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<SEC-DOCUMENT>0000930413-09-001910.txt : 20090526
<SEC-HEADER>0000930413-09-001910.hdr.sgml : 20090525

<ACCEPTANCE-DATETIME>20090407155943

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000930413-09-001910

CONFORMED SUBMISSION TYPE:	S-3/A

PUBLIC DOCUMENT COUNT:		4

FILED AS OF DATE:		20090407

DATE AS OF CHANGE:		20090409


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			ACADIA REALTY TRUST

		CENTRAL INDEX KEY:			0000899629

		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]

		IRS NUMBER:				232715194

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		S-3/A

		SEC ACT:		1933 Act

		SEC FILE NUMBER:	333-157886

		FILM NUMBER:		09737643



	BUSINESS ADDRESS:	

		STREET 1:		1311 MAMARONECK AVENUE

		STREET 2:		SUITE 260

		CITY:			WHITE PLAINS

		STATE:			NY

		ZIP:			10605

		BUSINESS PHONE:		914-288-8100



	MAIL ADDRESS:	

		STREET 1:		1311 MAMARONECK AVENUE

		STREET 2:		SUITE 260

		CITY:			WHITE PLAINS

		STATE:			NY

		ZIP:			10605



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	MARK CENTERS TRUST

		DATE OF NAME CHANGE:	19930329



</SEC-HEADER>

<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>c56919_s3a.htm
<TEXT>

<HTML>
<HEAD><TITLE></TITLE></HEAD>
<BODY>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
  <TD VALIGN=TOP> </TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>As
 filed with the Securities and Exchange Commission on April 7, 2009</FONT></P></TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>Registration
 No. 333-157886</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP> </TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR WIDTH="100%" SIZE="4" noshade style="margin-top: -5px">
<HR WIDTH="100%" SIZE="1" noshade style="margin-top: -10px"></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=4><B>UNITED STATES</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=4><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>Washington, D.C. 20549</B></FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP> </TD>
</TR>
<TR>
  <TD VALIGN=TOP><div align="center"><FONT SIZE=3><B>PRE-EFFECTIVE AMENDMENT<br>
    No. 1 TO</B></FONT></div></TD>
</TR>
<TR>
<TD VALIGN=TOP>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=5><B>FORM S-3</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>REGISTRATION STATEMENT</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>UNDER THE SECURITIES ACT OF 1933</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=6><B>ACADIA REALTY TRUST</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Exact
 name of registrant as specified in its charter)</FONT></P></TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="48%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="48%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Maryland</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>23-2715194</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(State
 of Organization)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(I.R.S.
 Employer Identification No.)</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>1311 Mamaroneck Avenue, Suite 260</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>White Plains, New York 10605</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>(914) 288-8100</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Address,
 including zip code, and telephone number, including area code, of
 registrant&#146;s principal executive offices)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Kenneth F. Bernstein</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>President and Chief Executive Officer</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Acadia Realty Trust</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>1311 Mamaroneck Avenue, Suite 260</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>White Plains, New York 10605</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>(914) 288-8100</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(Name,
 address, including zip code, and telephone number, including area code, of
 agent for service):</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><I>Copies to:</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Mark Schonberger, Esq.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Paul, Hastings, Janofsky &amp; Walker LLP</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>75 East 55th Street</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>New York, NY 10022</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>(212) 318-6000</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Approximate Date of Commencement of Proposed Sale to the
Public:</B> From time to
time after the Registration Statement becomes effective. </FONT></P>

<P><FONT SIZE=2>If the only securities being
registered on this form are being offered pursuant to dividend or interest
reinvestment plans, please check the following box: <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>If any of the securities
being registered on this form are to be offered on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest reinvestment
plans, check the following box: <FONT FACE=WINGDINGS>x</FONT></FONT></P>

<P><FONT SIZE=2>If this form is filed to
register additional securities for an offering pursuant to Rule 462(b) under
the Securities Act of 1933, please check the following box and list the
Securities Act of 1933 registration statement number of the earlier effective
registration statement for the same offering. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>If this form is a
post-effective amendment filed pursuant to Rule 462(c) under the Securities Act
of 1933, check the following box and list the Securities Act of 1933
registration statement number of the earlier effective registration statement
for the same offering. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>If this form is a
registration statement pursuant to General Instruction I.D or a post-effective
amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>If this Form is a
post-effective amendment to a registration statement filed pursuant to General
Instruction I.D filed to register additional securities or additional classes
of securities pursuant to Rule 413(b) under the Securities Act, check the
following box. <FONT FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=2>Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See definitions of
&#147;large accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the
Exchange Act. </FONT></P>

<P><FONT SIZE=2>Large accelerated filer <FONT
FACE=WINGDINGS>x</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated
filer <FONT FACE=WINGDINGS>o</FONT>&nbsp;&nbsp;&nbsp;Non-accelerated filer <FONT FACE=WINGDINGS>o</FONT> (Do not check if smaller reporting
company)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting
company <FONT FACE=WINGDINGS>o</FONT></FONT></P>
<P> </P>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="26%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="17%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="13" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>CALCULATION OF REGISTRATION FEE</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:3px">
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1><B>Title
 of each class of<BR>
 securities to be registered</B></FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px; border-TOP:DOUBLE black 3px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP style="border-TOP:DOUBLE black 3px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1><B>Amount
 to be registered</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-RIGHT:solid black 1px; border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1><B>Proposed
 maximum<BR>
 offering price per unit</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-RIGHT:solid black 1px; border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1><B>Proposed
 maximum<BR>
 aggregate offering price</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-RIGHT:solid black 1px; border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM style="border-TOP:DOUBLE black 3px">
<P ALIGN=CENTER><FONT SIZE=1><B>Amount
 of<BR>
 registration fee</B></FONT></P>
</TD>
<TD VALIGN=TOP style="border-TOP:DOUBLE black 3px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Shares of beneficial interest classified as common
 stock, par value $.001 per share</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>$(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>$(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Preferred shares of beneficial interest</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Debt securities</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Depositary shares</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Warrants</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Subscription Rights</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Units</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)(2)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>(1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px; border-RIGHT:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="1"><B>Total</B> </FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>$500,000,000 (1)</FONT></P>
</TD>
<TD VALIGN=TOP style="border-RIGHT:solid black 1px">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>$27,900 (3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</table>

 <BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>(1)</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Omitted pursuant to Form S-3 General Instruction
 II.D. </FONT></P></TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>(2)</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>Such indeterminate number or amount of common shares,
 preferred shares, debt securities, depositary shares, warrants, subscription
 rights and units is being registered as may from time to time be issued at
 indeterminate prices. This Registration Statement also includes such
 indeterminable amount of common shares, preferred shares and debt securities
 as may be issued from time to time upon exercise of warrants or conversion or
 exchange of convertible or exchangeable securities being registered
 hereunder. </FONT></P></TD>
</TR>

<TR>
<TD VALIGN=TOP nowrap>
</TD>
</TR>


<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>(3)</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>The total filing fee is being paid by the registrant as follows: (i) &#36;17,104 represents the application, in accordance with Rule 415(a)(6) under the Securities Act, of the portion of the filing fee previously paid that
relates to the &#36;159,843,100 of unsold securities from its Registration Statement on Form S-3 (No. 333-139950) filed with the Commission on January 12, 2007; (ii) &#36;7,860 represents the filing fee paid on March 12, 2009 in connection with the
registration of an additional &#36;200,000,000 of securities; and (iii) &#36;2,936 is being paid herewith in connection with the additional &#36;140,156,900 of securities registered hereby.</FONT></P></TD>
</TR>
<TR>
  <TD colspan="2" VALIGN=TOP> </TD>
  </TR>
</TABLE>
<BR>

<DIV><HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=CENTER></DIV>

<DIV><FONT SIZE=2><B>The registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective date until the
registrant will file a further amendment which specifically states that this
Registration Statement will thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until this Registration Statement
will become effective on such date as the Commission, acting pursuant to said
Section 8(a), may determine. </B></FONT></DIV>
<BR>

<HR WIDTH="100%" SIZE="1" noshade style="margin-top: -2px">
<HR WIDTH="100%" SIZE="4" noshade style="margin-top: -10px">

<P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2 COLOR=RED>The information
 contained in this prospectus is not complete and may be changed. We may not
 sell these securities offered by this prospectus until the registration
 statement filed with the Securities and Exchange Commission is effective.
 This prospectus does not constitute an offer to sell or a solicitation of an
 offer to buy any securities in any state where an offer or solicitation is
 not permitted. </FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>PROSPECTUS</B> </FONT> </P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT COLOR="RED" SIZE="2"><B>PRELIMINARY &#151; SUBJECT TO COMPLETION &#151; DATED APRIL 7, 2009</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER></TD>
</TR>
<TR>
  <TD VALIGN=TOP> </TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE="2"><B>$500,000,000</B> </FONT></P></TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2><IMG SRC="c56919001.jpg" ALT="(ACADIA REALTY TRUST LOGO)"></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>Acadia Realty Trust</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Common Shares of Beneficial Interest</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Preferred Shares of Beneficial Interest</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Debt Securities</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Depositary Shares</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Warrants</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Subscription Rights</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Units</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are Acadia Realty Trust, a fully integrated, self-managed and self-administered
equity real estate investment trust, or REIT, focused primarily on the
ownership, acquisition, redevelopment and management of retail properties,
including neighborhood and community shopping centers and mixed-use properties
with retail components. This prospectus relates to the public offer and sale by
us of one or more series or classes of (i) common shares of beneficial
interest, par value $0.001 per share, or &#147;common shares,&#148; (ii) preferred shares
of beneficial interest, or &#147;preferred shares,&#148; (iii) senior or subordinated
debt securities, (iv) depositary shares, (v) warrants, (vi) subscription rights
and (vii) units. The aggregate public offering price of the common shares,
preferred shares, debt securities, depositary shares, warrants, subscription
rights and units covered by this prospectus, which we refer to collectively as
the securities, will not exceed $500,000,000 (or its equivalent based on the
exchange rate at the time of sale). The securities may be offered, separately
or together, in separate classes or series, in amounts, at prices and on terms
to be determined at the time of the offering and set forth in one or more
supplements to this prospectus. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
specific terms of the securities will be set forth in the applicable prospectus
supplement. Such specific terms may include limitations on direct or beneficial
ownership and restrictions on transfer of the securities, in each case as may
be consistent with our declaration of trust or otherwise appropriate to
preserve our status as a REIT for U.S. federal income tax purposes. See
&#147;Restrictions on Transfers of Capital Stock and Anti-Takeover Provisions&#148;
beginning on page 22 of this prospectus. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
applicable prospectus supplement will also contain information, where
appropriate, about the risk factors and U.S. federal income tax considerations
relating to, and any listing on a securities exchange of, the securities
covered by that prospectus supplement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may offer the securities directly, through agents designated by us from time to
time, or to or through underwriters or dealers. If any agents or underwriters
are involved in the sale of any of the securities, their names, and any
applicable purchase price, fee, commission or discount arrangement between or
among them will be set forth or will be calculable from the information set
forth in the applicable prospectus supplement. See &#147;Plan of Distribution.&#148; No
securities may be sold without delivery of a prospectus supplement describing
the method and terms of the offering of those securities. </FONT></P>

<P> <br>
<FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common shares are traded on the New York Stock Exchange under the symbols
&#147;AKR&#148;. On April 6, 2009, the last reported sale price of our common
shares, as reported on the New York Stock Exchange, was $12.13 per share.</FONT><br>
</P>

<P><FONT SIZE=2><B>Investing in our securities involves risks. In our filings
with the Securities and Exchange Commission, which are incorporated by
reference in this prospectus, we identify and discuss risk factors that you
should consider before investing in our securities. </B></FONT></P>

<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=CENTER>

<P><FONT SIZE=2><B>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or passed
upon the adequacy or accuracy of this prospectus. Any representation to the
contrary is a criminal offense. </B></FONT></P>

<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=CENTER>

<P ALIGN=CENTER><FONT SIZE=2><B>The date of this prospectus is
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009.</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B><U>TABLE OF CONTENTS</U></B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="93%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Page</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A001">ABOUT THIS
 PROSPECTUS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>3</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A002">OUR
 COMPANY</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A003">RISK
 FACTORS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A004">CAUTIONARY
 STATEMENTS CONCERNING FORWARD-LOOKING INFORMATION</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A005">USE OF
 PROCEEDS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>6</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A006">RATIO OF
 EARNINGS TO FIXED CHARGES</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>6</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A007">DESCRIPTION
 OF OUR COMMON SHARES</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>7</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A008">DESCRIPTION
 OF OUR PREFERRED SHARES</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>9</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A009">DESCRIPTION
 OF OUR DEBT SECURITIES</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>12</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A010">DESCRIPTION
 OF DEPOSITARY SHARES</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>16</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A011">DESCRIPTION
 OF WARRANTS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>19</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A012">DESCRIPTION
 OF SUBSCRIPTION RIGHTS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>20</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A013">DESCRIPTION
 OF UNITS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>21</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A014">RESTRICTIONS
 ON TRANSFERS OF CAPITAL STOCK AND ANTI-TAKEOVER PROVISIONS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>22</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A015">CERTAIN
 PROVISIONS OF MARYLAND LAW AND OUR DECLARATION OF TRUST AND BYLAWS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>25</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A016">MATERIAL
 UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>27</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A017">PLAN OF
 DISTRIBUTION</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>48</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A018">LEGAL
 MATTERS</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>52</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A019">INDEPENDENT
 REGISTERED PUBLIC ACCOUNTING FIRM</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>52</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><A HREF="#A020">WHERE YOU
 CAN FIND MORE INFORMATION</A></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>52</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>A<A NAME=A001></A>BOUT THIS PROSPECTUS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission, which we refer to as the SEC, using a
&#147;shelf&#148; registration process or continuous offering process. Under this shelf
registration process, we may, from time to time, sell the securities described
in this prospectus in one or more offerings. This prospectus provides you with
a general description of the securities that may be offered by us. We may also
file, from time to time, a prospectus supplement or an amendment to the
registration statement of which this prospectus forms a part containing
additional information about us and the terms of the offering of the
securities. That prospectus supplement or amendment may include additional risk
factors or other special considerations applicable to the securities. Any
prospectus supplement or amendment may also add, update or supersede
information in this prospectus. If there is any supplement or amendment, you
should rely on the information in that prospectus supplement or amendment.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus and any accompanying prospectus supplement do not contain all of the
information included in the registration statement. For further information, we
refer you to the registration statement and any amendments to such registration
statement, including its exhibits. Statements contained in this prospectus and
any accompanying prospectus supplement about the provisions or contents of any
agreement or other document are not necessarily complete. If the SEC&#146;s rules
and regulations require that an agreement or document be filed as an exhibit to
the registration statement, please see that agreement or document for a
complete description of these matters.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should read both this prospectus and any prospectus supplement together with
additional information described below under the heading &#147;Where You Can Find
More Information.&#148; Information incorporated by reference with the SEC after the
date of this prospectus, or information included in any prospectus supplement
or an amendment to the registration statement of which this prospectus forms a
part, may add, update or supersede information in this prospectus or any
prospectus supplement. You should not assume that the information in this
prospectus or any prospectus supplement is accurate as of any date other than
the date on the front of each document.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references to the &#147;Company,&#148; &#147;we&#148; and &#147;us&#148; in this prospectus means Acadia
Realty Trust and all entities owned or controlled by us except where it is
clear that the term means only the parent company. The term &#147;you&#148; refers to a
prospective investor.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>O<A NAME=A002></A>UR COMPANY</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are a fully integrated, self-managed and self-administered equity real estate
investment trust, or REIT, focused primarily on the ownership, acquisition,
redevelopment and management of retail properties, including neighborhood and
community shopping centers and mixed-use properties with retail components. We
currently operate 85 properties, which we own or in which we have an ownership
interest. These assets are located primarily in the Northeast, Mid-Atlantic and
Midwest regions of the United States and, in total, comprise approximately 10
million square feet. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of our assets are held by, and all of our operations are conducted through,
Acadia Realty Limited Partnership, a Delaware limited partnership, or the
Operating Partnership, and its majority-owned subsidiaries. As of December 31,
2008, we controlled 98% of the Operating Partnership as the sole general
partner. As the general partner, we are entitled to share, in proportion to our
percentage interest, in the cash distributions and profits and losses of the
Operating Partnership. The limited partners represent entities or individuals
who contributed their interests in certain properties or partnerships to the
Operating Partnership in exchange for common or preferred units of limited
partnership interest, or Common or Preferred OP Units. Limited partners holding
Common OP Units are generally entitled to exchange their units on a one-for-one
basis for our common shares.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common shares are traded on the NYSE under the symbol &#147;AKR&#148;. Our executive
offices are located at 1311 Mamaroneck Avenue, Suite 260, White Plains, New
York 10605 and our telephone number is (914) 288-8100.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>R<A NAME=A003></A>ISK FACTORS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing
in our securities involves risks and uncertainties that could affect us and our
business as well as the real estate industry generally. Before you invest in
our securities, in addition to the other information in this prospectus and any
applicable prospectus supplement, you should carefully consider the risk
factors under the heading &#147;Risk Factors&#148; contained in Part I, Item
1A in our most recent Annual Report on Form 10-K, which is incorporated by
reference into this prospectus and any accompanying prospectus supplement, as
the same may be updated from time to time by our future filings under the Exchange
Act. In addition, new risks may emerge at any time and we cannot predict such
risks or estimate the extent to which they may affect our financial performance.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>C<A NAME=A004></A>AUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING INFORMATION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus and the information incorporated by reference in this prospectus
include &#147;forward-looking statements&#148; within the meaning of Section 27A of the
Securities Act of 1933, as amended, or the &#147;Securities Act,&#148; and Section 21E of
the Securities Exchange Act of 1934, as amended, or the &#147;Exchange Act,&#148; and as
such may involve known and unknown risks, uncertainties and other factors that
may cause our actual results, performance or achievements to be materially
different from future results, performance or achievements expressed or implied
by these forward-looking statements. Forward-looking statements, which are
based on certain assumptions and describe our future plans, strategies and
expectations, are generally identifiable by use of the words &#147;may,&#148; &#147;will,&#148;
&#147;should,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;estimate,&#148; &#147;believe,&#148; &#147;intend,&#148;
&#147;project,&#148;
or the negative of these words or other similar words or terms. Factors which
could have a material adverse effect on our operations and future prospects
include, but are not limited to:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>general economic and business conditions, including
 the current global financial crisis;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the ability to maintain rental rates;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the financial health of our major tenants;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the availability and creditworthiness of prospective
 tenants;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>demand for rental space;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the impact of tenant bankruptcies, including Circuit
 City and KB Toys, and the impact of any rejected leases;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>access to capital markets and the cost of capital;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the availability of financing;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>adverse changes in our real estate markets;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>competition with other companies;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>risks of real estate development and acquisition;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the financial strength of preferred equity and
 mezzanine investment counterparties and their ability to repay their debt
 obligations;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the performance of our opportunity funds and the
 ability of our fund partners to contribute capital as needed;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>environmental/safety requirements and possible
 liability; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>changes in laws and regulations (including tax laws
 and regulations) and agency or court interpretations of such laws and
 regulations and the related costs of compliance; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>governmental actions and initiatives;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our ability to maintain our status as a REIT; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the other risk factors set forth in our Annual
 Report on Form 10-K for the year ended December 31, 2008 and the other
 documents incorporated into this prospectus by reference.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
risks and uncertainties should be considered in evaluating any forward-looking
statements contained or incorporated by reference in this prospectus. We
caution you that any forward-looking statement reflects only our belief at the
time the statement is made. Although we believe that the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee our
future results, levels of activity, performance or achievements. Except as
required by law, we undertake no obligation to update any of the
forward-looking statements to reflect events or developments after the date of
this prospectus.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>U<A NAME=A005></A>SE OF PROCEEDS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise described in the applicable prospectus supplement, we intend to use
the net proceeds from our sale of the securities for general corporate
purposes, which may include the repayment of outstanding indebtedness,
additional property acquisitions and investments which include the funding of
our capital committed to our opportunity funds and redevelopment and
re-tenanting activities within our core portfolio, which includes those
properties either 100% owned by, or partially owned through joint venture
interests by the Operating Partnership, or its subsidiaries, not including
those properties owned through our opportunity funds. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>R<A NAME=A006></A>ATIO OF EARNINGS TO FIXED CHARGES</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth our historical ratios of earnings to fixed charges
for the periods indicated:</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="80%" style="margin-left:5%">
<TR style="font-size:1px">
<TD WIDTH="43%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="14" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Year Ended
 December 31,</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="14" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2008</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2005</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2004</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><B>Ratio
 of Earnings to Fixed Charges</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>1.64x</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>2.25x</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>1.41x</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>2.84x</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>1.67x</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
ratios of earnings to fixed charges were computed by dividing earnings by fixed
charges. For these purposes, earnings have been calculated by adding minority
interest attributable to continuing operations, income or loss from equity
investees, fixed charges and distributed income of equity investees to income
from continuing operations before income taxes, less capitalized interest and
preferred distributions of consolidated subsidiaries. Fixed charges consist of
interest costs, whether expensed or capitalized, amortization of deferred
financing costs, amortization of discounts or premiums related to indebtedness
and preferred distributions of consolidated subsidiaries.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=A007></A><FONT SIZE=2><B>DESCRIPTION OF OUR COMMON SHARES</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following summary of the material terms and
provisions of our common shares does not purport to be complete and is subject
to the detailed provisions of our declaration of trust and our bylaws, each as
supplemented, amended or restated, each of which is incorporated by reference
into this prospectus. You should carefully read each of these documents in
order to fully understand the terms and provisions of our common shares. For
information on incorporation by reference, and how to obtain copies of these
documents, see the section entitled &#147;Where You Can Find More Information&#148; on
page 52 of this prospectus.</I></FONT></P>

<P><FONT SIZE=2><B>General</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
our declaration of trust, we may issue 100,000,000 shares of beneficial
interest, which may consist of common shares, par value $0.001 per share, or
such other types or classes of securities as the trustees may create and
authorize from time to time. All common shares, when issued, are duly authorized,
fully paid and nonassessable. This means that the full price for the shares has
been paid at the time of issuance and consequently that any holder of such
shares will not later be required to pay us any additional money for the same.
As of December 31, 2008, 32,357,530 common shares were issued and outstanding,
as were 647,656 Common OP Units of the Operating Partnership, which are
convertible into the same number of our common shares (subject to anti-dilution
adjustments).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
total of 188 Series A Preferred OP Units were outstanding as of December 31,
2008. These Series A Preferred OP Units are convertible into Common OP Units at
a conversion price of $7.50 per unit and are entitled to a preferred quarterly
distribution of the greater of (a) $22.50 per Series A Preferred OP Unit (9%
annually) or (b)&nbsp;the quarterly distribution attributable to a Series A
Preferred OP Unit if such unit were converted into a Common OP Unit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than the common shares, the Common OP Units, the Series A Preferred OP Units
and the Convertible Notes discussed under &#147;Description of Our Debt Securities,&#148;
as of the date of this prospectus, we have no other securities outstanding.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
common shares have equal dividend, liquidation and other rights, and have no
preference, exchange or appraisal rights, except for any appraisal rights
provided by Maryland law. Holders of our common shares have no conversion,
sinking fund or redemption rights, or preemptive rights to subscribe for any of
our securities.</FONT></P>

<P><FONT SIZE=2><B>Distributions</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders
of our common shares may receive distributions out of assets that we can
legally use to pay distributions, when and if they are authorized and declared
by our board of trustees. Each common shareholder shares in the same proportion
as other common shareholders out of the assets that we can legally use to pay
distributions after we pay or make adequate provision for all of our known
debts and liabilities in the event we are liquidated, dissolved or our affairs
are wound up.</FONT></P>

