<SUBMISSION>
<ACCESSION-NUMBER>0000950116-05-001773
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>10
<PERIOD>20050331
<FILING-DATE>20050509
<DATE-OF-FILING-DATE-CHANGE>20050509
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACADIA REALTY TRUST
<CIK>0000899629
<ASSIGNED-SIC>6798
<IRS-NUMBER>232715194
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-12002
<FILM-NUMBER>05811161
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>20 SOUNDVIEW MARKETPLACE
<STREET2>PO BOX 1679
<CITY>PORT WASHINGTON
<STATE>NY
<ZIP>11050
<PHONE>5167678830
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>600 THIRD AVE
<STREET2>PO BOX 1679
<CITY>KINGSTON
<STATE>PA
<ZIP>18704
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MARK CENTERS TRUST
<DATE-CHANGED>19930329
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>ten-q.htm
<DESCRIPTION>10-Q
<TEXT>
<html>

<head>
<title>Prepared and filed by St Ives Burrups</title>

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<body link=blue vlink=purple>

<page>


<div><a name=Cover></a><font size="2" face="Times New Roman"><a href="#Contents">Click here to Index</a></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>


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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="4" face="Times New Roman"><b>UNITED STATES</b></font></div>

<div  align="center"><font size="4" face="Times New Roman"><b>SECURITIES AND EXCHANGE COMMISSION</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>Washington, DC 20549</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="4" face="Times New Roman"><b>FORM 10-Q</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

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  <div><font size="3" face=Wingdings>x</font></div>
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  <td width="95%" valign="top">
  <div><font size="2" face="Times New Roman"><b>QUARTERLY    REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="95%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <td  colspan="2" valign="top">
  <div  align="center"><font size="2" face="Times New Roman"><b>For the quarterly period ended March 31, 2005</b></font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="95%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <td  colspan="2" valign="top">
  <div  align="center"><font size="2" face="Times New Roman"><b>OR</b></font></div>
  </td>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="95%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <td  valign="top">
  <div><font size="3" face=Wingdings>o</font></div>
  </td>
  <td width="95%" valign="top">
  <div><font size="2" face="Times New Roman"><b>TRANSITION    REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></div>
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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>For the transition period from _______ to _______</b></font></div>

<div><font size="2" face="Times New Roman"><b>&nbsp;</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b><i>Commission File Number 1-12002</i></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="3" face="Times New Roman"><b>ACADIA REALTY TRUST</b></font></div>

<div  align="center"><font size="1" face="Times New Roman"><b>(Exact name of registrant in its  charter)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

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  <div  align="center"><font size="2" face="Times New Roman"><b>MARYLAND</b></font></div>
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  <div  align="center">&nbsp;</div>
  </td>
  <td width="49%" valign="top">
  <div  align="center"><font size="2" face="Times New Roman"><b>23-2715194</b></font></div>
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  <div  align="center"><font size="1" face="Times New Roman"><b>(State or    other jurisdiction of<br>    incorporation or organization)</b></font></div>
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  <td width="2%" valign="top">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="39%" valign="top">
  <div  align="center"><font size="1" face="Times New Roman"><b>(I.R.S.    Employer<br>    Identification No.)</b></font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="39%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="39%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div>
    <div align="center"><font size="2" face="Times New Roman"><b>1311    MAMARONECK AVENUE, SUITE 260, WHITE PLAINS, NY</b></font></div>
  </div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="39%" valign="top">
  <div  align="center"><font size="2" face="Times New Roman"><b>10605</b></font></div>
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  <div  align="center"><font size="1" face="Times New Roman"><b>(Address    of principal executive offices)</b></font></div>
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  <div  align="center">&nbsp;</div>
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  <td width="39%" valign="top">
  <div  align="center"><font size="1" face="Times New Roman"><b>(Zip Code)</b></font></div>
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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>(914) 288-8100</b></font></div>

<div  align="center"><font size="1" face="Times New Roman"><b>(Registrant&#146;s telephone number,  including area code)</b></font><font size="2" face="Times New Roman">&nbsp;</font></div>

<div>
  <p><font size="2" face="Times New Roman">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.</font></p>
  <table border="0" cellspacing="0" cellpadding="0" width="80%" align="center">
    <tr>
      <td  valign="top"><div  align="center"><font size="2" face="Times New Roman"><b>Y<small>ES</small></b> <img src="tickedbox.gif" title="checked box"></font></div></td>
      <td width="50%" valign="top"><div  align="center"><font size="2" face="Times New Roman"><b>N<small>O </small></b><img src="emptybox.gif" title="checked box"></font></div></td>
    </tr>
  </table>
  <p><font size="2" face="Times New Roman">Indicate by check mark whether the registrant  is an accelerated filer (as defined in Exchange Act Rule 12b-2).</font></p>
</div>

<div></div>

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  <td  valign="top">
  <div  align="center"><font size="2" face="Times New Roman"><b>Y<small>ES</small></b> <img src="tickedbox.gif" title="checked box"></font></div>
  </td>
  <td width="50%" valign="top">
  <div  align="center"><font size="2" face="Times New Roman"><b>N<small>O </small></b><img src="emptybox.gif" title="checked box"></font></div>
  </td>
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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">As of May 4, there were 31,394,210 common shares of  beneficial interest, par value $.001 per share, outstanding.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>


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<div style="page-break-before:always"></div>
<page>
<br>
<div><a name=Contents></a><font  size="2" face="Times New Roman"><b><a  href="#Cover">Back to Cover</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>FORM 10-Q</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>INDEX</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

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  <div style="margin-left: 3%; text-indent:-3%"><font size="1" face="Times New Roman"><b>Page</b></font></div>
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  <hr noshade size="1">


  </td>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b><a    href="#p3">Part I:</a></b></font></div>
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  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><b><a    href="#p3">Financial Information</a></b></font></div>
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  <td width="5%" valign="bottom">
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div  align="right">&nbsp;</div>
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  <div  align="right">&nbsp;</div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p3">Item 1.</a></font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p3">Financial    Statements (unaudited)</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p3">Consolidated    Balance Sheets as of March 31, 2005 and December 31, 2004</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p3">3</a></font></div>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p4">Consolidated    Statements of Income for the three months ended March 31, 2005 and 2004</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p4">4</a></font></div>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p5">Consolidated    Statements of Cash Flows for the three months ended March 31, 2005 and 2004</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div><font size="2" face="Times New Roman"><a href="#p5">5</a></font></div>
  </td>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
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  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p6">Notes to    Consolidated Financial Statements</a></font></div>
  </div>
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  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
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  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p6">6</a></font></div>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p16">Item 2.</a></font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p16">Management&#146;s    Discussion and Analysis of Financial Condition and Results of Operations</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p16">16</a></font></div>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div>
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
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  <td width="5%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p25">Item 3.</a></font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p25">Quantitative    and Qualitative Disclosure of Market Risk</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p25">25</a></font></div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p25">Item 4.</a></font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p25">Controls and    Procedures</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p25">25</a></font></div>
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 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b><a    href="#p25">Part II:</a></b></font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><b><a    href="#p25">Other Information</a></b></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p26">Item 6.</a></font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p26">Exhibits</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p26">26</a></font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td  align="center" width="80%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%">
    <div align="left"><font size="2" face="Times New Roman"><a href="#p28">Signatures</a></font></div>
  </div>
  </td>
  <td width="5%" valign="top">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="5%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><a href="#p28">28</a></font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">2</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><a name=p3></a><font  size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Part  I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Information</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>CONSOLIDATED BALANCE SHEETS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    </b><font size="1"><b>2005</b></font></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>December 31,<br>    </b><font size="1"><b>2004</b></font></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom"><div  align="center"><font size="1" face="Times New Roman"><b>(unaudited></b></font></div></td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>ASSETS</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Real estate:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Land</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">53,804</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">53,804</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Buildings and improvements</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">363,024</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">362,477</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Construction in progress</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">7,202</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5,896</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">424,030</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">422,177</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Less: accumulated    depreciation</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(110,709</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(107,352</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net real estate</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">313,321</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">314,825</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Cash and cash equivalents</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,193</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,499</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Cash in escrow</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,683</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,467</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Restricted cash</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">509</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">612</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Investments in and advances    to unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">28,625</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">27,439</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Investment in management    contracts, net of accumulated</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&#160; amortization of&#160; $749    and $578, respectively</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,367</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,422</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Preferred equity investment</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">20,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Rents receivable, net</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12,055</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">10,891</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Notes receivable</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">12,347</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">10,087</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Prepaid expenses</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,882</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,029</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Deferred charges, net</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">15,864</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,478</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other assets</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">9,217</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,898</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">429,063</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">405,647</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>LIABILITIES    AND SHAREHOLDERS&#146; EQUITY</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Mortgage notes payable</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">173,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">153,361</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Accounts payable and    accrued expenses</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">7,056</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">7,640</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Dividends and distributions    payable</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5,642</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5,597</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest rate swap payable</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">475</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,136</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Share of losses in excess    of investment in unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9,639</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9,304</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other liabilities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,417</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,134</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total liabilities</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">199,229</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">181,172</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest in    Operating Partnership</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">9,745</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5,743</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interests in    majority-owned partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,808</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,808</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total minority interests</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">11,553</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">7,551</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Shareholders&#146; equity:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Common shares</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">31</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">31</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Additional paid-in capital</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">222,030</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">222,715</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Accumulated other    comprehensive income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1,138</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(3,180</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Deficit</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(2,642</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(2,642</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total shareholders&#146; equity</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">218,281</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">216,924</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">429,063</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">405,647</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">See  accompanying notes</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">3</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><a name=p4></a><a name=p5></a><font size="2" face="Times New Roman"><b><a href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>CONSOLIDATED STATEMENTS OF INCOME</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">(unaudited)</font></div>

<div  align="center"><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended<br>    March 31,</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Revenues</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minimum rents</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12,943</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12,797</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Percentage rents</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">184</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">217</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Expense reimbursements</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,050</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,591</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other property income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">328</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">123</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Management fee income, net    of submanagement fees of $303 and $261, respectively</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1,978</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">545</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">477</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">115</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">156</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total revenues</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">19,960</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">17,544</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating Expenses</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Property operating</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,918</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,761</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Real estate taxes</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,414</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,248</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">General and administrative</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,078</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,489</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,024</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,735</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total operating expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,434</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">12,233</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,526</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5,311</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Equity in earnings of    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">497</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">544</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(2,359</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(2,429</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(219</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(217</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income from continuing    operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,209</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Discontinued Operations</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating loss from    discontinued operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(373</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">14</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Loss from discontinued    operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(359</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net Income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,850</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Basic Earnings per Share</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income from continuing    operations</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.14</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.11</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income (loss) from    discontinued operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(0.01</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Basic earnings per share</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.14</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.10</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Diluted Earnings per Share</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income from continuing    operations</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.14</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.11</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income (loss) from discontinued    operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(0.01</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Diluted earnings per share</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.14</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.10</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">See  accompanying notes</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">4</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="5" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>(unaudited)</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman"><b>CASH FLOWS    FROM OPERATING ACTIVITIES:</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,850</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Adjustments to reconcile    net income to net cash provided by operating activities:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,024</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,856</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Minority interests</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">219</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">203</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Equity in earnings of    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(497</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(544</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Amortization of derivative    settlement included in interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">109</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Provision for bad debts</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">139</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">206</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Changes in assets and    liabilities:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Restricted cash</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">103</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(193</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Funding of escrows, net</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">784</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(63</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Rents receivable</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1,303</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(83</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Prepaid expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">147</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">753</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Other assets</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(5,102</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(109</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Accounts payable and    accrued expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(391</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">778</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Due to/from related parties</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Other liabilities</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">282</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(855</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Net cash provided by    operating activities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,959</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,801</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman"><b>CASH FLOWS    FROM INVESTING ACTIVITIES:</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Expenditures for real    estate and improvements</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1,783</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1,340</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Investment in and advances    to unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(802</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(3,740</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Distributions from    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">693</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">308</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Payment of deferred leasing    costs</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(97</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(680</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Advances of notes    receivable</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(2,285</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(3,315</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Preferred equity investment</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(20,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Net cash used in investing    activities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(24,274</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(8,767</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman"><b>CASH FLOWS    FROM FINANCING ACTIVITIES:</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Principal payments on    mortgages</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(361</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(11,233</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Proceeds received on    mortgage notes</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">20,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9,000</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Payment of deferred    financing and other costs</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(506</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Dividends paid</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(5,442</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(4,401</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Distributions to minority    interests in Operating Partnership</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(68</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(182</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Distributions on preferred    Operating Partnership Units</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(88</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(36</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Distributions to minority    interests in majority-owned partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(56</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(39</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Common Shares issued under    Employee Stock Purchase Plan</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">24</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">19</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Settlement of options to    purchase Common Shares</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(66</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Exercise of options to    purchase Common Shares</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">7,943</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Net cash provided by    financing activities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">14,009</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">499</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Decrease in cash and cash    equivalents</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(7,306</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(1,467</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Cash and cash equivalents,    beginning of period</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">13,499</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">14,159</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Cash and cash equivalents,    end of period</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,193</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">12,692</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Supplemental disclosure of    cash flow information:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Cash paid during the period    for interest, net of amounts capitalized of $96 and $93, respectively</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,070</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,792</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Supplemental disclosure of    non-cash investing and financing activities:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Acquisition of management    contract rights through issuance of Common and Preferred Operating Partnership    Units, respectively</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4,000</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">5</font></div>

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<div style="page-break-before:always"></div>
<page>

<div><a name=p6></a><font  size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>MARCH 31, 2005</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE  COMPANY</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Acadia Realty Trust (the &#147;Company&#148;) is a fully  integrated and self-managed real estate investment trust (&#147;REIT&#148;) focused  primarily on the ownership, acquisition, redevelopment and management of  neighborhood and community shopping centers.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">All of the Company&#146;s assets are held by, and  all of its operations are conducted through, Acadia Realty Limited Partnership  (the &#147;Operating Partnership&#148; or &#147;OP&#148;) and its majority-owned partnerships. As  of March 31, 2005, the Company controlled 98% of the Operating Partnership as  the sole general partner.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company operates 70 properties, which it  owns or has an ownership interest in, consisting of 68 neighborhood and  community shopping centers and two multi-family properties, principally located  in the Northeast, Mid-Atlantic and Midwest regions of the United States.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BASIS  OF PRESENTATION</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The consolidated financial statements include  the consolidated accounts of the Company and its majority-owned subsidiaries,  including the Operating Partnership, and have been prepared in accordance with  accounting principles generally accepted in the United States (&#147;GAAP&#148;) for  interim financial information and with the instructions to Form 10-Q and  Article 10 of Regulation S-X. Accordingly, they do not include all of the  information and footnotes required by GAAP for complete financial statements.  Non-controlling investments in partnerships are accounted for under the equity  method of accounting as the Company exercises significant influence. The  information furnished in the accompanying consolidated financial statements  reflects all adjustments that, in the opinion of management, are necessary for  a fair presentation of the aforementioned consolidated financial statements for  the interim periods.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The preparation of the consolidated financial  statements in conformity with GAAP requires management to make estimates and  assumptions that affect the amounts reported in the consolidated financial  statements and accompanying notes. Actual results could differ from these  estimates. Operating results for the three months ended March 31, 2005 are not  necessarily indicative of the results that may be expected for the fiscal year  ending December 31, 2005. For further information refer to the consolidated  financial statements and accompanying footnotes included in the Company&#146;s  Annual Report on Form 10-K for the year ended December 31, 2004.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PREFERRED  EQUITY INVESTMENT</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In March of 2005, the Company invested $20,000  in a preferred equity position (&#147;Preferred Equity&#148;) with Levitz SL, L.L.C.  (&#147;Levitz SL&#148;), the owner of 2.5 million square feet of fee and leasehold  interests in 30 locations (the &#147;Properties&#148;), the majority of which are  currently leased to Levitz Furniture Stores. Klaff Realty L.P. (&#147;Klaff&#148;) is a  managing member of Levitz SL. The Preferred Equity receives a return of 10%,  plus a minimum return of capital of $2,000 per annum. At the end of 12 months,  the rate of return will be reset to the six-month LIBOR plus 644 basis points.  The Preferred Equity is redeemable at the option of Levitz SL at any time,  although if redeemed during the first 12 months, the redemption price is equal  to the outstanding amount of the Preferred Equity, plus the return calculated  for the remainder of the 12-month period (Note 11).</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EARNINGS  PER COMMON SHARE</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Basic earnings per share was determined by  dividing the applicable net income to common shareholders for the period by the  weighted average number of common shares of beneficial interest (&#147;Common  Shares&#148;) outstanding during each period consistent with Statement of Financial  Accounting Standards (&#147;SFAS&#148;) No. 128 &#147;Earnings Per Share&#148;. Diluted earnings  per share reflects the potential dilution that could occur if securities or  other contracts to issue Common Shares were exercised or converted into Common  Shares or resulted in the issuance of Common Shares that then shared in the  earnings of the Company. The following table sets forth the computation of  basic and diluted earnings per share from continuing operations for the periods  indicated.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
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  <div  align="center">&nbsp;</div>
  </td>
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  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended<br>    March 31,</b></font></div>
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  <td width="1%" valign="bottom">
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  </td>
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  <div  align="center">&nbsp;</div>
  </td>
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  </td>
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  </td>
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  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
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  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
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  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
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  <div  align="center">&nbsp;</div>
  </td>
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  <div  align="center">&nbsp;</div>
  </td>
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  </td>
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  <div  align="center">&nbsp;</div>
  </td>
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  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>Numerator:</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income from continuing    operations &#150; basic and diluted</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,209</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
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  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>Denominator:</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Weighted average shares &#150;    basic earnings per share</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">31,867</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">27,890</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Effect of dilutive    securities:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Employee stock options</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">273</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">671</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Denominator for diluted    earnings per share</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">32,140</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">28,561</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Basic earnings per share    from continuing operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.14</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.11</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Diluted earnings per share    from continuing operations</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.14</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.11</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">6</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EARNINGS  PER COMMON SHARE (continued)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The effect of the conversion of common units  in the Operating Partnership (&#147;Common OP Units&#148;) is not reflected in the above  table as they are exchangeable for Common Shares on a one-for-one basis. The  income allocable to such units is allocated on this same basis and reflected as  minority interest in the accompanying consolidated financial statements. As  such, the assumed conversion of these units would have no net impact on the  determination of diluted earnings per share. The effect of the conversion of  Series A and B Preferred OP Units (&#147;Preferred OP Units&#148;) which would result in  522,679 and 429,075 additional Common Shares for the three months ended march  31, 2005 and 2004, respectively, is not reflected in the above table as such  conversion would be anti-dilutive.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCK-BASED  COMPENSATION</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company has adopted the fair value method  of recording stock-based compensation contained in SFAS No. 123, &#147;Accounting  for Stock-Based Compensation&#148;. As such, stock based compensation awards granted  after December 31, 2001 have been expensed over the vesting period based on the  fair value at the date the stock-based compensation was granted.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On January 3, 2005 (the &#147;Grant Date&#148;), the Company  issued 50,342 options (net of subsequent forfeitures) to officers and  employees. The options, which have an exercise price of $16.35, are for  ten-year terms and vest one third as of the Grant Date and one third on each of  the next two anniversaries thereof. The Company has determined a value of $2.57  per option using the binomial method for valuing such options. In prior  periods, the Company utilized the Black-Scholes method for valuing options  granted and believes that the binomial method more accuartly reflects the value  of the options. This change had no material effect on the value of the unvested  options or the Company&#146;s consolidated fiancial statements. Accordingly,  compensation expense of $54 has been recognized in the accompanying consolidated  financial statements related to these options for the three months ended March  31, 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On the Grant Date, the Company also issued a  total of 109,826 restricted Common Shares (&#147;Restricted Shares&#148;) to executive  officers (&#147;Officers&#148;) and 23,872 Restricted shares (net of subsequent  forfeitures) to certain employees (&#147;Employees&#148;) of the Company.&#160; In general, the Restricted Shares carry all  the rights of Common Shares including voting and dividend rights, but may not be  transferred, assigned or pledged until the Recipients have a vested  non-forfeitable right to such shares. Vesting with respect to the Restricted  Shares issued to Officers, which is subject to the Recipients&#146; continued  employment with the Company through the applicable vesting dates, is ratably  over four years commencing on the first anniversary of the Grant Date and each  of the next three anniversaries thereafter. In addition, vesting on 50% of  these Restricted Shares is also subject to certain total shareholder returns on  the
Company&#146;s Common Shares. Vesting with respect to the Restricted Shares  issued to Employees, which is subject to the Recipients&#146; continued employment  with the Company through the applicable vesting dates, is ratably over five  years commencing on the Grant Date and each of the next four anniversaries  thereafter. In addition, vesting on 25% of these Restricted Shares is also  subject to certain total shareholder returns on the Company&#146;s Common Shares.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The total value of the above restricted share  awards on the date of grant was $2,179 which will be recognized in compensation  expense over the vesting period. Compensation expense of $213 has been  recognized in the accompanying consolidated financial statements related to  these Restricted Shares for the three months ended March 31, 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMPREHENSIVE  INCOME</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following table sets forth comprehensive  income for the three months ended March 31, 2005 and 2004:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0"  align="center" width="80%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended<br>    March 31,</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,209</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other comprehensive income    (loss) (1)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,042</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1,551</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Comprehensive income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,487</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,658</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Relates to the changes in    the fair value of derivative instruments accounted for as cash flow hedges.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following table sets forth the change in  accumulated other comprehensive loss for the three months ended March 31, 2005:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0"  align="center" width="80%">
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance at December 31,    2004</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(3,180</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Unrealized gain on    valuation of swap agreements</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,042</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance at March 31, 2005</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(1,138</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">As of March 31, 2005 the balance in  accumulated other comprehensive loss was comprised of net unrealized losses on  the valuation of swap agreements.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">7</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHAREHOLDERS&#146;  EQUITY AND MINORITY INTERESTS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following table summarizes the change in  the shareholders&#146; equity and minority interests since December 31, 2004:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Shareholders&#146;<br>    Equity</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Minority Interest<br>    in Operating<br>    Partnership (1)</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Minority Interest<br>    in majority-<br>    owned<br>    Partnerships</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance at December 31,    2004</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">216,924</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5,743</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,808</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Issuance of Common OP Units</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,000</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Dividends and distributions    declared of $0.1725 per Common Share&nbsp;and Common OP Unit</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(5,465</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(89</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net income for the period    January 1 through March 31, 2005</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">75</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">56</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Distributions paid</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(56</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other comprehensive income    &#150; Unrealized gain on valuation of&nbsp;swap agreements</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1,933</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">16</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other comprehensive income    &#150; Amortization of swap value</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">109</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Employee stock-based    compensation</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">335</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance at March 31, 2005</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">218,281</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9,745</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,808</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Net income attributable to    minority interest in the Operating Partnership and distributions do not    include a distribution on Series A and Series B Preferred OP Units totaling    $88.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Minority interest in the Operating Partnership  represents (i) the limited partners&#146; interest of 642,255 and 392,255 Common OP  Units at March 31, 2005 and December 31, 2004,
 respectively, (ii) 1,580 Series A Preferred  OP Units at March 31, 2005 and December 31, 2004,
 respectively, with a nominal value of  $1,000 per unit, which are entitled to a preferred quarterly distribution of  the greater of (a) $22.50 per unit (9% annually) per Series A Preferred OP Unit  or (b) the quarterly distribution attributable to a Series A Preferred OP Unit  if such unit were converted into a Common OP Unit, and (iii) 4,000 Series B  Preferred OP Units at March 31, 2005 and December 31, 2004
  with a nominal value of $1,000  per unit, which are entitled to a preferred quarterly distribution of the  greater of (a) $13.00 (5.2% annually) per unit or (b) the quarterly  distribution attributable to a Series B Preferred OP Unit if such unit were  converted into a Common OP Unit. Minority interests in majority-owned
partnerships represent third-party interests in four partnerships in which the  Company has a majority ownership position.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In February 2005, the Company issued $4,000  (250,000 Restricted Common OP Units valued at $16.00 each) of Restricted Common  OP Units to Klaff in consideration for the 25% balance of certain management  contract rights as well as the rights to 25% of certain potential future  revenue streams (Note 11). This follows the acquisition of 75% of the  management contract rights and 75% of certain potential future revenue streams  from Klaff in January 2004.&#160; The  Restricted Common OP Units are convertible into the Company&#146;s Common Shares on  a one-for-one basis after a five-year lock-up period. $1,116 of the purchase  price was allocated to investment in management contracts in the consolidated  balance sheet and is being amortized over the estimated remaining life of the  contracts. The remainder ot the purchase price has been allocated to deferred  charges in the consolidated balance sheet and will be allocated to future  revenue streams as identified.
</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS  IN AND ADVANCES TO UNCONSOLIDATED PARTNERSHIPS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Crossroads</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company owns a 49% interest in the  Crossroads Joint Venture and Crossroads II Joint Venture (collectively  &#147;Crossroads&#148;), which collectively own a 311,000 square foot shopping center in  White Plains, New York. The Company accounts for its investment in Crossroads  using the equity method. Summary financial information of Crossroads and the  Company&#146;s investment in and share of income from Crossroads follows:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>December 31 ,<br>    2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance Sheets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Assets:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Rental    property, net</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,823</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,939</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Other    assets</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,117</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,129</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'>&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total assets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">12,940</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,068</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Liabilities and partners&#146;    deficit</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Mortgage    note payable</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">64,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">64,000</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Other    liabilities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,772</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,481</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Partners&#146;    deficit</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(53,832</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(53,413</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total liabilities and    partners&#146; deficit</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12,940</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">13,068</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Company&#146;s investment in    Crossroads</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(9,639</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(9,304</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The excess of the Company&#146;s investment over  its share of the net equity in Crossroads at the date of acquisition was  $19,580. The unamortized excess, including the portion attributable to  buildings and improvements which is being amortized over the life of the  related property, is included in the Company&#146;s investment in Crossroads.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">8</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS  IN AND ADVANCES TO UNCONSOLIDATED PARTNERSHIPS (continued)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended<br>    March 31,</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Statements of Income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Total revenue</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,182</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,025</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Operating and other    expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">610</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">607</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1,040</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">674</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">151</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">149</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">381</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">595</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Company&#146;s share of net    income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">275</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">316</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Amortization of excess    investment (see below)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">98</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">98</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Income from Crossroads</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">177</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">218</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Acadia  Strategic Opportunity Fund, LP (&#147;Fund I&#148;)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In 2001, the Company formed a joint venture,  Fund I, with four of its institutional investors for the purpose of acquiring  real estate assets. The Company is the general partner with a 22% interest in  the joint venture and is also entitled to a profit participation in excess of  its invested capital based on certain investment return thresholds. The Company  also earns market-rate fees for asset management as well as for property  management, construction and leasing services. Decisions made by the general  partner, as it relates to purchasing, financing, and disposition of properties,  are subject to the unanimous disapproval of the Advisory Committee of Fund I,  which is comprised of representatives from each of the four institutional investors.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">As of March 31, 2005, Fund I owns or has an  ownership interest in ten shopping centers and twenty-five anchor-only  supermarket leases comprising 2.7 million square feet.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company accounts for its investment in  Fund I using the equity method. Summary financial information of Fund I and the  Company&#146;s investment in and share of income from Fund I follows:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>December 31,<br>    2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance Sheets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Assets:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Rental    property, net</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">186,524</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">187,046</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Other    assets</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">14,604</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">13,077</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'>&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total assets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">201,128</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">200,123</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Liabilities and partners&#146;    equity</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Mortgage    notes payable</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">114,955</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">120,188</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Other    liabilities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">29,129</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">24,060</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Partners&#146;    equity</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">57,044</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">55,875</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total liabilities and    partners&#146; equity</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">201,128</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">200,123</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Company&#146;s investment in    Fund I</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">12,335</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">12,115</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">9</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS  IN AND ADVANCES TO UNCONSOLIDATED PARTNERSHIPS (continued)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td width="73%"  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three Months<br>    Ended<br>    March 31, 2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three Months<br>    Ended<br>    March 31, 2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Statements of Income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total revenue</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,988</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,596</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating and other    expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,406</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,319</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Management and other fees</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">541</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">516</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,615</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,606</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,244</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,127</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Equity in earnings of    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(84</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">67</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">42</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,199</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">986</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Company&#146;s share of net    income (1)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">402</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">326</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">The Company&#146;s pro-rata    share of net income is before Management and other fees as these amounts are    paid to the Company.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Acadia  Strategic Opportunity Fund II, LP (&#147;Fund II&#148;)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In June of 2004, the Company formed a joint  venture (&#147;Fund II&#148;), with the investors from Fund I as well as two additional  institutional investors for the purpose of acquiring real estate assets.&#160; The total committed capital for Fund II is  $300,000, of which the Company&#146;s share is $60,000.&#160; The Company is the sole managing member with 20% interest in the  joint venture and is also entitled to a profit participation in excess of its  invested capital based on certain investment return thresholds.&#160; The Company also earns market-rate fees for  asset management as well as for property management, construction, legal and  leasing services.&#160; Decisions made by the  managing member, as they relate to purchasing, financing and disposition of  properties, are subject to the unanimous disapproval of the Advisory Committee,  which is comprised of representatives from each of the six institutional  investors.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On September 29, 2004, in conjunction with an  investment partner, P/A Associates, LLC (&#147;P/A&#148;), Fund II purchased 400 East  Fordham Road in the Bronx, NY for $30,197, inclusive of closing and other  related acquisition costs.&#160; The Company  had provided a bridge loan of $18,000 to Fund II in connection with this  acquisition.&#160; Subsequent to the  acquisition, Fund II repaid this loan from the Company with $18,000 of proceeds  from a new loan from a bank which bears interest at LIBOR plus 175 basis points  and matures September 2014.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On October 1, 2004, Fund II initiated its  second urban/infill project in conjunction with P/A.&#160; Fund II entered into a 95-year ground lease to redevelop a  16-acre site in Pelham Manor, Westchester County, New York.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On April 6, 2005, in conjunction with P/A,  Fund II purchased a 140,000 square foot building located in the Washington  Heights section of Manhattan, NY.&#160; The  building was acquired for a purchase price of $25,000.&#160; Fund II plans to redevelop the site to  include retail, commercial and residential components totaling over 300,000  square feet.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company accounts for its investment in  Fund II using the equity method. Summary financial information of Fund II and  the Company&#146;s investment in and share of income from Fund II follows:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>December 31,<br>    2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Balance Sheets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Assets:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Rental    property, net</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">29,903</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">29,058</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Other    assets</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5,168</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,879</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'>&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total assets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">35,071</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">33,937</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Liabilities and partners&#146;    equity</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Mortgage    notes payable</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">18,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">18,000</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Other    liabilities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,211</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">910</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Partners&#146;    equity</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">14,860</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">15,027</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total liabilities and    partners&#146; equity</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">35,071</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">33,937</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Company&#146;s investment in    Fund II</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,677</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,760</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">10</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS  IN AND ADVANCES TO UNCONSOLIDATED PARTNERSHIPS (continued)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three Months<br>    Ended<br>    March 31, 2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three Months<br>    Ended<br>    March 31, 2004</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Statements of Operations</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total revenue</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">916</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating and other    expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">895</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Management and other fees</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">938</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">188</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">350</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(49</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net loss</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1,406</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Company&#146;s share of net loss    (1)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(94</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="9%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">

