ----------

                                                            33,063         28,789         22,410

Minority Interest in Income of
 Consolidated Partnerships                                    (394)          (389)          (421)
Equity in Net Loss of Partnership Interest                      --             --           (184)
Gain on Sales of Real Estate                                   339             94            918
                                                         ---------      ---------     ----------
Income Before Extraordinary Item                            33,008         28,494         22,723
Extraordinary Item - Loss on Extinguishment of Debt           (162)            --             --
                                                         ---------      ---------     ----------

 Net Income                                              $  32,846      $  28,494      $  22,723
                                                         =========      =========     ==========

Basic Earnings Per Partnership Unit:
 Income Before Extraordinary Item                        $    1.57      $    1.45     $     1.26
 Extraordinary Item                                           (.01)            --             --
                                                         ---------      ---------     ----------

 Net Income                                              $    1.56      $    1.45     $     1.26
                                                         =========      =========     ==========

Diluted Earnings Per Partnership Unit:
 Income Before Extraordinary Item                        $    1.55      $    1.44     $     1.26
 Extraordinary Item                                           (.01)            --             --
                                                         ---------      ---------     ----------

 Net Income                                              $    1.54      $    1.44     $     1.26
                                                         =========      =========     ==========

</TABLE>

             See accompanying notes to consolidated financial statements.
                                    F-4
<PAGE> 37
                           PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                             CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
                                       (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                          GENERAL       LIMITED
                                                          PARTNER       PARTNERS        TOTAL
                                                         ---------      ---------     ----------


<S>                                                      <C>            <C>           <C>
Partners' Capital at December 31, 1994                   $ 127,550      $  35,523     $  163,073

Units Issued for Proceeds from Sale of Common Stock         52,888             --         52,888
Units Issued Upon Exercise of Stock Options                    976             --            976
Distributions                                              (23,881)        (6,037)       (29,918)
Net Income                                                  18,071          4,652         22,723
                                                         ---------      ---------     ----------

Partners' Capital at December 31, 1995                     175,604         34,138        209,742

Units Issued Upon Exercise of Stock Options                    407             --            407
Conversion of Limited Partners' Interests                      164           (164)            --
Distributions                                              (27,139)        (6,838)       (33,977)
Net Income                                                  23,250          5,244         28,494
                                                         ---------      ---------     ----------

Partners' Capital at December 31, 1996                     172,286         32,380        204,666

Units Issued for Proceeds from Sale of Common Stock         38,632             --         38,632
Units Issued Upon Exercise of Stock Options                    220             --            220
Conversion of Limited Partners' Interests                       40            (40)            --
Units Issued for Acquisition                                    --          1,863          1,863
Distributions                                              (30,797)        (6,423)       (37,220)
Net Income                                                  27,200          5,646         32,846
                                                         ---------      ---------     ----------

Partners' Capital at December 31, 1997                   $ 207,581      $  33,426     $  241,007
                                                         =========      =========     ==========


</TABLE>
              See accompanying notes to consolidated financial statements.
                                    F-5
<PAGE> 38
                           PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                                Consolidated Statement of Cash Flows
                                       (Dollars in thousands)





<TABLE>
<CAPTION>
                                                             FOR THE YEAR ENDED DECEMBER 31,
                                                         ---------------------------------------
                                                            1997           1996           1995
                                                         ---------      ---------      ---------
<S>                                                      <C>            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income                                               $  32,846      $  28,494      $  22,723
Adjustments to Reconcile Net Income to Net Cash
 Provided by Operating Activities:
  Depreciation                                              11,802         10,230          9,610
  Amortization                                               1,608          1,749          1,918
  Minority Interest in Income of Consolidated Partnerships     394            389            421
  Equity in Net Loss of Partnership Interest                    --             --            184
  Gain on Sales of Real Estate                                (339)           (94)          (918)
  Increase in Accounts Receivable                           (2,261)          (786)          (540)
  Increase in Deferred Charges                              (1,128)          (387)        (1,428)
  Increase in Accounts Payable and Accrued Expenses          3,368          3,774            887
  Increase in Other Assets                                  (1,917)          (295)          (138)
                                                         ---------      ---------      ---------
  Net Cash Provided by Operating Activities                 44,373         43,074         32,719
                                                         ---------      ---------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES
Real Estate Assets, Developed or Acquired                 (137,560)       (65,323)       (69,300)
Proceeds from Sales of Real Estate                             469             --          1,281
(Increase) Decrease in Restricted Cash                         (93)            92            636
                                                         ---------      ---------      ---------
   Net Cash Used in Investing Activities                  (137,184)       (65,231)       (67,383)
                                                         ---------      ---------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Borrowings                                   219,088         65,442         47,009
Repayment of Borrowings                                   (123,320)        (9,473)       (49,344)
Deferred Financing Costs                                    (1,503)            --             --
Net Proceeds from Sale of Partnership Units                 38,865            407         53,850
Capital Contributions by Minority Interests                  1,000             --             --
Distributions to Partners                                  (37,220)       (33,977)       (29,918)
Distributions to Minority Interests                           (246)          (319)          (258)
                                                         ---------      ---------      ---------
   Net Cash Provided by Financing Activities                96,664         22,080         21,339
                                                         ---------      ---------      ---------
Net Increase (Decrease) in Cash                              3,853            (77)       (13,325)
Cash, Beginning of Period                                    1,750          1,827         15,152
                                                         ---------      ---------      ---------
Cash, End of Period                                      $   5,603      $   1,750      $   1,827
                                                         =========      =========      =========

</TABLE>
              See accompanying notes to consolidated financial statements.
                                    F-6
<PAGE> 39

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


1.     BUSINESS AND BASIS OF PRESENTATION

BUSINESS

       Price   Development   Company,   Limited   Partnership  (the  "Operating
Partnership") a Maryland Limited Partnership, is engaged  in  the  business  of
owning,  leasing,  managing,  operating,  developing  and redeveloping regional
malls,  community  centers  and  other  commercial properties.   The  Operating
Partnership's general partner, JP Realty,  Inc.  ("the  Company"),  is  a  real
estate  investment  trust  ("REIT") as defined by the Internal Revenue Code and
owns an interest in and conducts  its business activities through the Operating
Partnership.  The Company owned an  82.7  and  81.7 percent general partnership
interest  in  the  Operating  Partnership  at  December   31,  1997  and  1996,
respectively, which owns a portfolio of 48 properties consisting of 15 enclosed
regional malls, 25 community centers, two free-standing retail  properties  and
six  mixed-use  commercial  properties.   The  tenant  base  includes primarily
national, regional and local retailers; as such, the Company's  credit  risk is
concentrated in the retail industry.