<P><FONT SIZE=2><B>Voting
Rights</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders
of common shares have the power to vote on all matters presented to our
shareholders, including the election of trustees, except as otherwise provided
by Maryland law. Our declaration of trust prohibits us from merging where we
are not the surviving entity, or selling all or substantially all of our
assets, without the approval of two-thirds of the outstanding shares that are
entitled to vote on such matters. Holders of common shares are entitled to one
vote per share.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no cumulative voting in the election of our trustees, which means that
holders of more than 50% of the common shares voting for the election of
trustees can elect all of the trustees if they choose to do so and the holders
of the remaining shares cannot elect any trustees.</FONT></P>

<P><FONT SIZE=2><B>Restrictions
on Ownership and Transfer</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To qualify as a REIT under the Internal Revenue Code
of 1986, as amended, or the Code, we must satisfy certain ownership
requirements that may limit the ownership and transferability of our common
shares. Our </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>declaration of trust contains provisions aimed at
satisfying these requirements. See &#147;Restrictions on Transfers of Capital Stock
and Anti-Takeover Provisions&#148; beginning on page 22 of this prospectus. </FONT></P>

<P><FONT SIZE=2><B>Transfer
Agent and Registrar</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
transfer agent and registrar for our common shares is American Stock Transfer
&amp; Trust Company, which has an address at 40 Wall Street, New York, NY
10005. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=A008></A><FONT SIZE=2><B>DESCRIPTION OF OUR PREFERRED SHARES</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following summary of the material terms and
provisions of our preferred shares does not purport to be complete and is
subject to the detailed provisions of our declaration of trust (including any
applicable articles supplementary, amendment or annex to our declaration of
trust designating the terms of a series of preferred shares) and our bylaws,
each as supplemented, amended or restated, each of which is incorporated by
reference into this prospectus. You should carefully read each of these
documents in order to fully understand the terms and provisions of our
preferred shares. For information on incorporation by reference, and how to
obtain copies of these documents, see the section entitled &#147;Where You Can Find
More Information&#148; on page 52 of this prospectus.</I></FONT></P>

<P><FONT SIZE=2><B>General</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to limitations prescribed by Maryland law and our declaration of trust, our
board of trustees is authorized to issue one or more series of preferred shares
from time to time and, with respect to any such series, to fix the
designations, numbers, preferences, conversion or other rights, voting powers,
restrictions, limitations as to dividends, qualifications and terms or
conditions of redemption of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
is made to any supplement to this prospectus relating to the preferred shares
offered thereby for specific items, including:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
 the title and stated value of the preferred shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
 the number of preferred shares offered, the liquidation preference per share
 and the offering price of the preferred shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
 the dividend rate(s), period(s), and/or payment date(s) or method(s) of
 calculation thereof applicable to the preferred shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
 the date from which dividends on the preferred shares shall accumulate, if
 applicable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)
 the provisions for a sinking fund, if any, for the preferred shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)
 the provisions for redemption, if applicable, of the preferred shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)
 any listing of the preferred shares on any securities exchange;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)
 the terms and conditions, if applicable, upon which the preferred shares will
 be convertible into common shares, including the conversion price (or manner
 of calculation thereof);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)
 a discussion of material U.S. federal income tax considerations applicable to
 the preferred shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)
 the relative ranking and preferences of the preferred shares as to dividend
 rights and rights upon our liquidation, dissolution or winding-up of our
 affairs;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)
 any limitations on issuance of any series of preferred shares ranking senior
 to or on a parity with the preferred shares as to dividend rights and rights
 upon our liquidation, dissolution or winding-up of our affairs;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)
 any limitations on direct or beneficial ownership of our securities and
 restrictions on transfer of our securities, in each case as may be
 appropriate to preserve our status as a REIT under the Code; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)
 any other specific terms, preferences, rights, limitations or restrictions of
 the preferred shares.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Rank</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise specified in the applicable prospectus supplement, the preferred
shares rank, with respect to dividend rights and rights upon our liquidation,
dissolution or winding-up, and allocation of our earnings and losses: (i)
senior to all classes or series of our common shares, and to all equity
securities ranking junior to the preferred shares; (ii) on a parity with all
equity securities issued by us the terms of which specifically provide that
such equity securities rank on a parity with the preferred shares; and (iii)
junior to all equity securities issued by us the terms of which specifically
provide that such equity securities rank senior to the preferred shares. As
used in this prospectus, the term &#147;equity securities&#148; does not include
convertible debt securities.</FONT></P>

<P><FONT SIZE=2><B>Distributions</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to any preferential rights of any outstanding securities or series of
securities, the holders of preferred shares will be entitled to receive
dividends, when and as authorized by our board of trustees, out of legally
available funds, and share pro rata the amount to be distributed to such class
or series of preferred shares based on the number of preferred shares of the
same class or series outstanding. Distributions will be made at such rates and
on such dates as will be set forth in the applicable prospectus supplement. </FONT></P>

<P><FONT SIZE=2><B>Voting
Rights</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise indicated in the applicable prospectus supplement, holders of our
preferred shares will not have any voting rights.</FONT></P>

<P><FONT SIZE=2><B>Liquidation
Preference</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
any voluntary or involuntary liquidation, dissolution or winding-up of our
affairs, and before any distribution or payment shall be made to the holders of
any common shares or any other class or series of shares ranking junior to our
preferred shares, the holders of our preferred shares shall be entitled to
receive, after payment or provision for payment of our debts and other
liabilities, out of our assets legally available for distribution to
shareholders, liquidating distributions in the amount of the liquidation
preference per share, if any, set forth in the applicable prospectus
supplement, plus an amount equal to all dividends accrued and unpaid thereon
(which shall not include any accumulation in respect of unpaid noncumulative
dividends for prior dividend periods). After payment of the full amount of the
liquidating distributions to which they are entitled, the holders of preferred
shares will have no right or claim to any of our remaining assets. In the event
that, upon any such voluntary or involuntary liquidation, dissolution or
winding-up of our affairs, the legally available assets are insufficient to pay
the amount of the liquidating distributions on all of our outstanding preferred
shares and the corresponding amounts payable on all of our other outstanding
equity securities ranking on a parity with the preferred shares in the
distribution of assets upon our liquidation, dissolution or winding-up of our
affairs, then the holders of our preferred shares and the holders of such other
outstanding equity securities shall share ratably in any such distribution of
assets in proportion to the full liquidating distributions to which they would
otherwise be respectively entitled.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
liquidating distributions are made in full to all holders of our preferred
shares, our remaining assets shall be distributed among the holders of any
other classes or series of equity securities ranking junior to the preferred
shares in the distribution of assets upon our liquidation, dissolution or
winding-up of our affairs, according to their respective rights and preferences
and in each case according to their respective number of shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we consolidate or merge with or into, or sell, lease or convey all or
substantially all of our property or business to, any corporation, trust or
other entity, such transaction shall not be deemed to constitute a liquidation,
dissolution or winding-up of our affairs.</FONT></P>

<P><FONT SIZE=2><B>Conversion
Rights</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
terms and conditions, if any, upon which our preferred shares are convertible
into common shares will be set forth in the applicable prospectus supplement.
Such terms will include the number of common shares into which the preferred
shares are convertible, the conversion price (or manner of calculation
thereof), the conversion period, provisions as to whether conversion will be at
the option of the holders of the preferred shares or at our option, the events
requiring an adjustment of the conversion price and provisions affecting
conversion in the event of the redemption of such preferred shares.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Redemption</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
so provided in the applicable prospectus supplement, our preferred shares will
be subject to mandatory redemption or redemption at our option, in whole or in
part, in each case upon the terms, at the times and at the redemption prices
set forth in such prospectus supplement.</FONT></P>

<P><FONT SIZE=2><B>Restrictions
on Ownership and Transfer</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
us to qualify as a REIT under the Code, not more than 50% in value of our
outstanding capital shares may be owned, directly or indirectly, by five or
fewer individuals (as defined in the Code to include certain entities) during
the last half of a taxable year. To assist us in meeting this requirement, we
may take certain actions to limit the beneficial ownership, directly or
indirectly, by a single person of our outstanding equity securities, including
any series of our preferred shares. The applicable prospectus supplement will
specify any additional ownership limitation relating to the preferred shares
being offered thereby. See &#147;Restrictions on Transfers of Capital Stock and
Anti-Takeover Provisions&#148; beginning on page 22 of this prospectus.</FONT></P>

<P><FONT SIZE=2><B>Transfer
Agent</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
registrar and transfer agent for our preferred shares will be set forth in the
applicable prospectus supplement.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=A009></A><FONT SIZE=2><B>DESCRIPTION OF OUR DEBT SECURITIES</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>We may issue debt securities from time to time, in
one or more series under an indenture dated as of December 11, 2006, as
supplemented by a first supplemental indenture dated as of December 11, 2006
between us and U.S. Bank, National Association, as trustee, or under a separate
indenture that we will enter into with a trustee to be selected. The following
section describes certain of the material terms and conditions of the debt
securities we may issue. For a more detailed description of the terms of the
debt securities, please refer to the applicable indenture that we will enter
into for any debt securities we may issue from time to time, which will be
incorporated by reference into this prospectus, and which we will describe in a
prospectus supplement. </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>We have filed the indenture and the first
supplemental indenture with U.S. Bank, National Association as an exhibit to
this prospectus. You should read the indenture and any supplemental or separate
indenture for additional information before you buy any debt securities. For
information on incorporation by reference, and how to obtain a copy of the indenture,
see the section entitled &#147;Where You Can Find More Information&#148; on page 52 of
this prospectus.</I></FONT></P>

<P><FONT SIZE=2><B>General</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
debt securities will be our direct obligations and may be either senior debt
securities or subordinated debt securities. The debt securities may be secured
or unsecured. The indenture will not limit the principal amount of debt
securities that we may issue. We may issue debt securities in one or more
series. The indenture will set forth the specific terms of each series of debt
securities. The material terms of each series of debt securities will also be
described in the applicable prospectus supplement. Each prospectus supplement
and indenture incorporated by reference therein will describe:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
 the title of the debt securities and whether the debt securities are senior
 or subordinated debt securities;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
 whether or not the debt securities are secured, and if secured, a description
 of the collateral securing that series of debt securities;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
 any limit upon the aggregate principal amount of a series of debt securities
 that we may issue;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
 the date or dates on which principal of the debt securities will be payable
 and the amount of principal that will be payable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)
 the date or dates, or the method for determining such date or dates, on which
 the principal of such debt securities will be payable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)
 the rate or rates (which may be fixed or variable) at which the debt
 securities will bear interest, if any, as well as the dates from which
 interest will accrue, the dates on which interest will be payable, the
 persons to whom interest will be payable (if other than the registered
 holders on the record date) and the record date for the interest payable on
 any payment date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)
 the currency or currencies in which principal, premium, if any, and interest,
 if any, will be paid;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)
 the place or places where principal, premium, if any, and interest, if any,
 on the debt securities will be payable and where debt securities that are in
 registered form can be presented for registration of transfer or exchange;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)
 a discussion of material U.S. federal income tax considerations applicable to
 the ownership and disposition of the debt securities;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)
 any provisions regarding our right to prepay debt securities or of holders to
 require us to prepay debt securities;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)
 the right, if any, of holders of the debt securities to convert them into
 common shares, preferred shares or other securities, including any provisions
 intended to prevent dilution of the conversion rights and any provisions
 limiting the exercise rights of the holders;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)
 any provisions requiring or permitting us to make payments to a sinking fund
 that will be used to redeem debt securities or a purchase fund that will be
 used to purchase debt securities;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)
 any index or formula used to determine the required payments of principal,
 premium, if any, or interest, if any;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)
 the percentage of the principal amount of the debt securities which is
 payable if maturity of the debt securities is accelerated because of a
 default;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)
 any additional or modified events of default or covenants with respect to the
 debt securities;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)
 whether we will be restricted from incurring any additional indebtedness or
 any other covenants with respect to a particular series of debt securities;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)
 whether the debt securities will be guaranteed and, if so, on what terms;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)
 the trustee, authenticating or paying agent, transfer agent or registrar; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)
 any other material terms of the debt securities.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indenture may contain restrictions on our ability to repurchase our securities
or financial covenants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may issue debt securities at a discount from their stated principal amount or
original issue discount. A prospectus supplement may describe certain material
U.S. federal income tax considerations and other special considerations
applicable to a debt security issued with original issue discount.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the principal, premium, if any, or interest with regard to any series of debt
securities is payable in a foreign currency, we will describe in the prospectus
supplement relating to those debt securities any restrictions on currency
conversions, material U.S. federal income tax considerations or other material
restrictions with respect to that issue of debt securities.</FONT></P>

<P><FONT SIZE=2><B>Form of
Debt Securities</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may issue debt securities in certificated or uncertificated form, in registered
form with or without coupons or in bearer form with coupons, if applicable. We
may issue debt securities of a series in the form of one or more global
certificates evidencing all or a portion of the aggregate principal amount of
the debt securities of that series. We may deposit the global certificates with
depositaries, and the certificates may be subject to restrictions upon transfer
or upon exchange for debt securities in individually certificated form.</FONT></P>

<P><FONT SIZE=2><B>Events
of Default and Remedies</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>An event of default with respect to each series of
 debt securities will include:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our default in the payment of the principal of or
 premium, if any, on any debt securities of such series;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our default in the payment of any interest due and
 payable on such series of debt securities and continuance of such default for
 the period of time set forth in the indenture;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our default for the period of time set forth in the
 indenture after notice by the trustee or the holders of the percentage set
 forth in the indenture in principal amount of the outstanding debt securities
 of that series in the observance or performance of any other covenants in the
 indenture;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our default on certain of our borrowings in an
 aggregate principal amount in excess of the amount set forth in the indenture
 causing the acceleration of that indebtedness; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>certain events involving our or our significant
 subsidiaries&#146; bankruptcy, insolvency or reorganization.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indenture relating to particular series of debt securities may include other
events of default with respect to any such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indenture may provide that the trustee may withhold notice to the holders of
any series of debt securities of any default (except a default in payment of
principal, premium, if any, or interest) if the trustee considers it to be in
the interest of the holders of the series to do so.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indenture may provide that if any event of default has occurred and is
continuing, the trustee or the holders of not less than the percentage set
forth in the indenture in principal amount of a series of debt securities then
outstanding may declare the principal of and accrued interest, if any, on that
series of debt securities to be due and payable immediately. However, if we
cure all events of default (except the failure to pay principal, premium or
interest that became due solely because of the acceleration) and certain other
conditions are met, the holders of a majority in principal amount of the
applicable series of debt securities may rescind and annul such declaration.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
holders of a majority of the outstanding principal amount of a series of debt
securities may have the right to direct the time, method and place of
conducting proceedings for any remedy available to the trustee, subject to
certain limitations specified in the indenture.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
applicable prospectus supplement and the indenture incorporated by reference
therein will describe any additional or modified events of default which apply
to any series of debt securities.</FONT></P>

<P><FONT SIZE=2><B>Modification
of the Indenture</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
and the trustee may:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>without the consent of holders of the outstanding
 debt securities, modify the indenture to cure errors or clarify ambiguities,
 add to our covenants and the events of default for the benefit of any
 particular series of debt securities; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>with the consent of the holders of not less than a
 majority in principal amount of a particular series of debt securities that
 are outstanding under the indenture, modify the indenture or the rights of
 the holders of such series of debt securities.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>However, without the consent of the holder of each
 outstanding debt security affected thereby, we may not:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>change the stated maturity of, the principal of,
 premium, if any, or installment of interest of any debt securities, reduce
 the rate or extend the time for payment of interest, if any, on any debt
 securities, reduce the principal amount of any debt securities or the
 premium, if any, on any debt securities, impair the right of a holder to
 institute suit for the payment of principal, premium, if any, or interest, if
 any, with regard to any debt securities on or after the stated maturity or
 change the currency in which any debt securities are payable; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>reduce the percentage of principal amount of debt
 securities the holders of which are required to consent to an amendment,
 supplement or waiver with respect to such series.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Governing
Law</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indenture, any supplemental indenture and the debt securities issued thereunder
will be governed by, and construed in accordance with, the laws of the State of
New York.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>3.75%
Convertible Notes</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
December&nbsp;2006 and January 2007, we issued an aggregate of
$115.0&nbsp;million of convertible notes with a fixed interest rate of 3.75%
due 2026, or the &#147;Convertible Notes,&#148; governed by the indenture dated as of
December 11, 2006, as supplemented by a first supplemental indenture dated as
of December 11, 2006 between us and U.S. Bank, National Association, as
trustee. The Convertible Notes were issued at par and require interest payments
semi-annually in arrears on June&nbsp;15th and December&nbsp;15th of each year.
The Convertible Notes are unsecured unsubordinated obligations and rank equally
with all other unsecured and unsubordinated indebtedness. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Convertible Notes had an initial conversion rate of 32.4002 of our common
shares for each $1,000 principal amount, representing a conversion price of
approximately $30.86 per common share, or a conversion premium of approximately
20.0% based upon our common share price on the date of the issuance of the
Convertible Notes. Pursuant to the terms of the Convertible Notes, the
conversion rate was adjusted to 32.7310 effective October 1, 2008 and 34.1708
effective January 1, 2009. Upon conversion of the Convertible Notes, we will
deliver cash and, in some circumstances, common shares, as specified in the
indenture relating to the Convertible Notes. The Convertible Notes may only be
converted prior to maturity: (i)&nbsp;during any calendar quarter (and only
during such calendar quarter), if, and only if, the closing sale price of our
common shares for at least 20 trading days (whether consecutive or not) in the
period of 30 consecutive trading days ending on the last trading day of the
preceding calendar quarter is greater than 130% of the conversion price per
common share in effect on the applicable trading day; or (ii)&nbsp;during the
five consecutive trading-day period following any five consecutive trading-day
period in which the trading price of the notes was less than 98% of the product
of the closing sale price of our common shares multiplied by the applicable
conversion rate; or (iii)&nbsp;if the Convertible Notes have been called for
redemption, at any time prior to the close of business on the second business
day prior to the redemption date; or (iv)&nbsp;if our common shares are not
listed on a United States national or regional securities exchange for 30
consecutive trading days. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to December&nbsp;20, 2011, we will not have the right to redeem Convertible
Notes, except to preserve our status as a REIT under the Code. After
December&nbsp;20, 2011, we will have the right to redeem the notes, in whole or
in part, at any time and from time to time, for cash equal to 100% of the
principal amount of the notes plus any accrued and unpaid interest to, but not
including, the redemption date. The holders of notes may require us to
repurchase their notes, in whole or in part, on December&nbsp;20, 2011,
December&nbsp;15, 2016, and December 15, 2021 for cash equal to 100% of the
principal amount of the notes to be repurchased plus any accrued and unpaid
interest to, but not including, the repurchase date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
certain change of control transactions occur prior to December&nbsp;20, 2011
and a holder elects to convert the Convertible Notes in connection with any
such transaction, we will increase the conversion rate in connection with such
conversion by a number of additional common shares based on the date such
transaction becomes effective and the price paid per common share in such
transaction. The conversion rate may also be adjusted under certain other
circumstances, including the payment of cash dividends in excess of our current
regular quarterly cash dividend of $0.21 per common share, but will be not
adjusted for accrued and unpaid interest on the notes. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
a conversion of notes, we will deliver cash and, at our election, common
shares, with an aggregate value, which we refer to as the &#147;conversion value,&#148;
equal to the conversion rate multiplied by the average price of our common
shares as follows: (i)&nbsp;an amount in cash which we refer to as the
&#147;principal return,&#148; equal to the lesser of (a)&nbsp;the principal amount of the
converted notes and (b)&nbsp;the conversion value; and (ii)&nbsp;if the
conversion value is greater than the principal return, an amount with a value
equal to the difference between the conversion value and the principal return,
which we refer to as the &#147;new amount.&#148; The net amount may be paid, at our
option, in cash, common shares or a combination of cash and common shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the fourth quarter of 2008, we purchased $8.0 million in principal amount of
the outstanding $115.0 million in principal amount of our Convertible Notes at
a discount of approximately 24%. The transaction resulted in a $2.0 million
gain. The outstanding balance as of December 31, 2008 was $107.0 million.
Subsequent to December 31, 2008 we purchased an additional $18.5 million in
principal amount of the outstanding Convertible Notes at a discount of
approximately 25%.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=A010></A><FONT SIZE=2><B>DESCRIPTION OF DEPOSITARY SHARES</B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following description contains general terms and provisions of the depositary
shares to which any prospectus supplement may relate. The particular terms of
the depositary shares offered by any prospectus supplement and the extent, if
any, to which such general provisions may not apply to the depositary shares so
offered will be described in the prospectus supplement relating to such debt
securities. For more information, please refer to the provisions of the deposit
agreement we will enter into with a depositary to be selected, our declaration,
including the form of articles supplementary for the applicable series of
preferred shares.</I></FONT></P>

<P><FONT SIZE=2><B>General</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may, at our option, elect to offer depositary shares rather than full preferred
shares. In the event such option is exercised, each of the depositary shares
will represent ownership of and entitlement to all rights and preferences of a
fraction of a preferred share of a specified series (including dividend,
voting, redemption and liquidation rights). The applicable fraction will be
specified in a prospectus supplement. The preferred shares represented by the
depositary shares will be deposited with a depositary named in the applicable
prospectus supplement, under a deposit agreement, among us, the depositary and the
holders of the certificates evidencing depositary shares, or depositary
receipts. Depositary receipts will be delivered to those persons purchasing
depositary shares in the offering. The depositary will be the transfer agent,
registrar and dividend disbursing agent for the depositary shares. Holders of
depositary receipts agree to be bound by the deposit agreement, which requires
holders to take certain actions such as filing proof of residence and paying
certain charges.</FONT></P>

<P><FONT SIZE=2><B>Dividends</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
depositary will distribute all cash dividends or other cash distributions
received in respect of the series of preferred shares represented by the
depositary shares to the record holders of depositary receipts in proportion to
the number of depositary shares owned by such holders on the relevant record
date, which will be the same date as the record date fixed by us for the
applicable series of preferred shares. The depositary, however, will distribute
only such amount as can be distributed without attributing to any depositary
share a fraction of one cent, and any balance not so distributed will be added
to and treated as part of the next sum received by the depositary for
distribution to record holders of depositary receipts then outstanding.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a distribution other than in cash, the depositary will distribute
property received by it to the record holders of depositary receipts entitled
thereto, in proportion, as nearly as may be practicable, to the number of
depositary shares owned by such holders on the relevant record date, unless the
depositary determines (after consultation with us) that it is not feasible to
make such distribution, in which case the depositary may (with our approval)
adopt any other method for such distribution as it deems equitable and
appropriate, including the sale of such property (at such place or places and
upon such terms as it may deem equitable and appropriate) and distribution of
the net proceeds from such sale to such holders.</FONT></P>

<P><FONT SIZE=2><B>Liquidation
Preference</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of the liquidation, dissolution or winding up of the affairs of the
Company, whether voluntary or involuntary, the holders of each depositary share
will be entitled to the fraction of the liquidation preference accorded each
share of the applicable series of preferred shares as set forth in the
prospectus supplement.</FONT></P>

<P><FONT SIZE=2><B>Redemption</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the series of preferred shares represented by the applicable series of
depositary shares is redeemable, such depositary shares will be redeemed from
the proceeds received by the depositary resulting from the redemption, in whole
or in part, of preferred shares held by the depositary. Whenever we redeem any
preferred shares held by the depositary, the depositary will redeem as of the
same redemption date the number of depositary shares representing the preferred
shares so redeemed. The depositary will mail the notice of redemption promptly
upon receipt of such notice from us and not less than 30 nor more than 60 days
prior to the date fixed for redemption of the preferred shares and the
depositary shares to the record holders of the depositary receipts.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>

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<P><FONT SIZE=2><B>Voting</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly upon receipt of notice of any meeting at which the holders of the
series of preferred shares represented by the applicable series of depositary
shares are entitled to vote, the depositary will mail the information contained
in such notice of meeting to the record holders of the depositary receipts as
of the record date for such meeting. Each such record holder of depositary
receipts will be entitled to instruct the depositary as to the exercise of the
voting rights pertaining to the number of preferred shares represented by such
record holder&#146;s depositary shares. The depositary will endeavor, insofar as
practicable, to vote such preferred shares represented by such depositary
shares in accordance with such instructions, and we will agree to take all
action which may be deemed necessary by the depositary in order to enable the
depositary to do so. The depositary will abstain from voting any of the
preferred shares to the extent that it does not receive specific instructions
from the holders of depositary receipts. </FONT></P>

