We focus on high quality real estate across the retail real estate spectrum. We expand or renovate properties to enhance  profitability and market share of existing assets when we believe the investment of our capital meets our risk-reward criteria. We  selectively develop new properties in metropolitan areas that exhibit strong population and economic growth. We routinely review and evaluate acquisition opportunities based on their ability to complement our portfolio. Our international  strategy includes partnering with established real estate companies and financing international investments with local currency to  minimize foreign exchange risk. To support our growth, we employ a three-fold capital strategy: Diluted earnings per common share increased $1.38 during 2011 to $3.48 from $2.10 for 2010. The increase in diluted  earnings per share was primarily attributable to: Core business fundamentals during 2011 improved from the economic environment that existed during 2010. Total sales per  square foot, or psf, increased 10.7% from December 31, 2010 to $536 psf at December 31, 2011, for our portfolio of regional  malls and Premium Outlets. Average base minimum rent increased 4.4% to $39.42 psf as of December 31, 2011, from $37.77 psf  as of December 31, 2010. Releasing spreads remained positive as we were able to lease available square feet at higher rents than  the expiring rental rates on the same space, resulting in a releasing spread (based on total tenant payments−base minimum rent  plus common area maintenance) of $5.20 psf as of December 31, 2011, representing a 10.5% increase over expiring payments  as of December 31, 2011. Ending occupancy was 94.8% as of December 31, 2011, as compared to 94.5% as of December 31,  2010, an increase of 30 basis points. Our effective overall borrowing rate at December 31, 2011 decreased 23 basis points to 5.35% as compared to 5.58% at  December 31, 2010. This decrease was primarily due to a decrease in the effective overall borrowing rate on fixed rate debt of  22 basis points (5.83% at December 31, 2011 as compared to 6.05% at December 31, 2010) and a decrease in the effective  overall borrowing rate on variable rate debt of 48 basis points (1.45% at December 31, 2011 as compared to 1.93% at December  31, 2010). At December 31, 2011, the weighted average years to maturity of our consolidated indebtedness was approximately  5.7 years as compared to approximately 5.9 years at December 31, 2010. Our financing activities for the year ended December  31, 2011, included the redemption at par of $542.5 million of senior unsecured notes with fixed rates ranging from 5.00% to  8.25% and the repayment of $368.2 million in mortgage loans with a weighted average interest rate of 6.64%, unencumbering  six properties. In addition, in 2011 we issued $500.0 million of senior unsecured notes at a fixed interest rate of 2.8% with a  2011 Annual Report 11 ● provide the capital necessary to fund growth, ● maintain sufficient flexibility to access capital in many forms, both public and private, and ● manage our overall financial structure in a fashion that preserves our investment grade credit ratings. ● improved operating performance and core business fundamentals in 2011, the impact of our acquisition activity, and a  decrease in interest expense due to the repayment of debt and lower interest rates, ● in 2011, a net gain due to acquisition of controlling interests, sale or disposal of assets and interests in unconsolidated  entities of $216.6 million, or $0.61 per diluted share, primarily driven by non-cash gains totaling $251.2 million related to  the acquisition of a controlling interest in a previously unconsolidated regional mall and the distribution of a joint venture’s  properties to us and our venture partner which resulted in a non-cash gain on the distribution, ● in 2010, transaction expenses of $69.0 million, or $0.19 per diluted share, for costs incurred related to the acquisition of  Prime Outlets Acquisition Company, or the Prime acquisition, other acquisition-related activities and the settlement of a  transaction related dispute, ● in 2010, a $350.7 million, or $1.00 per diluted share, loss on extinguishment of debt related to our two senior unsecured  notes tender offers, and ● in 2010, a gain due to acquisition of controlling interest, sale or disposal of assets and interests in unconsolidated  entities, net of $320.3 million, or $0.92 per diluted share, primarily driven by the sale of our interest in Simon Ivanhoe  S.à.r.l, or Simon Ivanhoe. RESULTS OVERVIEW