 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">The Company&#146;s pro-rata    share of net income is before Management and other fees as these amounts are    paid to the Company.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Retailer  Controlled Property Venture</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On January 27, 2004, the Company entered into  the Retailer Controlled Property Venture (&#147;RCP Venture&#148;) with Klaff Realty,  L.P. (&#147;Klaff&#148;) and Klaff&#146;s long-time capital partner Lubert-Adler Management,  Inc. for the purpose of making investments in surplus or underutilized  properties owned by retailers. On September 2, 2004, affiliates of Fund I and  Fund II, through separately organized, newly formed limited liability companies  on a non-recourse basis, invested in the acquisition of Mervyn&#146;s through the  RCP Venture, which, as part of an investment consortium of Sun Capital and  Cerebus, acquired Mervyn&#146;s from Target Corporation. The total acquisition price  was $1.175 billion, with such affiliates&#146; combined $23,520 share of the  investment divided equally between them. The Company&#146;s share of the investment  totaled $4,965.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DERIVATIVE  FINANCIAL INSTRUMENTS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following table summarizes the notional  values and fair values of the Company&#146;s derivative financial instruments as of  March 31, 2005. The notional value does not represent exposure to credit,  interest rate or market risks.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td width="35%"  valign="bottom">
  <div><font size="1" face="Times New Roman"><b>Hedge Type</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Notional    Value</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Interest</b><font size="1"><b><br>    Rate</b></font></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Forward Start<br>    </b><font size="1"><b>Date</b></font></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Interest</b><font size="1"><b><br>    Maturity</b></font></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Fair Value</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">LIBOR Swap</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">11,859</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.11</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1/1/07</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(24</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">LIBOR Swap</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">20,000</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.53</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">10/1/06</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(184</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">LIBOR Swap</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">8.833</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.47</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6/1/07</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(71</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">LIBOR Swap</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">15,330</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.32</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1/1/07</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(86</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(365</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">LIBOR Swap (1)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">11,410</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.90</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">10/2/06</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">10/1/11</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(34</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">LIBOR Swap (1)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">8,434</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.14</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6/1/07</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3/1/12</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(76</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Interest rate swap payable</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(475</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">LIBOR Swap</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">37,667</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.35</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4/1/05</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1/1/11</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">286</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">LIBOR Swap (1)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,640</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.71</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">10/2/06</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1/1/10</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">Interest rate swap    receivable(2)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">288</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Forward starting swap    agreements.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(2)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Included in other assets in    the consolidated balance sheet as of March 31, 2005</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">11</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MORTGAGE  LOANS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On February 25, 2005, the Company drew down  $20,000 under an existing revolving facility, which bears interest at LIBOR  plus 150 basis points.&#160; The proceeds  from this drawdown were utilized for the Preferred Equity investment (Note 3).</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RELATED  PARTY TRANSACTIONS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In February 2005, the Company issued $4,000 of  Restricted Common OP Units to Klaff for the balance of certain management  contract rights as well as the rights to certain potential future revenue  streams (Note 7).</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In March 2005, the Company completed a $20,000  Preferred Equity Investment with Levitz SL, of which Klaff, a common and  preferred OP unit holder, is the managing member (Note 3).</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company also earns certain management and  service fees in connection with its investment in Fund I and Fund II (Note 8).  Such fees earned by the Company aggregated $1,403 for the three months ended  March 31, 2005 and $401 for the three months ended March 31, 2004.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company also earns fees in connection with  its rights to provide asset management, leasing, disposition, development and  construction services for an existing portfolio of retail properties and/or  leasehold interests in which Klaff has an interest. Net fees earned by the  Company in connection with this portfolio were $575 and $32 for the three  months ended March 31, 2005 and 2004, respectively. These amounts are net of  the payment of submanagement fees to Klaff of $303 and $261 for the quarters  ended March 31, 2005 and 2004, respectively.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company managed one property in which a  shareholder of the Company had an ownership interest for which the Company  earned a management fee of 3% of tenant collections.&#160; Management fees earned by the Company under this contract  aggregated $71 for the three months ended March 31, 2004.&#160; In addition, the Company also earned leasing  commission of $60 related to this property for the three months ended March 31,  2004.&#160; In connection with the sale of  the property on July 12, 2004, the management contract was terminated and the  Company earned a $75 disposition fee.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DIVIDENDS  AND DISTRIBUTIONS PAYABLE</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On February 4, 2005, the Board of Trustees of  the Company approved and declared a cash quarterly dividend for the quarter  ended March 31, 2005 of $0.1725 per Common Share and Common OP Unit. The  dividend was paid on April 15, 2005 to shareholders of record as of March 31,  2005. Preferred Series A and B OP Unit holders also received this quarterly  distribution based on the number of Common OP Units they would receive in a  hypothetical conversion of their Preferred OP Units.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">12</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT  REPORTING</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The Company has two reportable segments:  retail properties and multi-family properties. The accounting policies of the  segments are the same as those described in the summary of significant  accounting policies as discussed in the Company&#146;s Annual Report on Form 10-K.  The Company evaluates property performance primarily based on net operating  income before depreciation, amortization and certain nonrecurring items. The  reportable segments are managed separately due to the differing nature of the  leases and property operations associated with the retail versus residential  tenants. The following tables set forth certain segment information for the  Company for continuing operations as of and for the three months ended March  31, 2005 and 2004 (does not include unconsolidated partnerships):</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="46%" colspan="11"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended March 31, 2005</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="46%" colspan="11"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Retail<br>    Properties</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Multi-Family<br>    Properties</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>All<br>    Other</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Total</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Revenues</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">15,046</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,876</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,038</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">19,960</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Property operating expenses    and real estate taxes</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5,357</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">975</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,332</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net property income before    depreciation, amortization and certain nonrecurring items</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9,689</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">901</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,038</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,628</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,559</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">360</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">105</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,024</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,057</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">302</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,359</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Real estate at cost</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">383,283</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">40,836</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">424,119</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total assets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">336,699</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">36,308</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">46,417</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">419,424</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Gross leasable area    (multi-family &#150; 1,474 units)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,848</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1,207</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,055</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Expenditures for real    estate and improvements</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,651</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">221</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,872</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Revenues</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total revenues for    reportable segments</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">20,750</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    management fee income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(363</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    asset management fee income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(262</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    service fees and interest income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(165</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total consolidated revenues</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">19,960</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Property operating expenses    and real estate taxes</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total property operating    expenses and real estate taxes for reportable segments</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,651</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    management fee expenses</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(319</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total consolidated expenses</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,332</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Reconciliation to net    income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net property income before    depreciation and amortization</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,628</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(4,024</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">General and administrative</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(3,078</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Equity in earnings of    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">497</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(2,359</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(219</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">13</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT  REPORTING (continued)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="46%" colspan="11"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended March 31, 2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="46%" colspan="11"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Retail<br>    Properties</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Multi-Family<br>    Properties</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>All<br>    Other</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Total</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Revenues</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">14,803</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,925</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">816</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">17,544</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Property operating expenses    and real estate taxes</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5,064</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">945</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,009</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net property income before    depreciation, amortization and certain nonrecurring items</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9,739</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">980</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">816</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">11,535</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,307</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">350</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">78</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3,735</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,053</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">376</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,429</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Real estate at cost</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">375,580</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">39,911</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">415,491</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total assets</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">334,547</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">37,101</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">18,267</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">389,915</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Gross leasable area (multi-family    &#150; 1,474 units)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4,849</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1,207</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,056</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Expenditures for real    estate and improvements</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,203</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">137</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,340</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Revenues</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total revenues for    reportable segments</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">17,912</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    management fee income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(293</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    asset management fee income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(75</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total consolidated revenues</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">17,544</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Property operating expenses    and real estate taxes</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;Total property    operating expenses and real estate taxes for&nbsp;reportable segments</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,262</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Elimination of intersegment    management fee expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(253</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total consolidated expenses</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,009</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Reconciliation to net    income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net property income before    depreciation and amortization</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">11,535</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(3,735</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">General and administrative</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(2,489</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Equity in earnings of    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">544</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(2,429</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Loss from discontinued    operations</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(359</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(217</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,850</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">14</font></div>

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<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST AND SUBSIDIARIES</b></font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</b></font></div>

<div  align="center"><font size="2" face="Times New Roman">(in  thousands, except per share amounts)</font></div>

<div  align="center"><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DISCONTINUED OPERATIONS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The results of operations of sold
    property is reported separately as discontinued operations for the three
months ended March 31, 2004. The revenues and expenses of the property classified
    as discontinued operations for the three months ended March 31, 2004 were
    $394 and $767, respectively, resulting in an operating loss from discontinued
    operations of $373 for the period.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONTINGENCIES</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">During the three months ended March 31, 2005,  the Company reduced a previously recorded reserve by $480 related to the  settlement of its insurance claim in connection with the flood damage incurred  at Mark Plaza located in Wilkes-Barre, PA.&#160;  The Company had previously provided a reserve of $730 as of December 31,  2004 related to the flood damage.&#160; </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT  EVENTS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">During April 2005, the Company drew down  $7,400 under an existing revolving facility, which bears interest at LIBOR plus  150 basis points.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">15</font></div>

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<page>

<div><a name=p16></a><font  size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s  Discussion and Analysis of Financial Condition and Results of Operations</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following discussion is based on the consolidated financial  statements of the Company as of March 31, 2005 and 2004 and for the three  months then ended. This information should be read in conjunction with the  accompanying consolidated financial statements and notes thereto.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>FORWARD-LOOKING STATEMENTS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Certain statements contained in this report constitute &#147;forward-looking  statements&#148; 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 our actual results, performance  or achievements to be materially different from any future results performance  or achievements expressed or implied by such forward-looking statements. Such  factors are set forth in our Form 10-K for the year ended December 31, 2004 and  include, among others, the following: general economic and business conditions,  which will, among other things, affect demand for rental space, the  availability and creditworthiness of prospective tenants, lease rents and the  availability of financing; adverse changes in our real estate markets, including,  among other things, competition with other companies; risks of real estate  development and
acquisition; governmental actions and initiatives; and  environmental/safety requirements.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>OVERVIEW</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We operate 70 properties, which we own or have an ownership interest  in, consisting of 68 neighborhood and community shopping centers and two  multi-family properties, principally located in the Northeast, Mid-Atlantic and  Midwest regions of the United States. We receive income primarily from the  rental revenue from our properties, including expense recoveries from tenants,  offset by operating and overhead expenses. We focus on three primary areas in  executing our business plan as follows:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

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  <div><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="90%" valign="top">
  <div><font size="2" face="Times New Roman">We focus on maximizing the return on our existing    portfolio through leasing and property redevelopment activities. Our    redevelopment program is a significant and ongoing component of managing our    existing portfolio and it focuses on selecting well-located neighborhood and    community shopping centers and creating significant value through    re-tenanting and property redevelopment.</font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="5%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="90%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="5%" valign="top">
  <div><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="90%" valign="top">
  <div><font size="2" face="Times New Roman">We pursue above-average returns through a    disciplined and opportunistic acquisition program. The primary conduits for    our current acquisition program are through our existing acquisition joint venture    Fund II, as well as the Retailer Controlled Property Venture (&#147;RCP Venture&#148;)    established to invest in surplus or underutilized properties owned or    controlled by retailers and the New York Urban/Infill Redevelopment    initiative which focuses on investing in redevelopment projects in urban,    dense areas where retail tenant demand has effectively surpassed the supply    of available sites.</font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="5%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="90%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
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  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="5%" valign="top">
  <div><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="90%" valign="top">
  <div><font size="2" face="Times New Roman">We focus on maintaining a strong balance sheet,    which provides us with the financial flexibility to fund both property    redevelopment and acquisition opportunities.</font></div>
  </td>
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</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>CRITICAL ACCOUNTING POLICIES </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Management&#146;s discussion and analysis of financial condition and results  of operations is based upon our consolidated financial statements, which have  been prepared in accordance with Generally Accepted Accounting Principles  (&#147;GAAP&#148;). The preparation of these consolidated financial statements requires  management to make estimates and judgments that affect the reported amounts of  assets, liabilities, revenues and expenses. Management bases its estimates on  historical experience and assumptions that are believed to be reasonable under  the circumstances, the results of which form the basis for making judgments  about carrying value of assets and liabilities that are not readily apparent  from other sources. Actual results may differ from these estimates under  different assumptions or conditions. We believe the following critical  accounting policies affect the significant judgments and estimates used by us  in the preparation of our
consolidated financial statements. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Valuation of Property Held for Use  and Sale </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On a quarterly basis, we review both properties held for use and for  sale for indicators of impairment. We record impairment losses and reduce the  carrying value of properties when indicators of impairment are present and the  expected undiscounted cash flows related to those properties are less than  their carrying amounts. In cases where we do not expect to recover our carrying  costs on properties held for use, we reduce our carrying cost to fair value,  and for properties held for sale, we reduce our carrying value to the fair  value less costs to sell. Management does not believe that the value of any  properties in our portfolio was impaired as of March 31, 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">16</font></div>

<hr noshade align="center" width="100%" size="2">
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<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Bad Debts </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We maintain an allowance for doubtful accounts for estimated losses  resulting from the inability of tenants to make payments on arrearages in  billed rents, as well as the likelihood that tenants will not have the ability  to make payment on unbilled rents including estimated expense recoveries and  straight-line rent. As of March 31, 2005, we have recorded an allowance for  doubtful accounts of $3.0 million. If the financial condition of our tenants  were to deteriorate, resulting in an impairment of their ability to make  payments, additional allowances may be required. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>RESULTS OF OPERATIONS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Comparison of the three months ended  March 31, 2005 (&#147;2005&#148;) to the three months ended March 31, 2004 (&#147;2004&#148;) </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

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  <div  align="center">&nbsp;</div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
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  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Change</b></font></div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
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  <div  align="center">&nbsp;</div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
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  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>$</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>%</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
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  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


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  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
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  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Revenues:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minimum rents</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12.9</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12.8</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
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  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Percentage rents</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Expense reimbursements</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3.6</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">14 </font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other property income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">200 </font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Management fee income</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2.0</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">300 </font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.4</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">400 </font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(0.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(100</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total revenues</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">20.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">17.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">14 </font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in minimum rents was attributable to additional rents from  re-tenanting activities as well as increased occupancy across the portfolio.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Common area maintenance (&#147;CAM&#148;) expense reimbursement increased $0.3  million as a result of increased tenant reimbursements of higher snow removal  costs in 2005.&#160; Real estate tax  reimbursements increased $0.2 million, primarily as a result of general  increases in real estate taxes as well as re-tenanting activities throughout  the portfolio.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Management fee income increased as a result of asset management fees  from Fund II, which was formed in June 2004, and an increase in management fees  related to the acquisition of certain management contract rights in January  2004 and February 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in interest income was a combination of additional  interest income on the Company&#146;s advances and notes receivable originated in  2004 and additional interest income earned following the Company&#146;s preferred  equity investment in Levitz in 2005.&#160; </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Change</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>$</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>%</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating Expenses:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Property operating</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3.9</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3.8</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Real estate taxes</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2.4</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">9</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">General and administrative</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">3.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.6</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">24</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation and    amortization</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3.7</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">8</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total operating expenses</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">13.4</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">10</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in property operating expenses was primarily a result of  higher snow removal costs during 2005 offset by a recovery of approximately  $0.5 million related to the settlement of the Company&#146;s insurance claim in  connection with the flood damage incurred at the Mark Plaza.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in real estate taxes was due to general increases in real  estate taxes experienced across the portfolio.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in general and administrative expense was attributable to  increased compensation expense following additional staffing requirements and  additional professional fees related to Sarbanes-Oxley compliance.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">17</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Depreciation expense increased $0.2 million in 2005.&#160; This was principally a result of increased  depreciation expense related to capitalized tenant installation costs in 2004  and 2005.&#160; Amortization expense  increased $0.1 which was the result of additional amortization of our  investment in management contracts for the full quarter of 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Change</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>$</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>%</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Other:</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Equity in earnings of    unconsolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest expense</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(2.4</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(2.4</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Minority interest</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(0.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(0.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Interest expense remained unchanged at $2.4 million from 2004 to  2005.&#160; Interest expense increased $0.1  million as a result of a higher average interest rate on the portfolio mortgage  debt in 2005 offset by a $0.1 million decrease resulting from lower average  outstanding borrowings in 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Funds from Operations</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We consider funds from operations (&#147;FFO&#148;) as defined by the National  Association of Real Estate Investment Trusts (&#147;NAREIT&#148;) to be an appropriate  supplemental disclosure of operating performance for an equity REIT due to its  widespread acceptance and use within the REIT and analyst communities. FFO is  presented to assist investors in analyzing our performance. It is helpful as it  excludes various items included in net income that are not indicative of the  operating performance, such as gains (or losses) from sales of property and  depreciation and amortization. However, our method of calculating FFO may be  different from methods used by other REITs and, accordingly, may not be  comparable to such other REITs. FFO does not represent cash generated from  operations as defined by GAAP and is not indicative of cash available to fund  all cash needs, including distributions. It should not be considered as an  alternative to net income
for the purpose of evaluating our performance or to  cash flows as a measure of liquidity.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Consistent with the NAREIT definition, we define FFO as net income  (computed in accordance with GAAP), excluding gains (or losses) from sales of  depreciated property, plus depreciation and amortization, and after adjustments  for unconsolidated partnerships and joint ventures. The reconciliation of net  income to FFO for the three months ended March 31, 2005 and 2004 is as follows  (amounts in thousands):</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended<br>    March 31,</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="21%" colspan="5"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net income</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4,445</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2,850</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Depreciation of real estate and amortization of    leasing costs:</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Wholly-owned and    consolidated partnerships</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,620</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3,517</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Unconsolidated    partnerships</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">633</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">552</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Income attributable to Minority interest in    Operating&#160; Partnership (1)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">75</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">115</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Funds from operations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">8,773</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">7,034</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Cash flows provided by (used in):</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Operating activities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,959</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6,801</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Investing activities</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(24,274</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(8,767</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Financing activities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">14,009</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">499</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Does not include distributions paid to Series A and    B Preferred OP Unitholders.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">18</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>LIQUIDITY AND CAPITAL RESOURCES </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>USES OF LIQUIDITY </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Our principal uses of liquidity are expected to be for distributions to  our shareholders and OP unitholders, debt service and loan repayments, and  property investment which includes the funding of our joint venture  commitments, acquisition, redevelopment, expansion and re-tenanting activities.  </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Distributions</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In order to qualify as a REIT for Federal income tax purposes, we must  currently distribute at least 90% of our taxable income to our shareholders.  During February of 2005, our Board of Trustees approved and declared a  quarterly cash dividend of $0.1725 per Common Share and Common OP Unit for the  first quarter of 2005 which was paid April 15, 2005. Preferred Series A and B  OP Unit holders also received this quarterly distribution based on the number  of Common OP Units they would receive in a hypothetical conversion of their  Preferred OP Units.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Acadia Strategic Opportunity Fund, LP  (&#147;Fund I&#148;)</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In September of 2001, we committed $20.0 million to a newly formed  joint venture formed with four of our institutional shareholders, who committed  $70.0 million, for the purpose of acquiring a total of approximately $300.0  million of community and neighborhood shopping centers on a leveraged basis. As  of March 31, 2005, we have contributed $15.5 million to Fund I.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We are the manager and general partner of Fund I with a 22% interest.  In addition to a pro-rata return on our invested equity, we are entitled to a  profit participation based upon certain investment return thresholds. Cash flow  is to be distributed pro-rata to the partners (including us) until they have  received a 9% cumulative return on, and a return of all capital contributions.  Thereafter, remaining cash flow is to be distributed 80% to the partners  (including us) and 20% to us. We also earn a fee for asset management services  equal to 1.5% of the total equity commitments, as well as market-rate fees for  property management, leasing and construction services. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">As of March 31, 2005, Fund I has purchased a total of 35 properties  totaling 2.7 million square feet. The following table summarizes Fund I&#146;s  acquisitions through this date:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="1" face="Times New Roman"><b>Shopping Center</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Notes</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Location</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Year    acquired</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>GLA</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Purchase price</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Estimated future<br>    redevelopment<br>    costs</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="24%" colspan="5"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>(millions)</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b><u>New    York Region</u></b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><i>New    York</i></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Tarrytown Shopping    Center</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Westchester</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2004</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">35,877</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">$1</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>Mid-Atlantic    Region</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><i><u>Delawar</u>e</i></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Brandywine Town Center</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">Wilmington</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">2003</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">629,345</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">86.3</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Market Square&#160; Shopping Center</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Wilmington</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2003</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">102,762</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><i><u>South    Carolina</u></i></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Hitchcock Plaza</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Aiken</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2004</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">234,338</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">$6 to $7</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Pine Log Plaza</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">4</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">Aiken</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">2004</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">35,064</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><i><u>Virginia</u></i></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Haygood Shopping Center</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">Virginia Beach</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">2004</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">158,229</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5.4</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">$5 to $6</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>Midwest    Region</b></font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><i><u>Ohio</u></i></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Amherst Marketplace</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">6</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Cleveland</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2002</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">79,937</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">26.7</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Granville Centre</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">6</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">Columbus</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">2002</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">131,543</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Sheffield Crossing</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">6</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Cleveland</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2002</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">112,534</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><i><u>Michigan</u></i></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Sterling Heights    Shopping Center</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">7</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Detroit</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2004</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">154,597</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">$2 to $3</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman"><b>Various    Regions</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Kroger/Safeway    Portfolio</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">8</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">Various</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">2003</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1,018,100</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">48.9</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom" bgcolor="#eeeeee">
  <div  align="center"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
  <tr>
   <td  valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom"><hr noshade size="1"></td>
   <td valign="bottom"><hr noshade size="1"></td>
   <td valign="bottom">&nbsp;</td>
   <td valign="bottom"><hr noshade size="1"></td>
   <td valign="bottom"><hr noshade size="1"></td>
   <td valign="bottom">&nbsp;</td>
   <td colspan="2" valign="bottom"><hr noshade size="1"></td>
   <td valign="bottom">&nbsp;</td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Total</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2,692,326</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">182.9</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="2" face="Times New Roman">$14 to $17</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">19</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">

 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Fund I and an unaffiliated partner, each with a 50%    interest, acquired this center. Related to this acquisition, we loaned $2.0    million to Fund I which bears interest at the prime rate and matures May    2005.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">2)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">This represents the combined purchase price for    Brandywine Towne Center and Market Square Shopping Center. Fund I assumed    $38.1 million of fixed rate debt on the two properties as well as obtained a    new $30.0 million fixed-rate loan in conjunction with the acquisition.    Brandywine Town Center is a two phase open-air value retail center. The first    phase is approximately 450,000 square feet and 100% occupied. The second    phase (&#147;Phase II&#148;) consists of approximately 410,000 square feet of existing    space, of which approximately 180,000 square feet is occupied. The balance of    Phase II is currently not occupied. Fund I will also pay additional amounts    in conjunction with the lease-up of the current vacant space in Phase II (the    &#147;Earn-out&#148;). To date, Fund I has incurred costs of $20.6 million for Earn-out    space. The additional investment for Earn-out space is projected to be    between $25.0 million and $30.0
million. To the extent Fund I places    additional mortgage debt upon the lease-up of Phase II, the required equity    contribution for the Earn-out would be less. The Earn-out is structured such    that Fund I has no time requirement or payment obligation for any portion of    currently vacant space which it is unable to lease. </font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">3)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Fund I provided 90% of the equity capital and Hendon    Properties (&#147;Hendon&#148;), an unaffiliated partner, provided the remaining 10% of    the equity capital used to acquire the former loan on this property.    Subsequent to the acquisition of the loan, Fund I and Hendon obtained fee    title to this property. Hendon is entitled to receive profit participation in    excess of its proportionate equity interest. The Company loaned $3.2 million    to the property owning entity in connection with the purchase of the loan.    The Company&#146;s note matures March 9, 2006, and bears interest at 7% for the    first year and 6% for the second year.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">4)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">This property, which is situated adjacent to the    Hitchcock Plaza, was also purchased in conjunction with Hendon. Related to    this transaction, the Company provided an additional $0.75 million loan to    Fund I with a March 2006 maturity and interest at 7% for the first year and    6% for the second year.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">5)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Fund I acquired a 50% interest in the Haygood    Shopping Center for $2.2 million cash and the assumption of $3.2 million in    variable-rate mortgage debt.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">6)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">This represents the combined purchase price for    Amherst Marketplace, Granville Centre and Sheffield Crossing. Fund I paid    $14.1 million in cash and assumed $12.6 million of fixed-rate debt on two of    the properties at a blended rate of 8.1%.</font></div>
  </td>
 </tr>
 <tr>
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  <div><font size="2" face="Times New Roman">7)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Fund I acquired a 50% interest in the Sterling    Heights Shopping Center for $1.0 million cash and the assumption of $2.3    million in variable-rate mortgage debt.</font></div>
  </td>
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  <div><font size="2" face="Times New Roman">8)</font></div>
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  <div><font size="2" face="Times New Roman">Fund I and AmCap Incorporated (&#147;AmCap&#148;), an    unaffiliated partner, acquired this portfolio for $14.4 million in cash and    the assumption of an aggregate of $34.5 million of existing fixed-rate    mortgage debt at a blended rate of 6.57%. The portfolio, which aggregates    approximately 1.0 million square feet, consists of 25 anchor-only leases with    Kroger (12 leases) and Safeway supermarkets (13 leases).</font></div>
  </td>
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</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Acadia Strategic Opportunity Fund II,  LLC </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On June 15, 2004, we closed our second acquisition fund, Acadia  Strategic Opportunity Fund II, LLC (&#147;Fund II&#148;), which includes all of the  investors from Fund I as well as two additional institutional investors. With  $300 million of committed discretionary capital, Fund II expects to be able to  acquire up to $900 million of real estate assets on a leveraged basis. We are  the managing member with a 20% interest in the joint venture. The terms and structure  of Fund II are substantially the same as Fund I with the exceptions that the  preferred return is 8% and the asset management fee is calculated on committed  equity of $250 million through June 15, 2005 and then on the total committed  equity of $300 million thereafter. As of March 31, 2005, we have contributed  $5.8 million to Fund II.</font></div>

<div><font size="2" face="Times New Roman">To date, Fund II has invested in the RCP Venture and the New York  Urban/Infill Redevelopment initiative as discussed below. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><u>New York Urban/Infill Redevelopment Initiative</u></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">During 2004, Fund II, together with an unaffiliated partner, P/A  Associates, LLC (&#147;P/A&#148;), formed Acadia-P/A Holding Company, LLC (&#147;Acadia-P/A&#148;)  for the purpose of acquiring, constructing, developing, owning, operating,  leasing and managing certain retail real estate properties in the New York City  metropolitan area.&nbsp; P/A has agreed to invest 10% of required capital up to  a maximum of $2.0 million and Fund II, the managing member, has agreed to  invest the balance to acquire assets in which Acadia P/A agrees to invest.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Operating cash flow is generally to be distributed pro-rata to Fund II  and P/A until they have received a 10% cumulative return and then 60% to Fund  II and 40% to P/A. Distributions of net refinancing and net sales proceeds, as  defined, follow the distribution of operating cash flow except that unpaid  original capital is returned before the 60%/40% split between Fund II and P/A.  Upon the liquidation of the last property investment of&nbsp;Acadia-P/A, to the  extent that Fund II has not received an 18% internal rate of return (&#147;IRR&#148;) on  all of its capital contributions, P/A is obligated to return a portion of its  previous distributions, as defined, until Fund II has received an 18% IRR.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">20</font></div>

