<SEC-DOCUMENT>0000930413-12-002406.txt : 20120425
<SEC-HEADER>0000930413-12-002406.hdr.sgml : 20120425
<ACCEPTANCE-DATETIME>20120425160611
ACCESSION NUMBER:		0000930413-12-002406
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20120424
ITEM INFORMATION:		Other Events
FILED AS OF DATE:		20120425
DATE AS OF CHANGE:		20120425

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12002
		FILM NUMBER:		12779665

	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>8-K
<SEQUENCE>1
<FILENAME>c69463_8k.htm
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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 13.5pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center">WASHINGTON, D.C. 20549</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><B>Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center">Date of Report (Date of Earliest Event
Reported): April 24, 2012</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><FONT STYLE="font-size: 18pt"><B>ACADIA
REALTY TRUST<BR>
</B></FONT><FONT STYLE="font-size: 10pt">(Exact name of registrant as specified in its charter)</FONT></P>

<P STYLE="font: 12pt/11.25pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="width: 34%; padding-right: -0.45pt; padding-left: 0.75pt; text-align: center">Maryland</TD>
    <TD STYLE="width: 33%; padding-right: -0.45pt; padding-left: 0.75pt; text-align: center">1-12002</TD>
    <TD STYLE="width: 33%; padding-right: -0.45pt; padding-left: 0.75pt; text-align: center">23-2715194</TD></TR>
<TR>
    <TD STYLE="padding-right: -0.45pt; padding-left: 0.75pt; text-align: center">(State or other <BR> jurisdiction of incorporation)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="padding-right: -0.45pt; padding-left: 0.75pt; text-align: center">(Commission <BR> File Number)</TD>
    <TD STYLE="padding-right: -0.45pt; padding-left: 0.75pt; text-align: center">(I.R.S. Employer <BR> Identification No.)</TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><FONT STYLE="font-size: 10pt">1311
Mamaroneck Avenue<BR>
Suite 260<BR>
White Plains, New York 10605<BR>
(Address of principal executive offices) (Zip Code)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center">(914) 288-8100<BR>
(Registrant's telephone number, including area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center">(Former name or former address, if
changed since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">[&nbsp; ] &nbsp;Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425 )</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">[&nbsp; ] &nbsp;Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">[&nbsp; ] &nbsp;Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">[&nbsp; ] &nbsp;Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-indent: 0.5in">&nbsp;</P>

<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0;"><B>Item 8.01 Other Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The
  following information sets forth the consolidated financial results of Acadia
  Realty Trust and subsidiaries (the &ldquo;Company&rdquo;) for the quarter ended
  March 31, 2012 as well as additional recent developments. All per share amounts
  set forth below are on a fully diluted basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Recent Development Highlights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Core Portfolio &ndash; Acquisitions and Portfolio Performance</I></B></P><br>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD valign="top" STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">During the first quarter 2012, the Company closed on property acquisitions
of $41.5 million (Chicago and Cambridge, Massachusetts) bringing the total closed to date to $115.3 million of the previously announced
$181.1 million 2011 Core acquisition pipeline</FONT></TD></TR></TABLE>

<br>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD width="24" STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD width="1375" STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">During April 2012, the Company acquired an additional Chicago property
for $20.7 million</FONT></TD></TR></TABLE>

<br>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">March 31, 2012 physical portfolio occupancy of 90.3%; leased occupancy
of 94.2% including executed leases</FONT></TD></TR></TABLE>

<br>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Excluding the impact of re-anchoring activities, same store net operating
income (&ldquo;NOI&rdquo;) for the first quarter up 2.3% compared to 2011; including this impact, same store NOI decreased 3.9%</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Opportunity Funds &ndash; Fund III Acquisitions </I></B></P><br>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">During April 2012, Acadia Strategic Opportunity Fund III, LLC (&ldquo;Fund
III&rdquo;) closed on $31.5 million (Chicago) which completed the acquisition of the previously announced $171.3 million 2011 Fund
acquisition pipeline</FONT></TD></TR></TABLE>

