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Original Source: FD (FAIR DISCLOSURE) WIRE
OPERATOR: Good afternoon. My name is LaShanda, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Price Legacy second-quarter 2003 earnings conference call. (CALLER INSTRUCTIONS). I would now like to turn the call over to Mr. Graham Bullick, President and Chief Operating Officer.
GRAHAM BULLICK, PRESIDENT AND COO, PRICE LEGACY CORP: Thank you and I welcome to our second-quarter earnings conference call. As you know from our past calls, this call may be listened to and reviewed at the Company's WebSite at www.PriceLegacy.com. Before we begin today, I would like to ask Sharon Filbig of Investor Relations to read a brief statement.
SHARON FILBIG, IR OFFICER, PRICE LEGACY CORP: Before we begin our conference today, I would like to alert you to certain statements that are made during the conference call today that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of Price Legacy to differ materially from historical results or from any results expressed or implied by such forward-looking statements. The Company refers you to the documents it files from time to time with the Securities and Exchange Commission at the SEC's WebSite at www.SEC.gov which discusses factors that could adversely affect the Company's results.
Listeners are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date on which they are made. Price Legacy undertakes no obligation to update publicly or revise any forward-looking statements. Price Legacy uses a supplemental REIT performance measure called Funds from Operations which is defined as net income plus depreciation and amortization expense and gains or losses from sales of depreciable operating real estate. Funds from Operations is not a measure of operating results or cash flows from operating activities as defined by generally accepted accounting principles and should not be used as an indicator of cash available or as an alternative to cash flows. Price Legacy believes, however, that FFO provides relevant information about its operations and is necessary along with net income for an understanding of its operating results.
GRAHAM BULLICK: Thank you, Sharon. Participating with us today on the call are Gary Savin, the Chief Executive Officer of Price Legacy, and James Nakagawa, our Chief Financial Officer. What we would like to do is briefly review a few of the results of the quarter of the Company.
The Company continues to focus on acquisition, management, development and disposition of open-air retail shopping centers. Specific detailed property information can be found on our WebSite at www.PriceLegacy.com. We issue and produce a supplemental financial and property information disclosure which is currently posted there and our form 10-K for the current quarter. The supplemental disclosure is also in a PDF format and may be downloaded. The supplemental disclosure has been filed also as an 8-K. In addition to being able to get it from our WebSite, you may also acquire it from the SEC.
Our WebSite also has significant amounts of information concerning the Company and its operations during this quarter. All of our properties are listed there, addresses, directions and surrounding community demographics. You may also access our press releases and news about the Company through the site.
The Company currently owns and operates 49 properties located in 13 states containing approximately 8.5 million square feet of gross (inaudible) area. We have some strong demographics we feel from our retail portfolio. National tenants comprise about 80 percent of our gross leasable area and about 78 percent of our annualized minimum rent. The benefit of this, of course, is the diversity we feel exist within our tenant base. Our top 10 tenants contribute about 35 percent of our total annualized minimum rent, and no single tenant of our top 10 contributes over 10 percent of our total annualized minimum rent. Most tenants found on the Company's top 10 list are either one or two in their respective markets.
The portfolio is approximately 94 percent occupied at the present time, and about 75 percent of the annualized minimum rent is contributed from leases with greater than five …