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<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><u>2005 New York Urban/Infill Redevelopment Investments</u></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><u>4650 Broadway</u> - On April 6, 2005,  Acadia-P/A acquired 4650 Broadway located in the Washington Heights/Inwood  section of Manhattan. The property, a 140,000 square foot building, which is  currently occupied by the City of New York and a commercial parking garage, was  acquired for a purchase price of $25 million. We plan to redevelop the site to  include retail, commercial and residential components totaling over 300,000  square feet. The retail and commercial (including office, &#145;Community Use&#146; and  parking) portion comprise approximately 50% of the project and the residential  component comprises the other 50%. Redevelopment of the project is anticipated  to commence in the next 12 to 24 months with completion expected 18 months  thereafter. Expected costs to complete the retail and commercial component of  the project are estimated at $40 million before any potential sale of the  residential air rights. In lieu of directly developing the
mid-rise residential  portion of the project, the rights to this component may be sold while  retaining ownership of the other portions of the project.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">On February 25, 2005, Acadia-P/A acquired land adjacent to the 400 East  Fordham Road property for $867,000 (See &#147;2004 New York Urban/Infill Redevelopment  Acquisitions &#150; 400 East Fordham Road&#148; below).</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">2004 New York Urban/Infill Redevelopment Investments</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><u>400 East Fordham Road </u>- Acadia-P/A  acquired this property located in the Bronx, NY for $30.2 million. Sears is the  major tenant of the property, retailing on four levels. Currently, there are  also medical office tenants on the top two floors above Sears. The  redevelopment of the property is scheduled to commence in 2007 following the  expiration of the Sears lease, which was originally signed in 1964. However,  depending on current negotiations with both Sears and other potential anchors,  the timeframe of the redevelopment may be accelerated. As part of the  redevelopment, there is the potential for additional expansion of up to 85,000  square feet of space. The total cost of the redevelopment project, including  the acquisition cost, is estimated to be between $65 and $70 million, depending  on the ultimate scope of the project. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><u>Pelham Manor </u>- Acadia-P/A entered  into a 95-year ground lease to redevelop this 16-acre site located in  Westchester County, New York. The redevelopment contemplates the demolition of  the existing industrial and warehouse buildings, and replacing them with a  multi-anchor community retail center. We anticipate the redevelopment to cost  between $30 and $33 million, with construction anticipated to commence within  the next 12 to 24 months. In the interim, the property will continue to be  operated as an industrial and warehouse facility. Prior to commencement of the  redevelopment process, the ground rent payment is projected to equal the  warehouse rents collected. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><u>RCP Venture with Klaff Realty, L.P. (&#147;Klaff&#148;) </u></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">During 2004, we entered into the Retailer Controlled Property Venture  (the &#147;RCP Venture&#148;) with Klaff and Klaff&#146;s long time capital partner  Lubert-Adler Management, Inc. (&#147;Lubert-Adler&#148;) for the purpose of making  investments in surplus or underutilized properties owned by retailers. The  initial size of the RCP Venture is expected to be approximately $300 million in  equity based on anticipated investments of approximately $1 billion. Each  participant in the RCP Venture has the right to opt out of any potential  investment. We and our current acquisition funds, Funds I and II, anticipate  investing 20% of the equity of the RCP Venture. Cash flow is to be distributed  to the partners until they have received a 10% cumulative return and a full  return of all contributions. Thereafter, remaining cash flow is to be  distributed 20% to Klaff (&#147;Klaff&#146;s Promote&#148;) and 80% to the partners (including  Klaff). We also
anticipate earning market-rate fees for property management,  leasing and construction services on behalf of the RCP Venture.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In September 2004, we made our first RCP Venture investment with our  participation in the acquisition of Mervyn&#146;s.&nbsp; Affiliates of Funds I and  Fund II, through separately organized, newly formed limited liability companies  on a non-recourse basis, invested in the acquisition of Mervyn&#146;s through the  RCP Venture, which, as part of an investment consortium of Sun Capital and  Cerberus, acquired Mervyn&#146;s from Target Corporation. The total acquisition  price was approximately $1.2 billion subject to debt of approximately $800.0  million. Affiliates of Funds I and II invested equity aggregating $23.5 million  on a non-recourse basis which was divided equally between them, of which $4.9  million was our share of the equity investment. Mervyn&#146;s is a 257-store  discount retailer with a very strong West Coast concentration. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Other Investments</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In March of 2005, we invested $20 million in a preferred equity  position (&#147;Preferred Equity&#148;) with Levitz SL, L.L.C. (&#147;Levitz SL&#148;), the owner  of 2.5 million square feet of fee and leasehold interests in 30 locations (the  &#147;Properties&#148;), the majority of which are currently leased to Levitz Furniture  Stores. Klaff is a managing member of Levitz SL. The Preferred Equity receives  a return of 10%, plus a minimum return of capital of $2 million per annum. At  the end of 12 months, the rate of return will be reset to the six-month LIBOR  plus 644 basis points. The Preferred Equity is redeemable at the option of  Levitz SL at any time, although if redeemed during the first 12 months, the  redemption price is equal to the outstanding amount of the Preferred Equity,  plus the return calculated for the remainder of the 12-month period.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">21</font></div>

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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In January 2004, we acquired 75% of Klaff&#146;s rights to provide asset  management, leasing, disposition, development and construction services for an  existing portfolio of retail properties and/or leasehold interests comprised of  approximately 10 million square feet of retail space located throughout the  United States (the &#147;Klaff Properties&#148;) as well the rights to 75% of certain  future revenue streams. The acquisition includes only Klaff&#146;s rights associated  with operating the Klaff Properties and does not include equity interests in  assets owned by Klaff or Lubert-Adler. The Operating Partnership issued $4  million of Series B Preferred OP Units to Klaff in consideration of this  acquisition. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Effective February 15, 2005, we acquired the balance of Klaff&#146;s rights  to provide the above services and certain potential future revenue streams. The  consideration for this acquisition was $4 million in the form of 250,000  restricted Common OP Units, valued at $16 per unit, which are convertible into  our Common Shares on a one-for-one basis after a five year lock-up period. As  part of this transaction we also assumed all operational and redevelopment  responsibility for the Klaff Properties a year earlier than was contemplated in  the January 2004 transaction.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Share Repurchase </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The repurchase of our Common Shares has historically been an additional  use of liquidity. We have an existing share repurchase program that authorizes  management, at its discretion, to repurchase up to $20.0 million of our  outstanding Common Shares. Through May 4, 2005, we had repurchased 2.1 million  Common Shares at a total cost of $11.7 million of which 1.5 million of these  Common Shares have been subsequently reissued.&nbsp; The program may be  discontinued or extended at any time and there is no assurance that we will  purchase the full amount authorized. There were no Common Shares repurchased by  us during the quarter ended March 31, 2005. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>SOURCES OF LIQUIDITY </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We intend on using Fund II as the primary vehicles for our future  acquisitions, including investments in the RCP Venture and New York  Urban/Infill Redevelopment initiative. Sources of capital for funding our joint  venture commitments, other property acquisitions, redevelopment, expansion and  re-tenanting, as well as future repurchases of Common Shares are expected to be  obtained primarily from issuance of public equity or debt instruments, cash on  hand, additional debt financings and future sales of existing properties. As of  March 31, 2005, we had a total of approximately $13.4 million of additional  capacity with three lines of credit, cash and cash equivalents on hand of $6.0  million, and 15 properties that are unencumbered and available as potential  collateral for future borrowings. We anticipate that cash flow from operating  activities will continue to provide adequate capital for all of our debt  service payments, recurring capital
expenditures and REIT distribution  requirements. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Financing and Debt </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">At March 31, 2005, mortgage notes payable aggregated $173.0 million and  were collateralized by 16 properties and related tenant leases. Interest rates  on our outstanding mortgage indebtedness ranged from 4.1% to 7.6% with  maturities that ranged from July 2007 to September 2014. Taking into  consideration $93.7 million of notional principal under variable to fixed-rate  swap agreements currently in effect, $153.8 million of the portfolio, or 89%,  was fixed at a 6.0% weighted average interest rate and $19.2 million, or 11%  was floating at a 4.2% weighted average interest rate. There is no debt  maturing in 2005 and 2006. In 2007, $32.5 million is scheduled to mature at a  weighted average interest rate of 5.1%. As we do not anticipate having  sufficient cash on hand to repay such indebtedness, we will need to refinance  this indebtedness or select other alternatives based on market conditions at  that time.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">In February 2005, we drew down $20.0 million from an existing revolving  facility.&#160; The proceeds from this  drawdown were utilized to fund our Preferred Equity investment as previously  described.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">During April 2005, we drew down $7.4 million under an existing  revolving facility, which bears interest at LIBOR plus 150 basis points.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">22</font></div>

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<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following table summarizes the Company&#146;s mortgage indebtedness as  of March 31, 2005 and December 31, 2004:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
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  <div  align="center">&nbsp;</div>
  </td>
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  <div  align="center">&nbsp;</div>
  </td>
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  <div  align="center"><font size="1" face="Times New Roman"><b>March 31,<br>    2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
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  <div  align="center"><font size="1" face="Times New Roman"><b>December 31,<br>    2004</b></font></div>
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  <div  align="center">&nbsp;</div>
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  <div  align="center"><font size="1" face="Times New Roman"><b>Interest Rate<br>    at March 31, 2005</b></font></div>
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  <div  align="center">&nbsp;</div>
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  <div  align="center"><font size="1" face="Times New Roman"><b>Payment<br>    Terms</b></font></div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Mortgage notes payable &#150;    variable-rate</font></div>
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  <div  align="right">&nbsp;</div>
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  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
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  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Washington Mutual Bank, FA</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">20,000</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.25%    (LIBOR + 1.50%)</font></div>
  </td>
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  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
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  <div  align="right"><font size="2" face="Times New Roman">11/22/07</font></div>
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  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(12</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
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  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Fleet National Bank</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(LIBOR    + 1.50%)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">03/01/08</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(13</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Fleet National Bank</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">8,442</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">8,473</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.09%    (LIBOR + 1.40%)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12/01/08</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(3</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(11</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Washington Mutual Bank, FA</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">29,707</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">29,900</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.25%    (LIBOR + 1.50%)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">04/01/11</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(4</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(11</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Fleet National Bank</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">44,485</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">44,485</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.09%    (LIBOR + 1.40%)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">06/29/12</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(14</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Fleet National Bank</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">10,213</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">10,252</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.09%    (LIBOR + 1.40%)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">06/29/12</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(6</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(11</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest rate swaps</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(93,689</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(86,156</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:6%'><font size="2" face="Times New Roman">Total    variable-rate debt</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">19,158</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6,954</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Mortgage notes payable &#150;    fixed-rate</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Sun America Life Insurance    Company</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,139</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13,189</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6.46</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">07/01/07</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(7</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(11</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Bank of America, N.A.</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">16,014</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">16,062</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">7.55</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">01/01/11</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(8</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(11</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">RBS Greenwich Capital</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">16,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">16,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.19</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">06/01/13</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(9</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(15</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">RBS Greenwich Capital</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">15,000</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">15,000</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5.64</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">09/06/14</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(10</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(16</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Interest rate swaps</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">93,689</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">86,156</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style='margin-left:6%'><font size="2" face="Times New Roman">Total    fixed-rate debt</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">153,842</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">146,407</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">173,000</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">153,361</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="20%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="7%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="6%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Elmwood Park Shopping    Center;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">$20,000 is outstanding    under this $20,000 revolving facility</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(2)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Marketplace of Absecon; no    amounts are outstanding under this $7,400 revolving facility.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(3)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Soundview Marketplace;    there is additional capacity of $5,000 on this facility</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(4)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Ledgewood Mall</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Bradford Towne Center</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(5)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Branch Shopping Center</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Abington Towne Centre</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Methuen Shopping Center</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Gateway Shopping Center</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Town Line Plaza; there is    additional capacity of $970 on this facility.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(6)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Smithtown Shopping Center</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(7)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Merrillville Plaza</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(8)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">GHT Apartments / Colony    Apartments</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(9)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">239 Greenwich Avenue</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(10)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">New Loudon Center</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(11)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Monthly principal and    interest.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(12)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Interest only monthly.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(13)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Interest only monthly until    fully drawn; monthly principal and interest thereafter.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(14)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Annual principal and    monthly interest.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(15)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Interest only monthly until    5/05; monthly principal and interest thereafter.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(16)</font></div>
  </td>
  <td width="92%" valign="top">
  <div><font size="2" face="Times New Roman">Interest only monthly until    9/06; monthly principal and interest thereafter.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Asset Sales </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Asset sales are an additional source of our liquidity. A significant  component of our business has been our multi-year plan to dispose of non-core  real estate assets. We began this initiative following our restructuring in  1998 and completed it in 2002. Non-core assets were identified based on factors  including property type and location, tenant mix and potential income growth as  well as whether a property complemented other assets within our portfolio. We  sold 28 non-core assets in connection with this initiative comprising a total  of approximately 4.6 million square feet of retail properties and 800  multi-family units, for a total sales price of $158.4 million which generated  net sale proceeds of $82.5 million. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Although we completed the non-core disposition initiative in 2002, we  continue to identify non-core assets within our portfolio. During November of  2004, we disposed of the East End Centre located in Wilkes-Barre, Pennsylvania  for approximately $12.4 million. In connection with this sale, the mortgage  debt which was cross-collateralized by the East End Centre and Crescent Plaza  was extinguished. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>CONTRACTUAL  OBLIGATIONS AND OTHER COMMITMENTS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">At March 31, 2005, maturities on our
    mortgage notes ranged from July 2007 to September 2014. In addition, we have
    non-cancelable ground leases at three of our shopping centers. We also lease
    space for our White Plains corporate office for a term expiring in 2010.
    The following table summarizes our debt maturities and obligations under
non-cancelable operating leases of March 31, 2005: </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">&nbsp;  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="58%" colspan="14"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Payments    due by period</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>

  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="58%" colspan="14"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
    <div><font size="1" face="Times New Roman"><b>(amounts in millions)</b>
<br>
    <b>Contractual obligation</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Total</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Less than<br>    1 year</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>1 to 3<br>    years</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>3 to 5<br>    years</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>More than<br>    5 years</b></font></div>
  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="10%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Future debt maturities</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">173.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">38.6</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">17.6</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">115.6</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Operating lease obligations</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">22.9</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">0.9</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2.3</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="8%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">17.2</font></div>
  </td>
  <td width="1%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style='margin-left:3%'><font size="2" face="Times New Roman">Total</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">195.9</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">2.1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">40.9</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">20.1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="8%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">132.8</font></div>
  </td>
  <td width="1%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="8%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="1%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">23</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>OFF BALANCE SHEET ARRANGEMENTS</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We have investments in three joint ventures for the purpose of  investing in operating properties as follows: </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">We own a 49% interest in two partnerships which own the Crossroads  Shopping Center (&#147;Crossroads&#148;). We account for our investment in Crossroads  using the equity method of accounting as we have a non-controlling investment  in Crossroads, but exercise significant influence. As such, our financial  statements reflect our share of income from, but not the assets and liabilities  of, Crossroads. The Company&#146;s pro rata share of Crossroads mortgage debt as of  March 31, 2005 was $31.4 million. This fixed-rate debt bears interest at 5.4%  and matures in December 2014. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Reference is made to the discussion of Funds I and II under &#147;Uses of  Liquidity&#148; in this Item 7 for additional detail related to our investment in  and commitments to Funds I and II. We own a 22% interest in Fund I and 20% in  Fund II for which we also use the equity method of accounting. Our pro rata  share of Funds I and II fixed-rate mortgage debt as of March 31, 2005 was $20.9  million at a weighted average interest rate of 6.1%. Our pro rata share of Fund  I and II variable-rate mortgage debt as of March 31, 2005 was $5.7 million at  an interest rate of 4.3%. Maturities on these loans range from May 2005 to  January 2023. </font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>HISTORICAL CASH FLOW</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following discussion of historical cash flow compares our cash flow  for the three months ended March 31, 2005 (&#147;2005&#148;) with our cash flow for the  three months ended March 31, 2004 (&#147;2004&#148;).</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Cash and cash equivalents were $6.2
    million and $12.7 million at March 31, 2005 and 2004, respectively. The decrease
    of $6.5 million was a result of the following increases and decreases in
cash flows:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0" width="90%" align="center">
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="38%" colspan="8"  valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Three months ended March 31,</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="38%" colspan="8"  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2005</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>2004</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Change</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="11%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net cash provided by operating activities</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">6.8</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">(3.8</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net cash used in investing activities</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(24.3</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(8.8</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">(15.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Net cash provided by financing activities</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">14.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="9%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">13.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The variance in net cash provided by operating activities resulted  primarily from an increase of $1.9 million in operating income before non-cash  expenses in 2005, which was primarily due to (i) an increase in management and  service fee income from Fund II, (ii) additional fee income from the  acquisition of certain management contracts and (iii) the settlement of an  insurance claim.&#160; In
    addition, a net decrease in cash provided by operating assets and liabilities
    of $5.7 million resulted primarily from an increase in receivables related
    to third party construction cost reimbursements and a decrease in accounts
payable and accrued expenses.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in net cash used in investing
    activities resulted from a $20.0 million Preferred Equity investment in 2005
    offset by a $2.9 million decrease in investments in and advances to unconsolidated
    partnerships in 2005 as well as a $1.0 million decrease in advances of notes
receivable in 2005.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The increase in net cash provided by financing activities resulted from  $21.9 million of additional cash provided by net additional borrowings in  2005.&#160; This increase was offset by $1.0  million of additional cash paid for dividends and distributions in 2005 and  $7.9 million of cash provided by the exercise of stock options in 2004.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>INFLATION </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Our long-term leases contain provisions designed to mitigate the  adverse impact of inflation on our net income. Such provisions include clauses  enabling us to receive percentage rents based on tenants&#146; gross sales, which  generally increase as prices rise, and/or, in certain cases, escalation  clauses, which generally increase rental rates during the terms of the leases.  Such escalation clauses are often related to increases in the consumer price  index or similar inflation indexes. In addition, many of our leases are for  terms of less than ten years, which permits us to seek to increase rents upon  re-rental at market rates if current rents are below the then existing market  rates. Most of our leases require the tenants to pay their share of operating  expenses, including common area maintenance, real estate taxes, insurance and  utilities, thereby reducing our exposure to increases in costs and operating  expenses resulting from
inflation.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">24</font></div>

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<div><a name=p25></a><font  size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantitative and Qualitative  Disclosures about Market Risk</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Our primary market risk exposure is to changes  in interest rates related to our mortgage debt. See the discussion under Item  2. for certain quantitative details related to our mortgage debt.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Currently, we manage our exposure to  fluctuations in interest rates primarily through the use of fixed-rate debt and  interest rate swap agreements. We are a party to current and forward-starting  interest rate swap transactions to hedge our exposure to changes in LIBOR with  respect to $93.7 million and $24.4 million of notional principal, respectively.  We also have two interest rate swaps hedging our exposure to changes in interest  rates with respect to $31.3 million of LIBOR based variable-rate debt related  to our investment in Crossroads.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">The following table sets forth information as  of March 31, 2005 concerning our long-term debt obligations, including  principal cash flows by scheduled maturity and weighted average interest rates  of maturing amounts (amounts in millions):</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Consolidated mortgage debt:</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0"  align="center" width="80%">
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="1" face="Times New Roman"><b>Year</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Scheduled<br>    </b><font size="1"><b>Amortization</b></font></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Maturities</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Total</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Weighted<br>    average<br>    interest rate</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">2005</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">2006</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">2.2</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">2007</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">3.8</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">32.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">36.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">2008</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">8.0</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">12.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">2009</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">Thereafter</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">13.8</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">101.8</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">115.6</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5.0</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">30.7</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">142.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">173.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div style="margin-left: 3%; text-indent:-3%"><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Mortgage debt in unconsolidated partnerships  (at our pro rata share):</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>




<table border="0" cellspacing="0" cellpadding="0"  align="center" width="80%">
 <tr>
  <td  valign="bottom">
  <div><font size="1" face="Times New Roman"><b>Year</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Scheduled<br>    amortization</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Maturities</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Total</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <div  align="center"><font size="1" face="Times New Roman"><b>Weighted<br>    average<br>    interest rate</b></font></div>
  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="12%" colspan="2" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div  align="center">&nbsp;</div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">2005</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">0.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.1</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.3</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.8</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">2006</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1.0</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1.0</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">2007</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">5.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">4.6</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">2008</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">1.4</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">6.7</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">8.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">4.7</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">2009</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">&#151;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">1.5</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">n/a</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">Thereafter</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5.1</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">35.5</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">40.6</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right"><font size="2" face="Times New Roman">5.7</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">%</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">10.2</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">47.8</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">$</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right"><font size="2" face="Times New Roman">58.0</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom" bgcolor="#eeeeee">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom" bgcolor="#eeeeee">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="10%" valign="bottom">
  <hr noshade size="2">


  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="10%" valign="bottom">
  <div  align="right">&nbsp;</div>
  </td>
  <td width="2%" valign="bottom">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
</table>




<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Of our total outstanding debt, $32.5 million  will become due in 2007. As we intend on refinancing some or all of such debt  at the then-existing market interest rates which may be greater than the  current interest rate, our interest expense would increase by approximately  $0.3 million annually if the interest rate on the refinanced debt increased by  100 basis points. Interest expense on our variable debt as of March 31, 2005  would increase by $0.2 million for a 100 basis point increase in LIBOR on our  $19.2 million of floating rate debt after taking into account the effect of  interest rate swaps which hedge such debt. We may seek additional variable-rate  financing if and when pricing and other commercial and financial terms warrant.  As such, we would consider hedging against the interest rate risk related to  such additional variable-rate debt through interest rate swaps and protection  agreements, or other means.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">(a) <i>Evaluation  of Disclosure Controls and Procedures.</i> The Company&#146;s Chief Executive  Officer and Chief Financial Officer have evaluated the effectiveness of the  Company&#146;s disclosure controls and procedures (as such term is defined in Rules  13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended  as of the end of the period covered by this report. Based on such evaluation,  the Company&#146;s Chief Executive Officer and Chief Financial Officer have  concluded that, as of the end of such period, the Company&#146;s disclosure controls  and procedures are effective.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">(b) <i>Internal  Control over Financial Reporting.</i> There have not been any changes in  the Company&#146;s internal control over financial reporting during the fiscal  quarter to which this report relates that have materially affected, or are  reasonably likely to materially affect, the Company&#146;s internal control over  financial reporting.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Part II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other  Information</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">There have been no material legal proceedings  beyond those previously disclosed in the Company&#146;s filed Annual Report on Form  10-K for the year ended December 31, 2004.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unregistered Sales of  Equity Securities and Use of Proceeds</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">None</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">25</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><a name=p26></a><font  size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defaults Upon Senior  Securities</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">None</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submission of Matters  to a Vote of Security Holders</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">None</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Information</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">None</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman"><b>Item  6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits </b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="1" face="Times New Roman"><b>Exhibit No.</b></font></div>
  </td>
  <td width="2%" valign="top">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="88%" valign="top">
  <div><font size="1" face="Times New Roman"><b>Description</b></font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <hr noshade size="1">


  </td>
  <td width="2%" valign="top">
  <div  align="center">&nbsp;</div>
  </td>
  <td width="88%" valign="top">
  <hr noshade size="1">


  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">3.1</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Declaration of Trust of the    Company, as amended (1)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">3.2</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Fourth Amendment to    Declaration of Trust (4)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">3.3</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">By-Laws of the Company (5)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">3.4</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">First Amendment to By-Laws    of the Company (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">4.1</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Voting Trust Agreement    between the Company and Yale University dated February 27, 2002 (14)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.1</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">1999 Share Option Plan (8)    (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.2</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">2003 Share Option Plan (16)    (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.3</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Form of Share Award    Agreement (17) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.4</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Form of Registration Rights    Agreement and Lock-Up Agreement (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.5</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Registration Rights and    Lock-Up Agreement (RD Capital Transaction) (11)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.6</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Registration Rights and    Lock-Up Agreement (Pacesetter Transaction) (11)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.7</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Contribution and Share    Purchase Agreement dated as of April 15, 1998 among Mark Centers Trust, Mark    Centers Limited Partnership, the Contributing Owners and Contributing    Entities named therein, RD Properties, L.P. VI, RD Properties, L.P. VIA and    RD Properties, L.P. VIB (9)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.8</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Agreement of Contribution    among Acadia Realty Limited Partnership, Acadia Realty Trust and Klaff    Realty, LP and Klaff Realty, Limited (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.9</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Employment agreement    between the Company and Kenneth F. Bernstein (6) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.10</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Employment agreement    between the Company and Ross Dworman (6) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.11</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amendment to employment    agreement between the Company and Kenneth F. Bernstein (18) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.12</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">First Amendment to    Employment Agreement between the Company and Kenneth Bernstein dated as of    January 1, 2001 (12) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.13</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">First Amendment to    Employment Agreement between the Company and Ross Dworman dated as of January    1, 2001 (12) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.14</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Letter of employment offer    between the Company and Michael Nelsen, Sr. Vice President and Chief    Financial Officer dated February 19, 2003 (15) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.15</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Severance Agreement between    the Company and Joel Braun, Sr. Vice President, dated April 6, 2001 (13) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.16</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Severance Agreement between    the Company and Joseph Hogan, Sr. Vice President, dated April 6, 2001 (13)    (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.17</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Severance Agreement between    the Company and Joseph Napolitano, Sr. Vice President dated April 6, 2001    (18) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.18</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Severance Agreement between    the Company and Robert Masters, Sr. Vice President and General Counsel dated    January 2001 (18) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.19</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Severance Agreement between    the Company and Michael Nelsen, Sr. Vice President and Chief Financial    Officer dated February 19, 2003 (15) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.20</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Secured Promissory Note    between RD Absecon Associates, L.P. and Fleet Bank, N.A. dated February 8,    2000 (7)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.21</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Promissory Note between 239    Greenwich Associates, L.P. and Greenwich Capital Financial Products, Inc.    dated May 30, 2003 (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.22</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Open-End Mortgage,    Assignment of Leases and Rents, and Security Agreement between 239 Greenwich    Associates, L.P. and Greenwich Capital Financial Products, Inc. dated May 30,    2003 (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.23</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Promissory Note between    Merrillville Realty, L.P. and Sun America Life Insurance Company dated July    7, 1999 (7)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.24</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Secured Promissory Note    between Acadia Town Line, LLC and Fleet Bank, N.A. dated March 21, 1999 (7)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.25</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Promissory Note between RD    Village Associates Limited Partnership and Sun America Life Insurance Company    Dated September 21, 1999 (7)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.26</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended and Restated    Mortgage Note between Port Bay Associates, LLC and Fleet Bank, N.A. dated    July 19, 2000 (3)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.27</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage and Security    Agreement between Port Bay Associates, LLC and Fleet Bank, N.A. dated July    19, 2000 (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.28</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Note between Port    Bay Associates, LLC and Fleet Bank, N.A. dated December 1, 2003 (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.29</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage and Security    Agreement, and Assignment of Leases and Rents between Port Bay Associates,    LLC and Fleet Bank, N.A. dated December 1, 2003 (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.30</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Note Modification Agreement    between Port Bay Associates, LLC and Fleet Bank, N.A. dated December 1, 2003    (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.31</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended and Restated    Promissory Note between Acadia Realty L.P. and Metropolitan Life Insurance    Company for $25.2 million dated October 13, 2000 (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.32</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended and Restated    Mortgage, Security Agreement and Fixture Filing between Acadia Realty L.P.    and Metropolitan Life Insurance Company dated October 13, 2000 (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.33</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Term Loan Agreement between    Acadia Realty L.P. and The Dime Savings Bank of New York, dated March 30,    2000 (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.34</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Agreement between    Acadia Realty L.P. and The Dime Savings Bank of New York, dated March 30,    2000 (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.35</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Promissory Note between RD    Whitegate Associates, L.P. and Bank of America, N.A. dated December 22, 2000    (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.36</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Promissory Note between RD Columbia    Associates, L.P. and Bank of America, N.A. dated December 22, 2000 (10)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.37</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Term Loan Agreement dated    as of December 28, 2001, among Fleet National Bank and RD Branch Associates,    L.P., et al (13)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.38</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Term Loan Agreement dated    as of December 21, 2001, among RD Woonsocket Associates Limited Partnership,    et al. and The Dime Savings Bank of New York, FSB (13)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.39</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Option Extension of Term    Loan as of December 19, 2003 between RD Woonsocket Associates Limited    Partnership, et al. and Washington Mutual Bank, FA (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.40</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Revolving Loan Promissory    Note dated as of November 22, 2002, among RD Elmwood Associates, L.P. and    Washington Mutual Bank, FA (15)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.41</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Revolving Loan Agreement    dated as of November 22, 2002, among RD Elmwood Associates, L.P. and    Washington Mutual Bank, FA (15)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.42</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Agreement dated as    of November 22, 2002, among RD Elmwood Associates, L.P. and Washington Mutual    Bank, FA (15)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.43</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Note Modification Agreement    between RD Elmwood Associates, L.P. and Washington Mutual Bank, FA dated    December 19, 2003 (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.44</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Prospectus Supplement    Regarding Options Issued under the Acadia Realty Trust 1999 Share Incentive    Plan and 2003 Share Incentive Plan (19) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.45</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Acadia Realty Trust 1999    Share Incentive Plan and 2003 Share Incentive Plan Deferral and Distribution    Election Form (19) (21)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.46</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended, Restated And    Consolidated Promissory Note between Acadia New Loudon, LLC and Greenwich    Capital Financial Products, Inc. dated August 13, 2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.47</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended, Restated And    Consolidated Mortgage, Assignment Of Leases And Rents And Security Agreement    between Acadia New Loudon, LLC and Greenwich Capital Financial Products, Inc.    dated August 13, 2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.48</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended and Restated Term    Loan Agreement between Fleet National Bank and Heathcote Associates, L.P.,    Acadia Town Line, LLC, RD Branch Associates, L.P., RD Abington Associates    Limited Partnership, And RD Methuen Associates Limited Partnership dated June    30, 2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.49</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Modification    Agreement between Fleet National Bank and Acadia Town Line, LLC dated June    30, 2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.49a</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Modification    Agreement between Fleet National Bank and Heathcote Associates, L.P. dated    June 30, 2004 (19)</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">26</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><font size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.49b</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Modification    Agreement between Fleet National Bank and RD Branch Associates dated June 30,    2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.49c</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Modification    Agreement between Fleet National Bank and RD Methuen Associates dated June    30, 2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.49d</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Mortgage Modification    Agreement between Fleet National Bank and RD Abington Associates Limited    Partnership dated June 30, 2004 (19)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.50</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Contribution Agreement    between Levitz SL, L.L.C. and Acadia Levitz, LLC dated March 8, 2005 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.51</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Agreement of Contribution    among Acadia Realty Limited Partnership, Acadia Realty Trust, Klaff Realty,    LP and Klaff Realty, Limited dated February 15, 2005 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">10.51a</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Registration Rights and    Lock-up Agreement among Acadia Realty Limited Partnership, Acadia Realty    Trust and Klaff Realty, LP dated February 15, 2005 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">31.1</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Certification of Chief    Executive Officer pursuant to rule 13a&#150;14(a)/15d-14(a) of the Securities    Exchange Act of 1934, as adopted pursuant to Section 302 of the    Sarbanes-Oxley Act of 2002 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">31.2</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Certification of Chief    Financial Officer pursuant to rule 13a&#150;14(a)/15d-14(a) of the Securities    Exchange Act of 1934, as adopted pursuant to Section 302 of the    Sarbanes-Oxley Act of 2002 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">32.1</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Certification of Chief    Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to    Section 906 of the Sarbanes-Oxley Act of 2002 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">32.2</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Certification of Chief    Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to    Section 906 of the Sarbanes-Oxley Act of 2002 (20)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">99.1</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Amended and Restated    Agreement of Limited Partnership of the Operating Partnership (11)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">99.2</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">First and Second Amendments    to the Amended and Restated Agreement of Limited Partnership of the Operating    Partnership (11)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">99.3</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Third Amendment to Amended    and Restated Agreement of Limited Partnership of the Operating Partnership    (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">99.4</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Fourth Amendment to Amended    and Restated Agreement of Limited Partnership of the Operating Partnership    (18)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">99.5</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Certificate of Designation    of Series A Preferred Operating Partnership Units of Limited Partnership    Interest of Acadia Realty Limited Partnership (2)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">99.6</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Certificate of Designation    of Series B Preferred Operating Partnership Units of Limited Partnership    Interest of Acadia Realty Limited Partnership (18)</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">Notes:</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(1)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form 10-K filed for the fiscal Year ended December 31, 1994</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(2)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to Company&#146;s Quarterly Report on Form    10-Q filed for the quarter ended June 30, 1997</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(3)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to Company&#146;s Quarterly Report on Form    10-Q filed for the quarter ended June 30, 1998</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(4)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to Company&#146;s Quarterly Report on Form    10-Q filed for the quarter ended September 30, 1998</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(5)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Registration    Statement on Form S-11 (File No.33-60008)</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(6)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form10-K filed for the fiscal year ended December 31, 1998</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(7)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form10-K filed for the fiscal year ended December 31, 1999</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(8)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Registration    Statement on Form S-8 filed September 28, 1999</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(9)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Form 8-K filed on    April 20, 1998</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(10)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Form 10-K filed for    the fiscal year ended December 31, 2000</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(11)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Registration    Statement on Form S-3 filed on March 3, 2000</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(12)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to Company&#146;s Quarterly Report on Form    10-Q filed for the quarter ended June 30, 2001</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(13)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form 10-K filed for the fiscal year ended December 31, 2001</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(14)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to Yale University&#146;s Schedule 13D    filed on September 25, 2002</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(15)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form 10-K filed for the fiscal year ended December 31, 2002</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(16)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Definitive Proxy    Statement on Schedule 14A filed April 29, 2003.</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(17)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Current Report on    Form 8-K filed on July 2, 2003</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(18)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form 10-K filed for the fiscal year ended December 31, 2003</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(19)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Incorporated by reference    to the copy thereof filed as an Exhibit to the Company&#146;s Annual Report on    Form 10-K filed for the fiscal year ended December 31, 2004</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(20)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Filed herewith</font></div>
  </td>
 </tr>
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">(21)</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="88%" valign="top">
  <div><font size="2" face="Times New Roman">Management contract or    compensatory plan or arrangement.</font></div>
  </td>
 </tr>
</table>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman">27</font></div>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>

