<SUBMISSION>
<ACCESSION-NUMBER>0000950123-05-003944
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20050401
<DATE-OF-FILING-DATE-CHANGE>20050331
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CEDAR SHOPPING CENTERS INC
<CIK>0000761648
<ASSIGNED-SIC>6798
<IRS-NUMBER>421241468
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B5
<ACT>33
<FILE-NUMBER>333-114710
<FILM-NUMBER>05722401
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>44 SOUTH BAYLES AVENUE
<CITY>PORT WASHINGTON
<STATE>NY
<ZIP>11050
<PHONE>5167676492
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>44 SOUTH BAYLES AVENUE
<CITY>PORT WASHINGTON
<STATE>NY
<ZIP>11050
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CEDAR INCOME FUND LTD /MD/
<DATE-CHANGED>20001128
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>UNI INVEST USA LTD
<DATE-CHANGED>20000407
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CEDAR INCOME FUND LTD
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>y07179ae424b5.htm
<DESCRIPTION>FILED PURSUANT TO RULE 424B5
<TEXT>
<HTML>
<HEAD>
<TITLE>424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>PROSPECTUS SUPPLEMENT</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>(To prospectus dated May&nbsp;4, 2004)</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>1,200,000 Shares</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Cedar Shopping Centers, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
Series&nbsp;A Cumulative Redeemable Preferred Stock</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>(Liquidation Preference $25 Per Share)</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are offering 1,200,000&nbsp;shares of our
8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
Series&nbsp;A Cumulative Redeemable Preferred Stock. The
Series&nbsp;A Preferred Stock offered by this prospectus
supplement are a further issuance of, will form a single series
with, and will have the same terms as our outstanding
8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
Series&nbsp;A Cumulative Redeemable Preferred Stock, issued on
July&nbsp;28, 2004. There are presently outstanding an aggregate
of 2,350,000 shares of our Series&nbsp;A Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Distributions on the Series&nbsp;A Preferred Stock are payable
quarterly, with the next quarterly payment scheduled for
May&nbsp;20, 2005, at the rate of
8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
of the liquidation preference per annum, or $2.21875&nbsp;per
share of Series&nbsp;A Preferred Stock per annum. Holders of
record of shares of Series&nbsp;A Preferred Stock (including
shares purchased in this offering) at the close of business on
the record date to be set by our board of directors will be
entitled to receive that dividend payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shares of the Series&nbsp;A Preferred Stock are not redeemable
until July&nbsp;28, 2009, after which we may redeem the shares
at $25.00 each, plus any accrued and unpaid distributions to the
date of redemption. The Series&nbsp;A Preferred Stock has no
maturity date and will remain outstanding indefinitely unless
redeemed.
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investing in the Series&nbsp;A Preferred Stock involves risks
that are described in the &#147;Risk Factors&#148; sections
beginning on page&nbsp;S-4 of this prospectus supplement and
page&nbsp;3 of the accompanying prospectus.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Series&nbsp;A Preferred Stock is listed on the New York
Stock Exchange, or NYSE, under the symbol &#147;CDR PrA.&#148;
The last reported sale price for the Series&nbsp;A Preferred
Stock on the NYSE on March&nbsp;30, 2005 was $26.30 per share.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Total</B></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap>&nbsp;<B>Per&nbsp;Share</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Public offering price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $26.00</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $31,200,000</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Underwriting discount</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $.7875</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $945,000</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds, before expenses, to us</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $25.2125</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $30,255,000</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus supplement or the
accompanying prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Series&nbsp;A Preferred Stock will be ready for delivery
through the facilities of The Depository Trust Company on or
about April&nbsp;4, 2005.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<FONT style="font-size: 10pt"> </FONT><B>Merrill
Lynch&nbsp;&#38; Co.</B>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 18pt;">

<TR>
    <TD width="22%"></TD>
    <TD width="78%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT style="font-size: 10pt"> </FONT><B>Raymond J ames</B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 18pt;">

<TR>
    <TD width="44%"></TD>
    <TD width="56%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT style="font-size: 10pt"> </FONT><B>Legg Mason Wood
    Walker</B></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt;">
<B>Incorporated&nbsp;</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The date of this prospectus supplement is March&nbsp;30, 2005.
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Prospectus Supplement</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#101'>Prospectus Supplement Summary</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#102'>Risk Factors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#103'>Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-4</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>The Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#105'>Ratios of Earnings to Combined Fixed
    Charges and Preferred Stock Dividends</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>Description of the Series&nbsp;A Preferred
    Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#107'>Federal Income Tax Considerations</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>Underwriting</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>Legal Matters</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#110'>Experts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#111'>Incorporation of Certain Information by
    Reference</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#112'>Where You Can Find More Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#113'>Forward-Looking Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-15</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Prospectus</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="93%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#114'>About this Prospectus</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#115'>Incorporation of Certain Documents by
    Reference</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#116'>The Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#117'>Risk Factors</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#118'>Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#119'>Description of Preferred Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#120'>Description of Depositary Shares</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#121'>Description of Common Stock</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#122'>Description of Warrants</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#123'>Description of Stock Purchase Contracts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#124'>Description of Units</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#125'>Plan of Distribution</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#126'>Legal Matters</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#127'>Experts</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#128'>Where You Can Find More Information</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt;">i
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In this prospectus supplement, the terms &#147;we&#148;,
&#147;us&#148; or &#147;our&#148; include Cedar Shopping
Centers, Inc., Cedar Shopping Centers Partnership, L.P. and
their consolidated subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should rely only on the information contained or
incorporated by reference in this prospectus supplement and the
accompanying prospectus. We have not, and the underwriters have
not, authorized any person to provide you with different
information. If anyone provides you with different or
inconsistent information, you should not rely on it. We are not,
and the underwriters are not, making an offer to sell these
securities in any jurisdiction where the offer or sale is not
permitted. You should assume that the information appearing in
this prospectus supplement, the accompanying prospectus and the
documents incorporated by reference is accurate only as of their
respective dates or on other dates which are specified in those
documents. Our business, financial condition, results of
operations and prospects may have changed since those dates.
</DIV>