BASIS OF PRESENTATION

       The accompany consolidated financial statements include the accounts  of
the  Operating  Partnership  and  all  controlled affiliates.  During 1995, the
Operating  Partnership used the equity method  to  account  for  a  30  percent
limited  partnership   interest  in  a  partnership  owning  a  regional  mall.
Commencing  in  1996, the  Operating  Partnership  discontinued  recording  its
proportionate interest  in  the losses generated by this partnership, as it was
not  required to fund such losses.   During  1997,  the  Operating  Partnership
acquired the remaining 70 percent interest in this partnership.

       The  effect  of  all  significant intercompany balances and transactions
have been eliminated in the consolidated  presentation.  Certain amounts in the
1996 and 1995 financial statements have been  reclassified  to conform with the
1997 presentation.

       The  preparation  of  these  financial  statements  in  conformity  with
generally accepted accounting principles required management to  make estimates
and assumptions that affect the reported amounts of assets and liabilities  and
disclosure  of  contingent  assets and liabilities at the date of the financial
statements  and  the reported amounts  of  revenues  and  expenses  during  the
reporting period.  Actual results could differ from those estimates.


2.     SUMMARY OF SIGNIFICANT ACCOUNTING

REAL ESTATE ASSETS

       Real estate assets are stated at cost less accumulated depreciation.  At
each balance sheet  date, the Operating Partnership reviews book values of real
estate  assets  for possible  impairment  based  upon  expectations  of  future
nondiscounted cash flows (excluding interest) from each property.

       Costs directly related to the acquisition and development of real estate
assets, including  overhead costs directly attributable to property development
are  capitalized.   Interest   and   real  estate  taxes  incurred  during  the
development and construction period are capitalized.

       Depreciation  is computed on a straight-line  basis  generally  over  40
years for buildings and  four  to ten years for equipment and fixtures.  Tenant
improvements are capitalized and  depreciated on a straight-line basis over the
life  of  the related lease.  Expenditures  for  maintenance  and  repairs  are
charged to  operations  as  incurred.  Major replacements and betterments which
improve or extend the life of  the  asset  are capitalized and depreciated over
their estimated useful lives.

                                    F-7
<PAGE> 40

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


2.    SUMMARY OF SIGNIFICANT ACCOUNTING (CONTINUED)

REVENUE RECOGNITION

      Certain minimum rents are recognized monthly based upon amounts which are
currently due from tenants, when such amounts are not materially different than
recognizing the fixed cash flow over the initial  term  of  the lease using the
straight-line  method.   All  other  minimum  rents  are recognized  using  the
straight-line method.  Percentage rents are recognized  monthly  on  an accrual
basis  based  on estimated annual amounts.   The Operating Partnership receives
reimbursements  from  tenants  for  certain  costs  as  provided  in  the lease
agreements.   These costs consist of real estate taxes, insurance, common  area
maintenance  and   other   recoverable  costs.   Recoveries  from  tenants  are
recognized monthly on an accrual basis based on estimated amounts.

      An allowance for doubtful  accounts has been provided against the portion
of tenant accounts receivable which  is  estimated to be uncollectible.  Tenant
accounts  receivable  in  the  accompanying balance  sheet  are  shown  net  of
allowance for doubtful accounts  of  $570  and $489 as of December 31, 1997 and
1996, respectively.

RESTRICTED CASH

      Restricted cash reflects cash restricted  under terms of a loan agreement
to be used for certain capital expenditures and funds  held  in  reserve  by  a
trustee for interest payments on borrowings.

DEFERRED CHARGES

      Deferred  charges  consists  principally  of  financing  fees and leasing
commissions  paid to third parties.  These costs are amortized on  a  straight-
line basis over  the  terms  of the respective agreements.  Deferred charges in
the accompanying consolidated  balance  sheet  are  shown  net  of  accumulated
amortization   of  $5,857  and  $6,064  as  of  December  31,  1997  and  1996,
respectively.

INCOME TAXES

      Income taxes  have  not  been  provided  in  the  accompanying  financial
statements as the tax effects of the Operating Partnership's operations  accrue
directly to the partners.

RECENT ACCOUNTING PRONOUNCEMENTS

      In  June  1997,  the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Standards  ("SFAS")  No.  130  "Reporting  Comprehensive
Income".  SFAS No. 130 establishes standards for the reporting and  display  of
comprehensive  income  and  its  components  in  a  full set of general purpose
financial statements.  Comprehensive income is defined  as the change in equity
of a business enterprise during a period from transactions  and other event and
circumstances  from nonowner sources.  The new standard becomes  effective  for
the Operating Partnership  for  the year ending December 31, 1998, and requires
comparative information from earlier  years  to  be  restated to conform to the
requirements of this standard.  The Operating Partnership  does not expect this
pronouncement to materially impact the presentation or form  of  its  financial
statements.

                                    F-8
<PAGE> 41

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


2.    SUMMARY OF SIGNIFICANT ACCOUNTING (CONTINUED)

      In  June  1997, the FASB issued SFAS No. 131, "Disclosures about Segments
of an Enterprise  and Related Information".  SFAS No. 131 establishes standards
for disclosure about  operating  segments  in  annual  financial statements and
selected  information  in  interim  financial  reports.   It  also  establishes
standards for related disclosures about products and services, geographic areas
and  major  customers.   This  statement  supersedes  SFAS  No.  14, "Financial
Reporting  for  Segments  of a Business Enterprise".  The new standard  becomes
effective for the Operating  Partnership for the year ending December 31, 1998,
and requires that comparative  information  from  earlier  years be restated to
conform to the requirements of this standard.


3.    ACQUISITIONS AND DEVELOPMENTS

ACQUISITIONS

      On December 30, 1997, the Operating Partnership acquired  Salem Center, a
mall  located  in  Salem,  Oregon  for  $32,500.   The acquisition was financed
utilizing borrowings on its $200,000 unsecured credit facility.