<div><a name=p28></a><font  size="2" face="Times New Roman"><b><a  href="#Contents">Back to Index</a></b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>SIGNATURES</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div><font size="2" face="Times New Roman">Pursuant to the requirements of the Securities  and Exchange Act of 1934, the registrant has fully caused this report to be  signed on its behalf by the undersigned thereunto duly authorized.</font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<div  align="center"><font size="2" face="Times New Roman"><b>ACADIA REALTY TRUST</b></font></div>

<div><font size="2" face="Times New Roman">&nbsp;</font></div>

<table border="0" cellspacing="0" cellpadding="0" width="100%">
 <tr>
  <td  valign="top">
  <div><font size="2" face="Times New Roman">May 9, 2005</font></div>
  </td>
  <td width="2%" valign="top">
  <div><font size="2" face="Times New Roman">&nbsp;</font></div>
  </td>
  <td width="43%" valign="top">
  <div><font size="2" face="Times New Roman">/s/ Kenneth F. Bernstein</font></div>
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  <div><font size="2" face="Times New Roman">Kenneth F. Bernstein</font></div>
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  <div><font size="2" face="Times New Roman">President and Chief    Executive Officer<br>    (Principal Executive Officer)</font></div>
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  <div><font size="2" face="Times New Roman">May 9, 2005</font></div>
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  <div><font size="2" face="Times New Roman">/s/ Michael Nelsen</font></div>
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  <div><font size="2" face="Times New Roman">Michael Nelsen</font></div>
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  <div><font size="2" face="Times New Roman">Senior Vice President and Chief    Financial Officer<br>    (Principal Financial Officer)</font></div>
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<div  align="center"><font size="2" face="Times New Roman">28</font></div>

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<TEXT>
<PAGE>

                                                                   Exhibit 10.50

                             CONTRIBUTION AGREEMENT

         This CONTRIBUTION AGREEMENT (the "Agreement") is made as of
March 8, 2005, by and between Levitz SL, L.L.C. (the "Company") and Acadia
Levitz, LLC (the "Investor"). Capitalized terms used herein but not otherwise
defined have the meaning set forth in the Operating Agreement (as defined
below).

                                   BACKGROUND

         A.       The Company was formed under Delaware Law on May 21, 1999.

         B.       The Company operates pursuant to an operating agreement dated
May 21, 1999, as amended on June 21, 2002, and as further amended on April 30,
2004 (collectively, the "Existing Operating Agreement").

         C.       The Investor desires to acquire a preferred membership
interest in the Company in accordance with the term hereof.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

         1.       The Investor shall contribute $20 million to the Company in
exchange for a preferred equity interest (the "Preferred Interest") in the
Company to be governed in accordance with the Third Amendment to Existing
Operating Agreement (the "Third Amendment to Operating Agreement") in the form
attached hereto as Exhibit "A". The Existing Operating Agreement and the Third
Amendment to Operating Agreement are collectively, the "Operating Agreement".

         2.       Authorization and Closing.

                  (a)      Authorization. The Company has authorized the
issuance and sale to the Investor of the Preferred Interest having the rights,
terms, covenants and preferences set forth in the Third Amendment to Operating
Agreement.

                  (b)      Issuance of Preferred Interest; Contribution. Upon
the terms and subject to the conditions set forth herein, the Company shall
issue to the Investor the Preferred Interest in exchange for an aggregate
contribution to the Company of Twenty Million Dollars (U.S. $20,000,000) (the
"Contribution Amount").

                  (c)      Closing. The closing of the contribution and
acquisition of the Preferred Interest (the "Closing") shall take place at the
office of Klaff Realty, LP, 122 S. Michigan Avenue, Suite 1000, Chicago, IL
60603-6116, March 8, 2005, or at such other place or such other time or date as
the Investor and the Company may designate (the "Closing Date"), which Closing
may be accomplished by mail.

                  (d)      Investor Closing Deliveries. At or prior to the
Closing, the Investor will deliver to the Company:

<PAGE>

                           (i)      The Contribution Amount by wire transfer of
immediately available funds to an account designated by the Company.

                           (ii)     The Third Amendment to Operating Agreement,
duly executed by the Investor.

                           (iii)    The Indemnity Agreement in the form attached
hereto as Exhibit "B", duly executed by Acadia Realty Limited Partnership, and
made in favor of the L-A Members and Klaff Realty.

                           (iv)     Certified resolutions from the Board of
Trustees of Acadia Realty Trust authorizing the entering into and execution of
this Agreement by the Investor and all other documents to be delivered in
connection with the Closing and the transactions herein contemplated.

                           (v)      Opinion of counsel reasonably satisfactory
to the Company concerning due authorization and acquisition of the Preferred
Interest by the Investor.

                           (vi)     Such other documents and instruments as
shall be reasonably required in order for the Investor to consummate this
transaction in accordance with the terms and conditions of this Agreement.

                  (e)      Company Closing Deliveries. At or prior to the
Closing, the Company will deliver to the Investor:

                           (i)      The Third Amendment to Operating Agreement,
duly executed by the Continuing Members.

                           (ii)     The Guaranty in the form attached hereto as
Exhibit "C", duly executed by the L-A Member and the Klaff Member, and made in
favor of the Investor.

                           (iii)    Certified resolutions from the Voting
Members authorizing the entering into and execution of this Agreement by the
Company and all other documents to be delivered in connection with the Closing
and the transactions herein contemplated.

                           (iv)     (1) A certified copy of the Certificate of
Formation, the limited liability company agreement, and a good standing
certificate, each dated within thirty (30) days of the Closing Date, with
respect to the Company and each Subsidiary that owns or leases the following
properties: Northridge, CA, Oxnard, CA, St. Paul, MN, Farmingdale, NY,
Milwaukie, OR and Woodbridge, NJ (each a "Material Property" and collectively,
the "Material Properties"), and a (2) copy of the Certificate of Formation or
Certificate of Limited Partnership, as applicable, and the limited liability
company agreement or limited partnership agreement, as applicable, with respect
to each other Subsidiary.

                           (v)      A sworn statement from an authorized
signatory on behalf of the Company made under oath and under penalties of
perjury that the Company is not a "foreign person" and containing such
information as shall be required by Internal Revenue Code Section 1445(b)(2) and
the regulations issued thereunder.

                                        2
<PAGE>

                           (vi)     A copy of the existing title insurance
policy for each Material Property (each, a "Title Insurance Policy" and
collectively, the "Title Insurance Policies"), together with an update (each, an
"Title Update" and collectively, the "Title Updates") to each such Title Policy.

                           (vii)    A copy of the existing survey with respect
to each Material Property.

                           (viii)   With respect to each Property, all
environmental reports and any amendments or supplements thereto (each, an
"Environmental Report" and collectively, the "Environmental Reports").

                           (ix)     A consent from the Levitz Lender (the
"Lender Consent") (1) certifying the outstanding principal amount of the Levitz
Loan, and that to its knowledge no default exists thereunder, and (2) consenting
to the admission of the Investor to the Company and the other transactions
contemplated by this Agreement.

                           (x)      Each of the material loan documents (the
"Loan Documents") evidencing, securing or guaranteeing the Loan and any and all
modifications or amendments thereto.

                           (xi)     [Intentionally Deleted].

                           (xii)    A true and complete copy of the Unitary
Lease and any and all other Leases (as defined below) and any and all amendments
and modifications thereto.

                           (xiii)   A true and complete copy of each Overlease
and any and all amendments and modifications thereto with respect to the
following properties: Woodbridge, NJ, Sacramento, CA, Willowbrook, NJ, and San
Leandro, CA.

                           (xiv)    Opinion of counsel reasonably satisfactory
to the Investor concerning due authorization and issuance of the Preferred
Interest by the Company.

                           (xv)     Such other documents and instruments as
shall be reasonably required in order for the Company to consummate this
transaction in accordance with the terms and conditions of this Agreement.

         3.       Representations and Warranties of Company. The Company hereby
represents and warrants to the Investor that:

                  (a)      Organization and Limited Liability Company Power. The
Company is a limited liability company duly formed, validly existing and in good
standing under the laws of Delaware. Each of the Company and the Subsidiaries
has all requisite limited liability company power and authority or limited
partnership power and authority to own, operate and lease its properties, to
carry on its business as currently conducted and, subject to the Lender Consent
and the consents of the Continuing Members, to execute and deliver this
Agreement, the Third Amendment to Operating Agreement and any other instruments
to be delivered pursuant hereto, to carry out the transactions contemplated by
each of this Agreement and the Third

                                        3
<PAGE>

Amendment to Operating Agreement and to perform all of its obligations under
this Agreement and the Third Amendment to Operating Agreement. The copy of the
Company's Existing Operating Agreement and the Company's Certificate of
Formation attached hereto as Exhibits "E-1" and "E-2", respectively, are true,
correct and complete copies. The Existing Operating Agreement has not been
altered or amended, except as shown in Exhibit "E-1" and is in full force and
effect. There are no oral modifications, amendments or waivers by or among the
members pertaining to the subject matter of the Existing Operating Agreement.
The Company's obligations set forth in Sections 4.8, 4.9 and 4.10 of the
Existing Operating Agreement have been satisfied in full.

                  (b)      Authorization; No Breach. Subject to the Lender
Consent and the consents of the Continuing Members, the execution, delivery and
performance of each of this Agreement and the Third Amendment to Operating
Agreement have been duly authorized by the Company. Subject to the Lender
Consent and the consents of the Continuing Members, each of the Agreement and
the Third Amendment to Operating Agreement constitutes valid and binding
obligations of the Company, enforceable in accordance with its terms except as
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors' rights generally and subject to the
availability of equitable remedies. Subject to the Lender Consent and the
consents of the Continuing Members, the execution and delivery by the Company of
this Agreement and the Third Amendment to Operating Agreement, the offering,
sale and issuance of the Preferred Interest hereunder and the fulfillment of and
compliance with the respective terms hereof and thereof by the Company, does not
and shall not conflict with or result in a breach of the terms, conditions or
provisions of, constitute a default under, result in a violation of, or require
any authorization, consent, approval, exemption or other action by any person or
notice to any court or administrative or governmental body pursuant to, (1) the
organizational documents of the Company or the Subsidiaries, (2) any law,
statute, rule or regulation to which the Company or the Subsidiaries is subject,
or (3) any agreement, instrument, order, judgment or decree to which the Company
or the Subsidiaries is subject, except, in the case of subclauses (2) and (3)
above, for any conflict, result, default, right or other requirement that could
not reasonably be expected to have a material adverse effect on the transaction
contemplated hereby.

                  (c)      Capitalization and Related Matters. Exhibit" F"
attached hereto sets forth the Members of the Company and each such Member's
Percentage Interest immediately following the Closing. The Continuing Members
are the only Members of the Company as of the date hereof and collectively own
100% of the Percentage Interests in the Company.

                  (d)      Properties.

                           (i)      The Company or one of the Subsidiaries is
the sole owner of good, valid, fee simple, marketable and insurable title to
each of those Properties listed on Exhibit "G-1" attached hereto (collectively,
the "Fee Properties") and any and all fixtures located at each Fee Property or
in the buildings, structures and other improvements thereon, is in each case
free and clear of all Encumbrances, except for Permitted Encumbrances (as
hereinafter defined). For purposes of this Agreement, the term "Encumbrances"
shall mean any liens, mortgages, deeds of trust, security agreements, security
interests, claims, options, rights of

                                        4
<PAGE>

purchase or first refusal, encroachments, rights-of-way, easements, operating
agreements, covenants, encumbrances, reservations, orders, decrees, judgments,
leases, subleases, licenses, assignments, agreements, charges, conditions,
restrictions, rights of others or other matters affecting title to the
Properties after the date hereof. For purposes of this Agreement, the term
"Permitted Encumbrances" means: (1) the lien of current real property taxes,
ground rents, water charges, sewer rents and assessments not yet due and
payable, (2) any matter set forth in a Title Insurance Policy or Title Update
delivered by the Company to the Investor pursuant to Section 2.1(e)(vi) hereof
or in the title policy for any other Property, (3) the lien granted pursuant to
any of the Loan Documents, and (4) any other matters described in Exhibit "H"
attached hereto affecting title to Properties.

                           (ii)     (1) The Company or one of the Subsidiaries
is the holder of the lessee's interest in each Property listed on Exhibit "G-2"
attached hereto (the "Leased Properties"). (2) The Company or one of its
Subsidiaries has a good, valid, marketable and insurable leasehold interest in
each such Property, subject to the Permitted Encumbrances. (3) Exhibit "G-2"
includes a description of each Overlease and all amendments and modifications
thereto pursuant to which the Leased Properties are leased. (4) Except for the
Permitted Encumbrances, the Company and the Subsidiaries have not encumbered
their interests in any of the Overleases and the Company has no actual knowledge
of any other encumbrance of such interests. (5) Except as listed in Exhibit "I"
attached hereto, (x) to the Company's actual knowledge, there exists no uncured
event of default by any Subsidiary or the lessor under any Overlease, and (y)
the lessor under each Overlease has not delivered to or received from any
Subsidiary notices of default with respect to its Overlease which are presently
subject to a grace or cure period.

                           (iii)    Except for the Fee Properties listed on
Exhibit "G-1" and the Leased Properties listed on Exhibit "G-2", and personal
property incidental to the use and operation thereof, to the extent such
personal property is owed by the applicable Subsidiary, the Company and the
Subsidiaries own no other property, real or personal, tangible or intangible.

                           (iv)     With respect to each Property for which a
Title Insurance Policy has been delivered pursuant to Section 2.1(e)(vi) hereof,
to the Company's actual knowledge, there has been no material adverse change in
the state of title since the date of such Title Insurance Policy, except as
disclosed in the Title Update for such Property.

                           (v)      To the Company's actual knowledge, except as
forth in Exhibit "J" attached hereto, (1) no part of any Property and no
improvement thereon has been damaged by fire or other casualty or (2) is the
subject of, or is affected by, any condemnation or eminent domain proceeding
currently instituted or pending.

                           (vi)     Except as set forth in the Environmental
Reports delivered to the Investor, the Company has no actual knowledge of the
existence, deposit, storage, removal, burial or discharge of any "Hazardous
Material" on, under or about any Property. Hazardous Material shall mean (1)
asbestos and any chemicals, flammable substances or explosives, any radioactive
materials (including radon), any other hazardous wastes or substances which
have, as of the date hereof, been determined under any applicable Federal, State
or local government law to be hazardous, toxic or waste by the U.S.
Environmental

                                        5
<PAGE>

Protection Agency, the U.S. Department of Transportation, and/or any
instrumentality now or hereafter authorized to regulate materials and substances
in the environment which has jurisdiction over the Property ("Environmental
Agency"), (2) any oil, petroleum or petroleum derived substance, any drilling
fluids, produced waters and other wastes associated with the exploration,
development or production of crude oil, (3) PDBs, (4) lead, and (5) infectious
materials, which materials listed under items (1), (2), (3), (4) and (5) above
cause the Property (or any part thereof) to be in material violation of any
applicable environmental laws or the regulations of any Environmental Agency so
as to require remediation.

                           (vii)    Except for the Permitted Encumbrances or as
set forth in Exhibit "K" attached hereto, no person has an option to purchase or
rights of refusal to purchase any Property or the buildings, structures or other
improvements thereon or any part thereof or interest therein, except as provided
herein and in the Operating Agreement.

                  (e)      Debt.

                           (i)      (1) With respect to the Properties subject
to the Levitz Loan, there is no indebtedness with respect to any such Property
or any excess cash flow or any residual interest therein, whether secured or
unsecured, other than Permitted Encumbrances and the permitted indebtedness
described in Section 6.8 of the original loan agreement for the Levitz Loan. (2)
With respect to the property held by Portland-Johnson (the "Portland-Johnson
Property"), there is no indebtedness with respect to such property or any excess
cash flow or any residual interest therein, whether secured or unsecured, other
than Permitted Encumbrances and Permitted Indebtedness (as such term is defined
in Section 5.22 of the loan agreement for the Portland-Johnson Loan).

                           (ii)     (1) To the Company's actual knowledge, none
of the Subsidiaries that are subject to the Levitz Loan are in default of any of
the terms, covenants and conditions set forth in the Levitz Loan documents, and
the Company has no actual knowledge of any facts or circumstances which, with
the passage of time or notice or both, would reasonably be likely to constitute
such a default. (2) To the Company's actual knowledge, Portland-Johnson is not
in default of any of the terms, covenants and conditions set forth in the
Portland-Johnson Loan documents, and the Company has no actual knowledge of any
facts or circumstances which, with the passage of time or notice or both, would
reasonably be likely to constitute such a default.

                  (f)      Other Material Contracts and Commitments. Attached
hereto as Exhibit "L" is a true and materially complete list of all contracts,
agreements, commitments and other instruments that are in excess of One Hundred
Thousand ($100,000) Dollars in each instance and to which the Company or any of
the Subsidiaries is a party or by which any or all of them is or are bound as of
the date hereof (collectively, the "Material Contracts"), including all
amendments thereto and modifications thereof. To the Company's actual knowledge,
no party is in default in any material respect under any of the Material
Contracts or (to the extent that it might cause liability from and after the
Closing Date) any prior Material Contracts to which the Company was a party or
by which it was bound (including, without limitation, any contracts of sale and
deeds of real property).

                                        6
<PAGE>

                  (g)      Books and Records. The books of account and other
records of the Company and the Subsidiaries are in all material respects
complete and correct and have been maintained in accordance with good business
practices.

                  (h)      Tax Returns. All Tax Returns (as hereinafter defined)
required by law to be filed by the Company or the Subsidiaries on or prior to
the date of this Agreement have been filed, and all such Tax Returns are
correct, accurate and complete in all material respects. To the Company's actual
knowledge, the Company has paid all Taxes (as hereinafter defined) shown on such
Tax Returns, except for any contested Taxes, as set forth in Exhibit "M"
attached hereto. For purposes of this Agreement (1) "Tax" or "Taxes" shall mean
any or all federal, state, local or foreign taxes (whether in the nature of
income, franchise, transfer, gains, profits, sales or use, withholding,
employee, excise, personal property, customs, gross receipts or other taxes or
duties of any kind whatsoever) (other than real property taxes, or transfer and
recording taxes, if any, payable by the Company in connection with the
transactions contemplated by this Agreement) and penalties, interest and fines,
with respect thereto and (2) "Tax Return" or "Tax Returns" shall mean any
report, return or other information or statement, or any amendment thereof,
required to be supplied in connection with any Tax. The Company has not filed
with any governmental authority any agreement amending the period for the
assessment of Taxes for which the Company or its Subsidiaries may be liable. To
the actual knowledge of the Company, no audit of any of the tax returns or
reports filed by the Company or the Subsidiaries is in progress or is
contemplated by any governmental authority.

                  (i)      Insurance. Attached hereto as Exhibit "D" are true
and correct copies of certificates with respect to polices of property, fire,
casualty, liability, life, and/or workmen's compensation insurance maintained by
the Company and/or the Subsidiaries. All such policies (1) are fully paid for,
to the Company's actual knowledge, and in full force and effect; and (2) are, to
the Company's actual knowledge, sufficient for compliance by the Company and the
Subsidiaries, as the case may be, with all requirements of law and with the
requirements of all agreements to which the Company and/or the Subsidiaries are
parties. The Company has no actual knowledge that any of the provisions of any
such insurance policy have been violated and the Company and the Subsidiaries
have not received any notice or request from any insurance company or Board of
Fire Underwriters (or organization exercising functions similar thereto) that
was not complied with requiring the performance of any work or alteration with
respect to the Properties, or any part thereof or improvement or structure
thereon, or canceling or threatening to cancel any of said policies or to
increase the premiums therefor.

                  (j)      Litigation; Bankruptcy.

                           (i)      To the Company's actual knowledge, except as
set forth in Exhibit "N" attached hereto, there are no actions, suits, claims,
arbitrations, litigation, proceedings or investigations pending against the
Company or the Subsidiaries, which, if adversely determined, might materially
adversely affect the condition (financial or otherwise) of business of the
Company, any Subsidiary or the condition or ownership of any Property.

                           (ii)     None of the Company or any of the
Subsidiaries is now or has ever been a debtor under any case commenced under the
United States Bankruptcy Code, or any predecessor thereof, or any state
insolvency law, or are any such parties taking any steps to

                                        7
<PAGE>

commence any such bankruptcy or insolvency proceeding nor, to the Company's
actual knowledge, is any creditor preparing or threatening to commence any
involuntary bankruptcy or involving case against the Company or against any
Subsidiary.

                  (k)      Compliance with Applicable Laws. Except as set forth
in Exhibit "O" attached hereto or in the Environmental Reports, to the Company's
actual knowledge, the Company and the Subsidiaries are in material compliance
with all statutes, laws, ordinances, regulations, rules, determinations,
requirements, orders, judgments and decrees, applicable to it or to its assets,
properties or business, including, without limitation, all applicable federal
and state securities laws and regulations, and all federal, state and local
statutes, laws, ordinances, regulations, rules, requirements, orders, judgments
and decrees, including without limitation, those pertaining to the maintaining,
operating, ownership or management of real property, pertaining to employment
and employment practices, terms and conditions of employment, and wages and
hours, and pertaining to safety, health, fire prevention, environmental
protection, building standards, zoning and other matters. Except as set forth in
Exhibit "O" or the Environmental Reports, none of the Company or the
Subsidiaries has received any written notice that is still outstanding from any
governmental authority having jurisdiction over any Property to the effect that
a Property is not in compliance with applicable laws and ordinances, including
all applicable zoning and land use laws and ordinances (provided that a notice
shall be deemed to be "outstanding" until the Company has paid all amounts due
and owing as a result of such non-compliance).

                  (l)      Leases. Attached hereto as Exhibit "P-1" is a true
and complete list of all agreements pursuant to which any person uses or
occupies or has the right to use or occupy, any part of any Property, including
all amendments thereto and modifications thereof (the "Leases"). To the
Company's actual knowledge, all of the Leases are valid, in full force and
effect and there are no monetary or material non-monetary defaults thereunder on
the part of tenant or the landlord thereunder except as disclosed on Exhibit
"P-2" attached hereto. To the Company's actual knowledge, no tenant under any
Lease has any defense, set-off or claim or any basis for any defense or claim
for reduction, deduction or set-off against the landlord thereunder or the rent
under any such Lease or the other obligations owed by such tenant under such
Lease. Except as disclosed on Exhibit "P-2", no tenant under a Lease has given
the landlord thereunder written notice of any intent to terminate its Lease
prior to the end of its stated term or otherwise to cease the active conduct of
the tenant's business, and no tenant has paid any rent, additional rent or other
charge of any nature for a period of more than thirty (30) days in advance. To
the Company's actual knowledge, there are no brokerage or finders commissions or
other compensation or fees payable after the date hereof by reason of the Leases
or any extensions, expansions, renewals or modifications thereof, or that could
be due in the future, all with respect to amounts owing or owed to any exclusive
leasing agent or pursuant to any exclusive leasing agreement with respect to the
Leases, except as set forth on Exhibit "P-2".

                  (m)      Financial Statements. A true and complete set of
unaudited financial statements of the Company and the Subsidiaries as of
December 31, 2004, has been delivered to the Investor and, to the Company's
actual knowledge, such financial statements present fairly the financial
condition of the Company and of the Subsidiaries in accordance with generally
accepted accounting principals consistently applied, as of the date thereof. To
the Company's actual knowledge, no material adverse change has occurred in the
financial

                                        8
<PAGE>

condition, operation, assets or liabilities of the Company and of the
Subsidiaries since the date of such financial statements.

                  (n)      Real Estate Taxes. To the Company's actual knowledge,
there are no unpaid or outstanding real estate or other taxes or assessments on
or against the Properties, or any part thereof, except for real estate taxes not
yet due and payable. To the Company's actual knowledge, there are no unpaid or
outstanding charges for water, sewer or other utilities except those not yet due
and payable.

                  (o)      Taxation as Partnership. The Company has been treated
as a partnership and that the Members of the Company as of the date hereof are
taxed as partners for federal, state, local and foreign income tax purposes. The
Company has not filed any election pursuant to Treasury Regulation Section
301.7701 3(c) to be treated as an entity other than a partnership. The Company
has not elected, pursuant to Code Section 761(a) or otherwise to be excluded
from the provisions of Subchapter K of the Code. The Company has prepared and
filed with the IRS and other necessary taxing authorities all documents, if any,
necessary to confirm and maintain its status as a partnership.

                  (p)      No Employees. The Company and each Subsidiary have no
employees.

                  (q)      Subsidiaries. The Company owns a limited liability
company or limited partnership interest, as the case may be, in those
Subsidiaries and their general partners (the "General Partners"), as applicable,
all of which are set forth on Exhibit "Q-1" attached hereto. The only
subsidiaries that the Company has an ownership interest in are the Subsidiaries
and the General Partners listed on Exhibit "Q-1". As of the date hereof, the
Company has good and valid title to an ownership interest in the percentage set
forth on Exhibit "Q-1" with respect to each Subsidiary and General Partner free
and clear of all liens, security interests, options, rights of first refusal and
adverse claims to title of any kind or character, and such interests are not
subject to any agreement (other than this Agreement) providing for the sale or
transfer thereof, except as set forth in Exhibit "Q-2". Each of the Subsidiaries
and General Partners is duly organized, validly existing and in good standing
under the laws of the state of its organization, has the full and unrestricted
power and authority, corporate and otherwise, to own, operate and lease its
properties and to carry on its business as currently conducted. Each
Subsidiary's and General Partner's organizational documents are in full force
and effect. The Company is not in default of any of its obligations under any of
the Subsidiary or General Partners organizational documents and the Company has
no actual knowledge of any other party thereto being in default of its
obligations thereunder, except as set forth on Exhibit "Q-3" attached hereto.