<P><FONT SIZE=2><B>Withdrawal
of Preferred Shares</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
surrender of depositary receipts at the principal office of the depositary, upon
payment of any unpaid amount due the depositary, and subject to the terms of
the deposit agreement, the owner of the depositary shares evidenced thereby is
entitled to delivery of the number of whole preferred shares and all money and
other property, if any, represented by such depositary shares. Fractional
preferred shares will not be issued. If the depositary receipts delivered by
the holder evidence a number of depositary shares in excess of the number of
depositary shares representing the number of whole preferred shares to be
withdrawn, the depositary will deliver to such holder at the same time a new
depositary receipt evidencing such excess number of depositary shares. Holders
of preferred shares thus withdrawn will not thereafter be entitled to deposit
such shares under the deposit agreement or to receive depositary receipts
evidencing depositary shares therefor.</FONT></P>

<P><FONT SIZE=2><B>Amendment
and Termination of Deposit Agreement</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
form of depositary receipt evidencing the depositary shares and any provision
of the deposit agreement may at any time and from time to time be amended by
agreement between us and the depositary. However, any amendment which
materially and adversely alters the rights of the holders (other than any
change in fees) of depositary shares will not be effective unless such
amendment has been approved by the holders of at least a majority of the
depositary shares then outstanding. No such amendment may impair the right,
subject to the terms of the deposit agreement, of any owner of any depositary
shares to surrender the depositary receipt evidencing such depositary shares
with instructions to the depositary to deliver to the holder of preferred
shares and all money and other property, if any, represented thereby, except in
order to comply with mandatory provisions of applicable law.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
deposit agreement will be permitted to be terminated by us upon not less than
30 days prior written notice to the applicable depositary if (i) such
termination is necessary to preserve our qualification as a REIT under the Code
or (ii) a majority of each series of preferred shares affected by such
termination consents to such termination, whereupon such depositary will be
required to deliver or make available to each holder of depositary receipts, upon
surrender of the depositary receipts held by such holder, such number of whole
or fractional preferred shares as are represented by the depositary shares
evidenced by such depositary receipts together with any other property held by
such depositary with respect to such depositary receipts. We will agree that if
the deposit agreement is terminated to preserve our qualification as a REIT
under the Code, then we will use our best efforts to list the preferred shares
issued upon surrender of the related depositary shares on a national securities
exchange. In addition, the deposit agreement will automatically terminate if
(i) all outstanding depositary shares thereunder shall have been redeemed, (ii)
there shall have been a final distribution in respect of the related preferred
shares in connection with any liquidation, dissolution or winding up of Acadia
Realty Trust and such distribution shall have been distributed to the holders
of depositary receipts evidencing the depositary shares representing such preferred
shares or (iii) each preferred share shall have been converted into shares of
Acadia Realty Trust not so represented by depositary shares.</FONT></P>

<P><FONT SIZE=2><B>Charges
of Depositary</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will pay all transfer and other taxes and governmental charges arising solely from
the existence of the depositary arrangements. We will pay charges of the
depositary in connection with the initial deposit of the preferred shares and
initial issuance of the depositary shares, and redemption of the preferred
shares and all withdrawals of preferred shares by owners of depositary shares.
Holders of depositary receipts will pay transfer, income and other taxes and
governmental charges and certain other charges as are provided in the deposit
agreement </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>to be for their accounts. In certain circumstances,
the depositary may refuse to transfer depositary shares, may withhold dividends
and distributions and sell the depositary shares evidenced by such depositary
receipt if such charges are not paid.</FONT></P>

<P><FONT SIZE=2><B>Miscellaneous</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
depositary will forward to the holders of depositary receipts all reports and
communications from us which are delivered to the depositary and which we are
required to furnish to the holders of the preferred shares. In addition, the
depositary will make available for inspection by holders of depositary receipts
at the principal office of the depositary, and at such other places as it may
from time to time deem advisable, any reports and communications received from
us which are received by the depositary as the holder of preferred shares.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
we nor the depositary assumes any obligation or will be subject to any
liability under the deposit agreement to holders of depositary receipts other
than for its negligence or willful misconduct. Neither we nor the depositary
will be liable if it is prevented or delayed by law or any circumstance beyond
its control in performing its obligations under the deposit agreement. The
obligations of the Company and the depositary under the deposit agreement will
be limited to performance in good faith of their duties thereunder, and they
will not be obligated to prosecute or defend any legal proceeding in respect of
any depositary shares or preferred shares unless satisfactory indemnity is
furnished. We and the depositary may rely on written advice of counsel or
accountants, on information provided by holders of the depositary receipts or
other persons believed in good faith to be competent to give such information
and on documents believed to be genuine and to have been signed or presented by
the proper party or parties. In the event the depositary shall receive
conflicting claims, requests or instructions from any holders of depositary
receipts, on the one hand, and we, on the other hand, the depositary shall be
entitled to act on such claims, requests or instructions received from us.</FONT></P>

<P><FONT SIZE=2><B>Resignation
and Removal of Depositary</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
depositary may resign at any time by delivering to us notice of its election to
do so, and we may at any time remove the depositary, any such resignation or
removal to take effect upon the appointment of a successor depositary and its
acceptance of such appointment. Such successor depositary must be appointed
within 60 days after delivery of the notice for resignation or removal and must
be a bank or trust company having its principal office in the United States of
America and having a combined capital and surplus of at least $150,000,000.</FONT></P>

<P><FONT SIZE=2><B>Restrictions
on Ownership and Transfer</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
us to qualify as a REIT under the Code, not more than 50% in value of our
outstanding capital shares may be owned, directly or indirectly, by five or
fewer individuals (as defined in the Code to include certain entities) during
the last half of a taxable year. To assist us in meeting this requirement, we
may take certain actions to limit the beneficial ownership, directly or
indirectly, by a single person of our outstanding equity securities, including
any depositary shares. The applicable prospectus supplement will specify any
additional ownership limitation relating to the depositary shares being offered
thereby. See &#147;Restrictions on Transfers of Capital Stock and Anti-Takeover
Provisions&#148; beginning on page 22 of this prospectus.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=A011></A><FONT SIZE=2><B>DESCRIPTION OF WARRANTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may issue warrants for the purchase of debt or equity securities described in
this prospectus. Warrants may be issued independently or together with any
offered securities and may be attached to or separate from such securities.
Each series of warrants will be issued under a separate warrant agreement we
will enter into with a warrant agent specified in the agreement. The warrant
agent will act solely as our agent in connection with the warrants of that
series and will not assume any obligation or relationship of agency or trust
for or with any holders or beneficial owners of warrants. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
prospectus supplement relating to any series of warrants being offered will
include specific terms relating to the offering. They will include, where
applicable:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the title of the warrants;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the aggregate number of warrants;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the price or prices at which the warrants will be
 issued;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the currencies in which the price or prices of the
 warrants may be payable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the designation, amount and terms of the offered
 securities purchasable upon exercise of the warrants;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the designation and terms of the other offered
 securities, if any, with which the warrants are issued and the number of
 warrants issued with the security;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if applicable, the date on and after which the
 warrants and the offered securities purchasable upon exercise of the warrants
 will be separately transferable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the price or prices at which, and currency or
 currencies in which, the offered securities purchasable upon exercise of the
 warrants may be purchased;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the date on which the right to exercise the warrants
 shall commence and the date on which the right shall expire;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the minimum or maximum amount of the warrants which
 may be exercised at any one time;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>information with respect to book-entry procedures,
 if any;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any listing of warrants on any securities exchange;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if appropriate, a discussion of material U.S.
 federal income tax considerations; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any other material term of the warrants, including terms,
 procedures and limitations relating to the exchange and exercise of the
 warrants.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Restrictions
on Ownership and Transfer</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
us to qualify as a REIT under the Code, not more than 50% in value of our
outstanding capital shares may be owned, directly or indirectly, by five or
fewer individuals (as defined in the Code to include certain entities) during
the last half of a taxable year. To assist us in meeting this requirement, we
may take certain actions to limit the beneficial ownership, directly or
indirectly, by a single person of our outstanding equity securities, including
any equity shares that may be purchased pursuant to the warrants. The
applicable prospectus supplement will specify any additional ownership
limitation relating to the warrants being offered thereby. See &#147;Restrictions on
Transfers of Capital Stock and Anti-Takeover Provisions&#148; beginning on page 22
of this prospectus.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>19</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=A012></A><FONT SIZE=2><B>DESCRIPTION OF SUBSCRIPTION RIGHTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a general description of the terms of the subscription rights we
may issue from time to time. Particular terms of any subscription rights we
offer will be described in the prospectus supplement relating to such
subscription rights.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may issue subscription rights to purchase our common shares. These subscription
rights may be issued independently or together with any other security offered
hereby and may or may not be transferable by the shareholder receiving the
subscription rights in such offering. In connection with any offering of
subscription rights, we may enter into a standby arrangement with one or more
underwriters or other purchasers pursuant to which the underwriters or other
purchasers may be required to purchase any securities remaining unsubscribed
for after such offering.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
applicable prospectus supplement will describe the specific terms of any
offering of subscription rights for which this prospectus is being delivered,
including the following:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the price, if any, for the subscription rights;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the exercise price payable for each common share
 upon the exercise of the subscription rights;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the number of subscription rights issued to each
 shareholder;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the number and terms of the common shares which may
 be purchased per each subscription right;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the extent to which the subscription rights are
 transferable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any other terms of the subscription rights,
 including the terms, procedures and limitations relating to the exchange and
 exercise of the subscription rights;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the date on which the right to exercise the
 subscription rights shall commence, and the date on which the subscription
 rights shall expire;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the extent to which the subscription rights may
 include an over-subscription privilege with respect to unsubscribed
 securities; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if appropriate, a discussion of material U.S.
 federal income tax considerations; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if applicable, the material terms of any standby
 underwriting or purchase arrangement entered into by us in connection with
 the offering of subscription rights.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
description in the applicable prospectus supplement of any subscription rights
we offer will not necessarily be complete and will be qualified in its entirety
by reference to the applicable subscription rights certificate or subscription
rights agreement, which will be filed with the SEC if we offer subscription
rights.</FONT></P>

<P><FONT SIZE=2><B>Restrictions
on Ownership and Transfer</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
us to qualify as a REIT under the Code, not more than 50% in value of our
outstanding capital shares may be owned, directly or indirectly, by five or
fewer individuals (as defined in the Code to include certain entities) during
the last half of a taxable year. To assist us in meeting this requirement, we
may take certain actions to limit the beneficial ownership, directly or
indirectly, by a single person of our outstanding equity securities, including
any subscription rights to acquire our equity shares. The applicable prospectus
supplement will specify any additional ownership limitation relating to the
subscription rights being offered thereby. See &#147;Restrictions on Transfers of
Capital Stock and Anti-Takeover Provisions&#148; beginning on page 22 of this
prospectus.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>20</FONT></P>

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<P ALIGN=CENTER><FONT SIZE=2><B>D<A NAME=A013></A>ESCRIPTION OF UNITS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
specified in the applicable prospectus supplement, we may issue units
consisting of one or more common shares, preferred shares, debt securities,
subscription rights, depositary shares, warrants or any combination of such securities.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
applicable prospectus supplement will specify the following terms of any units
in respect of which this prospectus is being delivered:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the terms of
 the units and of any of the common shares, preferred shares, debt securities,
 warrants, subscription rights or depositary shares comprising the units,
 including whether and under what circumstances the securities comprising the
 units may be traded separately;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a
 description of the terms of any unit agreement governing the units; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if
 appropriate, a discussion of material U.S. federal income tax considerations;
 and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a
 description of the provisions for the payment, settlement, transfer or
 exchange of the units. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Restrictions on Ownership and Transfer </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
us to qualify as a REIT under the Code, not more than 50% in value of our
outstanding capital shares may be owned, directly or indirectly, by five or
fewer individuals (as defined in the Code to include certain entities) during
the last half of a taxable year. To assist us in meeting this requirement, we
may take certain actions to limit the beneficial ownership, directly or
indirectly, by a single person of our outstanding equity securities, including
any units. The applicable prospectus supplement will specify any additional
ownership limitation relating to the units being offered thereby. See
&#147;Restrictions on Transfers of Capital Stock and Anti-Takeover Provisions&#148;
beginning on page 22 of this prospectus. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>21</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>R<A NAME=A014></A>ESTRICTIONS ON TRANSFERS OF
CAPITAL STOCK AND ANTI-TAKEOVER PROVISIONS</B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
summary does not purport to be complete and is qualified in its entirety by
reference to our declaration of trust and bylaws, each as supplemented, amended
or restated, the Internal Revenue Code, and Maryland law. See &#147;Where You Can
Find More Information&#148; on page 52 of this prospectus. </I></FONT></P>

<P><FONT SIZE=2><B>Declaration of Trust </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Restrictions on Ownership and Transfer of Our
Capital
Stock</I>.</B>
To qualify as a REIT under the Internal Revenue Code of 1986, as amended, or
the Code, we must satisfy certain ownership requirements. Specifically, not
more than 50% in value of our outstanding common shares may be owned, directly
or indirectly, by five or fewer individuals (as defined in the Code to include
certain entities) during the last half of a taxable year, and the common shares
must be beneficially owned by 100 or more persons during at least 335 days of a
taxable year of twelve months or during a proportionate part of a shorter
taxable year. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order for us to continue to qualify as a REIT under the Code,
our declaration of trust contains provisions aimed at satisfying the
requirements described above. In regard to the ownership requirements, the
declaration of trust provides that no person may own, directly or indirectly
(by virtue of (i) the attribution rules of the Code or (ii) being a beneficial
owner as defined in Rule 13d-3 promulgated under the Securities Exchange Act of
1934, as amended), more than 9.8% in value or number of the issued and
outstanding shares of any class or series of our shares of beneficial interest,
subject to certain exceptions. The trustees may waive this limitation if such
ownership will not jeopardize our status as a REIT. As a condition of such
waiver, the trustees may require opinions of counsel satisfactory to them
and/or an undertaking from the applicant with respect to preserving our REIT
status under the Code. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
declaration of trust also provides that any purported transfer or issuance of
any class or series of our shares of beneficial interest or our securities
transferable into such shares that would (i) violate the 9.8% limitation
described above, (ii) result in shares being owned by fewer than 100 persons
for purposes of the REIT provisions of the Code, (iii) result in our being
&#147;closely held&#148; within the meaning of Section 856(h) of the Code, or (iv)
otherwise jeopardize our REIT status under the Code (including a transfer which
would cause us to own, actually or constructively, 9.8% or more of the
ownership interests in one of our lessees) will be null and void ab initio
(from the beginning). Moreover, shares of beneficial interest transferred, or
proposed to be transferred, in contravention of the above will be subject to
purchase by us at a price equal to the fair market value of such shares
(determined in accordance with the rules set forth in our declaration of
trust).</FONT></P>

 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All certificates representing the common shares bear a legend referring
to the restrictions described above.</FONT></P>

 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ownership limitations described above
could have the effect of delaying, deferring or preventing a takeover or other
transaction in which holders of some, or a majority, of common shares might
receive a premium for their shares over the then prevailing market price or
which such holders might believe to be otherwise in their best interest. </FONT></P>

<P><FONT SIZE=2><B>Maryland Law </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Control Share Acquisitions.</I></B>
The Maryland General Corporation Law (&#147;MGCL&#148;) provides that &#147;control shares&#148; of
a Maryland corporation acquired in a &#147;control share acquisition&#148; have no voting
rights except to the extent approved by a vote of two-thirds of the votes
entitled to be cast on the matter, excluding shares owned by the acquirer, by
officers or by directors who are employees of the corporation. &#147;Control Shares&#148;
are voting shares of stock which, if aggregated with all other such shares of
stock previously acquired by the acquirer, or in respect of which the acquirer
is able to exercise or direct the exercise of voting power (except solely by
virtue of a revocable proxy), would entitle the acquirer to exercise voting
power in electing directors within one of the following ranges of voting power:
(i) one-tenth or more but less than one-third, (ii) one-third or more but less
than a majority, or (iii) a majority or more of all voting power. Control
Shares do not include shares which the acquiring person is then entitled to
vote as a result of having previously obtained stockholder approval. A &#147;control
share acquisition&#148; means the acquisition of control shares, subject to certain
exceptions.</FONT></P>

 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person who has made or proposes to make a control share
acquisition, upon satisfaction of certain conditions (including an undertaking
to pay expenses), may compel the board of directors of the corporation to call
a </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>22</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>special
meeting of stockholders to be held within 50 days of demand to consider the
voting rights of the shares. If no request for a meeting is made, the
corporation may itself present the question at any stockholders meeting.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
voting rights are not approved at the meeting or if the acquiring person does
not deliver an acquiring person statement as required by the statute, then,
subject to certain conditions and limitations, the corporation may redeem any
or all of the control shares (except those for which voting rights have previously
been approved) for fair value determined, without regard to the absence of
voting rights for the control shares, as of the date of the last control share
acquisition by the acquirer or of any meeting of stockholders at which the
voting rights of such shares are considered and not approved. If voting rights
for control shares are approved at a stockholders meeting and the acquirer
becomes entitled to vote a majority of the shares entitled to vote, all other
stockholders may exercise appraisal rights. The fair value of the shares as
determined for purposes of such appraisal rights may not be less than the
highest price per share paid by the acquirer in the control share acquisition,
and certain limitations and restrictions otherwise applicable to the exercise
of dissenters&#146; rights do not apply in the context of a control share
acquisition.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing does not apply to shares acquired in a merger, consolidation or share
exchange, if the corporation is a party to the transaction, or to acquisitions
approved or exempted by the declaration of trust or bylaws of the corporation.
Pursuant to the MGCL, we have opted out of the control share statute and,
therefore, it is not applicable to acquisitions of our common shares.</FONT></P>

<P><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business
Combinations</I>.</B> Section 8-301(14) of the MGCL
permits a Maryland REIT to enter into a business combination (including a
merger, consolidation, share exchange or, in certain circumstances, an asset
transfer or issuance or reclassification of equity securities) on the same
terms as a Maryland corporation under the MGCL. Under the MGCL, certain
business combinations between a Maryland corporation and any person who
beneficially owns 10% or more of the voting power of such corporation&#146;s shares,
or an affiliate of such corporation who, at any time within the two-year period
prior to the date in question, was the beneficial owner of 10% or more of the
voting power of the then-outstanding voting shares of such corporation (an
&#147;Interested Stockholder&#148;) or an affiliate thereof, are prohibited for five
years after the most recent date on which the Interested Stockholder becomes an
Interested Stockholder. Thereafter, any such business combination must be
recommended by the board of directors of such corporation and approved by the affirmative
vote of at least (a) 80% of the votes entitled to be cast by holders of
outstanding shares of voting stock of such corporation and (b) two-thirds of
the votes entitled to be cast by holders of shares of voting stock of such
corporation other than the shares held by the Interested Stockholder with whom
(or with whose affiliate) the business combination is to be effected, unless,
among other conditions, the corporation&#146;s common shareholders receive a minimum
price (as defined in the MGCL) for their shares and the consideration is
received in cash or in the same form as previously paid by the Interested
Stockholder for its shares. </FONT></P>

<P><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
Elective Provisions of Maryland Law.</I></B> As an
additional anti-takeover defense, Maryland law permits publicly-held Maryland
statutory REITs to elect to be governed by all or any part of Maryland law
provisions relating to unsolicited takeovers, as described below. The election
to be governed by one or more of these provisions can be made by a
publicly-held Maryland REIT in its declaration of trust or bylaws (&#147;charter
documents&#148;) or by resolution adopted by its board of trustees so long as it has
at least three trustees who, at the time of electing to be subject to the
provisions, are not officers or employees, are not persons seeking to acquire
control of the REIT, are not trustees, officers, affiliates or associates of
any person seeking to acquire control, and were not nominated or designated as
trustees by a person seeking to acquire control. Our charter documents do not
contain any such provisions.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
if the charter documents do not already contain these provisions, a REIT may
adopt one or more of these additional anti-takeover provisions by a board
resolution or a bylaw amendment, following which it must file articles
supplementary to its declaration of trust with the Maryland State Department of
Assessments and Taxation. Shareholder approval is not required for the filing
of these articles supplementary. Our board of trustees has not passed any such
resolution or bylaw amendment and we have not filed such articles
supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Maryland REIT may elect to be subject to all or any portion of the following
anti-takeover provisions of Maryland law, notwithstanding any contrary provisions
in the REIT&#146;s charter documents:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Classified
Board</U>: A REIT may divide its board into three classes which, to the extent
possible, will have the same number of trustees, the terms of which will expire
at the third annual meeting of shareholders after the election of each class,
with the first class term expiring one year after adoption, the second class
term expiring two years later and the third class term expiring three years
later. We do not have a classified board. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Two-thirds
Shareholder Vote to Remove Trustees</U>: If the REIT has a classified board,
the shareholders may remove any trustee only by the affirmative vote of at
least two-thirds of all votes entitled to be cast by the shareholders generally
in the election of trustees, but a trustee may not be removed without cause. If
the REIT does not have a classified board, the shareholders may remove any
trustee only by the affirmative vote of at least two-thirds of all votes
entitled to be cast by the shareholders generally in the election of trustees,
with or without cause.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Size
of Board Fixed by Vote of Board</U>: The number of trustees will be fixed only
by resolution of the board.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Board
Vacancies Filled by the Board for the Remaining Term</U>: Vacancies that result
from an increase in the size of the board, or the death, resignation, or
removal of a trustee, may be filled only by the affirmative vote of a majority
of the remaining trustees even if they do not constitute a quorum. Trustees
elected to fill vacancies will hold office for the remainder of the full term
of the class of trustees in which the vacancy occurred, as opposed to until the
next annual meeting of shareholders, and until a successor is elected and
qualified.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Shareholder
Calls of Special Meetings</U>: Special meetings of shareholders may be called
by the secretary of a REIT only upon the written request of shareholders
entitled to cast at least a majority of all votes entitled to be cast at the
meeting and only in accordance with procedures set out in the MGCL.</FONT></P>