      On June 30, 1997, the Operating Partnership acquired Visalia Mall located
in Visalia, California for $38,000.  The acquisition  was  financed principally
from borrowings.

      On  June  1, 1997, the Operating Partnership acquired the  remaining  70%
interest in Silver  Lake  Mall,  Ltd.  a Limited Partnership owning Silver Lake
Mall located in Coeur d'Alene, Idaho.  Prior  to the acquisition, the Operating
Partnership  held  a  30%  interest in the partnership.   The  acquisition  was
financed  by  issuing  72,000 Operating  Partnership  Units  ("OP  Units")  and
assuming debt totaling $24,755.

      On April 4, 1996,  the  Operating  Partnership  acquired Grand Teton Mall
located in Idaho Falls, Idaho for approximately $34,400.   The  acquisition was
financed utilizing borrowings from a credit facility.


DEVELOPMENTS

      The  Operating  Partnership through its consolidated partnership  Spokane
Mall Development Company  Limited  Partnership,  completed  the  development of
Spokane Valley Mall located in Spokane, Washington and held a grand  opening on
August 13, 1997.  The mall contains approximately 689,000 square feet  of total
gross leasable area ("Total GLA").  The partnership expended a total of $57,855
for  the  development.   At  December  31,  1997, the Operating Partnership had
leased approximately 89% of the mall.

      The Operating Partnership has initiated  the  development  of Provo Towne
Centre,  an  enclosed  regional  mall  in  Provo, Utah through its consolidated
partnership  Provo  Mall  Development  Company,   LTD.    The   mall  will  add
approximately  750,000  square  feet of Total GLA.  At December 31,  1997,  the
partnership  had  expended  $30,490   for  development  costs  and  anticipates
expending an additional $23,039 to complete the development during 1998.


                                    F-9
<PAGE> 42

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


4.    BORROWINGS

<TABLE>
<CAPTION>
                                                                             DECEMBER 31,
                                                                     ---------------------------
                                                                        1997              1996
                                                                     ---------         ---------

<S>                                                                  <C>               <C>
Credit Facility, unsecured; weighted average interest at
  6.75 percent during 1997                                           $ 127,000         $      --

Notes, secured by real estate; interest at 6.37 percent;
  due in 2001                                                           95,000            95,000

Construction Loan, secured by real estate; interest at
  7.41 percent as of December 31, 1997, due in 1999                     43,009            16,943

Mortgage payable, secured by real estate; interest at
  8.5 percent, due in 2000                                              12,827                --

Other notes payable, secured by real estate; interest
  ranging from 7.0 to 9.99; maturing 2000 to 2095                        5,554             2,232

Credit Facility, secured by real estate; interest at
  115 basis points over AAA commercial paper                                --            44,000

Credit Facility, unsecured; interest at 175 basis points
  over LIBOR                                                                --             4,200
                                                                     ---------         ---------
                                                                     $ 283,390         $ 162,375
                                                                     =========         =========
</TABLE>

CREDIT FACILITIES

      On  October 16, 1997, the Operating Partnership obtained a $150,000 three
year unsecured  credit  facility  (the  "1997 Credit Facility") from a group of
banks.   On  December  18, 1997, the amount  was  increase  to  $200,000.   The
facility has a three year  term  and  bears  interest,  at  the  option  of the
Operating  Partnership,  at  one,  or  a  combination, of (i) the higher of the
federal funds rate plus 50 basis points or the prime rate, or (ii) LIBOR plus a
spread  of  70 to 130 basis points.  The LIBOR  spread  is  determined  by  the
Operating Partnership's  credit  rating and/or leverage ratio.  The 1997 Credit
Facility also includes a competitive bid option in the amount of $100,000 which
will allow the Operating Partnership  to  solicit  bids for borrowings from the
bank  group.   The  facility  will  be  used  for  general  purposes  including
development,   working  capital,  equity  investments,  repayment  of   amounts
outstanding under its other credit facilities, repayment of indebtedness and/or
amortization payments.   The  facility contains restrictive covenants including
limitations on the amount of secured  and  unsecured  debt,  and  requires  the
Operating  Partnership  to  maintain certain financial ratios.  At December 31,
1997, the Operating Partnership  was  in  compliance with these covenants.  For
the  year ended December 31, 1997, the Operating  Partnership  paid  commitment
fees totaling $50.

      On  November 7, 1997, the Operating Partnership borrowed $85,000 from the
1997 Credit  Facility and utilized the proceeds to retire and cancel previously
existing credit  facilities  and  to  pay for development activities.  Deferred
financing  costs related to the canceled  credit  facilities  were  written-off
resulting in  an  extraordinary  loss  of  $162.   On  December  29,  1997, the
Operating Partnership borrowed an additional $42,000 to pay for acquisition  of
Salem Center (Note 3) and for development activities.  At December 31, 1997 the
1997 Credit Facility had a balance of $127,000.

      On  March  8,  1995,  the  Operating  Partnership  entered into a $50,000
secured credit facility agreement which provided for a two year commitment with
an  option  to  extend  for an additional year (which option was  exercised  on
January 22, 1997).  Borrowings  under  this  agreement  were  collateralized by
certain real estate assets.  The credit facility bore interest  at  a  floating
rate  equal  to  115  basis  points over the established rate of AAA commercial
paper and was guaranteed by the  Company.  For the year ended December 31, 1997
and 1996, the Operating Partnership  paid  commitment  fees  totaling  $280 and
$200, respectively.  On November 7, 1997, borrowings under this credit facility
were retired and the facility was canceled.

                                    F-10
<PAGE> 43

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)

4.    BORROWINGS (CONTINUED)

      On  January  22,  1996,  the Operating Partnership entered into a $25,000
unsecured credit facility agreement  which  provided  for a two year commitment
with an option to extend for an additional year (which  option was exercised on
January 24, 1997).  On October 6, 1997, the limit was raised  to  $40,000.  For
the  year  ended  December  31,  1997 and 1996, the Operating Partnership  paid
commitment  fees totaling $86 and $67,  respectively.   On  November  7,  1997,
borrowings under  this  credit  facility  were  retired  and  the  facility was
canceled.