                  (r)      Preferred Interest. The Preferred Interest is not
subject to any lien, pledge or encumbrance of any nature whatsoever and the
Investor is acquiring same free of any rights to same by any other party.

                  (s)      Property Information. The Company has made available
to the Investor true and correct copies of all leases and environmental, title
and survey reports for the

                                        9
<PAGE>

Properties (collectively with the Loan Documents and the financial statements
referred to in Section 3(t) above, the "Transaction Documents and Information").

                  (t)      No Brokers. The Company is not a party to or in any
way obligated to make any payment relating to, any contract or outstanding claim
for the payment of any broker's or finder's fee in connection with the origin,
negotiation, execution or performance of this Agreement or the acquisition of
the Preferred Interest by the Investor hereunder.

                  (u)      Legal Counsel. The Company has been duly represented
by legal counsel in connection with the negotiation of this Agreement and the
Third Amendment to Operating Agreement.

         The representations and warranties of the Company as to itself and the
Subsidiaries set forth in this Section 3 shall be deemed remade as of Closing.
As used in this Agreement, the term "to the Company's actual knowledge" or any
other reference to the knowledge of the Company (a) shall mean and apply to the
actual knowledge of Hersch Klaff and Leslie Marshall (the "Company's Knowledge
Individuals"), and not to any other persons, (b) shall mean the actual (and not
implied or constructive) knowledge of the Company's Knowledge Individuals,
without any duty on the Company's Knowledge Individuals to conduct any
investigation or inquiry of any kind, and (c) shall not apply to or to be
construed to apply to information or material which may be in the possession of
the Company of the Subsidiaries generally or incidentally, but which is not
actually known to the Company's Knowledge Individuals. Similarly, any reference
to any written notice, claim, litigation, filing or other correspondence or
transmittal to the Company or the Subsidiaries set forth herein shall be limited
to refer to only those actually received by or known to the Company's Knowledge
Individuals in the limited manner provided in clauses (a) through (c) above.
Each of the representations and warranties contained in this Section 3 is
subject to the information disclosed in the Transaction Documents and
Information. Each representation and warranty of the Company contained in this
Agreement shall be modified as appropriate so as to disclose any material
inaccuracies or exceptions to such representations or warranties that have
arisen, to the Company's actual knowledge, during the period after the date
hereof and prior to the Closing Date, provided that the Company shall not be
required to disclose any Permitted Changes (as defined below) and its remade
representations and warranties shall be deemed subject to any and all applicable
Permitted Changes. As used in this Agreement, "Permitted Changes" shall mean:
(i) any matters expressly permitted in this Agreement or otherwise specifically
approved or agreed to in writing by the Investor; and (ii) any matter or action
that this Agreement expressly contemplates will take place or occur prior to or
concurrently with the Closing.

         Notwithstanding anything to the contrary in this Agreement, the
representations and warranties set forth in Sections 3(d)(ii)(2) and (4),
3(d)(v)(1), 3(d)(vi) and 3(k) shall not apply to the Existing Homelife Demised
Premises. The Existing Homelife Demised Properties are identified on Exhibit
"G-2".

         4.       Covenants of Company.

                  (a)      Access. The Company shall afford, and shall cause its
Subsidiaries, to afford, to the Investor and the Investor's accountants, counsel
and

                                       10
<PAGE>

representatives full access during normal business hours throughout the period
prior to the Closing Date (or the earlier termination of this Agreement pursuant
to Section 11(b)) to all their respective Properties, books, commitments,
contracts and records and, during such period, shall, upon request, furnish
promptly to the Investor all other information concerning them as the Investor
may reasonably request, provided that no investigation or receipt of information
pursuant to this Section 4(a) shall affect any representation or warranty of the
Company or the conditions to the obligations of the Investor. The Investor shall
give the Company reasonable advance notice of entry by the Investor or any of
its agents, employees or contractors onto the Properties so that the Company
shall have an opportunity to have a representative present during any such
inspection, and the Company expressly reserves the right to have such a
representative present. The Investor shall not perform any invasive tests at the
Properties. The Investor agrees that in exercising its right of access
hereunder, the Investor will use and will cause its agents, employees or
contractors to use their reasonable efforts not to interfere with the activity
or rights of tenants or any persons occupying or providing service at the
Property.

                  (b)      Requests by Investor. The Company shall, subject to
the satisfaction of the conditions set forth in Section 8, take such actions, in
each case, as may be necessary or reasonably requested by the Investor in order
to consummate or implement the terms of this Agreement.

                  (c)      Other Actions. Upon the terms and subject to the
conditions of this Agreement, the Company will use its commercially reasonable
efforts to take, or cause to be taken, all action, and to do, or cause to be
done, all things necessary, proper or advisable consistent with applicable law
to consummate and make effective in the most expeditious manner practicable the
transactions contemplated hereby.

                  (d)      Notices. For so long as the Investor is a Member, the
Company shall copy the Investor on all notices, consents, approvals and requests
given or received by the Company in connection with the Loan and any
refinancings thereof. The covenant and obligation contained in this Section 4(d)
shall survive Closing hereunder.

                  (e)      Transfer Taxes. The Company shall pay any transfer
taxes due in connection with (i) the issuance of the Preferred Interest to the
Investor and the admission of the Investor as a Member to the Company and (ii)
the redemption of the Investor's Preferred Interest in accordance with the terms
of the Third Amendment to Operating Agreement. The covenant and obligations
contained in this Section 4(e) shall survive Closing hereunder.

         5.       Representations and Warranties of Investor. The Investor
hereby represents and warrants that:

                  (a)      Intentions of Investor. The Investor is acquiring the
Preferred Interest acquired pursuant hereto for its own account with the present
intention of holding such securities for purposes of investment, and it has no
intention of selling such securities in a public distribution in violation of
the federal securities laws or any applicable state securities laws.

                  (b)      Securities Act. The Investor understands that the
Preferred Interest has not been registered under the Securities Act of 1934 (the
"Securities Act") or the securities

                                       11
<PAGE>

laws of any state and must be held indefinitely unless subsequently registered
under the Securities Act and any applicable state securities laws or unless an
exemption from such registration becomes or is available.

                  (c)      "Accredited Investor". The Investor is an "accredited
investor", as defined under Rule 501(a) promulgated under the Securities Act.

                  (d)      Corporate Power. The Investor has all requisite power
and authority to execute and deliver this Agreement and consummate the
transactions contemplated hereby. The Investor has taken all action as and in
the manner required by law, its certificate of incorporation or bylaws, its
certificate of formation or limited liability company agreement or otherwise to
authorize the execution, delivery and performance of this Agreement, the Third
Amendment to Operating Agreement and the other ancillary documents to which it
is a party and the transactions contemplated hereby and thereby.

                  (e)      Investigations by Investor. The Investor has had
ample opportunity to make inquiries of the Company's Manager and Voting Members,
examine books and records of the Company and the Subsidiaries and otherwise to
conduct such investigation as the Investor has deemed appropriate in connection
with its acquisition of the Preferred Interest. The Investor has entered into
this Agreement solely upon its independent investigation of the Company, the
Subsidiaries, the Existing Operating Agreement, and the Transaction Documents
and Information. The Investor is not relying upon any oral information supplied
by or any oral representations made by or on behalf of the Company of the
Subsidiaries, or upon budgets or projections of any kind that may have been
supplied to it. The Company makes no representation or warranty (and assumes no
responsibility with respect to) the future operations of the Company or the
Subsidiaries, and the Company assumes no responsibility or liability with
respect to the future performance by the Company or the Subsidiaries.

                  (f)      No Breach. The execution and delivery of this
Agreement, and the Third Amendment to Operating Agreement, do not, and the
consummation of the transactions contemplated hereby and thereby will not,
violate (i) any provisions of the organizational documents of the Investor, (ii)
any material terms of any material contract or commitment of any kind or
character to which the Investor is a party or by which it or its property may be
bound, or (iii) any law, regulation, rule, judgment or order applicable to the
Investor or its property.

                  (g)      Enforceability. This Agreement and the Third
Amendment to Operating Agreement, each constitutes the valid and binding
obligation of the Investor, enforceable in accordance with their terms except as
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors' rights generally and subject to the
availability of equitable remedies.

                  (h)      No Brokers. The Investor is not a party to or in any
way obligated to make any payment relating to, any contract or outstanding claim
for the payment of any broker's or finder's fee in connection with the origin,
negotiation, execution or performance of this Agreement or the acquisition of
the Preferred Interest hereunder.

                                       12
<PAGE>

                  (i)      Legal Counsel. The Investor has been duly represented
by legal counsel in connection with the negotiation of this Agreement and the
Third Amendment to Operating Agreement.

         The representations and warranties of the Investor set forth in this
Section 5 shall be deemed remade as of the Closing.

         6.       Covenants of Investor.

                  (a)      Third Amendment to Operating Agreement; Requests by
Company. The Investor shall (i) subject to the satisfaction of the conditions
set forth in Section 7, execute and/or deliver the Third Amendment to Operating
Agreement and the Indemnity Agreement and such other documents, certificates,
agreements and other writings and (ii) take such other actions as may be
necessary or reasonably requested by the Company in order to consummate or
implement expeditiously the acquisition of the Preferred Interest in accordance
with the terms of this Agreement.

                  (b)      Other Actions. Upon the terms and subject to the
conditions of this Agreement, the Investor will use its commercially reasonable
efforts to take, or cause to be taken, all action, and to do, or cause to be
done, all things necessary, proper or advisable consistent with applicable law
to consummate and make effective in the most expeditious manner practicable the
transactions contemplated hereby.

         7.       Conditions to the Obligations of Investor. The obligation of
the Investor to make the contribution to the Company at the Closing and the
other obligations of the Investor hereunder required to be performed on the
Closing Date shall be subject to the satisfaction (or waiver by the Investor) as
of the Closing Date of the following conditions:

                           (i)      The Investor shall have received the closing
deliveries described in Section 2(e) hereof.

                           (ii)     The representations and warranties of the
Company made in Section 3 of this Agreement shall be true and correct in all
material respects when made and as of the Closing Date as though made on and as
of the Closing Date.

                           (iii)    The Company shall have performed or complied
in all material respects with all obligations and covenants required by this
Agreement to be performed or complied with by the Company by the Closing Date.

                           (iv)     There shall exist no claim, action, suit,
investigation, litigation or proceeding, pending or threatened in any court or
before any arbitrator or governmental instrumentality which relates to the
transactions contemplated by this Agreement or that materially adversely affects
the Company.

                           (v)      The Company shall have paid all of the
Investor's reasonable expenses incurred in the due diligence, structuring and
completion of its contribution to the Company and the issuance of the Preferred
Interest, including, but not limited to, reasonable attorneys' fees.

                                       13
<PAGE>

         8.       Conditions to the Obligations of Company. The obligation of
the Company to sell the Preferred Interest and the other obligations of the
Company hereunder required to be performed on the Closing Date shall be subject
to the satisfaction (or waiver by the Company) as of the Closing Date of the
following conditions:

                           (i)      The Company shall have received the closing
deliveries described in Section 2(d) hereof.

                           (ii)     The representations and warranties of the
Investor contained in Section 5 of this Agreement shall have been true and
correct in all material respects when made and as of the Closing Date as though
made on and as of the Closing Date.

                           (iii)    The Investor shall have performed or
complied in all material respects with all obligations and covenants required by
this Agreement to be performed or complied with by the Investor by the Closing
Date.

         9.       Legend. If certificated, each certificate for Restricted
Securities shall be imprinted with a legend in substantially the following form:

         "THE SECURITIES REPRESENTED BY THIS HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE
         SECURITIES LAWS, AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR
         OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
         STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER
         AND COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
         REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL
         RESTRICTIONS ON TRANSFER SPECIFIED IN THAT CERTAIN LEVITZ SL, LLC
         OPERATING AGREEMENT AS OF MAY 21, 1999, AS AMENDED AND MODIFIED FROM
         TIME TO TIME. A COPY OF SUCH AGREEMENT SHALL BE FURNISHED BY THE
         COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE."

         10.      "As-Is, Where Is". EXCEPT FOR THE REPRESENTATIONS AND
WARRANTIES OF THE COMPANY EXPRESSLY SET FORTH IN SECTION 3 OF THIS AGREEMENT,
THE INVESTOR WARRANTS AND ACKNOWLEDGES TO AND AGREES WITH THE COMPANY THAT THE
COMPANY, THE SUBSIDIARIES AND THEIR RESPECTIVE ASSETS AND PROPERTIES ARE IN
THEIR "AS-IS, WHERE IS" CONDITION "WITH ALL FAULTS" AS OF THE CLOSING DATE AND
SPECIFICALLY AND EXPRESSLY WITHOUT ANY WARRANTIES, REPRESENTATIONS OR
GUARANTEES, EITHER EXPRESS OR IMPLIED, AS TO THEIR CONDITION, FITNESS FOR ANY
PARTICULAR PURPOSE, MERCHANTABILITY, OR ANY OTHER WARRANTY OF ANY KIND, NATURE,
OR TYPE WHATSOEVER FROM OR ON BEHALF OF THE COMPANY. EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES OF THE COMPANY EXPRESSLY SET FORTH IN SECTION 3
OF THIS AGREEMENT, THE COMPANY SPECIFICALLY DISCLAIMS ANY WARRANTY,

                                       14
<PAGE>

GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST OR PRESENT, EXPRESS OR
IMPLIED, CONCERNING (I) THE VALUE, NATURE, QUALITY OR CONDITION OF THE COMPANY,
THE SUBSIDIARIES AND THEIR RESPECTIVE ASSETS AND PROPERTIES OR THE PREFERRED
INTEREST, INCLUDING THE WATER, SOIL AND GEOLOGY OF THE PROPERTIES, (II) THE
INCOME TO BE DERIVED FROM THE ASSETS AND THE PROPERTIES, (III) THE SUITABILITY
OF THE PROPERTIES FOR ANY AND ALL ACTIVITIES AND USES WHICH THE INVESTOR MAY
CONDUCT THEREON, INCLUDING THE POSSIBILITIES FOR FUTURE DEVELOPMENT OF THE
PROPERTIES, (IV) THE COMPLIANCE OF OR BY THE COMPANY, THE SUBSIDIARIES AND THEIR
RESPEVTIVE ASSETS OR PROPERTIES (OR THEIR OPERATION) WITH ANY LAWS, RULES,
ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (V)
THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF THE PROPERTIES, (VI) THE MANNER OR QUALITY OF THE
CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTIES, (VII) THE
MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTIES, (VIII) THE
PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS AT, ON, UNDER, OR ADJACENT TO THE
PROPERTIES OR ANY OTHER ENVIRONMENTAL MATTER OR CONDITION OF THE PROPERTIES,
(IX) THE UNITARY LEASE, OVERLEASES, OTHER LEASES OR OTHER AGREEMENTS AFFECTING
THE COMPANY, THE SUBSIDIARIES OR THEIR RESPECTIVE ASSETS OR PROPERTIES, OR (X)
ANY OTHER MATTER WITH RESPECT TO THE COMPANY, THE SUBSIDIARIES AND THEIR
RESPECTIVE ASSETS OR PROPERTIES. THE INVESTOR ACKNOWLEDGES AND AGREES THAT,
EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF THE COMPANY CONTAINED IN
SECTION 3 OF THIS AGREEMENT, ANY INFORMATION PROVIDED BY OR ON BEHALF OF THE
COMPANY OR THE SUBSIDIARIES WITH RESPECT TO THE COMPANY'S AND THE SUBSIDARIES'
RESPECTIVE ASSETS AND PROPERTIES WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT
THE COMPANY HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH
INFORMATION AND MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR
COMPLETENESS OF SUCH INFORMATION. THE COMPANY SHALL NOT BE LIABLE OR BOUND IN
ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION
PERTAINING TO THE COMPANY, THE SUBSIDIARIES AND THEIR RESPECTIVE ASSETS AND
PROPERTIES (OR THEIR OPERATION), FURNISHED BY ANY REAL ESTATE BROKER, AGENT,
EMPLOYEE, SERVANT OR OTHER PERSON EXCEPT FOR THE EXPRESS REPRESENTATIONS AND
WARRANTIES SET FORTH IN SECTION 3 OF THIS AGREEMENT.

         11.      Miscellaneous.

                  (a)      Remedies. The Investor shall have all rights and
remedies set forth in this Agreement and the other ancillary documents and all
of the rights that the Investor has under any law.

                  (b)      Termination. This Agreement may be terminated at any
time prior to the Closing Date by mutual agreement of the Company and the
Investor.

                                       15
<PAGE>

                  (c)      Press Releases. The Company and the Investor will
consult with the other before issuing, and provide the other the opportunity to
review and comment upon, any press release or other public statements with
respect to the transactions contemplated hereby and will not issue any such
press release or make any such public statement without the other party's prior
written consent, except that a party hereto may make such disclosures as are
required by law, but only after disclosing to each of the other parties hereto
the basis for concluding that such disclosure is so required and the contents of
such disclosure.

                  (d)      Notices. All notices, requests, consents and other
communications hereunder to any party shall be deemed to be sufficient if
contained in a written instrument and shall be deemed to have been duly given
when delivered in person, by telecopy, by facsimile, by nationally-recognized
overnight courier, or by first class registered or certified mail, postage
prepaid, addressed to such party at the address set forth below or such other
address as may hereafter be designated in writing by the addressee as follows:

                  If to the Company:

                  Levitz SL, L.L.C.
                  c/o Klaff Realty, LP
                  122 S. Michigan Avenue, Suite 1000
                  Chicago, IL 60603-6116
                  Attention:  Hersch Klaff and Keith Brown

                  with a copy to:

                  Klehr, Harrison, Harvey, Branzburg & Ellers LLP
                  260 S. Broad Street
                  Philadelphia, PA 19102-5003
                  Attention:  Lawrence J. Arem

                  If to the Investor:

                  Acadia Levitz, LLC
                  1311 Mamaroneck Avenue
                  Suite 260
                  White Plains, NY 10605
                  Attention:  Kenneth F. Bernstein and Joel Braun

                  with a copy to:

                  Acadia Levitz, LLC
                  1311 Mamaroneck Avenue
                  Suite 260
                  White Plains, NY 10605
                  Attention:  Robert Masters

                  All such notices, requests, consents and other communications
shall be deemed to have been delivered (i) in the case of personal delivery, on
the date of such delivery, (ii) in the

                                       16
<PAGE>

case of nationally-recognized overnight courier, on the next Business Day and
(iii) in the case of mailing, on the third Business Day following such mailing
if sent by certified mail, return receipt requested.

                  (e)      Successors and Assigns. All covenants and agreements
in this Agreement by or on behalf of any of the parties hereto will bind and
inure to the benefit of the respective successors and assigns of the parties
hereto whether so expressed or not.

                  (f)      Consent to Amendments. Except as otherwise expressly
provided herein, the provisions of this Agreement may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the Investor. No other course of dealing between the Company and the
Investor or any delay in exercising any rights hereunder operate as a waiver of
any rights of Investor.

                  (g)      Survival of Representations and Warranties. All
representations and warranties contained herein or made in writing by any party
in connection herewith shall survive the execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby,
regardless of any investigation made by a party or on its behalf.

                  (h)      Severability. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

                  (i)      Entire Agreement. Except as otherwise expressly set
forth herein, this Agreement and the other ancillary documents embody the
complete agreement and understanding among the parties hereto with respect to
the subject matter hereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, that may
have related to the subject matter hereof in any way.

                  (j)      Counterparts. This Agreement may be executed in
separate counterparts each of which shall be an original and all of which taken
together shall constitute one and the same agreement.

                  (k)      Governing Law. This Agreement will be governed by and
construed in accordance with the domestic laws of the State of Delaware, without
giving effect to any choice of law or conflicting provision or rule (whether of
the State of Delaware, or any other jurisdiction) that would cause the laws of
any jurisdiction other than the State of Delaware to be applied. In furtherance
of the foregoing, the internal law of the State of Delaware will control the
interpretation and construction of this Agreement, even if under such
jurisdiction's choice of law or conflict of law analysis, the substantive law of
some other jurisdiction would ordinarily apply.

                                       17
<PAGE>

                  (l)      Waiver Of Jury Trial. THE COMPANY AND THE INVESTOR
HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY
LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF
THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION OR ENFORCEMENT
THEREOF. THE COMPANY AND THE INVESTOR AGREE THAT THIS SECTION IS A SPECIFIC AND
MATERIAL ASPECT OF THIS AGREEMENT AND WOULD NOT ENTER INTO THIS AGREEMENT IF
THIS SECTION WERE NOT PART OF THIS AGREEMENT.

                  (m)      Descriptive Headings. The descriptive headings of
this Agreement are inserted for convenience only and do not constitute a part of
this Agreement.

                                    * * * * *

                                       18
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be signed as of the date first above written.

                            COMPANY:

                            By:   LUBERT-ADLER  REAL ESTATE FUND
                                  II,  L.P.,  its voting member

                                  By:   Lubert-Adler Group II, L.P., its
                                        general partner

                                        By:  Lubert-Adler Group II, LLC, its
                                             general partner

                                             By:
                                                 -------------------------------
                                             Its:
                                                 -------------------------------

                            By:   LUBERT-ADLER REAL ESTATE
                                  PARALLEL FUND II, L.P., its voting
                                  Member

                                  By:   Lubert-Adler Group II, L.P., its
                                        general partner

                                        By:  Lubert-Adler Group II, LLC, its
                                             general partner

                                             By:
                                                 -------------------------------
                                             Its:
                                                 -------------------------------

                            By:   LEVITZ SL KLAFF EQUITY, L.L.C., its
                                  voting member

                                  By:   Klaff Realty, LP, its manager

                                             By:  Klaff Realty, Ltd., its
                                                  general partner

                                             By:
                                                 -------------------------------
                                             Its:
                                                 -------------------------------

                       [SIGNATURES CONTINUE ON NEXT PAGE]

                                       19
<PAGE>

                            INVESTOR:

                            ACADIA LEVITZ, LLC

                            By:
                               -------------------------------------------------
                            Its:
                               -------------------------------------------------

                                       20
<PAGE>

                                   EXHIBIT "A"

                 FORM OF THIRD AMENDMENT TO OPERATING AGREEMENT

<PAGE>

                                   EXHIBIT "B"

                           FORM OF INDEMNITY AGREEMENT

<PAGE>

                                   EXHIBIT "C"

                                FORM OF GUARANTY

<PAGE>

                                   EXHIBIT "D"

                       COPIES OF CERTIFICATES OF INSURANCE

<PAGE>

                                  EXHIBIT "E-1"

                 COPY OF COMPANY'S EXISTING OPERATING AGREEMENT

<PAGE>

                                  EXHIBIT "E-2"

                   COPY OF COMPANY'S CERTIFICATE OF FORMATION

<PAGE>

                                   EXHIBIT "F"

                      MEMBERS AND THEIR PERCENTAGE INTEREST

Member                                                  Percentage Interest
-------------------------------------------------       -------------------
Lubert-Adler Real Estate Fund II, L.P.                  23.427%

Lubert-Adler Real Estate Parallel Fund II, L.P.         34.413%

Levitz SL Klaff Equity, L.L.C.                          12.16%

Blackacre Furniture Funding LLC                         30.00%

K.S. Opportunities III, L.L.C. (Promote Member)*        0.00%


----------
* Promote Member is entitled to an allocation of Net Profits and Net Losses and
to certain distributions as provided in the Existing Operating Agreement.

<PAGE>

                                  EXHIBIT "G-1"

                                 FEE PROPERTIES

St. Paul, 3201 Country Dr., St. Paul, MN 55117-1096

Oxnard, 2420 N. Oxnard Blvd., Oxnard, CA  93030

Northridge, 19350 Nordhoff Street, Northridge, CA  91324

Farmingdale, 90 Price Parkway, Farmingdale, NY  11735

Portland-Johnson, 13631 S. E. Johnson Rd., Milwaukie, OR  97222-1295

<PAGE>

                                  EXHIBIT "G-2"

                                LEASED PROPERTIES

La Puente, 17520 E. Castleton Street, City of Industry, CA  91744-1701

         Description of Overlease:

         A.       Lease dated March 1, 1979, by and between Wincorp Industries
                  Inc. (Landlord) and Levitz Furniture Corporation (Tenant)
         B.       Letter dated July 1, 1980, from Wincorp Industries Inc. to
                  Levitz Furniture Corporation giving notice of commencement
                  date as June 29, 1980
         C.       First Amendment to Lease dated September 1, 1979, between
                  Wincorp Industries, Inc., a Delaware corporation, and Levitz
                  Furniture Corporation
         D.       Tri-Party Agreement entered into as of April 4, 1980, among
                  Wincorp Industries, Inc., Levitz Furniture Corporation and
                  Laurel Development Company
         E.       Letter Agreement entered into on or about July 1, 1980,
                  between Wincorp Industries, Inc. and Levitz Furniture
                  Corporation
         F.       Letter Agreement entered into on or about October 17, 1997,
                  between The Estate of James Campbell and BT Commercial
                  Corporation and acknowledged by Levitz Furniture Incorporated
                  and Levitz Furniture Company of the Pacific Realty, Inc.
         G.       Order Under 11 U.S.C. Sections 363, 365 and 1146(c) and
                  Fed. R. Bankr. 6004 and 6006 (I) Authorizing Sale-Leaseback
                  Transaction Free and Clear of Liens, Claims, Encumbrances, and
                  Interests and (II) Determining that the Sale-Leaseback
                  Transaction is Exempt from any Stamp, Transfer, Recording or
                  Similar Tax
         H.       Letter dated May 13, 2004, from Tenant to Landlord re:
                  Tenant's exercise of one (1) twenty (20) year extension option
         I.       Letter dated September 20, 2004, from Landlord to Tenant re:
                  Base Rent during option term
         J.       Letter dated January 12, 2005, from Tenant to Landlord re:
                  Base Rent during option term

San Leandro, 3199 Alvarado Street, San Leandro, CA  94577-5790

         Description of Overlease:

         A.       Lease Agreement dated as of August 25, 1971, by and between
                  Peerage Equities Corporation (Lessor) and Levitz Furniture
                  Corporation (Lessee)
         B.       Warranty Deed dated 8/25/71 between Peerage Equities
                  Corporation and Ruth E. Jensen (Building and Improvements
                  only)
         C.       Assignment of Levitz Lease dated 8/25/71 between Peerage
                  Equities Corporation, as assignor, and Ruth E. Jensen, as
                  assignee
         K.       First Amendment to Lease Agreement dated December 21, 1971
         L.       Warranty Deed dated 12/31/71 between Peerage Equity
                  Corporation, as grantor and Corporate Property Investors, as
                  grantee (land only exclusive of any buildings)

<PAGE>

         M.       Warranty Deed dated March 3, 1981, between Ruth E. Jensen, as
                  grantor, and Frederick G. Gould, grantee (Buildings and
                  Improvements only)
         N.       Assignment of Ground Lease dated March 3, 1981, between Ruth
                  E. Jensen, assignor, and Frederick G. Gould, as assignee
         O.       Assignment of Levitz Lease dated March 3, 1981, between Ruth
                  E. Jensen, as assignor, and Frederick G. Gould, as assignee
         P.       General Assignment dated March 3, 1981, between Ruth E.
                  Jensen, as assignor, and Frederick G. Gould, as assignee
         Q.       Warranty Deed dated October 11, 1982, between Frederick G.
                  Gould, as grantor and John A. Washburn, as grantee (Buildings
                  and Improvements only).
         R.       Assignment of Ground Lease dated October 11, 1982, between
                  Frederick G. Gould, as assignor, and John A. Washburn, as
                  assignee
         S.       Assignment of Levitz Lease dated October 11, 1982, between
                  Frederick G. Gould, as assignor, and John A. Washburn, as
                  assignee
         T.       General Assignment dated as of October 11, 1982, between
                  Frederick G. Gould, as assignor, and John A. Washburn, as
                  assignee
         N.       Notice to Levitz Furniture Corporation of assignment of lease
         O.       Letter dated October 29, 1996, by Levitz Furniture Corporation
                  exercising its first option to extend Lease from July 1, 1997
                  to June 30, 2002
         P.       Letter dated October 1, 2001, exercising its second option to
                  extend lease.

