All three segments of our business achieved excellent results. As anticipated, our property operations business performance improved significantly. Same-store net operating income was up 3.1 percent, driven by 2.6 percent increases in both average occupancies and rent growth on expiring leases. Additionally, for the year, 75.6 percent of our customers remained in place when their leases expired.

In our CDFS business, new development activity was well diversified across our global markets. We started $2.5 billion of new developments, up from $2.2 billion in 2005, and are projecting a 20 to 30 percent increase in new starts for 2007. Continued strong leasing in our development pipeline led to total CDFS dispositions in 2006 of $1.5 billion at healthy 24.3 percent post-tax, post-deferral margins. These proceeds were redeployed into new development, resulting in a total CDFS pipeline of $5.3 billion at year end.

Net increases in our property funds during 2006 of $1.7 billion generates recurring management fees, which combined with our share of the funds' earnings, increases our return on equity. In addition, we realized substantial embedded gains in our property fund business. Through the liquidation of three North American property funds and the PEPR IPO, we recognized $131.2 million in incentive returns over the seven-year holding period, or the equivalent of approximately $0.07 of FFO per share annually. We also converted these funds into open-end structures that provide liquidity to our fund investors while allowing us to perpetuate management fees and recognize incentive returns on a more regular basis. Including gains related to the liquidation of North American funds, our share of fund FFO was up 32.9 percent. Fund fees increased 20.6 percent, excluding the incentive returns noted above.

During 2006, we leveraged our strong financial position to access both public and private debt and equity on favorable terms. We enhanced our financial flexibility by increasing our multi-currency global line of credit to $3.4 billion, from $2.6 billion, and placed $1.65 billion of global senior unsecured notes.

The successes in all three business segments helped drive a total return to our shareholders of 34 percent.