NOTES

      On  January  21,  1994, a subsidiary of the Operating Partnership  issued
$95,000 in secured notes  bearing  interest  at  6.37%  per  annum.   The notes
require  quarterly  interest  payments  and  a principal payment of $11,875  on
January  21, 2000 with the remaining balance due  on  January  21,  2001.   The
subsidiary has an option to extend the notes to January 21, 2003.

CONSTRUCTION LOAN

      On July 30, 1996, Spokane Mall Development Company Limited Partnership, a
consolidated  partnership,  of  which  the Operating Partnership is the general
partner, entered into a $50,000 construction facility.  The loan bears interest
at a variable interest rate indexed to the  LIBOR rate.  The proceeds from this
facility have been used to fund the development and construction of the Spokane
Valley Mall in Spokane, Washington.  The construction  loan  has  a  three year
term with an optional two year extension, is secured by the Spokane Valley Mall
and is guaranteed by the Operating Partnership.  At December 31, 1997, the loan
had a balance of $43,009.

MORTGAGE PAYABLE

      In  June  1997,  the  Operating  Partnership  assumed a mortgage note  of
$24,755 as part of the acquisition of Silver Lake Mall  (Note  3)  and  retired
portions of the debt principally using borrowings under a credit facility.  The
assumed  debt  bears  interest  at  8.5%  per  annum and has a maturity date of
October 1, 2000 when a balloon payment of $11,971 is due.  At December 31, 1997
the loan had a balance of $12,827.

INTEREST RATE PROTECTION AGREEMENT

      In December 1997, the Operating Partnership entered into an interest rate
protection agreement with a notional value of $100,000  and  a forward yield of
5.74%  based  on  the  10-year  treasury  note.  This interest rate  protection
agreement will be used to hedge the interest rate on an anticipated offering of
unsecured debt.  At December 31, 1997, the  fair  value  of this instrument, as
estimated by dealers was $0.

SCHEDULED PRINCIPAL REPAYMENTS

      The  following  summarizes  the  scheduled  maturities of  borrowings  at
December 31, 1997:

      YEAR                                                          TOTAL
      ----                                                        --------

      1998                                                        $    560
      1999                                                          43,589
      2000                                                         151,145
      2001                                                          84,741
      2002                                                              41
      Thereafter                                                     3,314
                                                                  --------
                                                                  $283,390
                                                                  ========

                                    F-11
<PAGE> 44

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


5.    CAPITAL TRANSACTIONS

      The  limited  partners  of  the  Operating  Partnership have an option to
convert  their  OP  Units  into  shares  of the Company's  common  stock.   The
Operating  Partnership will issue an equivalent  number  of  OP  Units  to  the
Company as general  partnership  interests.   In  1997,  4,000  OP  Units  were
converted into shares.

      On January 28, 1997, the Company sold 1,500,000 shares of common stock in
an  underwritten  public offering at $27.13 per share.  Net proceeds of $38,632
were contributed to  the  Operating  Partnership  in exchange for additional OP
Units and were principally used to repay indebtedness incurred by the Operating
Partnership to fund acquisition activities.

      On August 7, 1995, the Company sold 2,750,000  shares  of common stock in
an underwritten public offering at $20.50 per share.  Net proceeds  of  $52,887
were  contributed  to  the Operating Partnership in exchange for additional  OP
Units and were principally used to repay indebtedness incurred by the Operating
Partnership to fund acquisition activities.

      On June 1, 1997, the  Operating Partnership issued 72,000 OP Units in the
acquisition of Silver Lake Mall (Note 3).  The value of the OP Units at June 1,
1997 was $1,863 (Note 8).


6.    RENTAL INCOME

      Substantially all real estate held for investment is leased to retail and
commercial tenants under arrangements  which  generally  require the tenants to
pay property taxes, insurance and maintenance charges.  These  operating leases
generally range from 1 to 25 years and provide for minimum monthly rents and in
certain instances percentage rents based on the tenants' sales.

      All  non-cancelable  leases,  assuming no new or renegotiated  leases  or
option extensions, in effect at December  31,  1997  provide  for the following
minimum future rental income:

      YEAR                                                          TOTAL
      ----                                                        --------
      1998                                                        $ 54,604
      1999                                                          59,103
      2000                                                          53,420
      2001                                                          48,026
      2002                                                          41,316
      Thereafter                                                   243,117
                                                                  --------
                                                                 $ 499,586
                                                                  ========
                                    F-12
<PAGE> 45

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


7.    COMMITMENTS AND CONTINGENCIES

      Future  minimum  rental  payments  under  the terms of all non-cancelable
operating  leases  under  which  the  Operating  Partnership   is  the  lessee,
principally for ground leases, are as follows:

      YEAR                                                          TOTAL
      ----                                                        --------
      1998                                                        $    971
      1999                                                             983
      2000                                                             986
      2001                                                             998
      2002                                                           1,011
      Thereafter                                                    27,323
                                                                  --------
                                                                  $ 32,272
                                                                  ========

      The  Operating  Partnership is a defendant in certain litigation relating
to its business activities.  Management does not believe that the resolution of
these  matters  will have  a  materially  adverse  effect  upon  the  Operating
Partnership.


8.    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

      During the years ended December 31, 1997 and 1996, non-cash investing and
financing transactions  included  an  increase  in  accounts  payable of $3,861
related  to  development  activities,  the  assumption of debt related  to  the
acquisition of Salem Center totaling $494 in  December  1997, the assumption of
debt related to the acquisition of Silver Lake Mall totaling  $24,755  in  June
1997,  and  the  write-off  of  capitalized tenant allowances of $406 and $159,
respectively.  In addition, holders  of  OP  Units elected to convert 4,000 and
16,000 OP Units, having a recorded value of $40 and $164, into common stock for
the years ended December 31, 1997 and 1996, respectively.

      Interest paid (net of capitalized amounts of $3,509, $1,261 and $788, for
the years ended December 31, 1997, 1996 and 1995)  aggregated  $8,276,  $7,707,
and $6,597, for the years ended December 31, 1997, 1996 and 1995, respectively.