 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As we have
stated above, we have not elected to be subject to any of the foregoing
anti-takeover provisions. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>24</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>C<A NAME=A015></A>ERTAIN PROVISIONS OF
MARYLAND LAW AND OUR DECLARATION OF TRUST AND BYLAWS</B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
summary does not purport to be complete and is qualified in its entirety by
reference to our declaration of trust and bylaws, each as supplemented, amended
or restated. See &#147;Where You Can Find More Information&#148; on page 52 of this
prospectus. </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Number of Trustees; Election of Trustees, Removal of
Trustees, the Filling of Vacancies</I></B><B>.</B> Our declaration of trust provides that
the board of trustees will consist of not less than two nor more than fifteen
persons, and that the number of trustees will be set by the trustees then in
office. Our board currently consists of seven trustees, each of whom serves
until the next annual meeting of shareholders and until his successor is duly
elected and qualified. Election of each trustee requires the approval of a
plurality of the votes cast by the holders of common shares in person or by
proxy at our annual meeting. The board of trustees has a nominating committee.
Our bylaws provide that the shareholders may, at any time, remove any trustee,
with or without cause, by the affirmative vote of two-thirds of all the votes
entitled to be cast on the matter and may elect by majority vote a successor to
fill any resulting vacancy for the balance of the term of the removed trustee.
Any vacancy (including a vacancy created by an increase in the number of trustees)
will be filled, at any regular meeting or at any special meeting called for
that purpose, by a majority of the trustees. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Limitation of Liability and Indemnification of
Trustees and Officers.</I></B> Our bylaws and
declaration of trust authorize us, to the extent permitted under Maryland law,
to indemnify our trustees and officers in their capacity as such. Section
8-301(15) of the MGCL permits a Maryland REIT to indemnify or advance expenses
to trustees and officers to the same extent as is permitted for directors and
officers of a Maryland corporation under the MGCL. The MGCL requires a Maryland
corporation (unless its charter provides otherwise, which our declaration of
trust does not) to indemnify a director or officer who has been successful, on
the merits or otherwise against reasonable expenses, in the defense of any
proceeding to which he is made a party by reason of his service in that
capacity, or in the defense of any claim, issue or matter in the proceeding.
The MGCL permits a Maryland corporation to indemnify its present and former
directors and officers, among others, against judgments, penalties, fines,
settlements and reasonable expenses actually incurred by them in connection
with any proceeding to which they may be made a party by reason of their
service in those or other capacities unless it is established that (a) the act
or omission of the director or officer was material to the matter giving rise
to the proceeding and (i) was committed in bad faith or (ii) was the result of
active and deliberate dishonesty, (b) the director or officer actually received
an improper personal benefit in money, property or services or (c) in the case
of any criminal proceeding, the director or officer had reasonable cause to
believe that the act or omission was unlawful. However, a Maryland corporation
may not indemnify for an adverse judgment in a suit by or in the right of the
corporation for a judgment of liability on the basis that the officer or
director shall have been adjudged to be liable to us or that a personal benefit
was improperly received, unless in either case a court orders indemnification
and then only for expenses. In addition, the MGCL permits a corporation to
advance reasonable expenses to a director or officer upon the corporation&#146;s
receipt of a written affirmation by the director or officer of his or her good
faith belief that he or she has met the standard of conduct necessary for
indemnification by the corporation and a written undertaking by such director
or officer on his or her behalf to repay the amount paid or reimbursed by the
corporation if it shall ultimately be determined that the standard of conduct
was not met.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
bylaws also permit us, subject to the approval of our board of trustees, to
indemnify and advance expenses to any person who served as predecessor of ours
in any of the capacities described above and to any employee or agent of us or
a predecessor of us. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the above, we have purchased and maintain insurance on behalf of
all of our trustees and executive officers against liability asserted against
or incurred by them in their official capacities with us, whether or not we are
required or have the power to indemnify them against the same liability.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers or persons controlling the registrant pursuant
to the foregoing provisions, the registrant has been informed that in the
opinion of the SEC such indemnification is against public policy as expressed
in the Securities Act and is therefore unenforceable. </FONT></P>

<P><FONT SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments
to our Declaration of Trust.</I></B> In general, the
declaration of trust may be amended by the affirmative vote or written consent
of the holders of not less than a majority of the common shares then
outstanding and entitled to vote thereon. However, amendments with respect to
certain provisions relating to the ownership </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>25</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>requirements,
reorganizations and certain mergers or consolidations or the sale of
substantially all of our assets, require the affirmative vote or written
consent of the holders of not less than two-thirds of the common shares then
outstanding and entitled to vote thereon. Our trustees, by a two-thirds vote,
may amend the provisions of the declaration of trust from time to time to
effect any change deemed necessary by our trustees to allow us to qualify and
continue to qualify as a REIT.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Termination of Operations or our REIT
Status.</I></B>
The declaration of trust permits the termination and the discontinuation of our
operations by the affirmative vote of the holders of not less than two-thirds
of the outstanding shares entitled to vote at a meeting of shareholders called
for that purpose. In addition, the declaration of trust permits the trustees to
terminate our REIT status at any time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Anti-Takeover Effect of Certain Provisions of the
Declaration of Trust.</I></B> The limitation on
ownership of capital stock set forth in our declaration of trust could have the
effect of discouraging offers to acquire us or of hampering the consummation of
a contemplated acquisition. See &#147;Restrictions on Transfers of Capital Stock and
Anti-Takeover Provisions&#148; beginning on page 22 of this prospectus. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>26</FONT></P>

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<P ALIGN=CENTER><FONT SIZE=2><B>M<A NAME=A016></A>ATERIAL UNITED STATES
FEDERAL INCOME TAX CONSIDERATIONS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following discussion describes certain of the material U.S. federal income tax
considerations relating to our taxation as a REIT under the Code, and the
ownership and disposition of our common shares.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we offer one or more additional series of common shares or preferred shares,
debt securities, depositary shares, warrants to purchase debt or equity
securities, subscription rights to purchase our common shares or units
consisting of one or more common shares, debt securities, subscription rights,
depositary shares, warrants or any combination of the foregoing securities, the
prospectus supplement would include information about certain material U.S.
federal income tax consequences to holders of any of the offered securities.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
this summary is only intended to address certain of the material U.S. federal
income tax considerations relating to the ownership and disposition of our
common shares, it may not contain all of the information that may be important
to you. As you review this discussion, you should keep in mind that:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the tax
 consequences to you may vary depending on your particular tax situation; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>you may be a
 person that is subject to special tax treatment or special rules under the
 Code (<I>e.g.</I>, regulated
 investment companies, insurance companies, tax-exempt entities, financial
 institutions or broker-dealers, expatriates, persons subject to the
 alternative minimum tax and partnerships, trusts, estates or other pass
 through entities) that the discussion below does not address; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
 discussion below does not address any state, local or non-U.S. tax
 considerations; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
 discussion below deals only with shareholders that hold our common shares as
 a &#147;capital asset,&#148; within the meaning of Section 1221 of the Code. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
urge you to consult with your own tax advisors regarding the specific tax
consequences to you of acquiring, owning and selling our common shares,
including the federal, state, local and foreign tax consequences of acquiring,
owning and selling our common shares in your particular circumstances and
potential changes in applicable laws.</FONT></P>


 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in this section
is based on the Code, final, temporary and proposed Treasury Regulations
promulgated thereunder, the legislative history of the Code, current
administrative interpretations and practices of the Internal Revenue Service
(the &#147;IRS&#148;) (including in private letter rulings and other non-binding guidance
issued by the IRS), as well as court decisions all as of the date hereof. No
assurance can be given that future legislation, Treasury Regulations,
administrative interpretations and court decisions will not significantly
change current law or adversely affect existing interpretations of current law,
or that any such change would not apply retroactively to transactions or events
preceding the date of the change. We have not obtained, and do not intend to
obtain, any rulings from the IRS concerning the U.S. federal income tax
treatment of the matters discussed below. Furthermore, neither the IRS nor any
court is bound by any of the statements set forth herein and no assurance can
be given that the IRS will not assert any position contrary to statements set
forth herein or that a court will not sustain such position. </FONT></P>

<P><FONT SIZE=2><B><I>Taxation of Acadia
Realty Trust as a REIT </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seyfarth
Shaw LLP, which has acted as our tax counsel, has reviewed the following
discussion and is of the opinion that it fairly summarizes the material U.S.
federal income tax considerations relevant to our status as a REIT under the
Code and to investors in our common shares. The following summary of certain
U.S. federal income tax considerations is based on current law, is for general
information only, and is not intended to be (and is not) tax advice.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is the opinion of Seyfarth Shaw LLP that we have been organized and operated in
conformity with the requirements for qualification and taxation as a REIT under
the Code, commencing with our taxable year ended December 31, 2001, the Company
qualified and will qualify to be taxed as a REIT pursuant to sections 856
through 860 of the Code, and that our current and proposed method of operation
will enable us to continue to meet the requirements for qualification and
taxation as a REIT under the Code. We must emphasize that this opinion of
Seyfarth Shaw LLP is based on various assumptions, certain representations and
statements made by us as to factual </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>27</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>matters and is
conditioned upon such assumptions, representations and statements being
accurate and complete. Seyfarth Shaw LLP is not aware of any facts or
circumstances that are not consistent with these representations, assumptions
and statements. Potential purchasers of our common shares should be aware, however,
that opinions of counsel are not binding upon the IRS or any court. In general,
our qualification and taxation as a REIT depends upon our ability to satisfy,
through actual operating results, distribution, diversity of share ownership,
and other requirements imposed under the Code, none of which has been, or will
be, reviewed by Seyfarth Shaw LLP. Accordingly, while we intend to continue to
qualify to be taxed as a REIT under the Code no assurance can be given that the
actual results of our operations for any particular taxable year has satisfied,
or will satisfy, the requirements for REIT qualification.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing
with our taxable year ended December 31, 1993, we elected to be taxed as a REIT
under the Code. We believe that commencing with our taxable year ended December
31, 1993, we have been organized and have operated in such a manner so as to
qualify as a REIT under the Code, and we intend to continue to operate in such
a manner. However, we cannot assure you that we will, in fact, continue to
operate in such a manner or continue to so qualify as a REIT under the Code.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we qualify for taxation as a REIT under the Code, we generally will not be
subject to a corporate-level tax on our net income that we distribute currently
to our shareholders. This treatment substantially eliminates the &#147;double
taxation&#148; (<I>i.e.</I>, a
corporate-level tax and shareholder-level tax) that generally results from
investment in a regular subchapter C corporation. However, we will be subject
to U.S. federal income tax as follows: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>First, we
 would be taxed at regular corporate rates on any of our undistributed REIT
 taxable income, including our undistributed net capital gains (although, to
 the extent so designated by us, shareholders would receive an offsetting
 credit against their own U.S. federal income tax liability for U.S. federal
 income taxes paid by us with respect to any such gains). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Second,
 under certain circumstances, we may be subject to the &#147;corporate alternative
 minimum tax&#148; on our items of tax preference. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Third, if we
 have (a) net income from the sale or other disposition of &#147;foreclosure
 property,&#148; which is, in general, property acquired on foreclosure or
 otherwise on default on a loan secured by such real property or a lease of
 such property, which is held primarily for sale to customers in the ordinary
 course of business or (b) other nonqualifying income from foreclosure
 property, we will be subject to tax at the highest corporate rate on such
 income. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fourth, if
 we have net income from prohibited transactions such income will be subject
 to a 100% tax. Prohibited transactions are, in general, certain sales or
 other dispositions of property held primarily for sale to customers in the
 ordinary course of business other than foreclosure property. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fifth, if we
 should fail to satisfy the annual 75% gross income test or 95% gross income
 test (as discussed below), but nonetheless maintain our qualification as a
 REIT under the Code because certain other requirements have been met, we will
 have to pay a 100% tax on an amount equal to (a) the gross income
 attributable to the greater of (i) 75% of our gross income over the amount of
 gross income that is qualifying income for purposes of the 75% test, and (ii)
 95% of our gross income (90% for taxable years beginning on or before October
 22, 2004) over the amount of gross income that is qualifying income for
 purposes of the 95% test, multiplied by (b) a fraction intended to reflect
 our profitability. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Sixth, if we
 should fail to distribute during each calendar year at least the sum of (i)
 85% of our REIT ordinary income for such year, (ii) 95% of our REIT capital
 gain net income for such year, and (iii) any undistributed taxable income
 required to be distributed from prior years, we would be subject to a 4%
 excise tax on the excess of such required distribution over the amount
 actually distributed by us. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Seventh, if
 we were to acquire an asset from a corporation that is or has been a
 subchapter C corporation in a transaction in which the basis of the asset in
 our hands is determined by reference to the basis of the asset in the hands
 of the subchapter C corporation, and we subsequently recognize gain on the
 disposition of the asset within the ten-year period beginning on the day that
 we acquired the asset, then we will have to pay tax on the built-in gain at
 the highest regular corporate rate. The results </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>28</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>described in
 this paragraph assume that no election will be made under Treasury
 Regulations Section 1.337(d)-7 for the subchapter C corporation to be subject
 to an immediate tax when the asset is acquired.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Eighth, for
 taxable years beginning after December 31, 2000, we could be subject to a
 100% tax on certain payments that we receive from one of our taxable REIT
 subsidiaries, (each, a &#147;TRS&#148;), or on certain expenses deducted by one of our
 TRSs, if the economic arrangement between us, the TRS and the tenants at our
 properties are not comparable to similar arrangements among unrelated
 parties. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Ninth, if we
 fail to satisfy a REIT asset test, as described below, during our 2005 and
 subsequent taxable years, due to reasonable cause and we nonetheless maintain
 our REIT qualification under the Code because of specified cure provisions,
 we will generally be required to pay a tax equal to the greater of $50,000 or
 the highest corporate tax rate multiplied by the net income generated by the
 nonqualifying assets that caused us to fail this test. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Tenth, if we
 fail to satisfy any provision of the Code that would result in our failure to
 qualify as a REIT (other than a violation of the REIT gross income tests or a
 violation of the asset tests described below) during our 2005 and subsequent
 taxable years and the violation is due to reasonable cause, we may retain our
 REIT qualification but will be required to pay a penalty of $50,000 for each
 such failure. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Eleventh, we
 may be required to pay monetary penalties to the IRS in certain
 circumstances, including if we fail to meet record-keeping requirements
 intended to monitor our compliance with rules relating to the composition of
 a REIT&#146;s shareholders. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally,
the earnings of our lower-tier entities that are subchapter C corporations,
including TRSs but excluding our QRSs (as defined below), are subject to
federal corporate income tax.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition, we may be subject to a variety of
taxes, including payroll taxes and state, local and foreign income, property
and other taxes on our assets and operations. We could also be subject to tax
in situations and on transactions not presently contemplated. </FONT></P>

<P><FONT SIZE=2><B><I>Requirements for
REIT Qualification&#151;In General </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
qualify as a REIT under the Code, we must elect to be treated as a REIT and
must satisfy the annual gross income tests, the quarterly asset tests,
distribution requirements, diversity of share ownership and other requirements
imposed under the Code. In general, the Code defines a REIT as a corporation,
trust or association:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
that is managed by one or more trustees or directors;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
the beneficial ownership of which is evidenced by transferable shares, or by
transferable certificates of beneficial interest; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
that would otherwise be taxable as a domestic corporation, but for Sections 856
through 859 of the Code;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
that is neither a financial institution nor an insurance company to which
certain provisions of the Code apply;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)
the beneficial ownership of which is held by 100 or more persons;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)
during the last half of each taxable year, not more than 50% in value of the
outstanding stock of which is owned, directly or constructively, by five or
fewer individuals, as defined in the Code to include certain entities; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)
that uses a calendar year for U.S. federal income tax purposes and complies
with the recordkeeping requirements of the U.S. federal income tax laws; and</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)
that meets certain other tests, described below, regarding the nature of its
income and assets. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>29</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Code provides that the requirements (1)-(4), (7) and (8) above must be met
during the entire taxable year and that requirements (5) and (6) above do not
apply to the first taxable year for which a REIT election is made and,
thereafter, requirement (5) must be met during at least 335 days of a taxable
year of 12 months, or during a proportionate part of a taxable year of less
than 12 months. For purposes of requirement (6) above, generally (although
subject to certain exceptions that should not apply with respect to us), any
stock held by a trust described in Section 401(a) of the Code and exempt from
tax under Section 501(a) of the Code is treated as not held by the trust itself
but directly by the trust beneficiaries in proportion to their actuarial
interests in the trust.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
believe that we have satisfied the requirements above for REIT qualification.
In addition, our charter currently includes restrictions regarding the
ownership and transfer of our common shares, which restrictions are intended to
assist us in satisfying some of these requirements (and, in particular
requirements (5) and (6) above). The ownership and transfer restrictions
pertaining to our common shares are described in the prospectus under the
heading &#147;Description of Shares of Beneficial Interest&#151;Restrictions on Ownership
and Transfer.&#148;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
applying the REIT gross income and asset tests, all of the assets, liabilities
and items of income, deduction and credit of a corporate subsidiary of a REIT
that is a &#147;qualified REIT subsidiary&#148; (as defined in Section 856(i)(2) of the
Code) (&#147;QRS&#148;) are treated as the assets, liabilities and items of income,
deduction and credit of the REIT itself. Moreover, the separate existence of a
QRS is disregarded for U.S. federal income tax purposes and the QRS is not
subject to U.S. federal corporate income tax (although it may be subject to
state and local tax in some states and localities). In general, a QRS is any
corporation if all of its stock is held by the REIT, except that it does not
include any corporation that is a TRS of the REIT. Thus, for U.S. federal
income tax purposes, our QRSs are disregarded, and all assets, liabilities and
items of income, deduction and credit of these QRSs are treated as Acadia&#146;s
assets, liabilities and items of income, deduction and credit.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
TRS is any corporation in which a REIT directly or indirectly owns stock,
provided that the REIT and that corporation make a joint election to treat that
corporation as a TRS. The election can be revoked at any time as long as the
REIT and the TRS revoke such election jointly. In addition, if a TRS holds,
directly or indirectly, more than 35% of the securities of any other
corporation other than a REIT (by vote or by value), then that other
corporation is also treated as a TRS. A TRS is subject to U.S. federal income
tax at regular corporate rates (currently a maximum rate of 35%), and may also
be subject to state and local tax. Any dividends paid or deemed paid to us by
any one of our TRSs will also be taxable, either (1) to us to the extent the
dividend is retained by us, or (2) to our shareholders to the extent the
dividends received from the TRS are paid to our shareholders. We may hold more
than 10% of the stock of a TRS without jeopardizing our qualification as a REIT
under the Code notwithstanding the rule described below under &#147;REIT Asset
Tests&#148; that generally precludes ownership of more than 10% of any issuer&#146;s
securities. However, as noted below, in order to qualify as a REIT, the
securities of all of our TRSs in which we have invested either directly or
indirectly may not represent more than 25% (20% for taxable years ending on or
before December 31, 2008) of the total value of our assets. We expect that the
aggregate value of all of our interests in TRSs will represent less than 25%
(20% for taxable years ending on or before December 31, 2008) of the total
value of our assets; however, we cannot assure that this will always be true.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
TRS may generally engage in any business including the provision of customary
or non-customary services to tenants of its parent REIT, which, if performed by
the REIT itself, could cause rents received by the REIT to be disqualified as
&#147;rents from real property.&#148; However, a TRS may not directly or indirectly
operate or manage any hotels or health care facilities or provide rights to any
brand name under which any hotel or health care facility is operated, unless
such rights are provided to an &#147;eligible independent contractor&#148; to operate or
manage a hotel if such rights are held by the TRS as a franchisee, licensee, or
in a similar capacity and such hotel is either owned by the TRS or leased to
the TRS by its parent REIT. However, for taxable years beginning after July 30,
2008, a TRS may provide rights to a brand name under which a health care
facility is operated, if such rights are provided to an &#147;eligible independent
contractor&#148; to operate or manage the health care facility and such health care
facility is either owned by the TRS or leased to the TRS by its parent REIT. A
TRS will not be considered to operate or manage a qualified health care
property or a qualified lodging facility solely because the TRS (i) directly or
indirectly possesses a license, permit, or similar instrument enabling it to do
so, or (ii) employs individuals working at such facility or property located
outside the U.S., but only if an &#147;eligible independent contractor&#148; is
responsible for the daily supervision and direction of such individuals on
behalf of the TRS pursuant to a management agreement or similar service
contract However, the Code contains several provisions which address the
arrangements between a REIT and its TRSs which are intended to ensure that a
TRS recognizes an appropriate amount of taxable income and is subject to an
appropriate level of U.S. federal income tax. For example, a TRS is limited in
its ability to deduct interest payments made to the REIT. In addition, a REIT
would be subject to a 100% </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>30</FONT></P>

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<P><FONT SIZE=2>penalty on
some payments that it receives from a TRS, or on certain expenses deducted by
the TRS if the economic arrangements between the REIT, the REIT&#146;s tenants and
the TRS are not comparable to similar arrangements among unrelated parties. We
have several TRSs and will endeavor to structure any arrangement between
ourselves, our TRSs and our tenants so as to minimize the risk of disallowance
of interest expense deductions or of the 100% penalty being imposed.
Notwithstanding, however, it cannot be assured that the IRS would not challenge
any such arrangement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Also, a REIT that is a partner in a partnership is deemed
to own its proportionate share of each of the assets of the partnership and is
deemed to be entitled to income of the partnership attributable to such
proportionate share. For purposes of Section 856 of the Code, the interest of a
REIT in the assets of a partnership of which it is a partner is determined in
accordance with the REIT&#146;s capital interest in the partnership and the
character of the assets and items of gross income of the partnership retain the
same character in the hands of the REIT. For example, if the partnership holds
any property primarily for sale to customers in the ordinary course of its
trade or business, the REIT is treated as holding its proportionate share of
such property primarily for such purpose. Thus, our proportionate share (based
on our capital interest) of the assets, liabilities and items of income of any
partnership in which we are a partner, including the Operating Partnership (and
our indirect share of the assets, liabilities and items of income of each
lower-tier partnership), will be treated as our assets, liabilities and items
of income for purposes of applying the requirements described in this section.
For purposes of the 10% Value Test (described under &#147;REIT Asset Tests&#148; below)
our proportionate share is based on our proportionate interest in the equity
interests and certain debt securities issued by a partnership. Also, actions
taken by the Operating Partnership or other lower-tier partnerships can affect
our ability to satisfy the REIT gross income and asset tests and the
determination of whether we have net income from a prohibited transaction. For
purposes of this section any reference to &#147;partnership&#148; shall refer to and
include any partnership, limited liability company, joint venture and other
entity or arrangement that is treated as a partnership for U.S. federal income
tax purposes, and any reference to &#147;partner&#148; shall refer to and include a
partner, member, joint venturer and other beneficial owner of any such
partnership, limited liability company, joint venture and other entity or
arrangement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I>REIT Gross Income Tests</I>:
In order to maintain our qualification as a REIT under the Code, we must
satisfy, on an annual basis, two gross income tests. </FONT></P>

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<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>First, at
 least 75% of our gross income, excluding gross income from prohibited
 transactions and certain &#147;hedging transactions&#148; entered into after July 30,
 2008, for each taxable year must be derived directly or indirectly from
 investments relating to real property or mortgages on real property,
 including &#147;rents from real property,&#148; gains on the disposition of real
 estate, dividends paid by another REIT and interest on obligations secured by
 mortgages on real property or on interests in real property, or from some
 types of temporary investments. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Second, at
 least 95% of our gross income, excluding gross income from prohibited
 transactions and, commencing with our 2005 taxable year, certain &#147;hedging
 transactions,&#148; for each taxable year must be derived from any combination of
 income qualifying under the 75% test and dividends, interest, and gain from
 the sale or disposition of stock or securities. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
this purpose the term &#147;rents from real property&#148; includes: (a) rents from
interests in real property; (b) charges for services customarily furnished or
rendered in connection with the rental of real property, whether or not such
charges are separately stated; and (c) rent attributable to personal property
which is leased under, or in connection with, a lease of real property, but
only if the rent attributable to such personal property for the taxable year
does not exceed 15% of the total rent for the taxable year attributable to both
the real and personal property leased under, or in connection with, such lease.
For purposes of (c), the rent attributable to personal property is equal to
that amount which bears the same ratio to total rent for the taxable year as
the average of the fair market values of the personal property at the beginning
and at the end of the taxable year bears to the average of the aggregate fair
market values of both the real property and the personal property at the
beginning and at the end of such taxable year.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
in order for rent received or accrued, directly or indirectly, with respect to
any real or personal property, to qualify as &#147;rents from real property,&#148; the
following conditions must be satisfied:</FONT></P>

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<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>such rent
 must not be based in whole or in part on the income or profits derived by any
 person from the property (although the rent may be based on a fixed
 percentage of receipts or sales); </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>31</FONT></P>

