Pan Pacific Retail Properties Announces Buyback of Non-Managing Member Units

Business Wire, May 15, 2006

SAN DIEGO -- Pan Pacific Retail Properties, Inc. (NYSE:PNP) today announced the buyback of 314,587 outstanding non-managing member limited liability company (LLC) units pursuant to an existing buyback right. The Company bought back the LLC units at a price of $66.61 per LLC unit. The LLC units were originally issued in 1999 in connection with the Company's acquisition of a grocery-anchored shopping center. The Company financed the buyback through a draw on its unsecured credit facility.

Stuart A. Tanz, President and Chief Executive Officer of Pan Pacific, stated, "We are pleased to complete this transaction which further simplifies the Company's capital structure."

ABOUT PAN PACIFIC RETAIL PROPERTIES

Pan Pacific Retail Properties, Inc. is an equity real estate investment trust (REIT) traded on the New York Stock Exchange under the symbol PNP. The Company is the largest neighborhood shopping center REIT focused exclusively on the West Coast. Pan Pacific's portfolio currently totals 139 properties, encompassing approximately 22.7 million square feet of retail space. The portfolio is principally diversified across five distinct regions in the Western United States: Northern California, Southern California, Washington, Oregon and Nevada.

Pan Pacific specializes in the acquisition, ownership and management of community and neighborhood shopping centers for everyday essentials. The Company's strategy is aimed at generating long-term stable cash flow through maintaining a diverse portfolio and tenant base, balanced with consistent growth through its acquisition and property management programs.

Pan Pacific is headquartered in Vista (San Diego), California, and has regional offices located in Sacramento, California; Kent, Washington; Portland, Oregon; and Las Vegas, Nevada.

Additional information on Pan Pacific is available on the Company's web site at www.pprp.com.

(Note: Certain matters discussed within this press release, including, without limitation, our earnings guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which reflect management's current views with respect to future events and financial performance. Forward-looking statements are subject to risks and uncertainties. Factors that could cause actual results to differ materially from expectations include market valuations of our stock, financial performance and operations of our shopping centers, real estate market conditions, execution of shopping center development programs, successful completion of renovations, completion of pending acquisitions and dispositions, including the completion of customary due diligence and closing conditions, the Company's ability to successfully integrate acquired assets, changes in the availability of additional acquisition and disposition opportunities, changes in local or national economic conditions, changes in tax laws, acts of terrorism or war and other risks detailed from time to time in reports filed with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2005.)