      Purchase of the remaining 70% interest in Silver Lake Mall, Ltd.:

   72,000 Operating Partnership Units issued                         $   1,863
   Book value of 30% equity investment in Silver Lake Mall, Ltd.        (1,555)
   Debt assumed                                                         24,755
                                                                     ---------
                                                                     $  25,063
                                                                     =========


9.    RELATED PARTY TRANSACTIONS

      On January 2, 1996, the Operating Partnership purchased an interest in an
affiliated   limited   partnership   for   $1,200.    The   affiliated  limited
partnership's  only  asset  was its ownership in OP Units.  In June  1996,  the
affiliated limited partnership was liquidated and 66,000 OP Units were received
by  the  Operating Partnership  in  such  liquidation.   To  account  for  this
transaction,  the  Operating  Partnership  recorded  a  reduction  in  minority
interest  liability  for  the book value of the acquired partner's interest  of
$705, and recognized the excess cost over book value of $495 as an asset on the
Operating Partnership's books.   This  excess  cost  is being amortized over 40
years.

      The  Operating Partnership leases computer services  from  Alta  Computer
Services, Inc.  ("Alta").   Alta  is  majority  owned by three directors of the
Company.  The Operating Partnership paid $200, $194  and $196 in 1997, 1996 and
1995, respectively, for such services.

                                    F-13
<PAGE> 46

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


9.    RELATED PARTY TRANSACTIONS (CONTINUED)

      The Operating Partnership has entered into a management  agreement  under
which  the  Operating  Partnership  performs  certain accounting and management
functions on behalf of a company, whose majority  owner  is the Chairman of the
Board of Directors of the Company.  Management fees collected  by the Operating
Partnership under this agreement totaled $72 for each of the three  years ended
December 31, 1997.


10.   STOCK INCENTIVE PLAN

      On October 26, 1993, the Company adopted the 1993 Stock Option Plan which
authorizes the discretionary grant by the Executive Compensation Committee,  of
options  intended to qualify as "incentive stock options" within the meaning of
Section 422  of  the Internal Revenue Code, to key employees of the Company and
the discretionary  grant  of  nonqualified  stock  options  to  key  employees,
directors  and  consultants  of  the Company.  The maximum number of shares  of
common stock subject to option under  the  Company's  Plan  is  1,100,000.  The
proceeds  received  by the Company upon exercise of options are contributed  to
the Operating Partnership  in exchange for the issuance of an equivalent number
of OP Units.  No stock options  may be granted after ten years from the date of
adoption and options must be granted  at  a  price  generally not less than the
fair market value of the Company's common stock at the  date  of  grant.  These
options vest over a period of one to five years.

A summary of the Company's stock option plan is set forth below:


<TABLE>
<CAPTION>
                                            1997                 1996                1995
                                      ----------------    -----------------   ------------------
                                               WEIGHTED             WEIGHTED            WEIGHTED
                                                AVERAGE              AVERAGE             AVERAGE
                                               EXERCISE             EXERCISE            EXERCISE
                                       SHARES   PRICE      SHARES    PRICE     SHARES     PRICE
                                      -------  -------    -------   -------   -------    -------

<S>                                   <C>      <C>        <C>       <C>       <C>        <C>
Outstanding at beginning of year      558,000  $ 17.99    494,000   $ 17.56   550,000    $ 17.54
 Granted                                7,000    25.38    107,000     20.02     7,000      19.13
 Exercised                            (12,000)   18.64    (22,000)    17.57   (55,000)     17.50
 Forfeited                                 --       --    (21,000)    18.85    (8,000)     17.50
                                      -------  -------    -------   -------   -------    -------
Outstanding at end of year            553,000* $ 18.07    558,000   $ 17.99   494,000    $ 17.56
                                      =======  =======    =======   =======   =======    =======

Exercisable at end of year            277,000  $ 17.87    178,000   $ 17.77    96,000    $ 17.83
                                      =======  =======    =======   =======   =======    =======

</TABLE>

* The weighted average remaining contractual life of options outstanding  as of
  December  31,  1997  was  8  years.  The range of option prices was $17.50 to
  $25.38 per share.

                                    F-14
<PAGE> 47

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


10.   STOCK INCENTIVE PLAN (CONTINUED)

      The Operating Partnership has applied Accounting Principals Board Opinion
25 and selected interpretations  in  accounting  for the plan.  Accordingly, no
compensation costs have been recognized.  Had compensation  costs  for the plan
been  determined based on the fair value at the grant date for options  granted
in 1997, 1996 and 1995, respectively, in accordance with the method required by
SFAS 123,  "Accounting for Stock-Based Compensation", the Operating Partnership
net income and  net  income per OP Unit would have been reduced to the proforma
amounts as follows:



<TABLE>
<CAPTION>
                                               FOR THE YEAR ENDED DECEMBER 31,
                                              -------------------------------
                                                 1997       1996       1995
                                              ---------  ---------  ---------
<S>                                           <C>        <C>        <C>
Net income
 As reported                                  $  32,846  $  28,494  $  22,723
 Proforma                                     $  32,800     28,451     22,707

Basic net income per OP Unit
 As reported                                  $    1.56  $    1.45  $    1.26
 Proforma                                          1.55       1.45       1.26

Diluted net income per OP Unit
 As reported                                  $    1.54  $    1.44  $    1.26
 Proforma                                          1.54       1.44       1.26

</TABLE>
      The  fair  value  of each option grant was estimated on the date of grant
using the Black-Sholes options pricing model using the following assumptions:

<TABLE>
<CAPTION>
                                               FOR THE YEAR ENDED DECEMBER 31,
                                              -------------------------------
                                                 1997       1996       1995
                                              ---------  ---------  ---------
<S>                                           <C>        <C>        <C>
Risk free interest rate                          6.76%      5.50%      6.96%
Dividend yield                                   7.00%      7.00%      7.00%
Expected life                                   9 years   10 years   10 years
Expected volatility                             16.50%     16.00%     20.00%

Weighted average per share
 fair value of an option granted
 during the year                              $    2.53  $    1.47  $   2.34

</TABLE>

11.   EMPLOYEE BENEFIT PLAN

      The  Company has a 401(k) profit sharing plan which permits participating
employees to  defer  up to a maximum of 15% of their compensation.  The Company
matches 50% of the qualified employees' contributions up to a maximum of $1 per
employee each year.  Employees  working  a  minimum of 1,000 hours per year who
have completed at least one year of service and  attained  the  age  of  21 are
qualified  to  participate  in  the  plan.   The  employees'  contributions are
immediately  vested.  Additionally, the Company annually contributes 3% of base
salary  to  the  plan  for each qualified employee.    Contributions  from  the
Company vest at 20% per  year.  The Company's contributions to the plan for the
years ended December 31, 1997,  1996  and  1995  were  $225,  $190,  and  $159,
respectively.