<br>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Fund III closed on an investment in New York City for $16.3 million
during the first quarter 2012</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Balance Sheet &ndash; Match-Funding Core and Fund Acquisitions
</I></B></P><br>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Raised $17.9 million of net proceeds during first quarter 2012 from
the at-the-market (&ldquo;ATM&rdquo;) equity program</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><U>First Quarter 2012 Operating Results</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Funds from Operations (&ldquo;FFO&rdquo;) (see
financial information below for FFO definition and reconciliation to Net Income) and Net Income from Continuing Operations for
the quarter ended March 31, 2012 were $9.3 million and $4.0 million, respectively, as compared to $13.6 million and $8.2 million,
respectively, for the quarter ended March 31, 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Earnings for the quarters ended March 31, 2012
and 2011, on a per share basis, were as follows:</P>
<br>

<TABLE align="center" CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 70%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">Quarters ended March 31,</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 40%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">2012</TD>
    <TD NOWRAP STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: -9pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">2011</TD>
    <TD STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-align: center">Variance</TD>
    <TD STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">FFO per share</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$0.21</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$0.33</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$(0.12)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: -5.4pt; padding-left: 5.4pt">EPS from continuing operations</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$0.09</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$0.20</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$(0.11)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">EPS</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$0.09</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: -4.5pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$0.23</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; text-underline-style: double; text-align: center">$(0.14)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-underline-style: double; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>Core Portfolio </U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&rsquo;s core portfolio is comprised
of properties that are owned in whole or in part by the Company outside of its three opportunity funds (the &ldquo;Funds&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Asset Recycling and Acquisition Activity &ndash; Additional Investment
in Urban/Street Retail</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During April 2012, the Company acquired a single-tenant
property, occupied by Lululemon and located in the Gold Coast neighborhood of Chicago, for $20.7 million.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the first quarter, the Company closed
on six properties under contract at year-end for $41.5 million as detailed below, bringing the total closed to date to $115.3 million
of the previously announced $181.1 million 2011 Core acquisition pipeline:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD valign="top" STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD valign="top" STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><U>Chicago</U> &ndash; The Company closed on five properties, for
a total of $22.6 million including the assumption of debt of $16.0 million. The properties are located throughout Chicago&rsquo;s
high-barrier-to-entry retail corridors, including Clark/Diversey and Armitage/Halsted in the Lincoln Park neighborhood and Rush/Walton
in the Gold Coast neighborhood.</FONT></TD></TR></TABLE>