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<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>such rent
 may not be received or accrued, directly or indirectly, from any person if
 the REIT owns, directly or indirectly (including by attribution, upon the
 application of certain attribution rules): (i) in the case of any person
 which is a corporation, at least 10% of such person&#146;s voting stock or at
 least 10% of the value of such person&#146;s stock; or (ii) in the case of any
 person which is not a corporation, an interest of at least 10% in the assets
 or net profits of such person, except that under certain circumstances, rents
 received from a TRS will not be disqualified as &#147;rents from real property&#148;
 even if we own more than 10% of the TRS; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the portion
 of such rent that is attributable to personal property for a taxable year
 that is leased under, or in connection with, a lease of real property may not
 exceed 15% of the total rent received or accrued under the lease for the
 taxable year. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, all amounts (including rents that would otherwise qualify as &#147;rents
from real property&#148;) received or accrued during a taxable year directly or
indirectly by a REIT with respect to a property, will constitute &#147;impermissible
tenant services income&#148; (and, thus, will not qualify as &#147;rents from real
property&#148;) if the amount received or accrued directly or indirectly by the REIT
for: (x) noncustomary services furnished or rendered by the REIT to tenants of
the property; or (y) managing or operating the property ((x) and (y)
collectively, &#147;Impermissible Services&#148;) exceeds 1% of all amounts received or
accrued during such taxable year directly or indirectly by the REIT with
respect to the property. For this purpose, however, the following services and
activities are not treated as Impermissible Services: (i) services furnished or
rendered, or management or operation provided, through an independent
contractor from whom the REIT itself does not derive or receive any income or
through a TRS; and (ii) services usually or customarily rendered in connection
with the rental of space for occupancy (such as, for example, the furnishing of
heat and light, the cleaning of public entrances, and the collection of trash),
as opposed to services rendered primarily to a tenant for the tenant&#146;s
convenience. If the amount treated as being received or accrued for
Impermissible Services does not exceed the 1% threshold, then only the amount
attributable to the Impermissible Services (and not, for example, all tenant
rents received or accrued that otherwise qualify as &#147;rents from real property&#148;)
will fail to qualify as &#147;rents from real property.&#148; For purposes of the 1%
threshold, the amount that we will be deemed to have received for performing
Impermissible Services will be the greater of the actual amounts so received or
150% of the direct cost to us of providing those services.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
(through the Operating Partnership and other affiliated entities) provide some
services at our properties, which services we believe do not constitute
Impermissible Services or, otherwise, do not cause any rents or other amounts
received that otherwise qualify as &#147;rents from real property&#148; to fail to so
qualify. If we or the Operating Partnership or other affiliated entities were
to consider offering services in the future which could cause any such rents or
other amounts to fail to qualify as &#147;rents from real property&#148; then we would
endeavor to arrange for such services to be provided through one or more
independent contractors and/or TRSs or, otherwise, in such a manner so as to
minimize the risk of such services being treated as Impermissible Services. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, we (through the Operating Partnership and other affiliated entities)
receive or may receive fees for property management and administrative services
provided with respect to certain properties not owned, either directly or
indirectly, entirely by us and/or the Operating Partnership. These fees do not
constitute qualifying income for purposes of either the 75% gross income test
or 95% gross income test. We (through the Operating Partnership and other
affiliated entities) also receive or may receive other types of income that do
not constitute qualifying income for purposes of either of these two gross
income tests. We believe that our share of the aggregate amount of these fees
and other non-qualifying income so received or accrued has not caused us to
fail to satisfy either of the gross income tests. We anticipate that we will
continue to receive or accrue a certain amount of non-qualifying fees and other
income. In the event that our share of the amount of such fees and other income
could jeopardize our ability to satisfy these gross income tests, then we would
endeavor to arrange for the services in respect of which such fees and other
income are received to be provided by one or more independent contractors
and/or TRSs or, otherwise, in such manner so as to minimize the risk of failing
either of the gross income tests.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
income constitutes qualifying mortgage interest for purposes of the 75% gross
income test (as described above) to the extent that the obligation is secured
by a mortgage on real property. If we receive interest income with respect to a
mortgage loan that is secured by both real property and other property, and the
highest principal amount of the loan outstanding during a taxable year exceeds
the fair market value of the real property on the date that we have a binding
commitment to acquire or originate the mortgage loan, the interest income will
be apportioned between the real property and the other collateral, and its
income from the arrangement will qualify for </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>32</FONT></P>

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<P><FONT SIZE=2>purposes of
the 75% gross income test only to the extent that the interest is allocable to
the real property. Even if a loan is not secured by real property, or is
undersecured, the income that it generates may nonetheless qualify for purposes
of the 95% gross income test. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that the terms of a loan provide for contingent interest that is
based on the cash proceeds realized upon the sale of the property securing the
loan (a &#147;shared appreciation provision&#148;), income attributable to the
participation feature will be treated as gain from sale of the underlying
property, which generally will be qualifying income for purposes of both the
75% and 95% gross income tests provided that the property is not inventory or
dealer property in the hands of the borrower or the REIT.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that a REIT derives interest income from a mortgage loan or income
from the rental of real property where all or a portion of the amount of
interest or rental income payable is contingent, such income generally will
qualify for purposes of the gross income tests only if it is based upon the
gross receipts or sales, and not the net income or profits, of the borrower or
lessee. This limitation does not apply, however, where the borrower or lessee
leases substantially all of its interest in the property to tenants or
subtenants, to the extent that the rental income derived by the borrower or
lessee, as the case may be, would qualify as rents from real property had it
been earned directly by a REIT.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
and our affiliates or subsidiaries have or may originate and acquire mezzanine
loans, which are loans secured by equity interests in an entity that directly
or indirectly owns real property, rather than by a direct mortgage of such real
property. Revenue Procedure 2003-65 provides a safe harbor pursuant to which a
mezzanine loan, if it meets each of the requirements contained in the Revenue Procedure,
will be treated by the IRS as a real estate asset for purposes of the REIT
asset tests described in the section entitled &#147;REIT Asset Tests,&#148; and interest
derived from it will be treated as qualifying mortgage interest for purposes of
the 75% gross income test. Although the Revenue Procedure provides a safe
harbor on which REITs may rely, it does not prescribe rules of substantive tax
law. Moreover, not all of the mezzanine loans in which we invest meet or will
meet each of the requirements for reliance on this safe harbor. To the extent
that mezzanine loans do not qualify for the safe harbor described above, the
interest income from such loans will be qualifying income for purposes of the
95% gross income test, but there is a risk that such interest income will not
be qualifying income for purposes of the 75% gross income test and that such
loans will not constitute real estate assets for purposes of the REIT asset
tests. We have invested, and will continue to invest, in mezzanine loans in a
manner that will enable us to continue to satisfy the REIT gross income and
asset tests.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
time to time, we may enter into hedging transactions with respect to one or
more of our assets or liabilities. Prior to our 2005 taxable year, any periodic
income or gain from the disposition of any financial instrument for
transactions to hedge indebtedness we incurred to acquire or carry &#147;real estate
assets&#148; was qualifying income for purposes of the 95% gross income test, but
not the 75% gross income test. To the extent we hedged in other situations, it
is not entirely clear how the income from those transactions should have been
treated for the gross income tests. Commencing with our 2005 taxable year,
income and gain from &#147;hedging transactions&#148; will be excluded from gross income
for purposes of the 95% gross income test, but not the 75% gross income test.
For hedging transactions entered into after July 30, 2008, income and gain from
&#147;hedging transactions&#148; will be excluded from gross income for purposes of both
the 75% and 95% gross income tests. For this purpose, a &#147;hedging transaction&#148;
means either (1) any transaction entered into in the normal course of our trade
or business primarily to manage the risk of interest rate, price changes, or
currency fluctuations with respect to borrowings made or to be made, or
ordinary obligations incurred or to be incurred, to acquire or carry real
estate assets or (2) for transactions entered into after July 30, 2008, any
transaction entered into primarily to manage the risk of currency fluctuations
with respect to any item of income or gain that would be qualifying income
under the 75% or 95% gross income test (or any property which generates such
income or gain). We will be required to clearly identify any such hedging transaction
before the close of the day on which it was acquired, originated, or entered
into and to satisfy other identification requirements. We intend to structure
any hedging transactions in a manner that does not jeopardize our status as a
REIT under the Code.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
REIT will incur a 100% tax on the net income derived from any sale or other
disposition of property, other than foreclosure property, that the REIT holds
primarily for sale to customers in the ordinary course of a trade or business.
We believe that none of our assets are held primarily for sale to customers and
that a sale of any of our assets will not be in the ordinary course of our
business. Whether a REIT holds an asset &#147;primarily for sale to customers in the
ordinary course of a trade or business&#148; depends, however, on the facts and
circumstances in effect from time to time, including those related to a
particular asset. A safe harbor to the characterization of the sale of </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>33</FONT></P>

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<P><FONT SIZE=2>property by a
REIT as a prohibited transaction and the 100% prohibited transaction tax is
available if the following requirements are met: </FONT></P>

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<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the REIT has
 held the property for not less than two years (or, for sales made before July
 31, 2008, four years); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
 aggregate capital expenditures made by the REIT, or any partner of the REIT,
 during the two-year period (or, for sales made before July 31, 2008,
 four-year period) preceding the date of the sale that are includable in the
 basis of the property do not exceed 30% of the selling price of the property;
 </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>either (1)
 during the year in question, the REIT did not make more than seven sales of
 property other than foreclosure property or sales to which Section 1033 of
 the Internal Revenue Code applies, (2) the aggregate adjusted bases of all
 such properties sold by the REIT during the year did not exceed 10% of the
 aggregate bases of all of the assets of the REIT at the beginning of the year
 or (3) for sales made on or after July 31, 2008, the aggregate fair market
 value of all such properties sold by the REIT during the year did not exceed
 10% of the aggregate fair market value of all of the assets of the REIT at
 the beginning of the year; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>in the case
 of property not acquired through foreclosure or lease termination, the REIT
 has held the property for at least two years (or, for sales made before July
 31, 2008, four years) for the production of rental income; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>if the REIT
 has made more than seven sales of non-foreclosure property during the taxable
 year, substantially all of the marketing and development expenditures with
 respect to the property were made through an independent contractor from whom
 the REIT derives no income. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will attempt to comply with the terms of safe-harbor provision in the U.S.
federal income tax laws prescribing when an asset sale will not be
characterized as a prohibited transaction. We cannot assure you, however, that
we can comply with the safe-harbor provision or that we will avoid owning
property that may be characterized as property that we hold &#147;primarily for sale
to customers in the ordinary course of a trade or business.&#148; The 100% tax will
not apply to gains from the sale of property that is held through a TRS or
other taxable corporation, although such income will be taxed to such corporation
at regular corporate income tax rates.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will be
subject to tax at the maximum corporate rate on any income from foreclosure
property, which includes certain foreign currency gains and related deductions
recognized subsequent to July 30, 2008, other than income that otherwise would
be qualifying income for purposes of the 75% gross income test, less expenses
directly connected with the production of that income. However, gross income
from foreclosure property will qualify under the 75% and 95% gross income
tests. Foreclosure property is any real property, including interests in real
property, and any personal property incident to such real property:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>that is
 acquired by a REIT as the result of the REIT having bid on such property at
 foreclosure, or having otherwise reduced such property to ownership or
 possession by agreement or process of law, after there was a default or
 default was imminent on a lease of such property or on indebtedness that such
 property secured; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>for which
 the related loan was acquired by the REIT at a time when the default was not
 imminent or anticipated; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>for which
 the REIT makes a proper election to treat the property as foreclosure
 property. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have no foreclosure property as of the date of this prospectus supplement.
Property generally ceases to be foreclosure property at the end of the third
taxable year following the taxable year in which the REIT acquired the
property, or longer if an extension is granted by the Secretary of the Treasury.
However, this grace period terminates and foreclosure property ceases to be
foreclosure property on the first day:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>on which a
 lease is entered into for the property that, by its terms, will give rise to
 income that does not qualify for purposes of the 75% gross income test, or
 any amount is received or accrued, directly or </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>34</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>indirectly,
 pursuant to a lease entered into on or after such day that will give rise to
 income that does not qualify for purposes of the 75% gross income test;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>on which any
 construction takes place on the property, other than completion of a building
 or any other improvement, where more than 10% of the construction was
 completed before default became imminent; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>which is
 more than 90 days after the day on which the REIT acquired the property and
 the property is used in a trade or business which is conducted by the REIT,
 other than through an independent contractor from whom the REIT itself does
 not derive or receive any income. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that we or our subsidiaries hold or acquire investments in foreign
countries, taxes that we pay in foreign jurisdictions may not be passed through
to, or used by, our shareholders as a foreign tax credit or otherwise. Any
foreign investments may also generate foreign currency gains and losses.
Certain foreign currency gains recognized after July 30, 2008 will be excluded
from gross income for purposes of one or both of the gross income tests. &#147;Real
estate foreign exchange gain&#148; will be excluded from gross income for purposes
of the 75% and the 95% gross income tests. Real estate foreign exchange gain
generally includes foreign currency gain attributable to any item of income or
gain that is qualifying income for purposes of the 75% gross income test, foreign
currency gain attributable to the acquisition or ownership of (or becoming or
being the obligor under) obligations secured by mortgages on real property or
interests in real property and certain foreign currency gains attributable to
certain &#147;qualified business units&#148; of a REIT. &#147;Passive foreign exchange gain&#148;
will be excluded from gross income only for purposes of the 95% gross income
test. Passive foreign exchange gain generally includes real estate foreign
exchange gain as described above, and also includes foreign currency gain
attributable to any item of income or gain that is qualifying income for
purposes of the 95% gross income test and foreign currency gain attributable to
the acquisition or ownership of (or becoming or being the obligor under)
obligations secured by mortgages on real property or interests in real
property. Because passive foreign exchange gain includes real estate foreign
exchange gain, real estate foreign exchange gain is excluded from gross income
for purposes of both the 75% and 95% gross income tests. These exclusions for
real estate foreign exchange gain and passive foreign exchange gain do not
apply to any foreign currency gain derived from dealing, or engaging in
substantial and regular trading, in securities. Such gain is treated as
nonqualifying income for purposes of both the 75% and 95% gross income tests.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, for taxable years beginning after July 30, 2008, the Secretary
of the Treasury may determine that any item of income or gain not otherwise
qualifying for purposes of the 75% and 95% gross income tests may be considered
as not constituting gross income for purposes of those tests, and that any item
of income or gain that otherwise constitutes nonqualifying income may be considered
as qualifying income for purposes of such tests. </FONT></P>

<P><FONT SIZE=2>If we fail to satisfy either
or both of the 75% or 95% gross income tests for any taxable year, we may
nevertheless qualify as a REIT for that year pursuant to a special relief
provision of the Code which may be available to us if: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our failure
 to meet these tests was due to reasonable cause and not due to willful
 neglect; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>we attach a
 schedule of the nature and amount of each item of income to our U.S. federal
 income tax return; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>for our 2004
 and prior taxable years, the inclusion of any incorrect information on the
 schedule is not due to fraud with intent to evade tax. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
cannot state whether in all circumstances, if we were to fail to satisfy either
of the gross income tests, we would still be entitled to the benefit of this
relief provision. Even if this relief provision were to apply, we would
nonetheless be subject to a 100% tax on the gross income attributable to the
greater of (1) the amount by which we fail the 75% gross income test and (2)
the amount by which 95% (or 90% for our 2004 and prior taxable years) of our
income exceeds the amount of qualifying income under the 95% gross income test,
in each case, multiplied by a fraction intended to reflect our profitability.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REIT
Asset Tests</I>: At the close of each quarter of our
taxable year, we must also satisfy the following tests relating to the nature
and diversification of our assets (collectively, the &#147;Asset Tests&#148;): </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>35</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>at least 75%
 of the value of our total assets must be represented by &#147;real estate assets&#148;
 (which also includes any property attributable to the temporary investment of
 new capital, but only if such property is stock or a debt instrument and only
 for the 1-year period beginning on the date the REIT receives such proceeds),
 cash and cash items (including receivables) and government securities (&#147;75%
 Value Test&#148;); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>not more
 than 25% of the value of our total assets may be represented by securities
 other than securities that constitute qualifying assets for purposes of the
 75% Value Test; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>except with
 respect to securities of a TRS or QRS and securities that constitute
 qualifying assets for purposes of the 75% Value Test: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>not more
 than 5% of the value of our total assets may be represented by securities of
 any one issuer (the &#147;5% Value Test&#148;); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>we may not
 hold securities possessing more than 10% of the total voting power of the
 outstanding securities of any one issuer (the &#147;10% Vote Test&#148;); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>we may not
 hold securities having a value of more than 10% of the total value of the
 outstanding securities of any one issuer (&#147;10% Value Test&#148;); and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>not more
 than 20% (25% for our 2009 taxable year and thereafter) of the value of our
 total assets may be represented by securities of one or more TRSs. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
initially meeting the Asset Tests at the close of any quarter of our taxable
year, we would not lose our status as a REIT under the Code for failure to
satisfy these tests at the end of a later quarter solely by reason of changes
in asset values. If the failure to satisfy the Asset Tests results from an
acquisition of securities or other property during a quarter, we can cure the
failure by disposing of a sufficient amount of non-qualifying assets within 30
days after the close of that quarter. We intend to maintain adequate records of
the value of our assets to facilitate compliance with the Asset Tests and to
take such other actions within 30 days after the close of any quarter as necessary
to cure any noncompliance.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
applying the Asset Tests, we are treated as owning all of the assets held by
any of our QRSs and our proportionate share of the assets held by the Operating
Partnership (including the Operating Partnership&#146;s share of the assets held by
any lower-tier partnership in which the Operating Partnership holds a direct or
indirect interest).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of the 5% Value Test, the 10% Vote Test or 10% Value Test, the term
&#147;securities&#148; does not include shares in another REIT, equity or debt securities
of a QRS or TRS, mortgage loans that constitute real estate assets, or equity
interests in a partnership. Securities, for purposes of the Asset Tests, may
include debt that we hold in other issuers. However, the Code specifically
provides that the following types of debt will not be taken into account as
securities for purposes of the 10% Value Test: (1) securities that meet the
&#147;straight debt&#148; safe harbor; (2) loans to individuals or estates; (3)
obligations to pay rents from real property; (4) rental agreements described in
Section 467 of the Code (other than such agreements with related party
tenants); (5) securities issued by other REITs; (6) debt issued by partnerships
that derive at least 75% of their gross income from sources that constitute
qualifying income for purposes of the 75% gross income test; (7) any debt not
otherwise described in this paragraph that is issued by a partnership, but only
to the extent of our interest as a partner in the partnership; (8) certain
securities issued by a state, the District of Columbia, a foreign government,
or a political subdivision of any of the foregoing, or the Commonwealth of
Puerto Rico; and (9) any other arrangement described in future Treasury
Regulations. For purposes of the 10% Value Test, our proportionate share of the
assets of a partnership is our proportionate interest in any securities issued
by the partnership, without regard to the securities described in (6) and (7)
above.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
taxable years beginning after July 30, 2008, for purposes of the 75% Value
Test, cash includes any foreign currency used by the REIT or its qualified
business unit as its &#147;functional currency&#148; (as defined in section 985(b) of the
Internal Revenue Code), provided that the foreign currency (a) is held by the
REIT or its qualified business unit in the normal course of activities which
give rise to qualifying income under the 75% or 95% gross income tests or which
are related to acquiring or holding assets described in section 856(c)(4) of
the Internal </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>36</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Revenue Code
and (b) is not held in connection with dealing, or engaging in substantial and
regular trading, in securities</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on our regular quarterly asset tests, we believe that we have not violated any
of the Asset Tests. However, we cannot provide any assurance that the IRS would
concur with our beliefs in this regard.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we fail to satisfy the Asset Tests at the end of a calendar quarter, we will
not lose our REIT qualification if:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>we satisfied
 the Asset Tests at the end of the preceding calendar quarter; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
 discrepancy between the value of our assets and the Asset Test requirements
 arose from changes in the market values of our assets and was not wholly or
 partly caused by the acquisition of one or more non-qualifying assets. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we did not satisfy the condition described in the second item above, we still
could avoid disqualification by eliminating any discrepancy within 30 days
after the close of the calendar quarter in which it arose.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
at the end of any calendar quarter commencing with our 2005 taxable year, we
violate the 5% Value Test or the 10% Vote or Value Tests described above, we
will not lose our REIT qualification if (1) the failure is de minimis (up to
the lesser of 1% of our assets or $10 million) and (2) we dispose of assets or
otherwise comply with the Asset Tests within six months after the last day of
the quarter in which we identify such failure. In the event of a failure of any
of the Asset Tests (other than de minimis failures described in the preceding
sentence), as long as the failure was due to reasonable cause and not to
willful neglect, we will not lose our REIT status if we (1) dispose of assets
or otherwise comply with the Asset Tests within six months after the last day
of the quarter in which we identify the failure, (2) we file a description of
each asset causing the failure with the Internal Revenue Service and (3) pay a
tax equal to the greater of $50,000 or 35% of the net income from the
nonqualifying assets during the period in which we failed to satisfy the Asset
Tests.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REIT
Distribution Requirements</I>: To qualify for taxation as
a REIT, we must, each year, make distributions (other than capital gain
distributions) to our shareholders in an amount at least equal to (1) the sum
of: (A) 90% of our &#147;REIT taxable income,&#148; computed without regard to the
dividends paid deduction and our net capital gain, and (2) 90% of the net
income, after tax, from foreclosure property, minus (2) the sum of certain
specified items of noncash income. In addition, if we were to dispose of any
asset acquired from a subchapter C corporation in a &#147;carryover basis&#148;
transaction within ten years of the acquisition, we would be required to
distribute at least 90% of the after-tax &#147;built-in gain&#148; recognized on the
disposition of such asset.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
must pay dividend distributions in the taxable year to which they relate.
Dividends paid in the subsequent year, however, will be treated as if paid in
the prior year for purposes of the prior year&#146;s distribution requirement if one
of the following two sets of criteria are satisfied:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
 dividends are declared in October, November or December and are made payable
 to shareholders of record on a specified date in any of these months, and
 such dividends are actually paid during January of the following year; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
 dividends are declared before we timely file our U.S. federal income tax
 return for such year, the dividends are paid in the 12-month period following
 the close of the year and not later than the first regular dividend payment
 after the declaration, and we elect on our U.S. federal income tax return for
 such year to have a specified amount of the subsequent dividend treated as if
 paid in such year. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even
if we satisfy our distribution requirements for maintaining our REIT status, we
will nonetheless be subject to a corporate-level tax on any of our net capital
gain or REIT taxable income that we do not distribute to our shareholders. In
addition, we will be subject to a 4% excise tax to the extent that we fail to
distribute during any calendar year (or by the end of January of the following
calendar year in the case of distributions with declaration and record dates
falling in the last 3 months of the calendar year) an amount at least equal to
the sum of: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>85% of our
 ordinary income for such year; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>95% of our
 capital gain net income for such year; and </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>37</FONT></P>