                                    F-15
<PAGE> 48

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


12.   FAIR VALUE OF FINANCIAL INSTRUMENTS

      The  following  disclosures  of  estimated  fair value were determined by
management  using  available  market  information.   Considerable  judgment  is
necessary  to  interpret  market  data  and  develop  estimated   fair   value.
Accordingly,  the estimates presented herein are not necessarily indicative  of
the amounts the  Operating  Partnership  could  realize  on  disposition of the
financial  instruments.   The  use  of  different  market  assumptions   and/or
estimation methodologies may have a material effect on the estimated fair value
amounts.

      The  carrying  value  of  cash, accounts receivable, accounts payable and
accrued expenses at December 31,  1997  and  1996  are  reasonable estimates of
their fair values because of the short maturity of these financial instruments.

      Borrowings with an aggregate carrying value of $283,390 and $162,375 have
an estimated aggregate fair value of $283,533 and $158,287 at December 31, 1997
and  1996,  respectively.   Estimated  fair  value is based on  interest  rates
currently available to the Operating Partnership  for  issuance  of  borrowings
with similar terms and remaining maturities.


13.   EARNINGS PER OP UNIT

      Earnings  per  OP  Unit have been computed pursuant to the provisions  of
SFAS No. 128, "Earnings Per  Share"  which  became effective after December 15,
1997;  all  periods  prior  thereto  have been restated  to  conform  with  the
provisions of this Statement.

      The  following  table provides a reconciliation  of  both  income  before
extraordinary items and  the  number  of  OP  Units used in the computations of
"basic" earnings per OP Unit, which utilizes the  weighted average number of OP
Units outstanding without regard to potentially dilutive OP Units and "diluted"
earnings per OP Units, which includes all such OP Units.  Effect has been given
to the Company's Stock Option Plan (Note 10) since  proceeds  received  by  the
Company  upon  exercise of options are contributed to the Operating Partnership
in exchange for the issuance of an equivalent number of OP Units.

<TABLE>
<CAPTION>
                                               FOR THE YEAR ENDED DECEMBER 31,
                                              -------------------------------
                                                 1997       1996       1995
                                              ---------  ---------  ---------
<S>                                           <C>        <C>        <C>
Income (Numerator):
  Before extraordinary item                   $  33,008  $  28,494  $  22,723
                                              ---------  ---------  ---------
  Applicable to OP Units                      $  33,008  $  28,494  $  22,723
                                              =========  =========  =========

Shares (Denominator):
  Basic-average OP Units outstanding             21,119     19,668     18,037
  Add: Dilutive effect of stock options             166         85         66
                                              ---------  ---------  ---------
  Diluted OP Units                               21,285     19,753     18,103
                                              =========  =========  =========

Per OP Unit - Income before extraordinary
  item:
  Basic                                       $    1.57  $    1.45  $    1.26
                                              ---------  ---------  ---------

  Diluted                                     $    1.55  $    1.44  $    1.26
                                              =========  =========  =========
</TABLE>

      Options to  purchase  553,000, 558,000 and 494,000 shares of common stock
were outstanding at  December  31, 1997, 1996 and 1995, respectively (Note 10),
a portion of which has been reflected above using the treasury stock method.

                                    F-16
<PAGE> 49

                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND PER PARTNERSHIP UNIT AMOUNTS)


14.   QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

      Financial information for  each  of  the  quarters  in  the  years  ended
December 31, 1997 and 1996 are as follows:

<TABLE>
<CAPTION>

                                                      FIRST    SECOND     THIRD    FOURTH     TOTAL
                                                    --------  --------  --------  --------  --------
   YEAR ENDED
DECEMBER 31, 1997
-----------------
<S>                                                 <C>       <C>       <C>       <C>       <C>
Total Revenues                                      $ 18,375  $ 18,617  $ 21,773  $ 24,208  $ 82,973
Income Before Extraordinary Item, Gain on
 Sale of Real Estate and Minority Interest             7,555     8,137     8,230     9,141    33,063
Net Income                                             7,456     8,368     8,137     8,885    32,846
Basic Earnings Per OP Unit                               .36       .39       .38       .43      1.56
Diluted Earnings Per OP Unit                             .36       .39       .38       .41      1.54
Distributions Declared Per OP Unit                      .435      .435      .435       .45     1.755

</TABLE>

<TABLE>
<CAPTION>

                                                      FIRST    SECOND     THIRD    FOURTH     TOTAL
                                                    --------  --------  --------  --------  --------
   YEAR ENDED
DECEMBER 31, 1997
-----------------
<S>                                                 <C>       <C>       <C>       <C>       <C>
Total Revenues                                      $ 16,942  $ 18,407  $ 18,497  $ 19,103  $  72,949
Income Before Extraordinary Item, Gain on
 Sale of Real Estate and Minority Interest             6,693     7,234     7,088     7,774     28,789
Net Income                                             6,696     7,068     7,059     7,671     28,494
Basic Earnings Per OP Unit                               .34       .36       .36       .39       1.45
Diluted Earnings Per OP Unit                             .34       .36       .36       .38       1.44
Distributions Declared Per OP Unit                      .420      .420      .420      .435      1.695

</TABLE>

15.   PRO FORMA FINANCIAL INFORMATION (UNAUDITED)

      The  following  unaudited  proforma summary financial information for the
years ended December 31, 1997 and  1996, is presented as if the acquisitions of
Grand  Teton  Mall,  Silver Lake Mall,  Visalia  Mall,  Salem  Center  and  the
additional common stock  offering  and  additional  units issued on January 22,
1997,  had  been  consummated  as  of  January  1, 1997 and  January  1,  1996,
respectively:

<TABLE>
<CAPTION>
                                                       1997      1996
                                                     --------  --------

<S>                                                  <C>       <C>
       Revenues                                      $ 92,602  $ 88,620
       Income Before Extraordinary Item                33,858    31,531
       Net Income                                      33,696    31,531

       Basic Earnings Per OP Unit:
         Income Before Extraordinary Item               1.59       1.48
         Net Income                                     1.58       1.48
       Diluted Earnings Per OP Unit:
         Income Before Extraordinary Item               1.58       1.48
         Net Income                                     1.57       1.48

</TABLE>

      The  proforma financial information summarized  above  is  presented  for
information  purposes  only and may not be indicative of what actual results of
operations would have been  had the acquisitions and offering been completed as
of the beginning of the periods presented, nor does it purport to represent the
results of operations for future periods.