<br>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD valign="top" STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#151;</FONT></TD><TD valign="top" STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><U>Cambridge</U> &ndash; The Company acquired a 40,000 square foot
Whole Foods and an adjacent 13,300 square foot Rite-Aid in Cambridge, Massachusetts for $18.9 million, including the assumption
of debt of $7.0 million.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the remaining 2011 Core acquisition pipeline
of $65.8 million, the Company is currently awaiting lender&rsquo;s approval for the assumption of $33.3 million of first mortgage
debt collateralized by ten locations prior to closing on these properties. The closings of these transactions currently under contract,
which are anticipated to be completed during the second quarter of 2012, are subject to other customary closing conditions. As
such, no assurance can be given that the Company will successfully complete these transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Core Portfolio Anchor Recycling</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As previously announced during 2011, the Company
commenced the re-anchoring of the Bloomfield Town Square, located in Bloomfield Hills, Michigan, and two former A&amp;P supermarket
locations located in the New York City metropolitan area (collectively, the &ldquo;Re-anchoring Activities&rdquo;). As of March
31, 2012, approximately 80% of this aggregate space has been leased, with Dick&rsquo;s Sporting Goods, Ulta and Five Below at the
Bloomfield Town Square expected to open during the second quarter 2012 and rents for a portion of the former A&amp;P space that
is leased expected to commence during the second half of 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Occupancy and Same-Store NOI</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At March 31, 2012, Acadia&rsquo;s core portfolio
occupancy was 90.3% which was consistent with fourth quarter 2011, as adjusted for certain gross leasable area (&ldquo;GLA&rdquo;)
in the portfolio taken off-line. Including the square footage currently leased but not yet occupied, primarily in connection with
the above Re-Anchoring Activities, the core portfolio is 94.2% leased. The remaining space anticipated to be leased in connection
with the Re-Anchoring Activities represents an additional 90 basis points of portfolio occupancy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Excluding the impact of the Re-anchoring Activities,
core portfolio same-store NOI increased 2.3% for the first quarter 2012 over first quarter 2011. Including the impact of the Re-anchoring
Activities, core portfolio same-store NOI decreased 3.9% for the first quarter 2012 compared to 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>Rent Spreads on New and Renewal Leases</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company realized an increase in average
rents of 16.4% in its core portfolio on 103,000 square feet of new and renewal leases executed during the first quarter of 2012.
Excluding the effect of the straight-lining of rents, the Company experienced an increase of 3.9% in average rents in its core
portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><U>Fund III - Closed $31.5 million of Existing 2011 Acquisition
Pipeline; Additional First Quarter Pipeline of $16.3 million</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>Fund III Acquisitions</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">During the first quarter Fund III acquired a 50% interest in 640
Broadway, a 45,700 square foot property located in the Noho district of New York City for $16.3 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During April 2012, Fund III closed on the Lincoln
Park Centre for $31.5 million, which completed the previously announced $171.3 million of acquisitions under the 2011 Fund acquisition
pipeline. The property is a 62,700 square foot re-anchoring project (former Border Books store) located in Lincoln Park&rsquo;s
Clybourn Corridor in Chicago,</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> Illinois
  adjacent to the newly developed Apple store. Current tenants include Bank of
  America, Carter&rsquo;s,
  Mitchell Gold + Bob Williams and Sur La Table.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 13pt; letter-spacing: 3pt"><B>A</B></FONT><B><FONT STYLE="font-variant: small-caps">CADIA</FONT>
<FONT STYLE="font-size: 13pt">R</FONT><FONT STYLE="font-variant: small-caps">EALTY</FONT> <FONT STYLE="font-size: 13pt">T</FONT><FONT STYLE="font-variant: small-caps">RUST
AND SUBSIDIARIES</FONT></B></P>

<P STYLE="font: italic 12pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center"><B>Financial Highlights</B></P>

<P STYLE="font: bold 9.5pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center">For the Quarters ended March
31, 2012 and 2011</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(dollars and Common Shares
in thousands, except per share data)</I></P>


<div style="border-bottom:1px solid #000000">&nbsp;</div>
<div style="border-bottom:4px solid #000000; font-size:1px">&nbsp;</div>
<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><BR CLEAR="ALL" STYLE="mso-ignore: vglayout">For the Quarters ended</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-decoration: underline; text-align: center">March 31,</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 62%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;Revenues</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2012</TD>
    <TD STYLE="width: 5%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2011</TD>
    <TD STYLE="width: 3%; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Minimum rents</TD>
    <TD align="right" STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30,340</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD align="right" STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26,210</TD>
  <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Percentage rents</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">243</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">178</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Mortgage interest income</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">2,055</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">4,538</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Expense reimbursements</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">6,002</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">5,204</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Other property income</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">553</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">688</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Management fee income</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">433</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">629</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp;&nbsp;&nbsp; Total revenues</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -0.05in; text-align: right">39,626</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">37,447</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD align="center" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-weight: normal">Operating expenses</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Property operating</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">7,956</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">7,421</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Real estate taxes</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">4,942</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">4,138</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">General and administrative</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">5,933</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">5,690</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Depreciation and amortization</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -0.05in; text-align: right">9,141</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">7,634</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold">&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses</TD>
    <TD STYLE="border-top: windowtext 1pt solid; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-top: 2pt; padding-right: -0.05in; text-align: right">27,972</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">24,883</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -0.05in; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Operating income</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -0.05in; text-align: right">11,654</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">12,564</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Equity in losses of unconsolidated affiliates</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">(56)</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">(148)</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Other interest income</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">54</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">34</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Interest expense and other finance costs</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">(8,634)</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">(8,953)</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Gain on extinguishment of debt</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">1,673</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income from continuing operations before</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;Income taxes</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">3,018</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">5,170</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income tax provision</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">195</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">262</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income from continuing operations</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -0.05in; padding-left: 5.4pt; text-align: right">2,823</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">4,908</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 13pt; letter-spacing: 3pt"><B>A</B></FONT><B><FONT STYLE="font-variant: small-caps">CADIA</FONT>
<FONT STYLE="font-size: 13pt">R</FONT><FONT STYLE="font-variant: small-caps">EALTY</FONT> <FONT STYLE="font-size: 13pt">T</FONT><FONT STYLE="font-variant: small-caps">RUST
AND SUBSIDIARIES</FONT></B></P>