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<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any
 undistributed taxable income required to be distributed from prior periods. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
discussed below, we may retain, rather than distribute, all or a portion of our
net capital gains and pay the tax on the gains and may elect to have our
shareholders include their proportionate share of such undistributed gains as
long-term capital gain income on their own income tax returns and receive a
credit for their share of the tax paid by us. For purposes of the 4% excise tax
described above, any such retained gains would be treated as having been distributed
by us.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
intend to make timely distributions sufficient to satisfy our annual
distribution requirements for REIT qualification under the Code and which are
eligible for the dividends-paid deduction. In this regard, the partnership
agreement of the Operating Partnership authorizes us, as the general partner of
the Operating Partnership, to cause the Operating Partnership to make
distributions to us, as the general partner of the Operating Partnership,
necessary to satisfy the payment of distributions to our shareholders which
will enable us to satisfy the annual REIT distribution requirements.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
expect that our cash flow will exceed our REIT taxable income due to the
allowance of depreciation and other non-cash deductions allowed in computing
REIT taxable income. Accordingly, in general, we anticipate that we should have
sufficient cash or liquid assets to enable us to satisfy the 90% distribution
requirement for REIT qualification under the Code. It is possible, however,
that we, from time to time, may not have sufficient cash or other liquid assets
to meet this requirement or to distribute an amount sufficient to enable us to
avoid income and/or excise taxes. In such event, we may find it necessary to
arrange for borrowings to raise cash or, if possible, make taxable share
dividends in order to make such distributions. In addition, pursuant to
recently-issued Revenue Procedure 2009-15, we are also permitted to make
taxable distributions of our shares (in lieu of cash) if (i) any such
distribution is declared with respect to a taxable year ending on or before
December 31, 2009, and (ii) each of our shareholders is permitted to elect to
receive its entire entitlement under such declaration in either money or shares
of equivalent value subject to a limitation in the amount of money to be
distributed in the aggregate; provided that (1) the amount of money that we set
aside for distribution is not less than 10% of the aggregate distribution so
declared, and (2) if too many of our shareholders elect to receive money, a pro
rata amount of money will be distributed to each such shareholder electing to
receive money, but in no event will any such shareholder receive less than its
entire entitlement under such declaration.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that we are subject to an adjustment to our REIT taxable income (as
defined in Section 860(d)(2) of the Code) resulting from an adverse
determination by either a final court decision, a closing agreement between us
and the IRS under Section 7121 of the Code, or an agreement as to tax liability
between us and an IRS district director, we may be able to rectify any
resulting failure to meet the 90% distribution requirement by paying
&#147;deficiency dividends&#148; to shareholders that relate to the adjusted year but
that are paid in a subsequent year. To qualify as a deficiency dividend, we
must make the distribution within ninety days of the adverse determination and
we also must satisfy other procedural requirements. If we satisfy the statutory
requirements of Section 860 of the Code, a deduction is allowed for any
deficiency dividend subsequently paid by us to offset an increase in our REIT
taxable income resulting from the adverse determination. We, however, must pay
statutory interest on the amount of any deduction taken for deficiency
dividends to compensate for the deferral of the tax liability.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recordkeeping
Requirements: </I>We must maintain certain records in
order to qualify as a REIT. In addition, to avoid a monetary penalty, we must
request on an annual basis information from our shareholders designed to
disclose the actual ownership of our outstanding shares of beneficial interest.
We have complied, and we intend to continue to comply, with these requirements.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure
to Qualify as a REIT</I>: Commencing with our 2005 taxable
year, if we would otherwise fail to qualify as a REIT under the Code because of
a violation of one of the requirements described above, our qualification as a
REIT under the Code will not be terminated if the violation is due to
reasonable cause and not willful neglect and we pay a penalty tax of $50,000
for the violation. The immediately preceding sentence does not apply to
violations of the gross income tests described above or a violation of the
asset tests described above each of which have specific relief provisions that
are described above.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we fail to qualify for taxation as a REIT under the Code in any taxable year,
and the relief provisions do not apply, we will have to pay tax, including any
applicable alternative minimum tax, on our taxable income at regular corporate
rates. We will not be able to deduct distributions to shareholders in any year
in which we fail to qualify, nor will we be required to make distributions to
shareholders. In this event, to the extent of current and accumulated earnings
and profits, all distributions to shareholders will be taxable to the
shareholders as dividend </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>38</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>income (which
may be subject to tax at preferential rates) and corporate distributees may be
eligible for the dividends received deduction if they satisfy the relevant
provisions of the Code. Unless entitled to relief under specific statutory
provisions, we will also be disqualified from taxation as a REIT for the four
taxable years following the year during which qualification was lost. We might
not be entitled to the statutory relief described in the preceding paragraph in
all circumstances. </FONT></P>

<P><FONT SIZE=2><B><I>Taxation of U.S.
Shareholders </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
we refer to the term U.S. Shareholders, we mean a holder of our common shares
that is, for U.S. federal income tax purposes:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a citizen or
 resident of the United States; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a
 corporation (including an entity treated as a corporation for U.S. federal
 income tax purposes) created or organized under the laws of the United
 States, any of its states or the District of Columbia; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>an estate
 the income of which is subject to U.S. federal income taxation regardless of
 its source; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a trust if a
 court within the United States can exercise primary supervision over the
 administration of the trust, and one or more United States persons have the
 authority to control all substantial decisions of the trust. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
a partnership, entity or arrangement treated as a partnership for U.S. federal
income tax purposes holds our common shares, the U.S. federal income tax
treatment of a partner in the partnership will generally depend on the status
of the partner and the activities of the partnership. If you are a partner in a
partnership holding our common shares, you should consult your tax advisor
regarding the consequences of the ownership and disposition of our common
shares by the partnership.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions Generally</I>: For any taxable
year for which we qualify for taxation as a REIT under the Code, amounts
distributed to taxable U.S. Shareholders will be taxed as discussed below.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
long as we qualify as a REIT, distributions made by us out of our current or
accumulated earnings and profits, and not designated as capital gain dividends,
will constitute dividends taxable to our taxable U.S. Shareholders as ordinary
income. A U.S. Shareholder taxed at individual rates will generally not be
entitled to the reduced tax rate applicable to certain types of dividends
except with respect to the portion of any distribution (a) that represents
income from dividends received from a non-REIT corporation in which we own
shares (but only if such dividends would be eligible for the lower rate on
dividends if paid by the corporation to its individual shareholders), or (b)
that is equal to our REIT taxable income (taking into account the dividends
paid deduction available to us) for our previous taxable year less any taxes
paid by us during the previous taxable year, provided that certain holding
period and other requirements are satisfied at both the REIT and individual
shareholder level. U.S. Shareholders taxed at individual rates should consult
their own tax advisors to determine the impact of tax rates on dividends
received from us. Distributions of this kind will not be eligible for the
dividends received deduction in the case of U.S. Shareholders that are
corporations.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
made by us that we properly designate as capital gain dividends will be taxable
to U.S. Shareholders as gain from the sale of a capital asset held for more
than one year, to the extent that they do not exceed our actual net capital
gain for the taxable year, without regard to the period for which a U.S.
Shareholder has held his common shares. The highest marginal individual income
tax rate is currently 35%. However, the maximum tax rate on long-term capital
gain applicable to U.S. Shareholders taxed at individual rates is 15% (through
2010). The maximum tax rate on long-term capital gain from the sale or exchange
of &#147;Section 1250 property,&#148; or depreciable real property, is 25% computed on
the lesser of the total amount of the gain or the accumulated Section 1250
depreciation. Thus, with certain limitations, capital gain dividends received
by U.S. Shareholders taxed at individual rates may be eligible for preferential
rates of taxation, and the tax rate differential between capital gain and
ordinary income may be significant. We will generally designate our capital
gain dividends as either 15% or 25% rate distributions. In addition, the
characterization of income as capital gain or ordinary income may affect the
deductibility of capital losses. U.S. Shareholders taxed at individual rates
may generally deduct capital losses not offset by capital gains against their
ordinary income only up to a maximum annual amount of $3,000. Such taxpayers
may carry forward unused capital losses indefinitely. A corporate U.S. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>39</FONT></P>

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<P><FONT SIZE=2>Shareholder
must generally pay tax on its net capital gain at ordinary corporate rates. A
corporate U.S. Shareholder may generally deduct capital losses only to the
extent of capital gains, with unused losses being carried back three years and
forward five years. Finally, U.S. Shareholders that are corporations may be
required to treat up to 20% of certain capital gain dividends as ordinary
income.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that we make distributions, not designated as capital gain
dividends, in excess of our current and accumulated earnings and profits, these
distributions will be treated first as a tax-free return of capital to each
U.S. Shareholder. Thus, these distributions will reduce the adjusted basis
which the U.S. Shareholder has in its shares for tax purposes by the amount of
the distribution, but not below zero. Distributions in excess of a U.S.
Shareholder&#146;s adjusted basis in its shares will be taxable as capital gains,
provided that the shares have been held as a capital asset. For purposes of
determining the portion of distributions on separate classes of shares that
will be treated as dividends for U.S. federal income tax purposes, current and
accumulated earnings and profits will be allocated to distributions resulting
from priority rights of preferred shares before being allocated to other
distributions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
declared by us in October, November, or December of any year and payable to a
shareholder of record on a specified date in any of these months will be
treated as both paid by us and received by the shareholder on December 31 of
that year, provided that we actually pay the dividend on or before January 31
of the following calendar year. Shareholders may not include in their own
income tax returns any of our net operating losses or capital losses.</FONT></P>

 <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S.
Shareholders holding shares at the close of our taxable year will be required
to include, in computing their long-term capital gains for the taxable year in
which the last day of our taxable year falls, the amount that we designate in a
written notice mailed to our shareholders. We may not designate amounts in
excess of our undistributed net capital gain for the taxable year. Each U.S.
Shareholder required to include the designated amount in determining the U.S.
Shareholder&#146;s long-term capital gains will be deemed to have paid, in the
taxable year of the inclusion, the tax paid by us in respect of the
undistributed net capital gains. U.S. Shareholders to whom these rules apply
will be allowed a credit or a refund, as the case may be, for the tax they are
deemed to have paid. U.S. Shareholders will increase their basis in their
shares by the difference between the amount of the includible gains and the tax
deemed paid by the shareholder in respect of these gains. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Passive
Activity Loss and Investment Interest Limitations</I>:
Distributions from us and gain from the disposition of our shares will not be
treated as passive activity income and, therefore, a U.S. Shareholder will not
be able to offset any of this income with any passive losses of the shareholder
from other activities. Dividends received by a U.S. Shareholder from us
generally will be treated as investment income for purposes of the investment
interest limitation. Net capital gain from the disposition of our shares or
capital gain dividends generally will be excluded from investment income unless
the shareholder elects to have the gain taxed at ordinary income rates.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale/Other
Taxable Disposition of Common Shares</I>: In general, a
U.S. Shareholder who is not a dealer in securities will recognize gain or loss
on its sale or other taxable disposition of our shares equal to the difference
between the amount of cash and the fair market value of any other property
received in such sale or other taxable disposition and the shareholder&#146;s
adjusted basis in said shares at such time. This gain or loss will be a capital
gain or loss if the shares have been held by the U.S. Shareholder as a capital
asset. The applicable tax rate will depend on the shareholder&#146;s holding period
in the asset (generally, if an asset has been held for more than one year it
will produce long-term capital gain) and the shareholder&#146;s tax bracket. The IRS
has the authority to prescribe, but has not yet prescribed, regulations that
would apply a capital gain tax rate of 25% (which is generally higher than the
15% long-term capital gain tax rates in effect through 2010 for shareholders
taxed at individual rates) to a portion of capital gain realized by a
non-corporate shareholder on the sale of REIT stock that would correspond to
the REIT&#146;s &#147;unrecaptured Section 1250 gain.&#148; U.S. Shareholders should consult
with their tax advisors with respect to their capital gain tax liability. A
corporate U.S. Shareholder will be subject to tax at a maximum rate of 35% on
capital gain from the sale of our common shares held for more than 12 months.
In general, any loss recognized by a U.S. Shareholder upon the sale or other
disposition of shares that have been held for six months or less, after
applying the holding period rules, will be treated as a long-term capital loss,
to the extent of distributions received by the U.S. Shareholder
from us that were required to be treated as long-term capital gains.</FONT></P>



<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders should consult with their own tax advisors with respect to their
capital gain tax liability in respect of distributions received from us and
gains recognized upon the sale or other disposition of shares of our common
shares. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>40</FONT></P>

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<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treatment
of Tax-Exempt Shareholders</I>: Based upon published
rulings by the IRS, distributions by us to a U.S. Shareholder that is a
tax-exempt entity generally should not constitute &#147;unrelated business taxable
income&#148; (&#147;UBTI&#148;), provided that the tax-exempt entity has not financed the
acquisition of its shares with &#147;acquisition indebtedness,&#148; within the meaning
of the Code, and the shares are not otherwise used in an unrelated trade or
business of the tax-exempt entity. Similarly, income from the sale of our
common shares will not constitute UBTI, provided that the tax-exempt entity has
not financed the acquisition of its shares with &#147;acquisition indebtedness&#148; and
the shares are not otherwise used in an unrelated trade or business of the
tax-exempt entity.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
tax-exempt U.S. Shareholders which are social clubs, voluntary employee benefit
associations, supplemental unemployment benefit trusts, and qualified group
legal services plans, exempt from U.S. federal income taxation under Code
Sections 501(c)(7), (9), (17) and (20), respectively, income from an investment
in our common shares generally will constitute UBTI unless the organization is
able to properly deduct amounts set aside or placed in reserve for certain
purposes so as to offset the income generated by its shares of our common
shares. Such prospective investors should consult their own tax advisors
concerning these &#147;set-aside&#148; and reserve requirements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the above, however, a portion of the dividends paid by a &#147;pension-held REIT&#148; is
treated as UBTI as to any trust which (i) is described in Section 401(a) of the
Code, (ii) is tax-exempt under Section 501(a) of the Code and (iii) holds more
than 10% (by value) of the interests in the REIT. Tax-exempt pension funds that
are described in Section 401(a) of the Code and exempt from tax under Section
501(a) of the Code are referred to below as &#147;qualified trusts.&#148;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
REIT is a &#147;pension-held REIT&#148; if (i) it would not have qualified as a REIT
under the Code but for the fact that Section 856(h)(3) of the Code provides
that stock owned by qualified trusts shall be treated, for purposes of the &#147;not
closely held&#148; requirement, as owned by the beneficiaries of the trust (rather
than by the trust itself), (ii) the percentage of the REIT&#146;s dividends that the
tax-exempt trust must treat as UBTI is at least 5%, and (iii) either (a) at
least one such qualified trust holds more than 25% (by value) of the interests
in the REIT or (b) one or more such qualified trusts, each of whom owns more
than 10% (by value) of the interests in the REIT, hold in the aggregate more
than 50% (by value) of the interests in the REIT. The percentage of any REIT
dividend treated as UBTI is equal to the ratio of (i) the gross income of the
REIT from unrelated trades or businesses, determined as though the REIT were a
qualified trust, less direct expenses related to this gross income, to (ii) the
total gross income of the REIT, less direct expenses related to the total gross
income. The provisions requiring qualified trusts to treat a portion of REIT
distributions as UBTI will not apply if the REIT is able to satisfy the &#147;not
closely held&#148; requirement without relying upon the &#147;look-through&#148; exception
with respect to qualified trusts. We do not expect to be classified as a
&#147;pension-held REIT.&#148; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
rules described above under the heading &#147;Taxation of U.S. Shareholders&#148;
concerning the inclusion of our designated undistributed net capital gains in
the income of its shareholders will apply to tax-exempt entities. Thus,
tax-exempt entities will be allowed a credit or refund of the tax deemed paid
by these entities in respect of the includible gains. </FONT></P>

<P><FONT SIZE=2><B><I>Special Tax
Considerations For Non-U.S. Shareholders </I></B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxation
of Non-U.S. Shareholders</I>: The rules governing U.S.
federal income taxation of nonresident alien individuals, foreign corporations,
foreign partnerships and other foreign shareholders (collectively, &#147;Non-U.S.
Shareholders&#148;) are complex, and no attempt will be made herein to provide more
than a limited summary of such rules. Prospective Non-U.S. Shareholders should
consult with their tax advisors to determine the impact of U.S. federal, state
and local income tax laws with regard to an investment in our common shares,
including any reporting requirements.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
by us to a Non-U.S. Shareholder that are neither attributable to gain from
sales or exchanges by us of United States real property interests (&#147;USPRIs&#148;)
(as defined below) nor designated by us as capital gain dividends will be
treated as dividends of ordinary income to the extent that they are made out of
our current or accumulated earnings and profits. Such distributions will
ordinarily be subject to a withholding tax equal to 30% of the gross amount of
the distribution unless an applicable tax treaty reduces that tax. Under
certain treaties, lower withholding rates generally applicable to dividends do
not apply to dividends from a REIT. However, if income from the investment in
our common shares is treated as effectively connected with the Non-U.S.
Shareholder&#146;s conduct of a U.S. trade or business or is attributable to a
permanent establishment that the Non-U.S. Shareholder maintains in the United
States (if that is required by an applicable income tax treaty as a condition
for subjecting the </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>41</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-U.S.
Shareholder to U.S. taxation on a net income basis) the Non-U.S. Shareholder
generally will be subject to tax at graduated rates, in the same manner as U.S.
Shareholders are taxed with respect to such income and is generally not subject
to withholding. Any such effectively connected distributions received by a
Non-U.S. Shareholder that is a corporation may also be subject to an additional
branch profits tax at a 30% rate or such lower rate as may be specified by an
applicable income tax treaty. We expect to withhold U.S. income tax at the rate
of 30% on the gross amount of any dividends paid to a Non-U.S. Shareholder,
other than dividends treated as attributable to gain from sales or exchanges of
U.S. real property interests and capital gain dividends, paid to a Non-U.S.
Shareholder, unless (a) a lower treaty rate applies and the required form
evidencing eligibility for that reduced rate is submitted to us or the
appropriate withholding agent or (b) the Non-U.S. Shareholder submits an IRS
Form W-8 ECI (or a successor form) to us or the appropriate withholding agent
claiming that the distributions are effectively connected with the Non-U.S.
Shareholder&#146;s conduct of a U.S. trade or business and, in either case, other
applicable requirements were met.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
in excess of our current and accumulated earnings and profits will not be
taxable to a Non-U.S. Shareholder to the extent that they do not exceed the
adjusted basis of the Non-U.S. Shareholder&#146;s shares, but rather will reduce the
adjusted basis of such shares. For FIRPTA (defined below) withholding purposes
(discussed below) such distribution will be treated as consideration for the
sale or exchange of shares. To the extent that such distributions exceed the
adjusted basis of a Non-U.S. Shareholder&#146;s shares, these distributions will
give rise to tax liability if the Non-U.S. Shareholder would otherwise be
subject to tax on any gain from the sale or disposition of its shares, as
described below. If it cannot be determined at the time a distribution is made
whether or not such distribution will be in excess of current and accumulated
earnings and profits, the distribution will be subject to withholding at the
rate applicable to dividends. However, the Non-U.S. Shareholder may seek a
refund of such amounts from the IRS if it is subsequently determined that such
distribution was, in fact, in excess of our current and accumulated earnings and
profits. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
to a Non-U.S. Shareholder that are designated by us at the time of distribution
as capital gain dividends (other than those arising from the disposition of a
USRPI) generally will not be subject to U.S. federal income taxation unless (i)
investment in the shares is effectively connected with the Non-U.S.
Shareholder&#146;s U.S. trade or business, in which case the Non-U.S. Shareholder
will be subject to the same treatment as a U.S. Shareholder with respect to
such gain (except that a corporate Non-U.S. Shareholder may also be subject to
the 30% branch profits tax, as discussed above), or (ii) the Non-U.S.
Shareholder is a nonresident alien individual who is present in the United
States for 183 days or more during the taxable year and has a &#147;tax home&#148; in the
United States, in which case such shareholder will be subject to a 30% tax on
his or her capital gains.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
any year in which we qualify as a REIT, distributions that are attributable to
gain from sales or exchanges by us of USRPIs will be taxed to a Non-U.S.
Shareholder under the provisions of the Foreign Investment in Real Property Tax
Act of 1980 (&#147;FIRPTA&#148;). A USRPI includes certain interests in real property and
stock in corporations at least 50% of whose assets consist of interests in real
property. Under FIRPTA, these distributions are taxed to a Non-U.S. Shareholder
as if such gain were effectively connected with a U.S. business. Thus, Non-U.S.
Shareholders would be taxed at the normal capital gain rates applicable to U.S.
Shareholders (subject to applicable alternative minimum tax and a special
alternative minimum tax in the case of nonresident alien individuals). Also,
distributions subject to FIRPTA may be subject to a 30% branch profits tax in
the hands of a corporate Non-U.S. Shareholder not entitled to treaty relief or
exemption. We are required by applicable Treasury Regulations to withhold 35%
of any distribution to a Non-U.S. Shareholder that could be designated by us as
a capital gain dividend. This amount is creditable against the Non-U.S.
Shareholder&#146;s U.S. federal income tax liability. We or any nominee (<I>e.g.</I>, a broker holding shares in street
name) may rely on a certificate of Non-U.S. Shareholder status on IRS Form W-8
to determine whether withholding is required on gains realized from the
disposition of U.S. real property interests. A U.S. Shareholder who holds
shares on behalf of a Non-U.S. Shareholder will bear the burden of withholding,
provided that we have properly designated the appropriate portion of a
distribution as a capital gain dividend. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
gain distributions to Non-U.S. Shareholders that are attributable to our sale
of real property will be treated as ordinary dividends rather than as gain from
the sale of a USRPI, as long as (1) our common shares continue to be treated as
being &#147;regularly traded&#148; on an established securities market in the United
States and (2) the Non-U.S. shareholder did not own more than 5% of our common
shares at any time during the one-year period preceding the distribution. As a
result, Non-U.S. shareholders owning 5% or less of our common shares generally
will be subject to withholding tax on such capital gain distributions in the
same manner as they are subject to withholding tax on ordinary dividends. If
our common shares cease to be regularly traded on an established </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>42</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>securities
market in the United States or the Non-U.S. shareholder owned more than 5% of
our common shares at any time during the one-year period preceding the
distribution, capital gain distributions that are attributable to our sale of
real property would be subject to tax under FIRPTA, as described in the
preceding paragraph. If a Non-U.S. shareholder disposes of our common shares
during the 30-day period preceding the ex-dividend date of any dividend
payment, and such Non-U.S. shareholder (or a person related to such Non-U.S.
shareholder) acquires or enters into a contract or option to acquire our common
shares within 61 days of the first day of such 30-day period described above,
and any portion of such dividend payment would, but for the disposition, be
treated as USRPI capital gain to such Non-U.S. shareholder under FIRPTA, then
such Non-U.S. shareholder shall be treated as having USRPI capital gain in an
amount that, but for the disposition, would have been treated as USRPI capital
gain.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain
recognized by a Non-U.S. Shareholder upon a sale of stock of a REIT generally
will not be taxed under FIRPTA if the REIT is a &#147;domestically-controlled REIT&#148;
(generally, a REIT in which at all times during a specified testing period less
than 50% in value of its stock is held directly or indirectly by foreign
persons). Since it is currently anticipated that we will be a
&#147;domestically-controlled REIT,&#148; a Non-U.S. Shareholder&#146;s sale of our common
shares should not be subject to taxation under FIRPTA. However, because our
common shares are publicly-traded, no assurance can be given that we will
continue to be a &#147;domestically-controlled REIT.&#148; Notwithstanding the foregoing,
gain from the sale of our common shares that is not subject to FIRPTA will be
taxable to a Non-U.S. Shareholder if (i) the Non-U.S. Shareholder&#146;s investment
in the shares is &#147;effectively connected&#148; with the Non-U.S. Shareholder&#146;s U.S.
trade or business, in which case the Non-U.S. Shareholder will be subject to
the same treatment as a U.S. Shareholder with respect to such gain (a Non-U.S.
Shareholder that is a foreign corporation may also be subject to a 30% branch
profits tax, as discussed above), or (ii) the Non-U.S. Shareholder is a
nonresident alien individual who was present in the United States for 183 days
or more during the taxable year and has a &#147;tax home&#148; in the United States, in
which case the nonresident alien individual will be subject to a 30% tax on the
individual&#146;s capital gains. If the gain on the sale of shares were to be
subject to taxation under FIRPTA, the Non-U.S. Shareholder would be subject to
the same treatment as a U.S. Shareholder with respect to such gain (subject to
applicable alternative minimum tax, possible withholding tax and a special
alternative minimum tax in the case of nonresident alien individuals).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
we are not, or cease to be, a &#147;domestically-controlled REIT,&#148; whether gain
arising from the sale or exchange of shares by a Non-U.S. Shareholder would be
subject to United States taxation under FIRPTA as a sale of a USRPI will depend
on whether any class of our shares is &#147;regularly traded&#148; (as defined by
applicable Treasury Regulations) on an established securities market (<I>e.g.</I>, the New York Stock Exchange), as is
the case with our common shares, and on the size of the selling Non-U.S.
Shareholder&#146;s interest in us. In the case where we are not, or cease to be, a
&#147;domestically-controlled REIT&#148; and any class of our shares is &#147;regularly
traded&#148; on an established securities market at any time during the calendar
year, a sale of shares of that class by a Non-U.S. Shareholder will only be
treated as a sale of a USRPI (and thus subject to taxation under FIRPTA) if
such selling shareholder beneficially owns (including by attribution) more than
5% of the total fair market value of all of the shares of such class at any
time during the five-year period ending either on the date of such sale or
other applicable determination date. To the extent we have one or more classes
of shares outstanding that are &#147;regularly traded,&#148; but the Non-U.S. Shareholder
sells shares of a class of our shares that is not &#147;regularly traded,&#148; the sale
of shares of such class would be treated as a sale of a USRPI under the
foregoing rule only if the shares of such latter class acquired by the Non-U.S.
Shareholder have a total net market value on the date they are acquired that is
greater than 5% of the total fair market value of the &#147;regularly traded&#148; class
of our shares having the lowest fair market value (or with respect to a
nontraded class of our shares convertible into a &#147;regularly traded&#148; market
value on the date of acquisition of the total fair market value of the
&#147;regularly traded&#148; class into which it is convertible). If gain on the sale or
exchange of shares were subject to taxation under FIRPTA, the Non-U.S.
Shareholder would be subject to regular United States income tax with respect
to such gain in the same manner as a U.S. Shareholder (subject to any applicable
alternative minimum tax and a special alternative minimum tax in the case of
nonresident alien individuals); provided, however, that deductions otherwise
allowable will be allowed as deductions only if the tax returns were filed
within the time prescribed by law. In general, the purchaser of the shares
would be required to withhold and remit to the IRS 10% of the amount realized
by the seller on the sale of such shares. </FONT></P>