Willowbrook, 531 Route 46, Fairfield, NJ  07004-1907

         Description of Overlease:

         A.       Ground Lease dated November 22, 1971, by and between Peerage
                  Equities Corporation (Lessor) and Spice Properties Co., Inc.
                  (Lessee)
         B.       Lease Agreement dated November 22, 1971, by and between
                  Peerage Equities Corporation (Lessor) and Levitz Furniture
                  Corporation (Lessee)
         C.       Assignment of Lease dated November 22, 1971, by and between
                  Peerage Equities Corporation (Assignor) and Spice Properties
                  Co., Inc. (Assignee)
         D.       Assignment of Lease and Agreement dated November 22, 1971, by
                  and between Spice Properties Co., Inc. (Assignor) and Levitz
                  Furniture Corporation (Assignee)
         E.       Lease Assignment and Assumption Agreement dated September 30,
                  1996, by and between Levitz Furniture Corporation (Assignor)
                  and Levitz Furniture Realty Corporation (Assignee)

Woodbridge, 429 Route 1 South, Iselin, NJ  08830-3009

         Description of Overlease:

         A.       Ground Lease dated October 28, 1966, by and between Mario
                  Cellentani and Helen Cellentani (Landlord) and Litwin
                  Properties, Inc. (Tenant)
         B.       Assignment of Lease by and between Woodbridge Mall No. 2, Inc.
                  (formerly known as Litwin Properties, Inc.), as assignor, and
                  Carthay Realty Corp., as assignee
         C.       Assignment of Lease dated June 29, 1973, by and between
                  Carthay Realty Corp., as assignor, and Mann Theatres
                  Corporation of California, as assignee
         D.       Acceptance of Assignment dated July 1, 1973, by Mann Theatres
                  Corporation

<PAGE>

         E.       Assignment of Lease dated February 1, 1980, by and between
                  Theatres Corporation of California, as assignor, to Levitz
                  Furniture Corporation of the Eastern Region, Inc., as assignee

Langhorne, 1661 East Lincoln Highway, Langhorne, PA  19047-3096

         Description of Overlease:

         A.       Lease dated May 1, 1973, by and between Quint Leasing Company
                  (Lessor) and Levitz Furniture Corporation (Lessee)
         B.       Letter dated October 9, 1992, by Levitz Furniture Corporation
                  electing to extend the term of the Lease until June 30, 2003
         C.       Letter dated November 21, 2002, from Tenant to Landlord
                  electing to extend the term of the Lease for an additional
                  5-year term.

Sacramento, 4741 Watt Avenue, North Highlands, CA  95660-5515

         Description of Overlease:

         A.       Agreement of Lease dated as of March 9, 1970, by and between
                  A&A Key Builders Supply, Inc. and B&B Enterprises, Inc.
                  (Lessor) and Levitz Furniture Co. of Santa Clara, Inc.
                  (Lessee)
         B.       Resolution dated May 26, 1970, amending the Articles of
                  Incorporation for Levitz Furniture Company of Santa Clara to
                  read, Levitz Furniture Company of Northern California, Inc.
         C.       Resolution dated March 21, 1973, amending the Articles of
                  Incorporation of Levitz Furniture Company of Northern
                  California, Inc. to read, Levitz Furniture Company of the
                  Pacific, Inc.
         D.       Letter dated April 27, 1994, by Levitz Furniture Corporation
                  exercising its first option to extend the Lease from September
                  1, 1995, to August 31, 2005
         E.       Option to Purchase dated as of March 9, 1970, by and between
                  A&A Key Builders Supply, Inc. and B&B Enterprises, Inc.
                  (Lessor) and Levitz Furniture Co. of Santa Clara, Inc.
                  (Lessee)
         F.       Letter dated May 14, 2004, exercising second option to extend
                  the Lease from September 1, 2005, to August 31, 2010.

Brea (Homelife), 2335 E. Imperial Highway, Brea, CA  92821 (Store No. 4189)

         Description of Overlease:

         A.       Lease dated January 7, 1999, by and between BUP II Partners,
                  as landlord, and Sears, as tenant
         B.       Assignment and Assumption of Leases dated February 1, 1999,
                  between Sears and Homelife
         C.       First Amendment to Lease dated September 19, 2000, between BUP
                  II Partners and Homelife
         D.       Assignment and Assumption of Lease Agreement dated January 25,
                  2002 between Homelife and HL Brea, L.L.C.

<PAGE>

Deptford (Homelife), 1561 Almonesson Road, Deptford, NJ  08096 (Store No. 4334)

         Description of Overlease:

         A.       Specialty Store Lease dated February 17, 1997, by and between
                  Almonesson Associates II, LLC, as landlord, and Sears, as
                  tenant
         B.       Amendment to Specialty Store Lease dated March 21, 1997,
                  between Almonesson Associates II, LLC and Sears
         C.       Lease Supplement dated July 27, 1998, between Almonesson
                  Associates II, LLC and Sears
         D.       Assignment and Assumption of Leases dated February 1, 1999,
                  between Sears and Homelife
         E.       Assignment and Assumption of Lease Agreement dated
                  February 15, 2002, between Homelife and HL Deptford, L.L.C.

Downingtown (Homelife), 955 East Lancaster Avenue, Downingtown, PA 19335
(Store No. 4403)

         Description of Overlease:

         A.       Lease Agreement dated December 23, 1999, by and between B&S
                  Pike Associates, L.P., as landlord, and Homelife, as tenant
         B.       Assignment and Assumption of Lease Agreement dated January 25,
                  2002, between Homelife and HL Downingtown, L.P.

Hayward (Homelife), 680 W. Winton Road, Hayward, CA  94545 (Store No. 4349)

         Description of Overlease:

         A.       Sublease dated February 1, 1999, by and between Sears, as
                  sublandlord, and Homelife, as subtenant
         B.       Lease Supplement dated September 22, 2000, between Sears and
                  Homelife
         C.       Assignment and Assumption of Sublease Agreement dated January
                  25, 2002, between Homelife and HL Hayward, L.L.C.

The Court of Oxford Valley (Homelife), 110 Commerce Boulevard, Oxford Valley, PA
19030 (Store No. 4065)

         Description of Overlease:

         A.       Specialty Store Lease dated January 25, 1995, by and between
                  Oxford Valley Road Associates, as landlord, and Sears, Roebuck
                  and Co. ("Sears"), as tenant
         B.       Amendment to Specialty Store Lease dated March 27, 1995, by
                  and between Oxford Valley Road Associates and Sears
         C.       Lease Supplement dated March 5, 1996, between Oxford Valley
                  Road Associates and Sears

<PAGE>

         D.       Assignment and Assumption of Leases dated February 1, 1999,
                  between Sears and Homelife
         E.       Assignment and Assumption of Lease Agreement dated February
                  15, 2002, between Homelife and HL Fairless Hills, LP

San Jose (Homelife), 5353 Almaden Expressway, Suite 5C, San Jose, CA 95118
(Store No. 4019)

         Description of Overlease:

         A.       Sublease dated February 1, 1999, by and between Sears, as
                  sublandlord, and Homelife, as subtenant.
         B.       Assignment and Assumption of Sublease Agreement dated
                  _________ __, 2002, between Homelife and HL San Jose, L.L.C.

Scottsdale (Homelife), 9130 E. Indian Bend Road, Scottsdale, AZ 85250
(Store No. 4497)

         Description of Overlease:

         A.       Lease dated February 11, 1991, by and between Pima Grande
                  Development, as landlord, and Sears, as tenant
         B.       Short Form Memorandum of Lease dated February 11, 1991,
                  between Pima Grande Development, as landlord, and Sears, as
                  tenant
         C.       Lease Supplement dated November 7, 1991, between Pima Grande
                  Development and Sears
         D.       First Amendment to Lease dated June 6, 1997, between Pima
                  Grande Development and Sears
         E.       Assignment and Assumption of Leases dated February 1, 1999,
                  between Sears and Homelife
         F.       Assignment and Assumption of Lease Agreement dated March 7,
                  2002, between Homelife and HL Scottsdale, L.L.C.

Torrance (Homelife), 19800 Hawthorne Boulevard, Suite 280, Torrance CA 90503
(Store No. 4109)

         Description of Overlease:

         A.       Lease dated May 3, 1996, by and between Gateway Pioneer, Inc.
                  No. 1, as landlord, and Sears, as tenant
         B.       Lease Supplement dated January 14, 1997, between Gateway
                  Pioneer, Inc. No. 1 and Sears
         C.       Assignment and Assumption of Leases dated February 1, 1999,
                  between Sears and Homelife
         D.       Assignment and Assumption of Lease Agreement dated February
                  15, 2002, between Homelife and HL Torrance, L.L.C.

Irvine 1 (Homelife), 13732 Jamboree Road, Tustin, CA  92602 (Store No. 4108)

<PAGE>

         Description of Overlease:

         A.       Lease dated December 15, 1995, by and between Irvine Retail
                  Properties Company, as landlord, and Sears, as tenant
         B.       Lease Supplement dated January 22, 1997, between Irvine Retail
                  Properties Company and Sears
         C.       First Amendment to Lease dated May 26, 1998, between Irvine
                  Retail Properties Company and Sears
         D.       Assignment and Assumption of Leases dated February 1, 1999,
                  between Sears and Homelife
         E.       Assignment and Assumption of Lease Agreement dated
                  January 25, 2002, between Homelife and HL Irvine 1, L.L.C.

West Covina (Homelife), 2753 Eastland Center Drive #2000, West Covina, CA 91790
(Store No. 4307)

         Description of Overlease:

         A.       Lease dated April 13, 2000, by and between Eastland Shopping
                  Center LLC, as landlord, and Homelife, as tenant
         B.       Lease Amendment No. 1 dated August 31, 2000, between Eastland
                  Shopping Center LLC and Homelife
         C.       Assignment and Assumption of Lease Agreement
                  dated _________ __, 2002, between Homelife and HL West Covina,
                  L.L.C.

Northridge (Homelife), 9301 Tampa, Avenue, Northridge, CA 91325 (Store No. 4004)

         Description of Overlease:

         Lease dated February 1, 2002, between Crown Glendale Associates, LLC
         (assignee of Sears) and HL Northridge, L.L.C.

Glendale (Homelife), 314 N. Central Avenue, Glendale, CA  91203 (Store No. 4398)

         Description of Overlease:

         Lease dated February 1, 2002, between Crown Northridge Associates, LLC
         (assignee of Sears) and HL Glendale, L.L.C.

<PAGE>

                                   EXHIBIT "H"

                      MATTERS AFFECTING TITLE TO PROPERTIES

Portland-Johnson, OR:

Traffic Control, Illumination, and Utility Easement

Sign/Slope/Utility & Sidewalk Easement

Grant of Easement for Road and Right of Way Purposes

Lease dated September 24, 2003, as amended, between Levitz SL Portland-Johnson,
L.L.C., as landlord, and Lowe's HIW, Inc., as tenant (includes Right of First
Refusal (Section 14))

Farmingdale, NY:

Lease dated August 31, 2004, as amended, between Levitz SL Farmingdale, L.L.C.,
as landlord, and Lowe's Home Centers, Inc., as tenant (includes Right of First
Refusal (Section 18))

Willowbrook, NJ:

Sublease dated May 28, 2004, but effective as of June 3, 2002, as amended,
between Levitz SL Willowbrook, L.L.C., as landlord, and Futurama Furniture of
Fairfield, Inc., as tenant

Northridge, CA:

Option to Lease dated November 15, 2004, between Wal-Mart Real Estate Business
Trust and Levitz SL Northridge, L.L.C. (Exhibit B is Ground Lease (includes
Right of First Refusal (Section 22))

Oxnard, CA:

Agreement of Sale dated January 5, 2005, between Levitz SL Oxnard, L.L.C., as
seller, and Avion Development, LLC, as buyer

<PAGE>

                                   EXHIBIT "I"

                         EXCEPTIONS TO SECTION 3(d)(ii)

                                      None

<PAGE>

                                   EXHIBIT "J"

                              EXCEPTIONS TO 3(d)(v)

St. Paul, MN:

A condemnation proceeding has been commenced with respect to two acres of green
space.

Woodbridge, NJ:

Consent Order dated October 10, 2003, entering Final Judgment in Condemnation
(Superior Court of New Jersey, Law Division, Middlesex County, Docket no.
MID-L-4104-02). Proceeding involved taking of certain land in connection with
road expansion.

<PAGE>

                                   EXHIBIT "K"

                             EXCEPTIONS TO 3(d)(vii)

Portland-Johnson, OR:

Lease dated September 24, 2003, as amended, between Levitz SL Portland-Johnson,
L.L.C., as landlord, and Lowe's HIW, Inc., as tenant (includes Right of First
Refusal (Section 14))

Farmingdale, NY:

Lease dated August 31, 2004, as amended, between Levitz SL Farmingdale, L.L.C.,
as landlord, and Lowe's Home Centers, Inc., as tenant (includes Right of First
Refusal (Section 18))

Northridge, CA:

Option to Lease dated November 15, 2004, between Wal-Mart Real Estate Business
Trust and Levitz SL Northridge, L.L.C. (Exhibit B is Ground Lease (includes
Right of First Refusal (Section 22))

Oxnard, CA:

Agreement of Sale dated January 5, 2005, between Levitz SL Oxnard, L.L.C., as
seller, and Avion Development, LLC, as buyer

<PAGE>

                                   EXHIBIT "L"

                           LIST OF MATERIAL CONTRACTS

Oxnard, CA:

Broker's Sale Commission Agreement with CB Richard Ellis - $600,000 on
$15,000,000 Minimum Sale Price plus Bonus Commission on Ultimate Purchase Price

Sale Commission to Klaff Realty, LP - .5% on $15,000,000 Minimum Sale Price plus
Bonus Payment

Farmingdale, NY:

Leasing Commission to Klaff Realty, LP - $360,458

Northridge, CA:

Broker's Leasing Commission Agreement with CB Richard Ellis - $437,500, includes
commission to Sam Rothbardt

Leasing Commission to G Limited - $300,000

Leasing Commission to Klaff Realty, LP - $188,000

<PAGE>

                                   EXHIBIT "M"

                             LIST OF CONTESTED TAXES

                                      None

<PAGE>

                                   EXHIBIT "N"

                          EXCEPTIONS TO SECTION 3(j)(i)

                                      None

<PAGE>

                                   EXHIBIT "O"

                           EXCEPTIONS TO SECTION 3(k)

Willowbrook, NJ:

Letter dated January 21, 2005, from Township of Fairfield re: Compliance
Procedures to finalize open building permits for Levitz and Futurama

<PAGE>

                                  EXHIBIT "P-1"

                                 LIST OF LEASES

Unitary Lease:

Unitary Lease dated June 8, 1999, as amended by (i) the First Amendment to
Unitary Lease dated October 8, 1999; (ii) the Second Amendment to Unitary Lease
dated December 23, 1999; (iii) the Third Amendment to Unitary Lease dated
December 29, 1999; (iv) the Fourth Amendment to Unitary Lease dated January 3,
2001; (v) the Fifth Amendment to Unitary Lease dated March 8, 2001; (vi) the
Sixth Amendment to Unitary Lease dated May 2, 2001; (vii) the Seventh Amendment
to Unitary Lease dated December 13, 2001; (viii) the Eighth Amendment to Unitary
Lease dated April 3, 2002; (ix) the Ninth Amendment to Unitary Lease dated April
19, 2002; (x) the Tenth Amendment to Unitary Lease dated May 31, 2002; (xi) the
Eleventh Amendment to Unitary Lease dated February 12, 2003; (xii) the Twelfth
Amendment to Unitary Lease dated May 23, 2003; (xiii) the Thirteenth Amendment
to Unitary Lease dated August 29, 2003; (xiv) the Fourteenth Amendment to
Unitary Lease dated May 13, 2004; (xv) the Fifteenth Amendment to Unitary Lease
dated May 21, 2004; (xvi) the Sixteenth Amendment to Unitary Lease dated October
28, 2004; that certain Agreement dated as of December 13, 2001, between Klaff
Realty, LP, on behalf of Landlord, and the Companies, together with various
subsidiaries and affiliates of Companies; and (xvii) that certain Agreement
dated as of November 12, 2004, among Landlord, KLA Breuners, LLC and Companies.

Portland-Johnson, OR:

Lease dated September 24, 2003, as amended, between Levitz SL Portland-Johnson,
L.L.C., as landlord, and Lowe's HIW, Inc., as tenant

Farmingdale, NY:

Lease dated August 31, 2004, as amended, between Levitz SL Farmingdale, L.L.C.,
as landlord, and Lowe's Home Centers, Inc., as tenant

Willowbrook, NJ:

Sublease dated May 28, 2004, but effective as of June 3, 2002, as amended,
between Levitz SL Willowbrook, L.L.C., as landlord, and Futurama Furniture of
Fairfield, Inc., as tenant

<PAGE>

                                  EXHIBIT "P-2"

                           EXCEPTIONS TO SECTION 3(l)

Farmingdale, NY:

Leasing Commission to Klaff Realty, LP - $360,458

<PAGE>

                                  EXHIBIT "Q-1"

                  LIST OF SUBSIDIARIES AND/OR GENERAL PARTNERS

                       [See attached Organizational Chart]

<PAGE>

                                  EXHIBIT "Q-2"

                           EXCEPTIONS TO SECTION 3(q)

Pledge Agreement (Membership/Partnership Interests) dated June 21, 2002, by
Levitz SL, L.L.C. to Greenwich Capital Financial Products, Inc.

Pledge Agreement (Distributions) dated June 21, 2002, by Levitz SL, L.L.C. to
Greenwich Capital Financial Products, Inc.

Langhorne GP Pledge Agreement dated June 21, 2002, by Levitz SL-GP, L.L.C. to
Greenwwich Capital Financial Products, Inc.

Assignment of Membership Interest dated June 21, 2002, by Levitz SL, L.L.C.
(executed in blank)

Assignment of Membership Interest dated June 21, 2002, by Levitz SL, L.L.C.
(executed in blank)

Assignment of Partnership Interest by Levitz SL, L.L.C. (executed in blank)

Assignment of Partnership Interest by Levitz SL-GP, L.L.C. (executed in blank)

<PAGE>

                                  EXHIBIT "Q-3"

                           EXCEPTIONS TO SECTION 3(q)

                                      None
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex10-51.txt
<DESCRIPTION>EXHIBIT 10.51
<TEXT>
<PAGE>

                                                                   Exhibit 10.51

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----
<S>           <C>                                                                                <C>
ARTICLE I     CONTRIBUTION OF PROPERTY............................................................1

    I.1.      Contribution and Acquisition of Contributed Property................................1
    I.2.      Closing.............................................................................1
    I.3.      Contributor Representative..........................................................1

ARTICLE II    EXCHANGE AMOUNT.....................................................................2

    II.1.     Exchange Amount.....................................................................2

ARTICLE III   REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS..................................2

    III.1.    Organization and Standing...........................................................2
    III.2.    Authorization; No Conflicts.........................................................2
    III.3.    Binding Obligations.................................................................3
    III.4.    No Litigation.......................................................................3
    III.5.    Contributed Property................................................................3
    III.6.    Securities Law Matters..............................................................3

ARTICLE IV    REPRESENTATIONS AND WARRANTIES OF ACADIA AND THE REIT...............................5

    IV.1.     Organization and Standing...........................................................5
    IV.2.     Authorization; No Conflicts.........................................................5
    IV.3.     Binding Obligations.................................................................5
    IV.4.     No Litigation.......................................................................5
    IV.5.     The Units...........................................................................6
    IV.6.     No Tax Audits.......................................................................6
    IV.7.     Tax Reporting.......................................................................6
    IV.8.     Capitalization......................................................................6
    IV.9.     Governmental Consents and Approvals.................................................6
    IV.10.    Absence of Certain Changes or Events; Undisclosed Liabilities and Agreements........6

ARTICLE V     COVENANTS...........................................................................9

    V.1.      Contributors Covenants..............................................................9
    V.2.      Survival...........................................................................10

ARTICLE VI    CONDITIONS PRECEDENT TO THE CLOSING................................................10

    VI.1.     Conditions to Obligations of Contributors..........................................10
    VI.2.     Conditions to Obligations of Acadia................................................11
</TABLE>

                                        i
<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----
<S>           <C>                                                                                <C>
ARTICLE VII   DELIVERIES.........................................................................11

ARTICLE VIII  SURVIVAL; INDEMNIFICATION..........................................................13

    VIII.1.   Survival...........................................................................13
    VIII.2.   Agreement of Contributors to Indemnify.............................................13
    VIII.3.   Agreement of Acadia to Indemnify...................................................13
    VIII.4.   Limitation of Liability............................................................14
    VIII.5.   Conditions of Indemnification......................................................14

ARTICLE IX    INTENTIONALLY OMITTED..............................................................15

ARTICLE X     CONFIDENTIALITY; TAX MATTERS.......................................................15

    X.1.      Confidentiality....................................................................15
    X.2.      No Representation with Regard to Tax Treatment.....................................16

ARTICLE XI    MISCELLANEOUS......................................................................16

    XI.1.     Additional Actions and Documents...................................................16
    XI.2.     Expenses...........................................................................16
    XI.3.     Assignment.........................................................................17
    XI.4.     Entire Agreement; Amendment........................................................17
    XI.5.     Waiver.............................................................................17
    XI.6.     Severability.......................................................................17
    XI.7.     Governing Law......................................................................17
    XI.8.     Notices............................................................................18
    XI.9.     Headings...........................................................................19
    XI.10.    Execution in Counterparts..........................................................19
    XI.11.    Attorneys' Fees....................................................................19
    XI.12.    Waiver of Jury Trial...............................................................19
</TABLE>

EXHIBITS

Exhibit A - Form of Registration Rights Agreement
Exhibit B - Form of Investor Questionnaire
Exhibit C - Form of Certificate of Units
Exhibit D - Acadia Partnership Agreement
Exhibit E - Form of Assignment of Contributed Property
Exhibit F - Form of Acadia's Opinion of Counsel
Exhibit G - Form of Contributors' Opinion of Counsel

                                       ii
<PAGE>

                            AGREEMENT OF CONTRIBUTION

                                  BY AND AMONG

                       ACADIA REALTY LIMITED PARTNERSHIP,
                              ACADIA REALTY TRUST,

                                KLAFF REALTY, LP

                                       AND

                              KLAFF REALTY, LIMITED

                                FEBRUARY 15, 2005

<PAGE>

                            AGREEMENT OF CONTRIBUTION

                THIS AGREEMENT OF CONTRIBUTION (the "Agreement") is entered into
as of February 15, 2005 by and among Acadia Realty Limited Partnership, a
Delaware limited partnership ("Acadia"), Acadia Realty Trust, a Maryland real
estate investment trust (the "REIT"), Klaff Realty, LP, a Delaware limited
partnership, and Klaff Realty, Limited, an Illinois corporation (each a
"Contributor," and collectively, the "Contributors").

                                    RECITALS:

                A.      The Contributors are engaged in the retail management
services business (the "Retail Services Business") and desire to become limited
partners in Acadia by contributing to Acadia assets, including goodwill, related
to the Retail Services Business, as a going concern (the "Contributed
Property"), and Acadia has agreed to admit the Contributors as limited partners.

                B.      Acadia and Contributors desire to enter into the
Agreement to set forth certain additional terms and conditions upon which
Contributors will transfer the Contributed Property to Acadia.

                                    ARTICLE I

                            CONTRIBUTION OF PROPERTY

                I.1.    CONTRIBUTION AND ACQUISITION OF CONTRIBUTED PROPERTY

                Subject to the terms and conditions hereof, Contributors agree
to contribute to Acadia, and Acadia agrees to acquire and accept from
Contributors, all of Contributors' right, title and interest in and to the
Contributed Property in exchange for common units of limited partnership
interest in Acadia with rights, preferences and privileges as set forth in the
partnership agreement of Acadia (the "Units") (the foregoing, together with all
other transactions contemplated by this Agreement being referred to herein as
the "Contribution"). The Contributors have provided, and Acadia acknowledges
receipt of, the Contributed Property as of the Closing Date. The Contribution
shall be consummated, as set forth in Article II hereof, in a transaction
intended to qualify for nonrecognition of gain to Contributors pursuant to
Section 721 of the Internal Revenue Code of 1986, as amended (the "Code").

                I.2.    CLOSING

                The closing of the transactions contemplated by this Agreement
(the "Closing") shall be deemed to have occurred on February 15, 2005 (the
"Closing Date") at the offices of Acadia, upon satisfaction or waiver of the
conditions set forth in Article VI hereof.

                I.3.    CONTRIBUTOR REPRESENTATIVE

                The Contributors hereby appoint Hersch M. Klaff as their
representative in connection with this Agreement (the "Contributor
Representative") and with respect to any

<PAGE>

decisions to be made by Contributors under this Agreement, Acadia and the REIT
may rely exclusively on instructions from the Contributor Representative.

                                   ARTICLE II

                                 EXCHANGE AMOUNT

                II.1.   EXCHANGE AMOUNT

                (a)     Units Delivered at Closing. In exchange for the
contribution of the Contributed Property, the Contributors shall receive in the
aggregate, at the Closing, 250,000 Units. Each Contributor shall be entitled to
receive the number of Units set forth in Schedule 1 hereto.

                (b)     Distribution of Units. At the Closing, Acadia shall
issue the Units to the Contributors in accordance with written instructions
provided to Acadia by the Contributor Representative at least two business days
prior to the Closing.

                                   ARTICLE III

               REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS

                Contributors jointly and severally represent and warrant to
Acadia as follows:

                III.1.  ORGANIZATION AND STANDING

                Each Contributor is a limited partnership, corporation or a
limited liability company, duly formed, validly existing and in good standing
under the laws of its jurisdiction of organization and is duly qualified to do
business in each jurisdiction where the conduct of its business requires
qualification. Each Contributor has the full and unrestricted power and
authority to own, operate and lease its assets, to carry on its business as
currently conducted, to execute and deliver this Agreement, and each other
agreement, instrument or document relating hereto or contemplated hereby or
thereby (the "Other Agreements") to which it is a party and to carry out the
transactions contemplated hereby or thereby.

                III.2.  AUTHORIZATION; NO CONFLICTS

                The execution and delivery of this Agreement and the Other
Agreements by each Contributor and the performance by each Contributor of its
covenants and agreements under this Agreement and the Other Agreements have
been, or at Closing will have been, duly authorized by all necessary action on
the part of such Contributor. The execution, delivery and performance by each
Contributor of this Agreement and each Other Agreement to which such Contributor
is a party, the fulfillment of and compliance with the respective terms and
provisions hereof and thereof, and the consummation by such Contributor of the
transactions contemplated hereby and thereby, do not and will not: (a) conflict
with, or violate any provision of the organization documents of any Contributor;
(b) conflict with, or violate any provision of, any statute, law, ordinance,
regulation, rule, order, writ or injunction having applicability to any
Contributor, any of its assets or the Contributed Property; (c) conflict with,
result in any breach of, or constitute a

                                       -2-
<PAGE>

default under the Contributed Property; (d) result in or require the creation or
imposition of or result in the acceleration of any indebtedness or of any
encumbrance of any nature upon, or with respect to, the Contributed Property;
except (in the case of clauses (b), (c) and (d) above) for such conflicts,
violations, breaches or defaults as will not have a material adverse effect on
the Contributed Property or the business or financial condition of any
Contributor or the consummation of this transaction.

                III.3.  BINDING OBLIGATIONS

                This Agreement and each Other Agreement executed and delivered
by each Contributor on or prior to the date hereof constitutes a valid and
binding obligation of such Contributor, enforceable in accordance with its
terms; and each Other Agreement to be executed by each Contributor pursuant
hereto or thereto, when executed and delivered in accordance with the provisions
hereof or thereof, shall be a valid and binding obligation of such Contributor,
enforceable in accordance with its terms.

                III.4.  NO LITIGATION

                There are no actions, suits, claims, arbitrations, proceedings
or investigations pending or, to the knowledge of any Contributor, threatened
against, affecting or involving the Contributed Property, any Contributor or its
businesses or assets, or the transactions contemplated by this Agreement, at law
or in equity, or before or by any court, arbitrator or governmental authority,
domestic or foreign, that could reasonably be expected to have a material
adverse effect on the Contributed Property or the business or financial
condition of any Contributor or to challenge or impair the ability of any
Contributor to consummate the Contribution.

                III.5.  CONTRIBUTED PROPERTY

                (a)     The Contributed Property is wholly owned by the
Contributors, free and clear of all liens and encumbrances.

                (b)     The Contributed Property is in full force and effect and
is the legal, valid and binding obligation of each of the parties thereto,
enforceable against such parties in accordance with its terms. None of the
Contributors is in default, and there exists no condition or act which with the
giving of notice or passage of time or otherwise will cause a default with
respect to the Contributed Property. Except as otherwise disclosed to Acadia, no
Fees under the Contributed Property for any period after the Closing Date shall
have been paid prior to the Closing Date. In no event, however, do the
Contributors represent, warrant, covenant or guaranty the payment of any Fees to
Acadia or the amount of any Fees that Acadia may receive in the future.

                III.6.  SECURITIES LAW MATTERS

                (a)     Each Contributor acknowledges that Acadia intends the
offer and issuance of the Units to be exempt from registration under the
Securities Act and applicable state securities laws by virtue of (i) the status
of each Contributor and each equity owner of such Contributor as an Accredited
Investor (as defined below), and (ii) Section 4(2) of the Securities

                                       -3-
<PAGE>

Act of 1933, as amended (the "Securities Act") and/or Regulation D promulgated
under Section 4(2) of the Securities Act ("Regulation D"), and that Acadia will
rely in part upon the representations and warranties made by each Contributor in
this Agreement in making the determination that the offer and issuance of the
Units qualify for exemption under Rule 506 of Regulation D as an offer and sale
only to Accredited Investors (as defined below).

                (b)     Each Contributor, each of such Contributor's equity
owners and each other person or entity who has a right to vote upon or approve
the transactions contemplated hereby or who will receive a distribution of Units
pursuant to Section II.1(b) are "accredited investors" as defined in Regulation
501(a) under Regulation D ("Accredited Investors"). Each Contributor has
provided to Acadia a true, correct and complete copy of such Contributor's
organizational documents.

                (c)     Each Contributor and each other person or entity who
will receive a distribution of Units pursuant to Section II.1(b) will acquire
the Units for their own account and not with a view to or for sale in connection
with any "distribution" thereof within the meaning of the Securities Act.