<P STYLE="font: italic 12pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center"><B>Financial Highlights</B></P>

<P STYLE="font: bold 9.5pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center">For the Quarters ended March
31, 2012 and 2011</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(dollars and Common Shares
in thousands, except per share data)</I></P>

<div style="border-bottom:1px solid #000000">&nbsp;</div>
<div style="border-bottom:4px solid #000000; font-size:1px">&nbsp;</div>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><BR CLEAR="ALL" STYLE="mso-ignore: vglayout">For the Quarters ended</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-decoration: underline; text-align: center">March 31,</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 62%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2012</TD>
    <TD STYLE="width: 5%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2011</TD>
    <TD STYLE="width: 3%; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Discontinued operations:</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Operating income from discontinued operations</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">822</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Gain on sale of property</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">3,922</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income from discontinued operations</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">4,744</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">2,823</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">9,652</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Loss (income) attributable to noncontrolling interests:</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Continuing operations</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">1,187</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">3,277</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Discontinued operations</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">(3,506)</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net loss (income) attributable to noncontrolling</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;interests</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">1,187</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">(229)</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income attributable to Common Shareholders</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,010</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,423</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: center">Supplemental Information</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income from continuing operations attributable to</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;Common Shareholders</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,010</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,185</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income from discontinued operations attributable to</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;Common Shareholders</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">1,238</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income attributable to Common Shareholders</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,010</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,423</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; text-align: center">Net income attributable to Common Shareholders per Common Share &ndash; Basic</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income per Common Share &ndash; Continuing</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;operations</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.09</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.20</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income per Common Share &ndash; Discontinued</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;operations</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">0.03</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income per Common Share</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.09</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.23</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Weighted average Common Shares</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">42,736</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">40,318</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><I>Net income attributable to Common Shareholders per Common Share &ndash; Diluted </I><B><SUP>1</SUP></B></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income per Common Share &ndash; Continuing</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;operations</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.09</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.20</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income per Common Share &ndash; Discontinued</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; &nbsp;operations</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">0.03</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income per Common Share</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.09</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.23</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Weighted average Common Shares</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">43,146</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">40,580</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
</TABLE>
<br>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 13pt; letter-spacing: 3pt"><B>A</B></FONT><B><FONT STYLE="font-variant: small-caps">CADIA</FONT>
<FONT STYLE="font-size: 13pt">R</FONT><FONT STYLE="font-variant: small-caps">EALTY</FONT> <FONT STYLE="font-size: 13pt">T</FONT><FONT STYLE="font-variant: small-caps">RUST
AND SUBSIDIARIES</FONT></B></P>

<P STYLE="font: italic 12pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center"><B>Financial Highlights</B></P>

<P STYLE="font: bold 9.5pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center">For the Quarters ended March
31, 2012 and 2011</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(dollars and Common Shares
in thousands, except per share data)</I></P>