<P><FONT SIZE=2><B><I>Information
Reporting Requirements and Backup Withholding Tax </I></B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S.
Shareholders</I>: We will report to our U.S. Shareholders
and the IRS the amount of dividends paid during each calendar year, and the
amount of tax withheld, if any. Under the backup withholding rules, backup
withholding may apply to a U.S. Shareholder with respect to dividends paid
unless the U.S. Shareholder (a) is a </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>43</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>corporation or
comes within certain other exempt categories and, when required, demonstrates
this fact, or (b) provides a taxpayer identification number, certifies as to no
loss of exemption from backup withholding, and otherwise complies with
applicable requirements of the backup withholding rules. The IRS may also
impose penalties on a U.S. Shareholder that does not provide us with its
correct taxpayer identification number. A U.S. Shareholder may credit any
amount paid as backup withholding against the shareholder&#146;s income tax
liability. In addition, we may be required to withhold a portion of capital
gain distributions to any U.S. Shareholder who fails to certify to us its
non-foreign status.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S.
Shareholders</I>: If you are a Non-U.S. Shareholder, you
are generally exempt from backup withholding and information reporting
requirements with respect to:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>dividend
 payments; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the payment
 of the proceeds from the sale of common shares effected at a United States
 office of a broker, </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>as long as the
income associated with these payments is otherwise exempt from U.S. federal
income tax, and: </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the payor or
 broker does not have actual knowledge or reason to know that you are a United
 States person and you have furnished to the payor or broker: </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="87%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a valid IRS
 Form W-8BEN or an acceptable substitute form upon which you certify, under
 penalties of perjury, that you are a non-United States person, or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>other
 documentation upon which it may rely to treat the payments as made to a
 non-United States person in accordance with Treasury Regulations, or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>you
 otherwise establish your right to an exemption.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment
of the proceeds from the sale of common shares effected at a foreign office of
a broker generally will not be subject to information reporting or backup
withholding. However, a sale of common shares that is effected at a foreign
office of a broker will be subject to information reporting and backup
withholding if:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the proceeds
 are transferred to an account maintained by you in the United States; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the payment
 of proceeds or the confirmation of the sale is mailed to you at a United
 States address; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the sale has
 some other specified connection with the United States as provided in the
 Treasury Regulations, </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>unless the
broker does not have actual knowledge or reason to know that you are a United
States person and the documentation requirements described above are met or you
otherwise establish an exemption. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, a sale of common shares will be subject to information reporting if
it is effected at a foreign office of a broker that is:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a United
 States person; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a controlled
 foreign corporation for United States tax purposes; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a foreign
 person 50% or more of whose gross income is effectively connected with the
 conduct of a United States trade or business for a specified three-year
 period; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a foreign
 partnership, if at any time during its tax year: </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>44</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="8%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>one or more
 of its partners are &#147;U.S. persons,&#148; as defined in Treasury Regulations, who
 in the aggregate hold more than 50% of the income or capital interest in the
 partnership; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>such foreign
 partnership is engaged in the conduct of a United States trade or business, </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>unless the
broker does not have actual knowledge or reason to know that you are a United
States person and the documentation requirements described above are met or you
otherwise establish your right to an exemption. Backup withholding will apply
if the sale is subject to information reporting and the broker has actual
knowledge that you are a United States person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
generally may obtain a refund of any amounts withheld under the backup
withholding rules that exceed your income tax liability by filing a refund
claim with the IRS. </FONT></P>

<P><FONT SIZE=2><B><I>Tax Aspects of the
Operating Partnership </I></B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General</I>:
The Operating Partnership holds substantially all of our investments. In
general, partnerships are &#147;pass-through&#148; entities that are not subject to U.S.
federal income tax. Rather, partners are allocated their proportionate shares
of the items of income, gain, loss, deduction and credit of their partnership,
and are potentially subject to tax thereon, without regard to whether
distributions are made to them by the partnership. We include in our income our
proportionate share of these Operating Partnership items (including our
proportionate share of such items attributable to partnerships in which the
Operating Partnership owns a direct or indirect interest) for purposes of the
various REIT gross income tests and in the computation of its REIT taxable
income. Moreover, for purposes of the REIT Asset Tests, we include our
proportionate share of assets held by the Operating Partnership and by
partnerships in which the Operating Partnership owns a direct or indirect
interest.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
believe that each partnership in which we hold an interest (either directly or
indirectly) is properly treated as a partnership for tax purposes and not as an
association taxable as a corporation. If for any reason the Operating
Partnership were taxable as a corporation, rather than as a partnership, for
U.S. federal income tax purposes, we likely would not be able to qualify as a
REIT unless we qualified for certain relief provisions. In addition, any change
in the Operating Partnership&#146;s status for tax purposes might be treated as a
taxable event, in which case we might incur tax liability without any related
cash distribution. Further, items of income and deduction of the Operating
Partnership would not pass through to its partners, and its partners would be
treated as shareholders for tax purposes. Consequently, the Operating
Partnership would be required to pay income tax at corporate rates on its net
income, and distributions to its partners would constitute dividends that would
not be deductible in computing the Operating Partnership&#146;s taxable income. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax
Allocations with respect to Contributed Properties (Effects of Section 704(c)
of the Code)</I>: Pursuant to Section 704(c) of the Code,
income, gain, loss and deduction attributable to appreciated or depreciated
property that is contributed to a partnership in exchange for an interest in
the partnership, must be allocated in a manner such that the contributing
partner is charged with the unrealized gain, or benefits from the unrealized
loss, associated with the property at the time of the contribution. The amount
of the unrealized gain or unrealized loss is generally equal to the difference
between the fair market value of the contributed property at the time of
contribution and the adjusted tax basis of the property at such time (said
difference, the &#147;Book-Tax Difference&#148;). Additionally, upon the occurrence of
certain events (including but not limited to the issuance of additional
interests in the partnership), a partnership may adjust the Section 704(b) book
basis of its assets to reflect their then-current fair market values, thereby
creating additional Book-Tax Differences under Section 704(c). These
allocations are solely for U.S. federal income tax purposes and do not affect
the economic or legal arrangements among the partners. The Operating
Partnership was formed by way of, and has since formation received,
contributions of appreciated property (including interests in partnerships that
have appreciated property) and has adjusted the Section 704(b) book basis of
its assets. Consequently, in accordance with Section 704(c) of the Code and the
Operating Partnership&#146;s partnership agreement, the Operating Partnership makes
allocations to its partners in a manner consistent with Section 704(c) of the
Code and the Treasury Regulations thereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
general, those partners who have contributed to the Operating Partnership
property (including interests in partnerships that own property) that has a
fair market value in excess of basis at the time of such contribution have been
allocated lower amounts of depreciation deductions for tax purposes than would have
been the case if such allocations were made pro rata. In addition, in the event
of the disposition of any such property, all taxable income </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>45</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>and gain
attributable to such property&#146;s Book-Tax Difference generally will be allocated
to the contributing partners, and we generally will be allocated only our share
(and on a pro rata basis) of any capital gain attributable to post-contribution
appreciation, if any. The foregoing allocations would tend to eliminate a
property&#146;s Book-Tax Difference over the Operating Partnership&#146;s life. However,
the special allocation rules of Section 704(c) of the Code do not always
entirely eliminate a property&#146;s Book-Tax Difference and could prolong a
noncontributing partner&#146;s Book-Tax Difference with respect to such property.
Thus, the carryover basis of a contributed property in the hands of the
Operating Partnership may cause us to be allocated: (a) lower tax depreciation
and other deductions than our economic or book depreciation and other
deductions allocable to us; and/or (b) more taxable income or gain upon a sale
of the property than the economic or book income or gain allocable to us as a
result of the sale. Such differing tax allocations may cause us to recognize
taxable income or gain in excess of cash proceeds, which might adversely affect
our ability to comply with the REIT distribution requirements.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury
Regulations under Section 704(c) of the Code provide partnerships with a choice
of several methods of accounting for Book-Tax Differences (<I>e.g.</I>, the &#147;traditional method,&#148; the
&#147;traditional method with curative allocations,&#148; and the &#147;remedial method&#148;).
Some of these methods could prolong the period required to eliminate the
Book-Tax Difference as compared to other permissible methods (or could, in fact,
result in a portion of the Book-Tax Difference to remain unaccounted for). The
Operating Partnership&#146;s partnership agreement provides for the use of the
&#147;traditional method&#148; for accounting for Book-Tax Differences, unless otherwise
determined by us, as the general partner of the Operating Partnership, and the
contributing partner. As a result of this determination, distributions to our
shareholders could be comprised of more taxable income than would otherwise be
the case. With respect to any purchased property that is not &#147;replacement
property&#148; in a tax-free like-kind exchange under Section 1031 of the Code, such
property initially would have a tax basis equal to its fair market value and
Section 704(c) of the Code would not apply. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis
in Partnership Interests in the Operating Partnership</I>:
Our adjusted tax basis in our interest in the Operating Partnership generally
equals the amount of cash and the basis of any other property contributed by us
to the Operating Partnership (1) increased by our allocable share of the income
and indebtedness of the Operating Partnership, and (2) decreased (but not below
zero) by: (a) our allocable share of losses of the Operating Partnership; (b)
the amount of cash and adjusted basis of property distributed by the Operating
Partnership to us; and (c) the reduction in our allocable share of the
Operating Partnership&#146;s indebtedness. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the allocation of our distributive share of the Operating Partnership&#146;s losses
exceeds the adjusted tax basis of our partnership interest in the Operating
Partnership, the recognition of such excess losses would be deferred to the
extent that we have adjusted tax basis in our interest in the Operating
Partnership. To the extent that the Operating Partnership&#146;s distributions, or
any decrease in our allocable share of indebtedness (such decreases being
considered a constructive cash distribution to the partners), exceeds our
adjusted tax basis in our interest in the Operating Partnership, such excess
distributions (including such constructive distributions) will constitute
taxable income to us. Such taxable income would normally be characterized as
capital gain, and if our interest in the Operating Partnership has been held
for longer than the long-term capital gain holding period (currently more than
one year), such distributions and constructive distributions would constitute
long-term capital gain income.</FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale
of the Properties</I>: Our distributive share of any gain
realized by the Operating Partnership on its sale of any property held by it as
inventory or primarily for sale to customers in the ordinary course of its
trade or business would be treated as income from a prohibited transaction that
is subject to a 100% penalty tax. Prohibited transaction income may also have
an adverse effect on our ability to satisfy the REIT gross income tests. Under
existing law, whether the Operating Partnership holds its property as inventory
or primarily for sale to customers in the ordinary course of its trade or
business is a question of fact that depends on all the facts and circumstances
with respect to the particular transaction. The Operating Partnership intends
to hold its properties for investment with a view to long-term appreciation, to
engage in the business of acquiring, developing, owning, renting and otherwise
operating the properties, and to make such occasional sales of the properties,
including peripheral land, as are consistent with the Operating Partnership&#146;s
investment objectives. </FONT></P>

<P><FONT SIZE=2><B><I>State and Local Tax </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
and our shareholders may be subject to state and local tax in various states
and localities, including those in which we or they transact business, own
property or reside. Our tax treatment and that of our shareholders in such
jurisdictions may differ from the U.S. federal income tax treatment described
above. Consequently,  </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>46</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>prospective shareholders should consult their own tax
advisors regarding the effect of state and local tax laws on an investment in
our common shares. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>47</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>P<A NAME=A017></A>LAN OF DISTRIBUTION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus relates to the initial issuance by us of securities described in
this prospectus. </FONT></P>

<P><FONT SIZE=2><B>General</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may sell the securities being offered by this prospectus in one or more of the
following ways from time to time:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>through underwriters or dealers;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>through agents;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>in &#147;at the market offerings&#148; to or through a market
 maker or into an existing trading market, or a securities exchange or
 otherwise;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>directly to purchasers; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>through a combination of any of these methods of
 sale.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
distribution of the securities offered by this prospectus may also be effected
through the issuance of derivative securities, including without limitation,
warrants, subscriptions, exchangeable securities, forward delivery contracts
and the writing of options. In addition, the manner in which we may sell some
or all of the securities covered by this prospectus includes, without
limitation, through:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a block trade in which a broker-dealer will attempt
 to sell as agent, but may position or resell a portion of the block, as
 principal, in order to facilitate the transaction;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>purchases by a broker-dealer, as principal, and
 resale by the broker-dealer for its account;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>ordinary brokerage transactions and transactions in
 which a broker solicits purchasers; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>privately negotiated transactions.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may also enter into hedging transactions. For example, we may:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>enter into transactions with a broker-dealer or
 affiliate thereof in connection with which such broker-dealer or affiliate
 will engage in short sales of the common shares pursuant to this prospectus,
 in which case such broker-dealer or affiliate may use common shares received
 from us to close out its short positions;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>sell securities short and redeliver such shares to
 close out our short positions;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>enter into option or other types of transactions
 that require us to deliver common shares to a broker-dealer or an affiliate
 thereof, who will then resell or transfer the common shares under this
 prospectus; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>loan or pledge the common shares to a broker-dealer
 or an affiliate thereof, who may sell the loaned shares or, in an event of
 default in the case of a pledge, sell the pledged shares pursuant to this
 prospectus.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, we may enter into derivative or hedging transactions with third
parties, or sell securities not covered by this prospectus to third parties in
privately negotiated transactions. In connection with such a transaction, the
third parties may sell securities covered by and pursuant to this prospectus
and an applicable prospectus supplement or pricing supplement, as the case may
be. If so, the third party may use securities borrowed from us or others to
settle such sales and may use securities received from us to close out any
related short positions. We may also loan or pledge securities covered by this
prospectus and an applicable prospectus supplement to third parties, who may
sell the loaned securities or, in an event of default in the case of a pledge,
sell the pledged securities pursuant to this prospectus and the applicable
prospectus supplement or pricing supplement, as the case may be.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
prospectus supplement with respect to each series of securities will state the
terms of the offering of the securities, including:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the terms of the offering;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the name or names of any underwriters or agents and
 the amounts of securities underwritten or purchased by each of them, if any;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the public offering price or purchase price of the
 securities and the net proceeds to be received by us from the sale;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>48</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any delayed delivery arrangements;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the terms of any subscription rights;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any initial public offering price;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any underwriting discounts or agency fees and other
 items constituting underwriters&#146; or agents&#146; compensation;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any discounts or concessions allowed or reallowed or
 paid to dealers; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any securities exchange on which the securities may
 be listed.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
offer and sale of the securities described in this prospectus by us, the
underwriters or the third parties described above may be effected from time to
time in one or more transactions, including privately negotiated transactions,
either:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>at a fixed price or prices, which may be changed;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>at market prices prevailing at the time of sale,
 including in &#147;at the market offerings&#148;;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>at prices related to the prevailing market prices;
 or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>at negotiated prices.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Underwriting
Compensation</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
public offering price and any fees, discounts, commissions, concessions or
other items constituting compensation allowed or reallowed or paid to
underwriters, dealers, agents or remarketing firms may be changed from time to
time. Underwriters, dealers, agents and remarketing firms that participate in
the distribution of the offered securities may be &#145;&#145;underwriters&#146;&#146; as defined
in the Securities Act. Any discounts or commissions they receive from us and
any profits they receive on the resale of the offered securities may be treated
as underwriting discounts and commissions under the Securities Act. We will
identify any underwriters, agents or dealers and describe their fees,
commissions or discounts in the applicable prospectus supplement or pricing
supplement, as the case may be.</FONT></P>

<P><FONT SIZE=2><B>Underwriters
and Agents</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
underwriters are used in a sale, they will acquire the offered securities for
their own account. The underwriters may resell the offered securities in one or
more transactions, including negotiated transactions. We may offer the
securities to the public either through an underwriting syndicate represented
by one or more managing underwriters or through one or more underwriter(s). The
underwriters in any particular offering will be identified in the applicable
prospectus supplement or pricing supplement, as the case may be. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise specified in connection with any particular offering of securities,
the obligations of the underwriters to purchase the offered securities will be
subject to certain conditions contained in an underwriting agreement that we
will enter into with the underwriters at the time of the sale to them. The
underwriters will be obligated to purchase all of the securities of the series
offered if any of the securities are purchased, unless otherwise specified in
connection with any particular offering of securities. Any initial offering
price and any discounts or concessions allowed, reallowed or paid to dealers
may be changed from time to time.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may designate agents to sell the offered securities. Unless otherwise specified
in connection with any particular offering of securities, the agents will agree
to use their best efforts to solicit purchases for the period of their
appointment. We may also sell the offered securities to one or more remarketing
firms, acting as principals for their own accounts or as agents for us. These
firms will remarket the offered securities upon purchasing them in accordance
with a redemption or repayment pursuant to the terms of the offered securities.
A prospectus supplement or pricing supplement, as the case may be, will
identify any remarketing firm and will describe the terms of its agreement, if
any, with us and its compensation.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with offerings made through underwriters or agents, we may enter
into agreements with such underwriters or agents pursuant to which we receive
our outstanding securities in consideration for the securities being offered to
the public for cash. In connection with these arrangements, the underwriters or
agents may also sell securities covered by this prospectus to hedge their
positions in these outstanding securities, including in short sale transactions.
If so, the underwriters or agents may use the securities received from us under
these arrangements to close out any related open borrowings of securities.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>49</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Dealers</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may sell the offered securities to dealers as principals. We may negotiate and
pay dealers&#146; commissions, discounts or concessions for their services. The
dealer may then resell such securities to the public either at varying prices
to be determined by the dealer or at a fixed offering price agreed to with us
at the time of resale. Dealers engaged by us may allow other dealers to
participate in resales.</FONT></P>

<P><FONT SIZE=2><B>Direct
Sales</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may choose to sell the offered securities directly to multiple purchasers or a
single purchaser. In this case, no underwriters or agents would be involved.</FONT></P>

<P><FONT SIZE=2><B>Institutional
Purchasers</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may authorize agents, dealers or underwriters to solicit certain institutional
investors to purchase offered securities on a delayed delivery basis pursuant
to delayed delivery contracts providing for payment and delivery on a specified
future date. The applicable prospectus supplement or pricing supplement, as the
case may be, will provide the details of any such arrangement, including the
offering price and commissions payable on the solicitations.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may enter into such delayed contracts only with institutional purchasers that
we approve. These institutions may include commercial and savings banks,
insurance companies, pension funds, investment companies and educational and
charitable institutions.</FONT></P>

<P><FONT SIZE=2><B>Subscription
Offerings</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct
sales to investors or our shareholders may be accomplished through subscription
offerings or through shareholder subscription rights distributed to
shareholders. In connection with subscription offerings or the distribution of
shareholder subscription rights to shareholders, if all of the underlying
securities are not subscribed for, we may sell any unsubscribed securities to
third parties directly or through underwriters or agents. In addition, whether
or not all of the underlying securities are subscribed for, we may concurrently
offer additional securities to third parties directly or through underwriters
or agents. If securities are to be sold through shareholder subscription
rights, the shareholder subscription rights will be distributed as a dividend
to the shareholders for which they will pay no separate consideration. The
prospectus supplement with respect to the offer of securities under shareholder
subscription rights will set forth the relevant terms of the shareholder
subscription rights, including:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>whether common shares, preferred shares, or warrants
 for those securities will be offered under the shareholder subscription
 rights;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the number of those securities or warrants that will
 be offered under the shareholder subscription rights;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the period during which and the price at which the
 shareholder subscription rights will be exercisable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the number of shareholder subscription rights then
 outstanding;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any provisions for changes to or adjustments in the
 exercise price of the shareholder subscription rights; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any other material terms of the shareholder
 subscription rights.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Indemnification;
Other Relationships</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have agreed to indemnify the selling shareholder and we may agree to indemnify
underwriters, dealers, agents and remarketing firms against civil liabilities,
including liabilities under the Securities Act and to make contribution to them
in connection with those liabilities. Underwriters, dealers, agents and
remarketing firms, and their affiliates, may engage in transactions with, or
perform services for us and our affiliates, in the ordinary course of business,
including commercial banking transactions and services.</FONT></P>