                (d)     Each Contributor and its equity owners have sufficient
knowledge and experience in financial, tax and business matters to enable them
to evaluate the merits and risks of investment in the Units. Each Contributor
and its equity owners have the ability to bear the economic risk of acquiring
the Units. Each Contributor acknowledges that (i) the transactions contemplated
by this Agreement and the Other Agreements involve complex tax consequences for
each Contributor and its equity owners, and each Contributor and its equity
owners are relying solely on the advice of their own tax advisors in evaluating
such consequences, (ii) neither Acadia nor the REIT has made (or shall be deemed
to have made) any representations or warranties as to the tax consequences of
such transaction to any Contributor or any of its equity owners, and (iii)
references in this Agreement to the intended tax effect of the Contribution and
the other matters described herein shall not be deemed to imply any
representation by Acadia or the REIT as to a particular tax effect that may be
obtained by any Contributor or its equity owners. Each Contributor and its
equity owners remain solely responsible for all tax matters relating to each
Contributor and its equity owners.

                (e)     Each Contributor and each other person or entity who
will receive a distribution of Units pursuant to Section II.1(b) has been
supplied with, or had access to, information to which a reasonable investor
would attach significance in making an investment decision to acquire the Units
and any other information they have requested. Each Contributor and each other
person or entity who will receive a distribution of Units pursuant to Section
II.1(b) has had an opportunity to ask questions of and receive information and
answers from Acadia and the REIT concerning Acadia, the REIT, the Units, and the
common shares of beneficial interest ("Common Shares") into which the Units may
be exchanged, and to assess and evaluate any information supplied to them by
Acadia or the REIT, and all such questions have been answered and all such
information has been provided to their full satisfaction.

                (f)     Each Contributor and each other person or entity who
will receive a distribution of Units pursuant to Section II.1(b) acknowledges
that the Units are not registered

                                       -4-
<PAGE>

under the Securities Act or any state securities laws and cannot be resold
without registration thereunder or exemption therefrom.

                                   ARTICLE IV

              REPRESENTATIONS AND WARRANTIES OF ACADIA AND THE REIT

                A.      Acadia Representations. Acadia represents and warrants
to Contributors as follows:

                IV.1.   ORGANIZATION AND STANDING

                Acadia is a limited partnership duly organized, validly existing
and in good standing under the laws of the State of Delaware and has the full
and unrestricted partnership power and authority to own, operate and lease its
assets and to carry on its business as currently conducted. Acadia is duly
qualified to conduct business as a foreign limited partnership and is in good
standing in each jurisdiction where the nature of the business conducted by
Acadia or the character of the assets owned, leased or otherwise held by it
makes any such qualification necessary, except where the failure to be so
qualified would not have a material adverse effect upon the business of Acadia
as currently conducted.

                IV.2.   AUTHORIZATION; NO CONFLICTS

                The execution, delivery and performance by Acadia of this
Agreement and each Other Agreement to which Acadia is a party, the fulfillment
of and compliance with the respective terms and provisions hereof and thereof,
and the consummation by Acadia of the transactions contemplated hereby and
thereby, do not and will not: (a) conflict with, or violate any provisions of,
the certificate of limited partnership or agreement of limited partnership of
Acadia; (b) conflict with, or violate any provision of, any statute, law,
ordinance, regulation, rule, order, writ or injunction having applicability to
Acadia or any of its assets; or (c) conflict with, result in any breach of, or
constitute a default under any agreement to which Acadia is a party or by which
it or any of its assets are bound; except (in the case of clauses (b) and (c)
above) for such conflicts, violations, breaches or defaults as will not have a
material adverse effect on the business or financial condition of Acadia or the
consummation of the Acquisition.

                IV.3.   BINDING OBLIGATIONS

                This Agreement and each Other Agreement executed and delivered
by Acadia constitutes a valid and binding obligation of Acadia, enforceable in
accordance with its terms; and each Other Agreement to be executed by Acadia
pursuant hereto or thereto, when executed and delivered in accordance with the
provisions hereof or thereof, shall be a valid and binding obligation of Acadia,
enforceable in accordance with its terms.

                IV.4.   NO LITIGATION

                There are no actions, suits, claims, arbitrations, proceedings
or investigations pending or, to the knowledge of Acadia, threatened against,
affecting or involving Acadia or its business or assets or the transactions
contemplated by this Agreement, at law or in equity, or

                                       -5-
<PAGE>

before or by any court, arbitrator or governmental authority, domestic or
foreign, that could reasonably be expected to have a material adverse effect on
the business or financial condition of Acadia or challenge or impair the ability
of Acadia to consummate the Contribution.

                IV.5.   THE UNITS

                At the Closing, the Units to be issued to Contributors pursuant
to Article II hereof will be duly authorized for issuance by Acadia to
Contributors and upon issuance in accordance with this Agreement will be validly
issued, fully paid and non-assessable

                IV.6.   NO TAX AUDITS

                Acadia is not a party to any pending action, audit or proceeding
by any taxing authority for any assessment or collection of any federal, state
or local taxes.

                IV.7.   TAX REPORTING

                Acadia will treat the transfer of the Contributed Property to
Acadia for federal income tax purposes as a contribution that qualifies for
nonrecognition of gain pursuant to Section 721 of the Code. Acadia, however,
makes no representation or warranty that these positions will be respected.

                IV.8.   CAPITALIZATION

                As of September 30, 2004, 29,691,479 common units of limited
partnership ("Common OP Units") were issued and outstanding, of which 29,299,224
Common OP Units are held by the REIT and 392,255 Common OP Units are held by the
limited partners of Acadia. In addition, 1,580 Series A Preferred Units are
issued and outstanding with an aggregate liquidation preference of $1,580,000
and 4,000 Series B Preferred OP Units issued and outstanding with aggregate
liquidation preference of $4,000,000 and will rank pari passu with the Series B
Preferred Units.

                IV.9.   GOVERNMENTAL CONSENTS AND APPROVALS

                Acadia has obtained each and every consent, approval, permit or
order of, and has made each and every filing with, any individual, partnership,
corporation, trust or other entity, government agency or political subdivision
required to be obtained or made in connection with: (A) its execution, delivery
and performance of this Agreement and (B) its consummation of the transactions
contemplated hereby.

                IV.10.  ABSENCE OF CERTAIN CHANGES OR EVENTS; UNDISCLOSED
                        LIABILITIES AND AGREEMENTS

                Since September 30, 2004:

                (a)     there has not been any material adverse change in the
financial position or results of operations of Acadia from that reflected in the
consolidated financial statements of the REIT as of September 30, 2004, or any
material adverse change in the business, assets or

                                       -6-
<PAGE>

prospects of Acadia (including the imposition of any material adverse regulatory
requirements or the loss of any material permits, licenses or franchises).

                (b)     there has not been any material damage, destruction or
other casualty loss with respect to property owned or leased by Acadia not
covered by insurance.

                (c)     Acadia has not conducted its business otherwise than in
the ordinary course.

                B.      REIT Representations. The REIT hereby represents and
warrants to the Contributors as follows:

                        (i)     Organization, Good Standing, Corporate Power and
        Authorization. The REIT is a real estate investment trust duly
        organized, validly existing and in good standing under the laws of the
        State of Maryland and has full right, power and authority to enter into
        this Agreement and to assume and perform all of its obligations. The
        REIT is duly qualified to conduct business as a foreign real estate
        investment trust and is in good standing in each jurisdiction where the
        nature of the business conducted by the REIT or the character of the
        assets owned, leased or otherwise held by it makes any such
        qualification necessary, except where the failure to be so qualified
        would not have a material adverse effect upon the business of the REIT
        as currently conducted. The execution and delivery of this Agreement and
        the performance by the REIT of its obligations under this Agreement will
        require no further action, consent or approval of the REIT's
        shareholders or trustees, or of any other individuals or entities in
        order to constitute this Agreement as a binding and enforceable
        obligation of the REIT.

                        (ii)    Non-contravention. The entry into, performance
        of, or compliance with this Agreement by the REIT has not resulted, and
        will not result, in any violation of, default under, or acceleration of
        any provision of the bylaws or declaration of trust of the REIT or any
        provision of, or result in the acceleration of or entitle any party to
        accelerate (whether after the filing of notice or lapse of time or both)
        any obligation under, or result in the creation or imposition of any
        lien, charge, pledge, security interest or other encumbrance upon any of
        the property of the REIT pursuant to any provision of any mortgage,
        lien, lease, agreement, license or instrument, or violate any law,
        regulation, order, arbitration award, judgment or decree to which the
        REIT is a party or by which it or its property is bound or violate or
        conflict with any other material restriction of any kind or character to
        which the REIT is subject.

                        (iii)   Capitalization and Due Authorization. As of
        September 30, 2004, the authorized shares of beneficial interest of all
        classes of the REIT consisted of 100,000,000 shares of beneficial
        interest, par value $.001 per share, all of such shares are initially
        classified as "Common Shares" and the issued and outstanding Common
        Shares of the REIT consisted of 29,299,224 Common Shares.

                        (iv)    Common Shares. As of the Closing, the Common
        Shares issuable upon conversion of the Units will have been duly and
        validly authorized by the REIT and will have been duly reserved for
        issuance upon such conversion. The Common Shares

                                       -7-
<PAGE>

        issuable upon conversion of such Common OP Units, when issued upon such
        conversion in accordance with their terms, will be validly issued, fully
        paid and nonassessable.

                        (v)     Governmental Consents and Approvals. The REIT
        has obtained each and every consent, approval, permit or order of, and
        has made each and every filing with, any individual, partnership,
        corporation, trust or other entity, government agency or political
        subdivision required to be obtained or made in connection with: (A) its
        execution, delivery and performance of this Agreement and (B) its
        consummation of the transactions contemplated hereby.

                        (vi)    Binding Obligations. This Agreement and each
        Other Agreement executed and delivered by the REIT constitutes a valid
        and binding obligation of the REIT, enforceable in accordance with its
        terms; and each Other Agreement to be executed by the REIT pursuant
        hereto or thereto, when executed and delivered in accordance with the
        provisions hereof or thereof, shall be a valid and binding obligation of
        the REIT, enforceable in accordance with its terms.

                        (vii)   SEC Filings. The REIT has filed all forms,
        reports, schedules, proxy materials, registration statements and related
        prospectuses and supplements and other documents required to be filed by
        the REIT with the SEC pursuant to the Securities Act or the Securities
        Exchange Act of 1934, as amended (the "Exchange Act") through the date
        hereof (collectively, the "REIT SEC Documents") and will cause to be
        delivered to Sellers copies of such additional documents as may be filed
        with the SEC by the REIT between the date hereof and the Closing Date.
        The REIT SEC Documents were, and those additional documents filed
        between the date hereof and the Closing will be, prepared and filed in
        all material respects in compliance with the rules and regulations
        promulgated by the SEC, and do not and will not contain any untrue
        statement of a material fact or omit to state any material fact required
        to be stated therein in order to make the statements contained therein,
        in light of the circumstances under which they were made, not
        misleading.

                        (viii)  Financial Statements. The consolidated financial
        statements included in the SEC Documents have been prepared in
        accordance with generally accepted accounting principles applied on a
        consistent basis during the period involved (except as may be indicated
        in the notes thereto or, in the case of the unaudited statements, as
        permitted by Form 10-Q and present fairly (subject in the case of the
        unaudited statements, to normal, recurring year-end audit adjustments)
        the consolidated financial position of Acadia or the REIT, as
        applicable, at the dates thereof and the consolidated results of
        operations and cash flows for the periods then ended.

                        (ix)    Absence of Certain Changes or Events. Since
        September 30, 2004 there has not been:

                                (a)     any material adverse change in the
                financial condition or results of operations of the REIT from
                that reflected in the financial statements as of September 30,
                2004 included in the REIT SEC Documents or any material adverse
                change in the business, assets or prospects of the REIT
                (including the

                                       -8-
<PAGE>

                imposition of any material adverse regulatory requirements or
                the loss of any material permits, licenses or franchises);

                                (b)     there has not been any material damage,
                destruction or other casualty loss with respect to property
                owned or leased by the REIT not covered by insurance; and

                                (c)     the REIT has not conducted its business
                otherwise than in the ordinary course.

                                    ARTICLE V

                                    COVENANTS

                V.1.    CONTRIBUTORS COVENANTS

                (a)     The Contributors shall cooperate fully in providing any
documentation or information reasonably requested by Acadia in connection with
this transaction.

                (b)     Except as set forth below or in the Registration Rights
Agreement (as defined below), the Contributors shall (i) not convert any Units
into Common Shares for a period of five (5) years after the Closing Date; and
(ii) not transfer the ownership of any of the Units held by a Contributor to
another person or entity for a period of five (5) years after the Closing.

                Notwithstanding the foregoing or anything else to the contrary
contained herein or in the Registration Rights Agreement, the parties to this
Agreement agree that (i) in the event Kenneth F. Bernstein ceases to be the
chief executive officer of either the REIT or Acadia, or (ii) upon the
occurrence of the obligation of Acadia or the REIT to give notice of any event
as set forth in Sections V.2(b) below, the Contributors or their Permitted
Transferees (as defined in the Registration Rights Agreement) shall immediately
be entitled to convert Units into Common Shares and/or sell or otherwise
transfer the ownership of any Units held by a Contributor or Permitted
Transferee without any restriction under or violation of this Agreement or the
Registration Rights Agreement. In addition, if a Registration Statement, as
defined in the Registration Rights Agreement, allowing for the immediate resale
at such time, or from time to time, of the Common Shares, into which the Units
would be convertible, has not been declared effective by the Securities and
Exchange Commission on or before July 15, 2005, or ceases to be effective at any
time thereafter, then, at the Contributors' and/or their Permitted Transferees'
option, all, but not less than all, of the Units shall be redeemable by the
Contributors and/or their Permitted Transferees, at any time by written notice
to Acadia (with such date being referred to as the "Redemption Date") and the
price equal to the greater of (i) sixteen dollars ($16.00) per Unit (subject to
adjustment for stock splits, stock dividends or other similar equitable
adjustments), plus all accrued but unpaid dividends or distributions on such
Units, or (ii) the actual market value of Common Shares into which Units are
convertible as of the Redemption Date.

                                       -9-
<PAGE>

                V.2.    ACADIA COVENANTS

                (a)     Acadia agrees, in providing its management services in
connection with the Contributed Property, to take reasonable direction from
Klaff Realty, LP as the representative of the owners and managers of the
properties subject to the Contributed Property.

                (b)     If at any time Acadia and/or REIT proposes to any of its
equity holders:

                        (i)     to effect any capital reorganization or
        reclassification of capital securities of the REIT or Acadia;

                        (ii)    to consolidate with, or merge into, any other
        company or to transfer its property as an entity or substantially as an
        entirety; or

                        (iii)   to effect the liquidation, dissolution or
        winding up of the REIT or Acadia,

                then, in any one or more of the foregoing cases, Acadia and the
        REIT shall give at least thirty (30) days' prior written notice to the
        Contributors of the date when the same shall take place.

                V.3.    SURVIVAL.

                The covenants set forth in Article V.1 and V.2 shall survive the
Closing in accordance with their terms.

                                   ARTICLE VI

                       CONDITIONS PRECEDENT TO THE CLOSING

                 VI.1. CONDITIONS TO OBLIGATIONS OF CONTRIBUTORS

                The obligation of Contributors to consummate the Contribution is
subject to the fulfillment, at or prior to the Closing, of each of the following
conditions, and failure to satisfy any such condition shall excuse and discharge
all obligations of Contributors to carry out the provisions of this Agreement
unless such failure is waived in writing by Contributors:

                (a)     Representations and Warranties. The representations and
warranties made by Acadia and the REIT in Article IV hereof and the statements
contained in any document furnished by Acadia or the REIT in connection with the
Closing pursuant to this Agreement shall be true in all material respects when
made and on and as of the Closing Date as though such representations and
warranties were made on and as of such date, except for any changes therein
contemplated by this Agreement or any Other Agreement.

                (b)     Legal Proceedings. No action or proceeding by or before
any governmental authority shall have been instituted or threatened (and not
subsequently dismissed, settled or otherwise terminated) which is reasonably
expected to restrain, prohibit or invalidate

                                      -10-
<PAGE>

the transactions contemplated by this Agreement, other than an action or
proceeding instituted or threatened by any Contributor.

                (c)     Documents at Closing. All documents required to be
furnished to Contributors hereunder prior to or at the Closing shall have been
so furnished.

                VI.2.   CONDITIONS TO OBLIGATIONS OF ACADIA

                The obligation of Acadia to consummate the Contribution is
subject to the fulfillment, at or prior to the Closing, of each of the following
conditions, and failure to satisfy any such condition shall excuse and discharge
all obligations of Acadia to carry out the provisions of this Agreement unless
such failure is waived in writing by Acadia:

                (a)     Representations and Warranties. The representations and
warranties made by Contributors in Article III of this Agreement and the
statements contained in any document furnished by Contributors or its equity
owners in connection with the Closing pursuant to this Agreement shall be true
in all material respects when made and on and as of the Closing Date as though
such representations and warranties were made on and as of such date, except for
any changes therein contemplated by this Agreement or any Other Agreement.

                (b)     Legal Proceedings. No action or proceeding by or before
any governmental authority shall have been instituted or threatened (and not
subsequently dismissed, settled or otherwise terminated) which is reasonably
expected to restrain, prohibit or invalidate the transactions contemplated by
this Agreement other than an action or proceeding instituted or threatened by
Acadia.

                (c)     Documents at Closing. All documents required to be
furnished to Acadia hereunder prior to or at the Closing shall have been so
furnished.

                                   ARTICLE VII

                                   DELIVERIES

                The Closing shall occur simultaneously with the delivery of the
following documents:

                A.      The Contributors shall deliver:

                (a)     Authority Documents. Evidence satisfactory to Acadia
that the persons executing the closing documents on behalf of the Contributors
have full right, power and authority to do so, and the following documentation:
(i) Certified copies of Klaff Realty, LP and Klaff Realty, Limited
organizational documents which are true and correct, unamended, and continuing,
and of the incumbency of its officers, (ii) Certificates of Existence and Good
Standing from the Secretary of State of Delaware and the Secretary of State of
Illinois, and (iii) Opinion letter of counsel to Klaff Realty, LP and Klaff
Realty, Limited substantially in the form attached hereto as Exhibit G as to the
following: due authorization and authority of Klaff Realty, LP and Klaff Realty,
Limited to enter into this Agreement and perform their obligations

                                      -11-
<PAGE>

hereunder; and noncontravention of the transactions contemplated by this
Agreement with Contributors' organizational documents.

                (b)     Units Documents. The documents required in connection
with the issuance of the Units, including signature pages to the Partnership
Agreement and the Registration Rights Agreement executed by each Contributor.
Each Contributor shall execute and deliver any other documents as may be
required under applicable federal or state securities laws, including a
reiteration of the representations and covenants set forth in Article III
hereof.

                (c)     Investor Questionnaires. Investor Questionnaires in the
form attached hereto as Exhibit B.

                (d)     Assignments. Executed Assignments of Contributed
Property in the form of Exhibit E.

                (e)     Certifications. Certificates from each of the
Contributors certifying as to the continuing accuracy of the representations and
warranties made by such party.

                (f)     Miscellaneous. Such other instruments as are reasonably
requested by Acadia.

                B.      Acadia's Deliveries. At the Closing, Acadia shall
deliver:

                (a)     Registration Rights Agreement. The Registration Rights
and Lock-up Agreement, substantially in the form attached hereto as Exhibit A,
executed by Acadia and Contributors (the "Registration Rights Agreement");

                (b)     Certifications. Certificates of Acadia and the REIT
certifying as to continued accuracy of the representations and warranties made
by such party herein, executed by an officer or other authorized signatory of
such party;

                (c)     Units. Certificates representing the Units in the form
of Exhibit C;

                (d)     Authority Documents. Evidence reasonably satisfactory to
the Contributors that the person or persons executing the closing documents on
behalf of Acadia and the REIT has full right, power and authority to do so;

                (e)     Legal Opinion. An Opinion of Acadia and REIT's general
counsel, substantially in the form attached hereto as Exhibit F;

                (f)     Miscellaneous. Such other documents as reasonably
requested by the Contributors.

                                      -12-
<PAGE>

                                  ARTICLE VIII

                            SURVIVAL; INDEMNIFICATION

                VIII.1. SURVIVAL

                All representations, warranties, covenants, indemnities and
other agreements of the parties hereto made in this Agreement or in any document
furnished pursuant hereto shall not be extinguished by the Closing, but shall
survive the Closing, as specified in this Section VIII.1. All representations
and warranties of the parties hereto made in this Agreement or in any document
furnished pursuant hereto shall survive for a one (1) year period following the
Closing and shall be extinguished from and after the first anniversary date of
the Closing. All covenants of the parties hereto made in this Agreement shall
survive for the five (5) year period following the Closing and shall be
extinguished from and after the fifth anniversary date of the Closing. No
investigation, audit or inspection made by or on behalf of any party hereto
shall affect the survival of the representations, warranties, covenants,
indemnities and other agreements of the parties hereto. All representations and
warranties of the parties hereto made in this Agreement or in any document
delivered pursuant hereto shall also be deemed made on and as of the Closing
Date.

                VIII.2. AGREEMENT OF CONTRIBUTORS TO INDEMNIFY

                Subject to the conditions and provisions of this Article VIII,
Contributors hereby jointly and severally agree to indemnify, defend and hold
harmless Acadia and its subsidiaries and affiliates (including, without
limitation, the REIT) and each of their respective officers, directors,
trustees, partners, members, employees, successors and assigns (collectively,
the "Acadia Indemnified Persons") from and against and in respect of all
demands, claims, actions or causes of action, assessments, losses, damages
(including, without limitation, diminution in value), liabilities, costs and
expenses, including, without limitation, interest, penalties and reasonable
attorneys' fees and disbursements (the "Claims"), asserted against, resulting
to, imposed upon or incurred by the Acadia Indemnified Persons, directly or
indirectly, by reason of or resulting from (i) any breach of any representation
or warranty in any material respect made by Contributors in this Agreement or in
any document furnished by or on behalf of Contributors pursuant to this
Agreement or (ii) the Contributed Property which accrued prior to the Closing
Date.

                VIII.3. AGREEMENT OF ACADIA TO INDEMNIFY

                Subject to the conditions and provisions of this Article VIII,
Acadia hereby agrees to indemnify, defend and hold harmless each Contributor and
its subsidiaries and affiliates and each of their respective officers,
directors, trustees, partners, members, employees, successors and assigns
(collectively, the "Contributor Indemnified Persons"), from and against and in
respect of all Claims asserted against, resulting to, imposed upon or incurred
by the Contributor Indemnified Persons, directly or indirectly, by reason of or
resulting from (i) any breach of any representation or warranty in any material
respect made by Acadia in this Agreement or in any document furnished by or on
behalf of Acadia pursuant to this Agreement, or (ii) the Contributed

                                      -13-
<PAGE>

Property which accrued on or after the Closing Date, except to the extent that
such claims directly arise from actions of the Contributors prior to the closing
date.

                VIII.4. LIMITATION OF LIABILITY.

                Notwithstanding the foregoing or anything else to the contrary
contained herein, subject to the provisions set forth in this Section VIII.4.,
in no event shall Hersch M. Klaff, individually, have any liability to Acadia
Indemnified Persons in excess of $1,000,000, or for any provision of this
Agreement. Notwithstanding the foregoing or anything else to the contrary
contained herein, in no event shall Hersch M. Klaff, individually, have any
monetary liability to Acadia Indemnified Persons at any time while a Contributor
is the record owner of the Units. In addition, notwithstanding anything else to
the contrary contained herein, in no event shall Acadia or any Acadia
Indemnified Person have any right of offset or any other right to limit, in any
manner whatsoever, any of the Contributors' (or their respective assignees' or
successors') rights with respect to Units, including without limitation any
rights under the Registration Rights Agreement. Furthermore, notwithstanding
anything else to the contrary contained herein, in no event shall either (a) the
Contributors, or (b) the Contributors and Hersch M. Klaff, collectively, have
any liability, including Acadia's costs and expenses, to Acadia Indemnified
Persons, in the aggregate, in excess of the lesser of (i) the actual market
value of Units then owned by the Contributors as of the date of any Claim, or
(ii) the amount equal to: (A) $4,000,000, from the Closing Date until February
14, 2006, (B) $3,200,000, from February 15, 2006 until February 14, 2007, (C)
$2,400,000, from February 15, 2007 until February 14, 2008, (D) $1,600,000, from
February 15, 2008 until February 14, 2009, or (E) $800,000, from February 15,
2009 until February 14, 2010. Furthermore, in no event shall any party hereto be
liable for any Claims for any special, indirect, incidental, exemplary,
consequential or punitive damages.

                VIII.5. CONDITIONS OF INDEMNIFICATION

                The obligations and liabilities of Contributors and Acadia
hereunder with respect to their respective indemnities pursuant to this Article
VIII resulting from any Claim shall be subject to the following terms and
conditions:

                (a)     The indemnified party shall give prompt written notice
to the indemnifying party of any Claim which is asserted against, resulting to,
imposed upon or incurred by such indemnified party and which may give rise to
liability of the indemnifying party pursuant to this Article VIII, stating (to
the extent known or reasonably anticipated) the nature and basis of such Claim
and the amount thereof.

                (b)     If the facts pertaining to a Claim arise out of the
Claim of any third party, or if there is any Claim against a third party
available by virtue of the circumstances of the Claim, the indemnifying party
may assume the defense of such action or proceeding at such indemnifying party's
own expense with counsel chosen by the indemnifying party and approved by the
indemnified party, which approval shall not be unreasonably withheld; provided,
however, that the indemnifying party shall not agree to settlement of any such
action or proceeding which provides for any relief other than the payment of
monetary damages or which could have a material precedential impact or effect on
the business or financial condition of the indemnified party without the prior
written consent of the indemnified party; and provided,

                                      -14-
<PAGE>

further, that if the indemnified party reasonably determines that a conflict of
interest exists where it is advisable for the indemnified party to be
represented by separate counsel or that, upon advice of counsel, there may be
legal defenses available to it which are different from or in addition to those
available to the indemnifying party, then the indemnifying party shall not be
entitled to assume such defense and the indemnified party shall be entitled to
separate counsel at the indemnifying party's expense. If the indemnifying party
is not entitled to assume the defense of such action or proceeding as a result
of the proviso to the preceding sentence, the indemnifying party's counsel shall
be entitled to conduct the indemnifying party's defense and the indemnified
party's counsel shall be entitled to conduct the indemnified party's defense, it
being understood that both such counsel will cooperate with each other to
conduct the defense of such action or proceeding as efficiently as possible. If
the indemnifying party is not so entitled to assume the defense of such action
or does not assume such defense, after having received the notice referred to in
subparagraph (a) above, the indemnifying party will pay the reasonable fees and
expenses of counsel for the indemnified party. In such event, however, the
indemnifying party will not be liable for any settlement effected without the
written consent of the indemnifying party. If an indemnifying party is entitled
to assume, and assumes, the defense of such action or proceeding in accordance
with this paragraph, the indemnifying party shall not be liable for any fees and
expenses of counsel for the indemnified party incurred thereafter in connection
with such action or proceeding. Whether or not the indemnifying party chooses to
so defend or prosecute such Claim, all the parties hereto shall cooperate in the
defense or prosecution thereof and shall furnish such records, information and
testimony, and attend such conferences, discovery proceedings, hearings, trials
and appeals, as may be reasonably requested in connection therewith. The
indemnifying party shall be subrogated to all rights and remedies of the
indemnified party.

                                   ARTICLE IX

                              INTENTIONALLY OMITTED


                                    ARTICLE X

                          CONFIDENTIALITY; TAX MATTERS

                X.1.    CONFIDENTIALITY

                (a)     Information. Before the Closing or if the Closing does
not occur, all information provided by a party hereto (the "Disclosing Party")
to another party hereto (the "Receiving Party") in connection with the
transactions contemplated by this Agreement shall be kept strictly confidential
by such Receiving Party and shall not, without the prior consent of the
Disclosing Party, be disclosed by the Receiving Party or used for any purpose
other than evaluating such transactions. The Receiving Party agrees that such
information shall only be transmitted to such Receiving Party's partners,
officers, directors, trustees, employees, attorneys, accountants, contractors,
consultants, advisors and agents who need to know such information for purposes
of evaluating such transactions and who agree to be bound by these
confidentiality provisions, and each Receiving Party agrees that in the event
the Closing does not take place for

                                      -15-
<PAGE>

any reason, the Receiving Party shall return all such information to the
Disclosing Party. The provisions of this section shall not apply to any
information which is a matter of public record or lawfully obtainable from other
sources and shall not prevent either party from complying with applicable laws,
rules, regulations and court orders, including, without limitation, governmental
regulatory, disclosure, tax and reporting requirements. Notwithstanding the
foregoing, the parties may disclose the tax treatment and tax structure of the
transactions contemplated by this Agreement and all materials of any kind
related to such tax treatment and tax structure.

                (b)     Public Notices. Between the date hereof and for a period
ending one (1) year after the Closing Date, no party hereto shall release or
cause or permit to be released any press notices or advertising promotion or
other publicity relating to this transaction without first giving reasonable
notice to, and consulting with, each other party and, as required herein,
obtaining the written consent of each other party. No provisions in this Section
XI.1(b) shall preclude a party from discussing the substance or any relevant
details of such transactions with any of its attorneys, accountants,
professional consultants, lenders, partners, affiliates, investors, or any
prospective lender, partner or investor, as the case may be, or prevent a party
hereto, from complying with laws, rules, regulations and court orders, including
without limitation, governmental regulatory, stock exchange, disclosure, tax and
reporting requirements (including, in the case of Acadia and the REIT,
disclosure by the REIT of information that it determines is necessary or
appropriate in accordance with its obligations as a public company under rules
of the New York Stock Exchange, the Securities and Exchange Commission or other
regulatory body) or making an announcement or making any communication to its
shareholders in accordance with its corporate policy.