<div style="border-bottom:1px solid #000000">&nbsp;</div>
<div style="border-bottom:4px solid #000000; font-size:1px">&nbsp;</div>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>RECONCILIATION OF NET INCOME TO FUNDS FROM
OPERATIONS <SUP>2</SUP></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">For the Quarters ended</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-decoration: underline; text-align: center">March 31,</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 62%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2012</TD>
    <TD STYLE="width: 5%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2011</TD>
    <TD STYLE="width: 3%; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Net income attributable to Common Shareholders</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,010</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,423</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt">Depreciation of real estate and amortization of leasing costs</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; (net of noncontrolling interests' share):</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Consolidated affiliates</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">4,828</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">4,458</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Unconsolidated&nbsp; affiliates</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">392</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">353</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt">Gain on sale (net of noncontrolling interests' share):</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Consolidated affiliates</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">(784)</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Unconsolidated&nbsp; affiliates</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; font-family: Symbol; text-align: right">&frac34;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Income attributable to noncontrolling interests&rsquo; in</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp; Operating Partnership</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">63</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">115</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Distributions &ndash; Preferred OP Units</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">5</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Funds from operations</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,298</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 13,570</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; text-align: center">Funds from operations per share &ndash; Diluted</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Weighted average Common Shares and OP Units <B><SUP>3</SUP></B></TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt; text-align: right">43,792</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">41,046</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Funds from operations, per share</TD>
    <TD align="right" STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: -6.5pt; padding-left: 5.4pt">&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.21</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD align="right" STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: -6.5pt; padding-left: 5.4pt">&nbsp;&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.33</TD>
  <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 13pt; letter-spacing: 3pt"><B>A</B></FONT><B><FONT STYLE="font-variant: small-caps">CADIA</FONT>
<FONT STYLE="font-size: 13pt">R</FONT><FONT STYLE="font-variant: small-caps">EALTY</FONT> <FONT STYLE="font-size: 13pt">T</FONT><FONT STYLE="font-variant: small-caps">RUST
AND SUBSIDIARIES</FONT></B></P>

<P STYLE="font: italic 12pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center"><B>Financial Highlights</B></P>

<P STYLE="font: bold 9.5pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center">For the Quarters ended March
31, 2012 and 2011</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(dollars in thousands)</I></P>

<div style="border-bottom:1px solid #000000">&nbsp;</div>
<div style="border-bottom:4px solid #000000; font-size:1px">&nbsp;</div>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>RECONCILIATION OF OPERATING INCOME TO NET
PROPERTY </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>OPERATING INCOME (&ldquo;NOI&rdquo;) <SUP>2</SUP></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">For the Quarters ended</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-decoration: underline; text-align: center">March 31,</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 62%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2012</TD>
    <TD STYLE="width: 5%; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 15%; vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: -4.3pt; padding-left: 5.4pt; font-weight: bold; text-align: center">2011</TD>
    <TD STYLE="width: 3%; vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Operating income</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,654</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12,564</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: -5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Add back:</TD>
    <TD STYLE="vertical-align: top; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; General and administrative</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">5,933</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">5,690</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Depreciation and amortization</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">9,141</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">7,634</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Less:</TD>
    <TD STYLE="vertical-align: top; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Management fee income</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">(433)</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">(629)</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Mortgage interest income</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">(2,055)</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">(4,538)</TD>
    <TD STYLE="vertical-align: top; padding-top: 2pt; padding-right: -4.3pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;&nbsp; Straight line rent and other adjustments</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">(2,186)</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">(1,772)</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Consolidated NOI</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">22,054</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">18,949</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Noncontrolling interest in NOI</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">(6,963)</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">(4,888)</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">Pro-rata share of NOI</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15,091</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; vertical-align: bottom; padding-right: -5.05pt; padding-left: 5.4pt; text-align: right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14,061</TD>
    <TD STYLE="vertical-align: top; padding-right: -4.3pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT>&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT>&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT>&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0"><FONT>&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 9pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-top: windowtext 1pt solid; padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="5" STYLE="padding-right: -5.4pt; padding-left: 5.4pt; font-size: 11pt; font-weight: bold; text-align: center">SELECTED BALANCE SHEET INFORMATION</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: -5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center">As of</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>March 31,</B></P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2012</B></P></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>December 31,</B></P>
        <P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2011</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; text-align: center">(dollars in thousands)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Cash and cash equivalents</TD>
    <TD align="right" STYLE="padding-right: -6.5pt; padding-left: 5.4pt">&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49,670</TD>
  <TD align="right" STYLE="padding-right: -6.5pt; padding-left: 5.4pt">&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 89,812</TD>
</TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Rental property, at cost</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">1,337,943</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">1,252,100</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Total assets</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">1,726,736</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">1,653,319</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Notes payable</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">812,606</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">788,840</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Total liabilities</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">903,397</TD>
    <TD STYLE="padding-right: -4.3pt; padding-left: 5.4pt; text-align: right">883,221</TD></TR>
<TR>
    <TD STYLE="width: 25%">&nbsp;</TD>
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 23%">&nbsp;</TD>
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 18%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 13pt; letter-spacing: 3pt"><B>A</B></FONT><B><FONT STYLE="font-variant: small-caps">CADIA</FONT>
<FONT STYLE="font-size: 13pt">R</FONT><FONT STYLE="font-variant: small-caps">EALTY</FONT> <FONT STYLE="font-size: 13pt">T</FONT><FONT STYLE="font-variant: small-caps">RUST
AND SUBSIDIARIES</FONT></B></P>