                                    F-17
<PAGE> 50


                                                                   SCHEDULE II

                    PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                           VALUATION AND QUALIFYING ACCOUNTS
                 FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
                                (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                             BALANCE AT
                                             BEGINNING    CHARGED TO                BALANCE AT
                                              OF YEAR      EXPENSE     DEDUCTIONS   END OF YEAR
                                             ---------    ----------   ----------   -----------
<S>                                              <C>         <C>         <C>            <C>  

Year ended December 31, 1997
 Allowance for uncollectible accounts         $   489       $  346       $  265        $ 570
Year ended December 31, 1996
 Allowance for uncollectible accounts         $   504       $  340       $  355        $ 489
Year ended December 31, 1995
 Allowance for uncollectible accounts         $   437       $  258       $  191        $ 504

</TABLE>

                                    F-18
<PAGE>


                                                                 SCHEDULE III
                PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                  REAL ESTATE AND ACCUMULATED DEPRECIATION
                               DECEMBER 31, 1997
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                            GROSS AMOUNT AT WHICH CARRIED
                                                        INITIAL COSTS         CAPITALIZED         AT CLOSE OF PERIOD
                                                    -----------------------   SUBSEQUENT    ----------------------------
                                        RELATED                 BUILDING &        TO                   BLDG. &
                                      ENCUMBRANCES    LAND     IMPROVEMENTS   ACQUISITION     LAND     IMPROV.  TOTAL(1)
                                      ------------    ----     ------------   -----------     ----     -------  --------
  DESCRIPTION
  -----------

<S>                                   <C>             <C>      <C>            <C>            <C>       <C>      <C>
MALLS:
  Animas Valley Mall, Farmington, NM  $    --         $ 3,902  $24,059        $    28        $ 3,902   $24,087  $27,989
  Boise Towne Square, Boise, ID         32,475          6,512      --          37,045          6,512    37,045   43,557
  Cache Valley Mall, Logan, UT           5,781            909      --           8,419            909     8,419    9,328
  Cottonwood Mall, Salt Lake City, UT   19,857          7,514   20,776         30,851          7,514    51,627   59,141
  Eastridge Mall, Casper, WY               --           4,300   19,896          3,421          4,300    23,318   27,618
  Grand Teton Mall, Idaho Falls, ID        --           5,802   28,614             92          5,802    28,706   34,508
  North Plains Mall, Clovis, NM          5,472          1,592      --          10,863          1,592    10,863   12,455
  Pine Ridge Mall, Pocatello, ID        10,019          1,883      --          21,566          1,883    21,566   23,449
  Red Cliffs Mall, St. George, UT        6,132            903      --          12,846            903    12,846   13,749
  Salem Center Mall,  Salem, OR            --           1,704   30,504            --           1,704    30,504   32,208
  Silver Lake Mall, Coeur d'Alene, ID   12,827          4,055   21,379            181          4,055    21,560   25,615
  Spokane Valley Mall, Spokane, WA      43,009          6,645   34,341         16,869          6,645    51,210   57,855
  Three Rivers Mall, Kelso, WA          10,175          1,977      --          20,380          1,977    20,380   22,357
  Visalia Mall, Visalia, CA                --           6,146   31,812            834          6,146    32,645   38,791
  White Mountain Mall, Rock Springs, WY  5,083          1,120      --          15,789          1,120    15,789   16,909

COMMUNITY CENTERS &
  FREE-STANDING RETAIL:
  Alameda Plaza, Pocatello, ID             --             500      --           3,365            500     3,365    3,865
  Anaheim Plaza, Anaheim, CA               --             --       --              54            --         54       54
  Austin Bluffs Plaza, 
          Colorado Springs, CO             --           1,488      --           1,943          1,488     1,943    3,431
  Bailey Hills Plaza, Eugene, OR           --             157      --             317            157       317      474
  Bank One, Nephi, UT                      --              17      183            --              17       183      200
  Baskin Robbins 17th St., 
          Idaho Falls, ID                  --               9       67              7              9        74       83
  Boise Plaza, Boise, ID                   --             322      --           1,382            322     1,382    1,704
  Boise Towne Plaza, Boise, ID             --           3,316    4,243          1,049          3,316     5,292    8,608
  Cottonwood Square, Salt Lake City, UT    --           1,926    3,535            --           1,926     3,535    5,461
  Division Crossing, Portland, OR          --           2,429      --           4,483          2,429     4,483    6,912
  Fort Union Plaza, Salt Lake City, UT     --              21      --           1,673             21     1,673    1,694
  Fremont Plaza, Las Vegas, NV             --             --       --           2,254            --      2,254    2,254
  Fry's Shopping Plaza, Glendale, AZ       --             353      --           4,582          1,254     3,682    4,936
  Gateway Crossing, Bountiful, UT          --           3,644      --           8,480          3,644     8,480   12,124


ACCUMULATED     DATE OF        DATE      DEPRECIABLE
DEPRECIATION  CONSTRUCTION   ACQUIRED    LIVES-YEARS
------------  ------------   --------    -----------
<C>           <C>            <C>         <C>
  $ 1,518            --         1995          40
   12,455       1987-88      1985-86        5-40
    4,209       1975-76      1973-75       10-40
   18,048       1981-87         1980        4-40
    1,321            --         1995          40
    1,252            --         1996          40
    3,409       1984-85      1979-84       10-40
    7,916       1979-81         1979       10-40
    2,913       1989-90         1989        3-40
       --            --         1997          40
      293            --         1997          40
      475       1990-97         1990          40
    4,971       1986-87         1984       10-40
      397            --         1997          40
    6,053       1977-78         1977          40