<P><FONT SIZE=2><B>Market
Making, Stabilization and Other Transactions</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
series of securities will be a new issue of securities and will have no
established trading market other than our common shares and preferred shares
which are listed on the NYSE. Any common shares sold pursuant to a</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>50</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>prospectus supplement will be listed on the NYSE,
subject to official notice of issuance. Any underwriters to whom we sell
securities for public offering and sale may make a market in the securities,
but such underwriters will not be obligated to do so and may discontinue any
market making at any time without notice. The securities, other than the common
shares, may or may not be listed on a national securities exchange, and any
such listing if pursued will be described in the applicable prospectus
supplement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
facilitate the offering of the securities, certain persons participating in the
offering may engage in transactions that stabilize, maintain, or otherwise
affect the price of the securities. This may include over-allotments or short
sales of the securities, which involves the sale by persons participating in
the offering of more securities than we sold to them. In these circumstances,
these persons would cover the over-allotments or short positions by making purchases
in the open market or by exercising their over-allotment option. In addition,
these persons may stabilize or maintain the price of the securities by bidding
for or purchasing securities in the open market or by imposing penalty bids,
whereby selling concessions allowed to dealers participating in the offering
may be reclaimed if securities sold by them are repurchased in connection with
stabilization transactions. The effect of these transactions may be to
stabilize or maintain the market price of the securities at a level above that
which might otherwise prevail in the open market. These transactions may be
discontinued at any time.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>51</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>L<A NAME=A018></A>EGAL MATTERS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
matters, excluding tax matters, relating to this prospectus, will be passed
upon for us by Paul, Hastings, Janofsky &amp; Walker LLP, New York, New York.
The legal matters described under &#147;Material United States Federal Income Tax
Considerations&#148; beginning on page 27 of this prospectus will be passed upon for
us by Seyfarth Shaw LLP, New York, New York. Certain legal matters under
Maryland law, including the legality of the securities covered by this
prospectus, will be passed on for us by Berliner, Corcoran &amp; Rowe L.L.P.,
Washington, D.C. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>I<A NAME=A019></A>NDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
consolidated financial statements and schedules as of December 31, 2008 and
2007 and for each of the years in the three-year period ended December 31, 2008
and management&#146;s assessment of the effectiveness of internal control over
financial reporting as of December 31, 2008, incorporated by reference in this
prospectus supplement have been so incorporated in reliance on the reports of
BDO Seidman, LLP, an independent registered public accounting firm,
incorporated herein by reference, given on the authority of said firm as
experts in auditing and accounting.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>W<A NAME=A020></A>HERE YOU CAN FIND MORE INFORMATION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
file annual, quarterly and current reports, proxy statements and other
information with the SEC. Our filings with the SEC are available to the public
on the Internet at the SEC&#146;s website at http://www.sec.gov. You may also read
and copy any document that we file with the SEC at its Public Reference Room,
100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the Public Reference Room and its
copy charges.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information incorporated by reference herein is an important part of this
prospectus. Any statement contained in a document which is incorporated by
reference in this prospectus is automatically updated and superseded if
information contained in a subsequent filing or in this prospectus, or
information that we later file with the SEC prior to the termination of this
offering, modifies or replaces this information. The following documents filed
with the SEC are incorporated by reference into this prospectus, except for any
document or portion thereof &#147;furnished&#148; to the SEC:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="92%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our Annual Report on Form 10-K for the year ended
 December 31, 2008;</FONT></P></TD>
</TR>
<TR>
<TD colspan="3" VALIGN=TOP>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>our Current Reports on Form 8-K filed on January 5, January 27
    and March 18, 2009;</FONT></P></TD>
</TR>
<TR>
<TD colspan="3" VALIGN=TOP>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the description of our shares contained in our
 Registration Statement on Form 8-A dated May 21, 1993, (File No. 33-6008)
 filed on May 26, 1993 pursuant to Section 12(g) of the Exchange Act, including
 any amendment or report filed for the purpose of updating such description;
 and</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>all documents that we file with the SEC pursuant to
 Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, after the date of
 this prospectus and prior to the termination of this offering.&nbsp;</FONT></P></TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
receive a free copy of any of the documents incorporated by reference in this
prospectus (other than exhibits, unless they are specifically incorporated by
reference in the documents), write us at the following address or call us at
the telephone number listed below:</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>ACADIA
REALTY TRUST<BR>
1311 Mamaroneck Avenue<BR>
Suite 260<BR>
White Plains, New York 10605<BR>
Attention: Robert Masters<BR>
(914) 288-8100</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
maintain an internet website at http://www.acadiarealty.com. We are not
incorporating by reference in this prospectus any material from our website.
The reference to our website is an inactive textual reference to the uniform
resource locator (URL) and is for your reference only.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>52</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>PART
II</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>INFORMATION
NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P><FONT SIZE=2><B>Item 14. </B><I>Other Expenses of Issuance and
Distribution</I>.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth below are the expenses, other than underwriting discounts and
commissions, to be incurred by the registrant in connection with the issuance
and distribution of the securities being registered. All amounts set forth
below are estimated. </FONT></P>
<P> </P>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="89%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>SEC Registration Fee</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>27,900</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>*</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>New York Stock Exchange Fees</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Transfer Agent Fees</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Legal Fees and Expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Printing Expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Accounting Fees and Expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Miscellaneous</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Total</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>**</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="96%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=LEFT></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The total filing fee is being paid by the registrant as follows: (i) &#36;17,104 represents the application, in accordance with Rule 415(a)(6) under the Securities Act, of the portion of the filing fee previously paid that
relates to the &#36;159,843,100 of unsold securities from its Registration Statement on Form S-3 (No. 333-139950) filed with the Commission on January 12, 2007; (ii) &#36;7,860 represents the filing fee paid on March 12, 2009 in connection with the
registration of an additional &#36;200,000,000 of securities; and (iii) &#36;2,936 is being paid herewith in connection with the additional &#36;140,156,900 of securities registered hereby.</FONT></P></TD>
</TR>
<TR>
<TD colspan="2" VALIGN=TOP>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>**</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>These fees are calculated based on the securities
 offered and the number of issuances and accordingly, cannot be estimated at
 this time.</FONT></P></TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Item 15. </B><I>Indemnification of Directors and
Officers</I>.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
bylaws and declaration of trust authorize us, to the extent permitted under
Maryland law, to indemnify our trustees and officers in their capacity as such.
Section 8-301(15) of the Maryland General Corporation Law, or MGCL, permits a
Maryland REIT to indemnify or advance expenses to trustees and officers to the
same extent as is permitted for directors and officers of a Maryland
corporation under the MGCL. The MGCL requires a Maryland corporation (unless
its charter provides otherwise, which our declaration of trust does not) to
indemnify a director or officer who has been successful, on the merits or
otherwise against reasonable expenses, in the defense of any proceeding to
which he is made a party by reason of his service in that capacity, or in the
defense of any claim, issue or matter in the proceeding. The MGCL permits a
Maryland corporation to indemnify its present and former directors and
officers, among others, against judgments, penalties, fines, settlements and
reasonable expenses actually incurred by them in connection with any proceeding
to which they may be made a party by reason of their service in those or other
capacities unless it is established that (a) the act or omission of the
director or officer was material to the matter giving rise to the proceeding
and (i) was committed in bad faith or (ii) was the result of active and
deliberate dishonesty, (b) the director or officer actually received an
improper personal benefit in money, property or services or (c) in the case of
any criminal proceeding, the director or officer had reasonable cause to
believe that the act or omission was unlawful. However, a Maryland corporation
may not indemnify directors or officers for an adverse judgment in a suit by or
in the right of the corporation for a judgment of liability on the basis that the
officer or director shall have been adjudged to be liable to us or that a
personal benefit was improperly received, unless in either case a court orders
indemnification and then only for expenses. In addition, the MGCL permits a
corporation to advance reasonable expenses to a director or officer upon the
corporation&#146;s receipt of a written affirmation by the director or officer of
his or her good faith belief that he or she has met the standard of conduct
necessary for indemnification by the corporation and a written undertaking by
such director or officer on his or her behalf to repay the amount paid or
reimbursed by the corporation if it shall ultimately be determined that the
standard of conduct was not met.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>II-1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
bylaws also permit us, subject to the approval of our board of trustees, to
indemnify and advance expenses to any person who served a predecessor of us in
any of the capacities described above and to any of our employees or agents or
any predecessor.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the above, we have purchased and maintain insurance on behalf of
all of our trustees and executive officers against liability asserted against
or incurred by them in their official capacities with us, whether or not we are
required or have the power to indemnify them against the same liability.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers or persons controlling the registrant pursuant
to the foregoing provisions, the registrant has been informed that in the
opinion of the SEC such indemnification is against public policy as expressed
in the Securities Act and is therefore unenforceable.</FONT></P>

<P><FONT SIZE=2><B>Item 16</B>. <I>Exhibits</I>.</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="9%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="91%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Exhibit No.</B></FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Exhibit</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Underwriting Agreement**</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Declaration of Trust of the Company, as amended
 (filed as an Exhibit to the Company&#146;s Annual Report on Form 10-K filed for
 the fiscal year ended December&nbsp;31, 1994)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.2</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fourth Amendment to Declaration of Trust (filed as
 an Exhibit to the Company&#146;s Quarterly Report on Form 10-Q filed for the
 quarter ended September&nbsp;30, 1998)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.3</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fifth Amendment to Declaration of Trust (filed as an
 Exhibit to the Company&#146;s Registration Statement on Form S-3 filed January 12,
 2007)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.4</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Amended and Restated Bylaws of the Company (filed as
 an Exhibit to the Company&#146;s Annual Report on Form 10-K filed for the fiscal
 year ended December&nbsp;31, 2005)*</FONT></P></TD>
</TR>
<TR>
<TD colspan="2" VALIGN=TOP>
</TD>
</TR>
<TR>
  <TD VALIGN=TOP><P><FONT SIZE=2>3.5</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=2>First Amendment to the Amended and Restated
        Bylaws of the Company (filed as an Exhibit to the Company&#146;s Current
        Report on Form 8-K filed March 18, 2009)*</FONT></P></TD>
</TR>
<TR>
  <TD colspan="2" VALIGN=TOP> </TD>
  </TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Voting Trust Agreement between the Company and Yale
 University dated February&nbsp;27, 2002 (filed as an Exhibit to Yale
 University&#146;s Schedule&nbsp;13D filed on September&nbsp;25, 2002)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.2</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Indenture, dated as of December 11, 2006, between
 Acadia Realty Trust and U.S. Bank National Association, as trustee (filed as
 an Exhibit to the Company&#146;s Current Report on Form 8-K filed December 11,
 2006)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.3</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>First Supplemental Indenture, dated as of December
 11, 2006, between Acadia Realty Trust and U.S. Bank National Association, as
 trustee, including the Form of 3.75% Convertible Notes due 2026 (filed as an
 Exhibit to the Company&#146;s Current Report on Form 8-K filed December 11, 2006)*</FONT></P></TD>
</TR>
<TR>
  <TD colspan="2" VALIGN=TOP> </TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.4</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Common Share Certificate (incorporated by
 reference to our Registration Statement on Form 8-A dated May 21, 1993, (File
 No. 33-6008) filed on May 26, 1993)*</FONT></P></TD>
</TR>
<TR>
  <TD colspan="2" VALIGN=TOP> </TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.5</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Certificate for Preferred Shares**</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.6</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Deposit Agreement relating to the depositary
 shares (including form of depositary receipt)**</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.7</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Warrant Agreement**</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.8</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Warrant Certificate**</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.9</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Unit Certificate**</FONT></P></TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>II-2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="9%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="91%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Exhibit No.</B></FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Exhibit</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.10</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Articles Supplementary Classifying and Designating a
 Series of Preferred Shares **</FONT></P></TD>
</TR>
<TR>
  <TD colspan="2" VALIGN=TOP> </TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Opinion of Berliner, Corcoran &amp; Rowe L.L.P. &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Opinion of Seyfarth Shaw LLP &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Amended and Restated Agreement of Limited Partnership
 of the Operating Partnership (filed as an Exhibit to the Company&#146;s
 Registration Statement on Form S-3 filed on March&nbsp;3, 2000)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.2</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>First and Second Amendments to the Amended and
 Restated Agreement of Limited Partnership of the Operating Partnership (filed
 as an Exhibit to the Company&#146;s Registration Statement on Form S-3 filed on
 March&nbsp;3, 2000)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.3</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Third Amendment to Amended and Restated Agreement of
 Limited Partnership of the Operating Partnership (filed as an Exhibit to the
 Company&#146;s Annual Report on Form 10-K filed for the fiscal year ended
 December&nbsp;31, 2003)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.4</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fourth Amendment to Amended and Restated Agreement
 of Limited Partnership of the Operating Partnership (filed as an Exhibit to
 the Company&#146;s Annual Report on Form 10-K filed for the fiscal year ended
 December&nbsp;31, 2003)*</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.5</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fifth Amendment to Amended and Restated Agreement of
 Limited Partnership of the Operating Partnership &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.6</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Sixth Amendment to Amended and Restated Agreement of
 Limited Partnership of the Operating Partnership &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.7</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Seventh Amendment to Amended and Restated Agreement
 of Limited Partnership of the Operating Partnership &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.8</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Eighth Amendment to Amended and Restated Agreement
 of Limited Partnership of the Operating Partnership &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Statement re: computation of ratio of earnings to
 fixed charges &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.1</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consent of Berliner, Corcoran &amp; Rowe L.L.P.
 (included as part of Exhibit 5.1) &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.2</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consent of Seyfarth Shaw LLP (included as part of
 Exhibit 8.1) &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.3</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Consent of BDO Seidman, LLP &#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>24</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Power of Attorney &#134;&#134;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>25</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Statement of Eligibility of Trustee on Form T-1 for
 the Debt Securities***</FONT></P></TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=LEFT></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#134;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Filed herewith</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP><P><FONT SIZE=2>&#134;&#134;</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=2>Previously filed</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Incorporated by reference</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>**</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>To be filed by amendment or incorporated by
 reference in connection with the offering of the offered securities</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP><P><FONT SIZE=2>***</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=2>To be incorporated by reference from a subsequent
        filing in accordance with Section 305(b)(2) of the Trust Indenture Act
        of 1939</FONT></P></TD>
</TR>
<TR>
  <TD colspan="2" VALIGN=TOP> </TD>
  </TR>
</TABLE>

<P><FONT SIZE=2><B>Item 17.</B> <I>Undertakings</I>.</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>A. The undersigned registrant hereby undertakes:</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>II-3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
 To file, during any period in which offers or sales are being made, a
 post-effective amendment to this registration statement:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 To include any prospectus required by Section 10(a)(3) of the Securities Act
 of 1933;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
 To reflect in the prospectus any facts or events arising after the effective
 date of the registration statement (or the most recent post-effective
 amendment thereof) which, individually or in the aggregate, represent a
 fundamental change in the information set forth in the registration
 statement. Notwithstanding the foregoing, any increase or decrease in volume
 of securities offered (if the total dollar value of securities offered would
 not exceed that which was registered) and any deviation from the low or high
 end of the estimated maximum offering range may be reflected in the form of
 prospectus filed with the Securities and Exchange Commission pursuant to
 Rule&nbsp;424(b) if, in the aggregate, the changes in volume and price
 represent no more than 20 percent change in the maximum aggregate offering
 price set forth in the &#147;Calculation of Registration Fee&#148; table in the
 effective registration statement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
 To include any material information with respect to the plan of distribution
 not previously disclosed in the registration statement or any material change
 to such information in the registration statement; <I>provided, however</I>, that paragraphs (i), (ii) and (iii)
 above do not apply if the information required to be included in a
 post-effective amendment by those paragraphs is contained in reports filed
 with or furnished to the Securities and Exchange Commission by the registrant
 pursuant to section 13 or section 15(d) of the Securities Exchange Act of
 1934 that are incorporated by reference in the registration statement, or is
 contained in a form of prospectus filed pursuant to Rule 424(b) that is part
 of the registration statement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
 That, for the purpose of determining any liability under the Securities Act
 of 1933, each such post-effective amendment shall be deemed to be a new
 registration statement relating to the securities offered therein, and the
 offering of such securities at that time shall be deemed to be the initial
 bona fide offering thereof.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
 To remove from registration by means of a post-effective amendment any of the
 securities being registered which remain unsold at the termination of the
 offering.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
 That, for the purpose of determining liability under the Securities Act of
 1933 to any purchaser:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be
 deemed to be part of the registration statement as of the date the filed
 prospectus was deemed part of and included in the registration statement; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
 Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or
 (b)(7) as part of a registration statement in reliance on Rule 430B relating
 to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the
 purpose of providing the information required by section 10(a) of the
 Securities Act of 1933 shall be deemed to be part of and included in the
 registration statement as of the earlier of the date such form of prospectus
 is first used after effectiveness or the date of the first contract of sale
 of securities in the offering described in the prospectus. As provided in
 Rule 430B, for liability purposes of the issuer and any person that is at
 that date an underwriter, such date shall be deemed to be a new effective
 date of the registration statement relating to the securities in the
 registration statement to which that prospectus relates, and the offering of
 such securities at that time shall be deemed to be the initial bona fide
 offering thereof. Provided, however, that no statement made in a registration
 statement or prospectus that is part of the registration statement or made in
 a document incorporated or deemed incorporated by reference into the
 registration statement or prospectus that is part of the registration
 statement will, as to a purchaser with a time of contract of sale prior to
 such effective date, supersede or modify any statement that was made in the
 registration statement or prospectus that was part of the registration statement
 or made in any such document immediately prior to such effective date.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>II-4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)
 That, for the purpose of determining liability of the registrant under the
 Securities Act of 1933 to any purchaser in the initial distribution of the
 securities, the undersigned registrant undertakes that in a primary offering
 of securities of the undersigned registrant pursuant to this registration
 statement, regardless of the underwriting method used to sell the securities
 to the purchaser, if the securities are offered or sold to such purchaser by
 means of any of the following communications, the undersigned registrant will
 be a seller to the purchaser and will be considered to offer or sell such
 securities to such purchaser:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 Any preliminary prospectus or prospectus of the undersigned registrant
 relating to the offering required to be filed pursuant to Rule 424;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
 Any free writing prospectus relating to the offering prepared by or on behalf
 of the undersigned registrant or used or referred to by the undersigned
 registrant;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
 The portion of any other free writing prospectus relating to the offering
 containing material information about the undersigned registrant or its
 securities provided by or on behalf of the undersigned registrant; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
 Any other communication that is an offer in the offering made by the
 undersigned registrant to the purchaser.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)
 That, for purposes of determining any liability under the Securities Act of
 1933, each filing of the registrant&#146;s annual report, pursuant to section
 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where
 applicable, each filing of an employee benefit plan&#146;s annual report pursuant
 to section&nbsp;15(d) of the Securities Exchange Act of 1934) that is
 incorporated by reference in the registration statement shall be deemed to be
 a new registration statement relating to the securities offered therein, and
 the offering of such securities at that time shall be deemed to be the
 initial bona fide offering thereof.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)
 That: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
 For purposes of determining any liability under the Securities Act of 1933,
 the information omitted from the form of prospectus filed as part of this
 registration statement in reliance upon Rule&nbsp;430A and contained in a
 form of prospectus filed by the registrant pursuant to Rule&nbsp;424(b)
 (1)&nbsp;or (4)&nbsp;or 497(h) under the Securities Act shall be deemed to be
 part of this registration statement as of the time it was declared
 effective;&nbsp;and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
 For the purpose of determining any liability under the Securities Act of
 1933, each post-effective amendment that contains a form of prospectus shall
 be deemed to be a new registration statement relating to the securities
 offered therein, and the offering of such securities at that time shall be
 deemed to be the initial bona fide offering thereof. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)
 To file an application for the purpose of determining the eligibility of the
 trustee to act under subsection (a) of section 310 of the Trust Indenture Act
 (&#147;Act&#148;) in accordance with the rules and regulations prescribed by the
 Commission under section 305(b)2 of the Act. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>II-5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>SIGNATURES</B></FONT></P>

<P> <br>
<FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form&nbsp;S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of White Plains, State of New York, on April 7, 2009. </FONT><br>
</P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="50%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="49%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>ACADIA
 REALTY TRUST</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP nowrap>
<P><FONT SIZE=2>By:&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>/s/ K<small>ENNETH</small> F. B<small>ERNSTEIN</small></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="35%" NOSHADE COLOR="GRAY" ALIGN=LEFT>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Kenneth F. Bernstein</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>President and Chief Executive Officer</FONT></P>
</TD>
</TR>
</TABLE>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act, this registration statement has been
signed by the following persons in the capacities and on the date indicated:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="16%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="17%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="34%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="13%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="20%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Signature</B></FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Title</B></FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Date</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="32%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="8%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="15%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
</TR>
<TR>
<TD VALIGN=TOP>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>/s/
 Kenneth F. Bernstein</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chief Executive Officer,
 President and Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="97%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(Principal Executive Officer)</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Kenneth
 F. Bernstein</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>/s/
 Michael Nelsen </FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice President and
 Chief Financial Officer</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="75%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(Principal Financial Officer)</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Michael
 Nelsen</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>/s/ Jonathan W. Grisham</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice President and
 Chief Accounting Officer</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="97%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(Principal Accounting Officer)</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Jonathan W. Grisham</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P align="center"><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="87%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Douglas Crocker II</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P align="center"><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="85%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Suzanne Hopgood</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P align="center"><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="87%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Lorrence T. Kellar</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P align="center"><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="84%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Wendy Luscombe</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP> </TD>
  <TD VALIGN=TOP>&nbsp;</TD>
  <TD VALIGN=TOP>&nbsp;</TD>
  <TD VALIGN=TOP>&nbsp;</TD>
  <TD VALIGN=TOP>&nbsp;</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>II-6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="16%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="17%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="34%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="13%" VALIGN=TOP>
<P>&nbsp;</P></TD>
<TD WIDTH="20%" VALIGN=TOP>
<P>&nbsp;</P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Signature</B></FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Title</B></FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Date</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="32%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="8%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="15%" NOSHADE COLOR=BLACK ALIGN=CENTER></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT> </P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P align="center"><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="80%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>William T. Spitz</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P align="center"><FONT SIZE=2>*</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Trustee</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>April 7, 2009</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="81%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Lee S. Wielansky</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
<TR>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD VALIGN=TOP><P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" BORDER=0 ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
  <TR>
    <TD width="4%" VALIGN=TOP nowrap><P><FONT SIZE=2>* By:</FONT></P></TD>
    <TD width="15%" VALIGN=TOP nowrap><FONT SIZE=2> /s/ Kenneth F. Bernstein</FONT></TD>
    <TD width="79%" VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD width="1%" VALIGN=TOP><P><FONT SIZE=2>&nbsp;</FONT></P></TD>
    <TD width="0%" VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD width="1%" VALIGN=TOP><P ALIGN=CENTER><FONT SIZE=2>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><HR SIZE=1 WIDTH="97%" NOSHADE COLOR="GRAY" ALIGN=LEFT></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=2>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP><P>&nbsp;</P></TD>
    <TD VALIGN=TOP><FONT SIZE=2><i>Attorney-in-fact</i></FONT></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
  <TR>
    <TD colspan="2" VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT> </P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P><FONT SIZE=1>&nbsp;</FONT></P></TD>
    <TD VALIGN=TOP><P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<P ALIGN=CENTER><FONT SIZE=2>II-7</FONT></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.3
<SEQUENCE>3
<FILENAME>c56919_ex23-3.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE>c56919_ex23-3.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<BODY bgcolor="#ffffff">

<P align="right">
<FONT face="serif">Exhibit 23.3</FONT></P>

<P align="center">
<B><FONT face="serif">Consent of Independent Registered Public Accounting Firm</FONT></B></P>
<P align="left">
<FONT face="serif">Acadia Realty Trust </FONT><BR>
<FONT face="serif">White Plains, New York</FONT></P>
<P align="justify">
<FONT face="serif">We hereby consent to the incorporation by reference in this Registration Statement on Form S-3 of our reports dated February 27, 2009, relating to the consolidated financial statements, the effectiveness of Acadia Realty
Trust&#8217;s internal control over financing reporting and schedule of Acadia Realty Trust appearing in the Company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2008. </FONT></P>
<P align="left">&nbsp;</P><P align="left">
<FONT face="serif">BDO Seidman, LLP </FONT><BR>
<FONT face="serif">New York, New York</FONT><BR>
<BR>
<FONT face="serif">April 7, 2009 </FONT></P>
<P align="left">&nbsp;</P><P align="left">&nbsp;</P><P align="left">&nbsp;</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>COVER
<SEQUENCE>4
<FILENAME>filename4.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE>cover.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
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<BODY bgcolor="#ffffff">
<p align="center"><br>
    <font face="serif">[Letterhead of Paul, Hastings, Janofsky &amp; Walker LLP]</font></p>
<p><br>
  <br>
</p>
<TABLE WIDTH="100%"  BORDER=0 CELLPADDING=0 CELLSPACING=0>
<TR>
    <td colspan="2"><font face="serif">(212) 318-6859 <br>
    markschonberger@paulhastings.com </font></td>
    <td width="7%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><font face="serif">April 7, 2009 </font></td>
    <td><div align="right"><font face="serif">41193.00082</font></div></td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><b><font size=2 face="serif">VIA EDGAR </font></b></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><font face="serif">U.S. Securities and Exchange Commission <br>
100 F Street, NE <br>
Washington, DC 20549 </font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="6%"><font face="serif">Re: </font>&nbsp;&nbsp;</td>
    <td width="69%"><font face="serif">Acadia Realty Trust</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="serif">Registration Statement on Form S-3 </font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"><p align="left"> <font face="serif">Ladies and Gentlemen:</font></p>

<p align="left"> <font face="serif">We, on behalf of Acadia Realty Trust,
          transmitted via EDGAR a copy of a pre-effective amendment to Acadia
          Realty Trust&#8217;s
          Registration Statement on Form S-3 for filing under the Securities
          Act of 1933, as amended. This Registration Statement is being filed
          pursuant to the guidance set forth in Question 198.06 of the Division
          of Corporation Finance Securities Act Rules Compliance and Disclosure
          Interpretations and in response to comments received by the Securities and Exchange Commission on March 30, 2009. </font></p>



      <p align="left"> <font face="serif">Please do not hesitate to contact me
          with any questions you may have or for any further information you
          may desire. </font></p>
      <p align="left"> <font face="serif">Sincerely,</font></p>
      <p align="left">&nbsp;</p>
      <p align="left"> <font face="serif">/s/ Mark Schonberger<br>
Mark Schonberger<br>
for PAUL, HASTINGS, JANOFSKY &amp; WALKER LLP</font></p></td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<BR>
<P align="left">&nbsp;</P>
<P align="left">&nbsp;</P>
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