<P STYLE="font: italic 12pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center"><B>Financial Highlights</B></P>

<P STYLE="font: bold 9.5pt Times New Roman, Times, Serif; margin: 12pt 0 3pt; text-align: center">For the Quarters ended March
31, 2012 and 2011</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(dollars and Common Shares in thousands, except
per share data)</I></P>

<div style="border-bottom:1px solid #000000">&nbsp;</div>
<div style="border-bottom:4px solid #000000; font-size:1px">&nbsp;</div>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B>Notes:</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 9pt"><B><SUP>1</SUP></B>
Reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted
into Common Shares.</FONT> <FONT STYLE="font-size: 9pt">The effect of the conversion of Common OP Units is not reflected in the
above table as they are exchangeable for Common Shares on a one-for-one
basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the consolidated
financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings
per share.</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><SUP>2</SUP></B> The Company considers funds
from operations (&ldquo;FFO&rdquo;) as defined by the National Association of Real Estate Investment Trusts (&ldquo;NAREIT&rdquo;)
and net property operating income (&ldquo;NOI&rdquo;) to be appropriate supplemental disclosures of operating performance for an
equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist
investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that
are not indicative of the operating performance, such as gains (losses) from sales of depreciated property and depreciation and
amortization. In addition, NOI excludes interest expense. The Company&rsquo;s method of calculating FFO and NOI may be different
from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated
from operations as defined by generally accepted accounting principles (&ldquo;GAAP&rdquo;) and is not indicative of cash available
to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of
evaluating the Company&rsquo;s performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the
Company defines FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property,
plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="color: black"><B><SUP>3</SUP></B>
In</FONT> addition to the weighted average Common Shares outstanding, basic and diluted FFO also assumes full conversion of a weighted
average 621 and 466 OP Units into Common Shares for the quarters ended March 31, 2012 and 2011, respectively. Diluted FFO also
includes the assumed conversion of Preferred OP Units into 25 Common Shares for each of the quarters ended March 31, 2012 and 2011.
In addition, diluted FFO also includes the effect of 410 and 237 employee share options, restricted share units and LTIP units
for the quarters ended March 31, 2012 and 2011, respectively.</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11.25pt 0 0">&nbsp;</P>

<TABLE align="center" CELLPADDING="0" CELLSPACING="0" STYLE="width: 55%; font: 9pt Times New Roman, Times, Serif; border-collapse: collapse">

<TR>
  <TD STYLE="width: 50%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
  <TD STYLE="width: 2%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
  <TD align="right" STYLE="width: 48%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75pt;"><B>ACADIA REALTY TRUST<BR>
    </B>(Registrant)</P></TD>
</TR>
<TR>
  <TD STYLE="width: 45%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
  <TD STYLE="width: 7%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
  <TD STYLE="width: 48%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
</TR>
<TR>
    <TD STYLE="width: 45%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">Date: April 25, 2012 </TD>
    <TD STYLE="width: 7%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">By:</TD>
    <TD STYLE="width: 48%; padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">/s/ Jonathan Grisham</TD></TR>
<TR>
    <TD STYLE="padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-right: -0.45pt; padding-left: 0.75pt; font-size: 10pt">Name:&nbsp; Jonathan Grisham<BR> Title: Sr. Vice President<BR> and Chief Financial Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>



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