                X.2.    NO REPRESENTATION WITH REGARD TO TAX TREATMENT

                Notwithstanding any provision of this Agreement, no party hereto
makes any representation regarding (and shall have no liability with respect to)
the tax consequences to any other party hereto or to any of its direct or
indirect partners of the transactions contemplated herein or in any Other
Agreements.

                                   ARTICLE XI

                                  MISCELLANEOUS

                XI.1.   ADDITIONAL ACTIONS AND DOCUMENTS

                Each of the parties hereto hereby agrees to take or cause to be
taken such further actions, to execute, deliver and file or cause to be
executed, delivered and filed such further documents, and will obtain such
consents, as may be necessary or as may be reasonably requested in order to
fully effectuate the purposes, terms and conditions of this Agreement.

                XI.2.   EXPENSES

                Each party hereto shall pay its own expenses incident to this
Agreement and the transactions contemplated hereunder, including all legal and
accounting fees and disbursements. The provisions of this Section XI.2 shall
survive any termination of this Agreement.

                                      -16-
<PAGE>

                XI.3.   ASSIGNMENT

                No party hereto shall assign its rights and/or obligations under
this Agreement, in whole or in part, whether by operation of law or otherwise,
without the prior written consent of the other parties hereto. Notwithstanding
anything to the contrary in the preceding sentence, at any time after the
Closing Date, Acadia may assign its rights and/or obligations under this
Agreement to an affiliate, or any other person or entity in connection with a
merger, consolidation, sale or contribution of all or substantially all of its
or the REIT's assets, or other similar corporate transaction; provided, that no
assignment pursuant to the preceding clause shall release the assigning party
from its respective liabilities and obligations hereunder.

                XI.4.   ENTIRE AGREEMENT; AMENDMENT

                This Agreement, including the Exhibits and other documents
referred to herein or furnished pursuant hereto, constitute the entire agreement
among the parties hereto with respect to the transactions contemplated herein,
and supersede all prior oral or written agreements, commitments or
understandings with respect to the matters provided for herein; provided, that
nothing in this Section XI.4 shall have any effect on the Other Agreements. No
amendment, modification or discharge of this Agreement shall be valid or binding
unless set forth in writing and duly executed and delivered by the party against
whom enforcement of the amendment, modification, or discharge is sought.

                XI.5.   WAIVER

                No delay or failure on the part of any party hereto in
exercising any right, power or privilege under this Agreement or under any other
documents furnished in connection with or pursuant to this Agreement shall
impair any such right, power or privilege or be construed as a waiver of any
default or any acquiescence therein. No single or partial exercise of any such
right, power or privilege shall preclude the further exercise of such right,
power or privilege, or the exercise of any other right, power or privilege. No
waiver shall be valid against any party hereto unless made in writing and signed
by the party against whom enforcement of such waiver is sought and then only to
the extent expressly specified therein.

                XI.6.   SEVERABILITY

                If any part of any provision of this Agreement or any other
agreement or document given pursuant to or in connection with this Agreement
shall be invalid or unenforceable in any respect, such part shall be ineffective
to the extent of such invalidity or unenforceability only, without in any way
affecting the remaining parts of such provision or the remaining provisions of
this Agreement.

                XI.7.   GOVERNING LAW

                This Agreement, the rights and obligations of the parties
hereto, and any claim or disputes relating thereto, shall be governed by and
construed in accordance with the laws of the State of New York (excluding the
choice of law rules thereof).

                                      -17-
<PAGE>

                XI.8.   NOTICES

                All notices, demands, requests, or other communications which
may be or are required to be given, served, or sent by any party to any other
party pursuant to this Agreement shall be in writing and shall be hand
delivered, sent by overnight courier or mailed by first-class, registered or
certified mail, return receipt requested, postage prepaid, or transmitted by
facsimile, telegram, telecopy or telex, addressed as follows:

        (1)     If to any Contributor:

                        Klaff Realty, LP
                        Klaff Realty, Limited
                        122 South Michigan Avenue
                        Chicago, IL  60603
                        Attention:  Hersch M. Klaff
                        Telephone:  312-360-3102
                        Facsimile:  312-360-0606
                        Email: hklaff@klaff.com

                        With copies to:

                        Klaff Realty, LP
                        Klaff Realty, Limited
                        122 South Michigan Avenue
                        Chicago, IL  60603
                        Attention: Martha Amesbury
                        Telephone:  312-360-3116
                        Facsimile:  312-360-0606
                        Email: mamesbury@klaff.com

                        Allan J. Reich, Esq.
                        Seyfarth Shaw LLP
                        55 E. Monroe Street, Suite 4200
                        Chicago, IL  60603
                        Telephone:  312-781-8650
                        Facsimile:  312-269-8869
                        Email:  areich@seyfarth.com

        (2)     If to Acadia:

                        Acadia Realty Trust
                        1311 Mamaroneck Avenue, Suite 260
                        White Plains, NY  10605
                        Attention:  Joel Braun
                        Telephone:  914-288-8146
                        Facsimile:  914-428-3922
                        Email:  jbraun@acadiarealty.com

                                      -18-
<PAGE>

                        With a copy to:

                        Robert Masters, Esq.
                        1311 Mamaroneck Avenue, Suite 260
                        White Plains, NY  10605
                        Telephone:  914-288-8139
                        Facsimile:  914-428-3646
                        Email:  rmasters@acadiarealty.com

                Each party may designate by notice in writing a new address to
which any notice, demand, request or communication may thereafter be so given,
served or sent. Each notice, demand, request, or communication which shall be
hand delivered, sent, mailed, faxed, telecopied or telexed in the manner
described above, or which shall be delivered to a telegraph company, shall be
deemed sufficiently given, served, sent, received or delivered for all purposes
at such time as it is delivered to the addressee (with the return receipt, the
delivery receipt, the confirmation receipt (with respect to a facsimile), or
(with respect to a telecopy or telex) the answerback being deemed conclusive,
but not exclusive, evidence of such delivery) or at such time as delivery is
refused by the addressee upon presentation.

                XI.9.   HEADINGS

                Section headings contained in this Agreement are inserted for
convenience of reference only, shall not be deemed to be a part of this
Agreement for any purpose, and shall not in any way define or affect the
meaning, construction or scope of any of the provisions hereof.

                XI.10.  EXECUTION IN COUNTERPARTS

                To facilitate execution, this Agreement may be executed in as
many counterparts as may be required. It shall not be necessary that the
signatures of, or on behalf of, each party, or that the signatures of all
persons required to bind any party, appear on each counterpart; but it shall be
sufficient that the signature of, or on behalf of, each party, or that the
signatures of the persons required to bind any party, appear on one or more of
the counterparts. All counterparts shall collectively constitute a single
agreement. It shall not be necessary in making proof of this Agreement to
produce or account for more than a number of counterparts containing the
respective signatures of, or on behalf of, all of the parties hereto.

                XI.11.  ATTORNEYS' FEES

                Should either party employ attorneys to enforce any of the
provisions hereof, the party against whom any final judgment is entered agrees
to pay the prevailing party all reasonable costs, charges and expenses,
including reasonable attorneys' fees, expended or incurred by the prevailing
party in connection therewith.

                XI.12.  WAIVER OF JURY TRIAL

                TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY
IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE

                                      -19-
<PAGE>

ACQUISITION AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. THE
PROVISIONS OF THIS SECTION XI.12 SHALL SURVIVE ANY TERMINATION OF THIS
AGREEMENT.

                                      -20-
<PAGE>

                IN WITNESS WHEREOF, the parties hereto have caused this
Contribution Agreement to be duly executed on their behalf as of the date first
above written.

                                   CONTRIBUTORS:

                                   KLAFF REALTY, LP, a Delaware
                                   limited partnership

                                   By:  Klaff Realty, Limited, General Partner

                                        By:
                                            ------------------------------------
                                            Name:  Hersch M. Klaff
                                            Title: President

                                   KLAFF REALTY, LIMITED, an Illinois
                                   corporation

                                        By:
                                            ------------------------------------
                                            Name:  Hersch M. Klaff
                                            Title: President

                                   ACADIA:

                                   ACADIA REALTY LIMITED PARTNERSHIP

                                   By:  Acadia Realty Trust, General Partner

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                      -21-
<PAGE>

                                   REIT:

                                   ACADIA REALTY TRUST

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

                The undersigned hereby joins in the execution of this Agreement
to confirm his agreement with the covenants of Article V(b) and (c); which shall
survive the Closing.

                                   ---------------------------------------------
                                   Hersch M. Klaff

                                      -22-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>ex10-51a.txt
<DESCRIPTION>EXHIBIT 10.51A
<TEXT>
<PAGE>

                                                                  Exhibit 10.51a

                    REGISTRATION RIGHTS AND LOCK-UP AGREEMENT

        THIS REGISTRATION RIGHTS AND LOCK-UP AGREEMENT (this "Agreement"), is
made and entered into as of February 15, 2005, by and among Acadia Realty Trust,
a Maryland real estate investment trust (the "REIT"), Acadia Realty Limited
Partnership, a Delaware limited partnership (the "Partnership"), and the
undersigned Klaff Realty, LP, a Delaware limited Partnership ("Klaff"), which,
as of February 15, 2005 (the "Closing Date") of the transactions contemplated by
the Agreement of Contribution by and among Klaff and Klaff Realty, Limited, the
REIT, and the Partnership (the "Contribution Agreement"), are receiving common
units of limited partnership interests in the Partnership ("Units"), which are
exchangeable for Conversion Shares (as defined below).

        NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, and intending to be legally bound hereby, the REIT,
the Partnership and Klaff hereby agree as follows:

        1.      Certain Definitions. As used in this Agreement, the following
terms shall have the following respective meanings:

                (a)     "Commission" means the Securities and Exchange
Commission, or any other federal agency at the time administering the Securities
Act.

                (b)     "Conversion Shares" means the Shares issuable upon
exchange of the Units from time to time.

                (c)     "Exchange Act" means the Securities Exchange Act of
1934, as amended, or any successor federal statute, and the rules and
regulations of the Commission issued under such Exchange Act, as they each may,
from time to time, be in effect.

                (d)     "Holder(s)" means a holder of Registrable Shares
entitled to the rights arising hereunder.

                (e)     "Participating Holder" means a Holder whose Registrable
Shares are included in a Registration Statement.

                (f)     "Registration Expenses" means the expenses described in
Section 4 hereof.

                (g)     "Registration Statement" means a registration statement
filed by the REIT with the Commission for a public offering and sale of equity
securities of the REIT (other than a registration statement on Form S-8 or Form
S-4, or their successors, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another
corporation).

                                       -1-
<PAGE>

                (h)     "Registrable Shares" means (i) the Conversion Shares,
(ii) any other Shares issued in respect of Conversion Shares, and (iii) any
other Shares issued with respect to the Shares issued in clauses (i) and (ii)
(because of share splits, share dividends, reclassifications, recapitalizations,
or similar events); provided, however, that Shares which are Registrable Shares
shall cease to be Registrable Shares (x) upon any sale pursuant to a
Registration Statement, or any other sale or transfer of the Registrable Shares
in any manner to any person or entity other than a Permitted Transferee (as
defined) or as otherwise expressly provided herein, or (y) in the event that
Registrable Shares may be freely sold and/or transferred pursuant to Rule 144(k)
under the Securities Act.

                (i)     "Securities Act" means the Securities Act of 1933, as
amended, or any successor federal statute, and the rules and regulations of the
Commission issued under such Securities Act, as they each may, from time to
time, be in effect.

                (j)     "Shares" means Common Shares of Beneficial Interest of
the REIT, par value $.001 per share.

        2.      Certain Shelf Registration. Within one hundred fifty (150) days
from the date of this Agreement, the REIT shall, at its expense, file a shelf
Registration Statement pursuant to Rule 415 under the Securities Act to register
the Registrable Shares for resale, including for issuance upon conversion or
exchange of Units. The REIT shall, at its expense, use commercially reasonable
efforts to maintain the effectiveness of such shelf Registration Statement until
the earlier of (i) such time as when all of the Registrable Shares have been
disposed of or (ii) three years after the conversion or exchange into Shares of
all of the Units.

        3.      Registration Procedures. If and whenever the REIT is required by
the provisions of this Agreement to effect the registration of any of the
Registrable Shares under the Securities Act, the REIT shall, at its expense:

                (a)     prepare and file with the Commission a Registration
Statement with respect to such Registrable Shares and use best efforts to cause
that Registration Statement to become effective;

                (b)     use commercially reasonable efforts to cause the
Registration Statement to remain effective;

                (c)     subject to the provision of Section 2, promptly prepare
and file with the Commission any amendments and supplements to the Registration
Statement and the prospectus included in the Registration Statement as may be
necessary to keep the Registration Statement effective for the period of time
required by the Commission;

                (d)     promptly furnish to each Participating Holder such
reasonable numbers of copies of the prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents as the Participating Holders may reasonably request in order to
facilitate the public sale or other disposition of the Registrable Shares owned
by such Participating Holders and included in the Registration Statement; and

                                       -2-
<PAGE>

                (e)     promptly use commercially reasonable efforts to register
or qualify the Registrable Shares covered by the Registration Statement under
the securities or Blue Sky laws of states within the United States as the
Participating Holders shall reasonably request; provided, however, that the REIT
shall not be required in connection with this subsection 3(e) to: (i) qualify as
a foreign corporation in any jurisdiction where, but for the requirements of
this subsection 3(e), it would not be obligated to be so qualified; (ii) execute
a general consent to service of process in any jurisdiction; (iii) subject
itself to taxation in any such jurisdiction; or (iv) register in any state
requiring, as a condition to registration, escrow or surrender of any REIT
securities held by any security holder other than the Participating Holders.

        If the REIT has delivered a preliminary or final prospectus to a
Participating Holder and, after having done so, the prospectus is amended to
comply with the requirements of the Securities Act, the REIT shall promptly
notify such Participating Holder and, if requested, such Participating Holder
shall immediately cease making offers of Registrable Shares and return all
prospectuses to the REIT. The REIT shall promptly provide Participating Holders
with revised prospectuses and, following receipt of the revised prospectuses,
Participating Holders shall be free to resume making offers of the Registrable
Shares.

        Notwithstanding any other provisions of this Agreement to the contrary,
upon receipt by a Participating Holder of a written notice signed by the Chief
Executive Officer, General Counsel or Chief Financial Officer of the REIT, to
the effect set forth below, the REIT shall not be obligated during a reasonable
period of time thereafter to effect any registrations pursuant to this
Agreement, and each such Participating Holder agrees that it will immediately
suspend sales of Shares under any effective Registration Statement for a
reasonable period of time, in either case not to exceed 90 days, at any time
during which, in the REIT's reasonable judgment, (i) there is a development
involving the REIT or any of its affiliates which is material but which has not
yet been publicly disclosed or (ii) sales pursuant to the Registration Statement
would materially and adversely affect an underwritten public offering for the
account of the REIT or any other material financing project or where a proposed
or pending material merger or other material acquisition or material business
combination or material disposition of the REIT's assets, to which the REIT or
any of its affiliates is, or is expected to be, a party. In the event a
registration is postponed or sales by a Participating Holder pursuant to an
effective Registration Statement are suspended in accordance with this
paragraph, there shall be added to the period during which the REIT is obligated
to keep a Registration Statement effective the number of days for which the
Registration Statement was postponed or sales were suspended.

        4.      Expenses of Registration. The REIT will pay all Registration
Expenses of all registrations under this Agreement. For purposes of this
Agreement, the term "Registration Expenses" shall mean all expenses incurred by
the REIT in complying with this Agreement, including without limitation, all
registration and filing fees, exchange listing fees, printing expenses, the fees
and disbursements of counsel for the REIT and the reasonable fees and
disbursements of one counsel selected by the Participating Holders, the fees and
disbursements of the REIT's accountants, state Blue Sky fees and expenses, and
the expense of any special audits incident to or required by any such
registration, but excluding underwriting discounts and selling commissions.

                                       -3-
<PAGE>

        5.      Indemnification.

                (a)     Indemnification of Participating Holders. In the event
of any registration of any of the Registrable Shares under the Securities Act
pursuant to this Agreement, the REIT will indemnify and hold harmless each
Participating Holder, each of its directors and officers and each other person,
if any, who controls such Participating Holder within the meaning of the
Securities Act or the Exchange Act, against any losses, claims, damages or
liabilities to which such Participating Holder or controlling person may become
subject under the Securities Act, the Exchange Act, Blue Sky laws or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement under
which such Registrable Shares were registered under the Securities Act, any
preliminary prospectus or final prospectus contained in the Registration
Statement, or any amendment or supplement to such Registration Statement, or
arise out of or are based upon the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading;
and the REIT will reimburse such Participating Holder and each such controlling
person for any legal or any other expenses reasonably incurred by such
Participating Holder or controlling person in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the REIT will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon any untrue
statement or omission made in such Registration Statement, preliminary
prospectus or prospectus, or any such amendment or supplement, in reliance upon
and in conformity with information furnished to the REIT, in writing, by or on
behalf of any Participating Holder or controlling person specifically for use in
the preparation thereof; and provided further, however, that any indemnification
contained in this paragraph with respect to any preliminary prospectus shall not
inure to the benefit of any person who otherwise is entitled to indemnification
hereunder on account of any loss, liability, claim, damage or expense if a copy
of an amended or supplemental preliminary prospectus, or the final prospectus,
shall have been delivered or sent to such person within the time required by the
Securities Act, and the untrue statement or omission of a material fact was
corrected in such amended or supplemental preliminary prospectus or final
prospectus and provided that such person did not deliver such amended or
supplemental preliminary prospectus or final prospectus on a timely basis.

                (b)     Indemnification of the REIT. In the event of any
registration of any of the Registrable Shares under the Securities Act pursuant
to this Agreement, each Participating Holder will indemnify and hold harmless
the REIT, each of its directors and officers and each person, if any, who
controls the REIT within the meaning of the Securities Act or the Exchange Act,
against any losses, claims, damages or liabilities, joint or several, to which
the REIT, such directors and officers or controlling persons may become subject
under the Securities Act, Exchange Act, Blue Sky laws or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in any Registration Statement under which such
Registrable Shares were registered under the Securities Act, any preliminary
prospectus or final prospectus contained in the Registration Statement, or any
amendment or

                                       -4-
<PAGE>

supplement to the Registration Statement, or arise out of or are based upon any
omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, in each case only if such
statement or omission was made in reliance upon and in conformity with
information furnished in writing to the REIT by or on behalf of such
Participating Holder or controlling person, specifically for use in connection
with the preparation of such Registration Statement, prospectus, amendment or
supplement. No Participating Holder shall be liable pursuant to this Section
5(b) for any amount in excess of the proceeds of the offering received by such
Participating Holder.

                (c)     Notice of Claim. Each party entitled to indemnification
under this Section 5 (the "Indemnified Party") shall give notice to the party
required to provide indemnification (the "Indemnifying Party") promptly after
such Indemnified Party has actual knowledge of any claim as to which indemnity
may be sought, and shall permit the Indemnifying Party to assume the defense of
any such claim or any litigation resulting therefrom; provided that counsel for
the Indemnifying Party, who shall conduct the defense of such claim or
litigation, shall be approved by the Indemnified Party (whose approval shall not
be unreasonably withheld); and, provided, further, that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 5 unless the failure to
provide such notice materially prejudices the defense by the Indemnifying Party
against such claim. The Indemnified Party may participate in such defense at
such party's expense (provided that the counsel of the Indemnifying Party shall
control the defense of such claim or proceeding); provided, however, that the
Indemnifying Party shall pay such expense if representation of such Indemnified
Party by the counsel retained by the Indemnifying Party would, in the opinion of
counsel of the Indemnified Party, be inappropriate due to actual or potential
differing interests between the Indemnified Party and any other party
represented by such counsel in such proceeding, it being understood, however,
that in such event, the Indemnifying Party shall be liable for the reasonable
fees and expenses of only one counsel for the Indemnified Parties. No
Indemnifying Party, in the defense of any such claim or litigation shall as to
an Indemnified Party, except with the consent of such Indemnified Party, consent
to entry of any judgment or enter into any settlement which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect of such claim or
litigation, and no Indemnified Party shall consent to entry of any judgment or
settle such claim or litigation without the prior written consent of the
Indemnifying Party.

        6.      Rule 144. The REIT covenants that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the Commission thereunder (or, if the REIT is
not required to file such reports, it will, upon the request of the holders of
the Registrable Securities, make publicly available such information as
necessary to permit sales pursuant to Rule 144 under the Securities Act) and it
will do all such other acts and things from time to time as reasonably requested
by the holders of the Registrable Securities to the extent required from time to
time to enable the holders of the Registrable Shares to sell Registrable Shares
without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereunder adopted
by the Commission.

                                       -5-
<PAGE>

        7.      Cooperation. The Holders shall furnish to the REIT such
information regarding the Holders and the distribution proposed by Participating
Holders as the REIT may from time to time reasonably request in writing, and
shall do such reasonable acts and things as the REIT may from time to time
request, with respect to any registration, qualification or compliance referred
to in this Agreement and in order to permit the REIT to comply with the
requirements of law. Any failure by a Holder to make available such information
or to do such acts and things shall constitute a waiver by such Holder of its
rights to include such Holder's Registrable Shares in any such registration.

        8.      Restriction on Resale. Unless otherwise agreed by the REIT,
until the date on which there are no Registrable Shares, each Holder agrees that
it will not resell such Registrable Shares without registration under the
Securities Act, compliance with Rule 144 under the Securities Act or an opinion
of counsel for such Holder reasonably acceptable to the REIT, addressed to the
REIT, to the effect that no such registration is required. All reasonable costs,
fees and expenses of counsel in connection with such opinion shall be borne by
the REIT.

        9.      Lock-Up Agreement. In consideration of the REIT's agreement to
provide the Holders with the registration rights as set forth in this Agreement,
Klaff agrees with the REIT and the Partnership that it will not for a period of
five (5) years commencing on the Closing Date or such lesser period if permitted
pursuant to the Contribution Agreement (the "Lock-Up Period") (i) sell, assign,
or otherwise transfer the Units to be issued at the Closing or (ii) convert any
Units into Conversion Shares. Notwithstanding the foregoing, the aforementioned
prohibition shall not apply to (a) a transfer of Units (which shall nonetheless
comply with any requirements or conditions to transfer in the Partnership
Agreement of the Partnership) to a Permitted Transferee; or (b) bona fide pledge
of Units (provided that the pledgee agrees to be bound by the terms of this
Agreement as if an original signatory thereto). For purposes of this Section 10,
the term "Permitted Transferees" means (i) any partner or other equity owner of
the Partnership or Klaff; (ii) any equity owner of any partner or other equity
owner of the Partnership or Klaff; (iii) members of the Immediate Family (as
defined below) of any person described in (i) or (ii); and (iv) trusts for the
benefit of, or entities controlled by, one or more of the persons described in
(i), (ii) or (iii); and/or (v) any public charity, public foundation or
charitable institution as defined in Section 501(c)(3) of the Internal Revenue
Code of 1986, as amended. For purposes of this Section 10, the term "Immediate
Family" means, with respect to any natural person, such natural person's spouse,
parents, parents-in-law, descendants, nephews, nieces, brothers, sisters,
brothers-in-law, sisters-in-law and children-in-law (including adopted persons).
A transfer to any Permitted Transferee shall not be deemed effective, and the
REIT may issue stop transfer instructions to its transfer agent of the Shares in
connection with a purported transfer, unless and until the transferor shall give
the REIT written notice stating the name and address of the Permitted Transferee
and identifying the securities which are being transferred and the REIT shall
have received the written agreement of the Permitted Transferee to be bound by
the terms of this Agreement as if an original signatory hereto.

        10.     Miscellaneous.

                (a)     Controlling Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

                                       -6-
<PAGE>

                (b)     Notices. All notices and other communications hereunder
shall be in writing and shall be sent by certified mail, postage prepaid, return
receipt requested; by an overnight express courier service that provides written
confirmation of delivery; or by facsimile with written confirmation by the
sending machine or with telephone confirmation of receipt, addressed as follows:

                        (i)     If to REIT or Partnership:

                                Acadia Realty Trust
                                1311 Mamaroneck Avenue, Suite 260
                                White Plains, NY  10605
                                Attention:  Robert Masters, Esq.
                                Telephone:  914-288-8139
                                Facsimile:  914-428-3646
                                Email:      rmasters@acadiarealty.com

                        (ii)    If to Klaff:

                                Klaff Realty, LP
                                122 South Michigan Avenue
                                Chicago, IL  60603
                                Attention:  Hersch M. Klaff
                                Telephone:  312-360-3102
                                Facsimile:  312-360-0606
                                Email: hklaff@klaff.com

                                With a copy to:

                                Allan J. Reich, Esq.
                                Seyfarth Shaw LLP
                                55 E. Monroe Street, Suite 4200
                                Chicago, IL  60603
                                Telephone:  312-781-8650
                                Facsimile:  312-269-8869
                                Email:  areich@seyfarth.com

        Any party may alter the address to which communications or copies are to
be sent by giving notice of such change of address in conformity with the
provisions of this paragraph for the giving of notice. Notices given hereunder
shall be deemed received upon actual receipt thereof or, in the case of notice
by mail, upon two days from the date notice is first deposited in the mail in
the manner provided above

                (a)     Binding Nature of Agreement. This Agreement shall be
binding upon and inure to the benefit of (i) the REIT and its successors and
assigns and (ii) each Holder and its heirs, successors and assigns.

                                       -7-
<PAGE>

                (b)     Transfer or Assignment of Registration Rights. Subject
to Section 10 hereof, the rights with respect to any Registrable Shares to cause
the REIT to register such securities granted to a Holder by the REIT under this
Agreement may be transferred or assigned by a Holder, in whole or in part, to a
transferee or assignee of any Registrable Shares (or any Units which are
convertible, exercisable or redeemable, directly or indirectly, for Registrable
Shares); provided that, in such case, the REIT shall be given written notice
stating the name and address of said transferee or assignee and identifying the
securities with respect to which such registration rights are being transferred
or assigned and the REIT shall have received the written agreement of such
transferee or assignee to be bound by the terms of this Agreement.

                (c)     Execution in Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original as against any party whose signature appears thereon, and all of which
shall together constitute one and the same instrument. This Agreement shall
become binding when one or more counterparts hereof, individually taken
together, shall bear the signatures of all of the parties reflected hereon as
the signatories.

                (d)     Provisions Separable. The provisions of this Agreement
are independent of and separable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for any
reason any other or others of them may be invalid or unenforceable in whole or
in part.

                (e)     Entire Agreement. This Agreement contains the entire
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements and
understandings, inducements or conditions, express or implied, oral or written,
except as herein contained. This Agreement may not be modified or amended other
than by an agreement in writing.

                (f)     Paragraph Headings. The paragraph headings in this
Agreement are for convenience only; they form no part of this Agreement and
shall not affect its interpretation.

                                       -8-
<PAGE>

        IN WITNESS WHEREOF, the parties executed and delivered this Agreement on
the date first above written.


                                ACADIA REALTY TRUST

                                By:
                                    --------------------------------------------
                                Name:
                                Title:


                                ACADIA REALTY LIMITED PARTNERSHIP

                                By:   Acadia Realty Trust,
                                      its General Partner

                                      By:
                                          --------------------------------------
                                      Name:
                                      Title:

                                KLAFF REALTY, LP

                                BY:   KLAFF REALTY, LIMITED, ITS GENERAL PARTNER

                                      By:
                                          --------------------------------------
                                               Hersch M. Klaff, President

                                       -9-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>7
<FILENAME>ex31-1.txt
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<PAGE>

EXHIBIT 31.1

                                  CERTIFICATION

I, Kenneth F. Bernstein, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Acadia Realty Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control
over financial reporting that occurred during the registrant's most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and

5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.


/s/ Kenneth F. Bernstein
----------------------------------------
Kenneth F. Bernstein
President and Chief Executive Officer
May 9, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>8
<FILENAME>ex31-2.txt
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<PAGE>

EXHIBIT 31.2

                                  CERTIFICATION

I, Michael Nelsen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Acadia Realty Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e) and 15d-15(e) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control
over financial reporting that occurred during the registrant's most recent
fiscal year that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.


/s/ Michael Nelsen
----------------------------------------
Michael Nelsen
Senior Vice President and
Chief Financial Officer
May 9, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>9
<FILENAME>ex32-1.txt
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<PAGE>

EXHIBIT 32.1

    CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Acadia Realty Trust (the "Company")
on Form 10-Q for the quarter ended March 31, 2005, as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), I, Kenneth F.
Bernstein, President and Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the
Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been
provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request.

/s/ Kenneth F. Bernstein
----------------------------------------
Kenneth F. Bernstein
President and Chief Executive Officer
May 9, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>10
<FILENAME>ex32-2.txt
<DESCRIPTION>EXHIBIT 32.2
<TEXT>
<PAGE>

EXHIBIT 32.2

    CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Acadia Realty Trust (the "Company") on
Form 10-Q for the quarter ended March 31, 2005, as filed with the Securities and
Exchange Commission on the date hereof (the "Report"), I, Michael Nelsen, Sr.
Vice President and Chief Financial Officer of the Company, certify, pursuant to
18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of
2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been
provided to the Company and will be retained by the Company and furnished to the
Securities and Exchange Commission or its staff upon request.

/s/ Michael Nelsen
----------------------------------------
Michael Nelsen
Senior Vice President and
Chief Financial Officer
May 9, 2005
</TEXT>
</DOCUMENT>
</SUBMISSION>