    1,837          1973         1973          40
       30       1980-81         1979          40
      594          1985         1979        3-40
       51       1988-89         1988          40
      140            --         1976          40
       18            --         1988          40
      900       1970-71         1970          40
       15       1996-97      1996-97          40
      177            --         1995          40
      813       1990-91         1990       20-40
      628       1979-84           --          40
    1,132       1976-80           --          40
    1,544       1980-81         1980          40
    1,052       1990-92         1990          40

</TABLE>
                                    F-19
<PAGE> 51

                                                                 SCHEDULE III
                   PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
                                DECEMBER 31, 1997
                              (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                             GROSS AMOUNT AT WHICH CARRIED
                                                         INITIAL COSTS         CAPITALIZED              AT CLOSE OF PERIOD
                                                         --------------------   SUBSEQUENT   -----------------------------
                                            RELATED                BUILDING &        TO                  BLDG. &
                                          ENCUMBRANCES   LAND     IMPROVEMENTS   ACQUISITION   LAND      IMPROV.  TOTAL(1)
                                          ------------   ----     ------------   -----------   ----      -------  --------
  DESCRIPTION
  -----------

<S>                                       <C>            <C>       <C>           <C>           <C>       <C>      <C>
COMMUNITY CENTERS &
  FREE-STANDING RETAIL (CONTINUED):
  Halsey Crossing, Gresham, OR                  --          --           --          2,302          --     2,302    2,302
  North Temple Shops, Salt Lake City, UT        --           60          --            177           60      177      237
  Orem Plaza Center Street, Orem, UT            --          371          330         1,091          344    1,448    1,792
  Orem Plaza State Street, Orem, UT             --          126          --            687          126      687      813
  Plaza 800, Sparks, NV                         --           33        2,969            38           33    3,007    3,040
  Plaza 9400, Sandy, UT                         --          --           --          4,514          --     4,514    4,514
  Red Cliffs Plaza, St. George, UT              --          --         2,403           --           --     2,403    2,403
  River Pointe Plaza, West Jordan, UT           --        1,130          --          2,668        1,130    2,668    3,798
  Riverside Plaza, Provo, UT                    --          427        1,886         1,289          427    3,175    3,602
  Twin Falls Crossing, Twin Falls, ID           --          125          --            776          125      776      901
  University Crossing, Orem, UT                 --          230          --          4,424          230    4,424    4,654
  Woodlands Village, Flagstaff, AZ              --        2,068        5,329           228        2,068    5,557    7,625
  Yellowstone Square, Idaho Falls, ID           --          355          --          4,552          355    4,552    4,907

COMMERCIAL:
  First Security Place, Boise, ID               --          300          --          3,249          300    3,249    3,549
  Price Business Center - Commerce Park,
   West Valley City, UT                         --          415        2,109         8,509        1,147    9,886   11,033
  Price Business Center-Pioneer Square,
   Salt Lake City, UT                           --          658          --         10,468          658   10,468   11,126
  Price Business Center-South Main,
   Salt Lake City, UT                           --          317          --          2,469          317    2,469    2,786
  Price Business Center-Timesquare,
   Salt Lake City, UT                           --          581          --          9,019          581    9,019    9,600
  Sears-Eastbay, Provo, UT                    1,927         275          --          2,079          275    2,079    2,354

OTHER REAL ESTATE:
  Provo Towne Centre, Provo, UT               3,000      13,829       16,661           --        13,829   16,661   30,490
  Miscellaneous Real Estate                     --        3,471           17         7,029        3,471    7,045   10,516
                                            --------     -------      --------      --------     -------  -------- --------

  TOTAL                                    $155,763     $93,917     $251,113      $274,341      $95,523 $523,848 $619,371
                                           ========     =======     ========      ========      ======= ======== ========


ACCUMULATED     DATE OF        DATE      DEPRECIABLE
DEPRECIATION  CONSTRUCTION   ACQUIRED    LIVES-YEARS
------------  ------------   --------    -----------
<C>           <C>            <C>         <C>
      492       1989-91           --        4-40
       83          1970         1970          40
      592       1976-87         1973       10-40
      345          1975         1973       29-40
    1,665          1974           --          40
    1,916       1976-84           --       10-40
      195       1994-95      1994-95          40
      727       1987-88      1986-87        5-40
    1,461       1978-81         1977          40
      407          1976         1975          40
    1,681       1971-92         1971          40
      455            --         1994          40
    2,554       1972-77         1972          40


    1,471       1978-80         1978       10-40

    1,349          1980      1973-95          40

    3,311       1974-92         1973        3-40

    1,298       1967-82      1966-81        3-40

    3,544       1974-80      1972-80        5-40
      457       1989-90         1989          40


      --           1997(2)      1997          40

     240            --       1980-95          40
 -------

 $98,404
 =======

</TABLE>
---------------------------
(1) The  aggregate  cost  for  Federal  Income  Tax purposes was approximately
$642,645 at December 31, 1997.
(2) Construction in progress as of December 31, 1997.


                                    F-20
<PAGE> 52


                              PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP
                                 REAL ESTATE AND ACCUMULATED DEPRECIATION
                                             DECEMBER 31, 1997
                                           (DOLLARS IN THOUSANDS)



        A  summary  of  activity  for  real estate investments and  accumulated
depreciation is as follows:


<TABLE>
<CAPTION>
                                             FOR THE YEARS ENDED DECEMBER 31,
                                           -----------------------------------
                                              1997         1996         1995
                                           ---------    ---------    ---------
<S>                                        <C>          <C>          <C>
Real Estate Investments:
 Balance at Beginning of Year              $ 453,241    $ 388,205    $ 321,242
  Acquisitions                                96,615       37,055       59,081
  Improvements                                69,921       28,268        9,903
  Disposition of Property                       (406)        (287)      (2,021)
                                           ---------    ---------    ---------

 Balance at End of Year                    $ 619,371    $ 453,241    $ 388,205
                                           =========    =========    =========

Accumulated Depreciation:
 Balance at Beginning of Year              $  87,318    $  77,462    $  69,660
  Depreciation                                11,492       10,015        9,386
  Depreciation of Disposed Property             (406)        (159)      (1,584)
                                           ---------    ---------    ---------

 Balance at End of Year                     $ 98,404    $  87,318    $  77,462
                                           =========    =========    =========
</TABLE>

                                    F-21