<P align="center" style="font-size: 10pt;">ii

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
 <A name='101'></A>
</DIV>

<!-- link1 "PROSPECTUS SUPPLEMENT SUMMARY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS SUPPLEMENT SUMMARY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>This summary may not contain all of the information that is
important to you. You should carefully read this entire
prospectus supplement and the accompanying prospectus. You
should also read the documents we have referred you to in
&#147;Incorporation of Certain Information by
Reference.&#148;</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Company</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are a real estate investment trust, or REIT, that focuses on
the ownership, operation and redevelopment of primarily
community and neighborhood shopping centers. As of
March&nbsp;28, 2005, we owned 33&nbsp;properties, aggregating
approximately 5.0&nbsp;million square feet of gross leasable
area, or GLA. We conduct our business and own all of our
properties through Cedar Shopping Centers Partnership, L.P., or
the operating partnership.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Principal Place of Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal executive offices are located at 44&nbsp;South
Bayles Avenue, Port Washington, NY 11050, our telephone number
is (516)&nbsp;767-6492 and our website address is
www.cedarshoppingcenters.com. Information contained on our
website is not a part of this prospectus supplement or the
accompanying prospectus and is not incorporated in this
prospectus supplement or the accompanying prospectus by
reference.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Offering</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a brief summary of certain terms of this
offering. For a more complete description of the terms of the
Series&nbsp;A Preferred Stock, see &#147;Description of the
Series&nbsp;A Preferred Stock&#148; in this prospectus
supplement and &#147;Description of Preferred Stock&#148; in the
accompanying prospectus.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="top">
    Cedar Shopping Centers, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Securities Offered</TD>
    <TD></TD>
    <TD valign="top">
    1,200,000&nbsp;shares of
    8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
    Series&nbsp;A Cumulative Redeemable Preferred Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Distributions</TD>
    <TD></TD>
    <TD valign="top">
    Investors will be entitled to receive cumulative cash
    distributions on the Series&nbsp;A Preferred Stock at a rate of
    8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
    per annum of the $25.00 per share liquidation preference
    (equivalent to $2.21875&nbsp;per annum per share). Distributions
    on the Series&nbsp;A Preferred Stock are payable quarterly in
    arrears on the 20th day of each February, May, August and
    November or, if not a business day, the next business day.
    Holders of record of shares of Series&nbsp;A Preferred Stock
    (including shares purchased in this offering) at the close of
    business on the record date to be set by our board of directors
    will be entitled to receive the $.5546875&nbsp;per share
    distribution payable on May&nbsp;20, 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Optional Redemption</TD>
    <TD></TD>
    <TD valign="top">
    We may not redeem the Series&nbsp;A Preferred Stock prior to
    July&nbsp;28, 2009, except in limited circumstances relating to
    our continuing qualification as a REIT. On and after
    July&nbsp;28, 2009, we may, at our option, redeem the
    Series&nbsp;A Preferred Stock, in whole or from time to time in
    part, by payment of $25.00 per share, plus any accrued and
    unpaid distributions to the date of redemption. Any partial
    redemption of the Series&nbsp;A Preferred Stock will be on a pro
    rata basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    No Maturity</TD>
    <TD></TD>
    <TD valign="top">
    The Series&nbsp;A Preferred Stock has no maturity date and we
    are not required to redeem the Series&nbsp;A Preferred Stock.
    Accord-</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">S-1
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    ingly, the Series&nbsp;A Preferred Stock will remain outstanding
    indefinitely unless we decide to redeem it. We are not required
    to set aside funds to redeem the Series&nbsp;A Preferred Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Liquidation Preference</TD>
    <TD></TD>
    <TD valign="top">
    If we liquidate, dissolve or wind up, holders of the
    Series&nbsp;A Preferred Stock will have the right to receive the
    sum of (a)&nbsp;$25.00 per share, (b)&nbsp;the premium described
    under &#147;Description of the Series&nbsp;A Preferred
    Stock&nbsp;&#151; Liquidation Rights&#148; and (c)&nbsp;accrued
    and unpaid distributions (whether or not declared) to the date
    of payment, before any payments are made to the holders of our
    common stock and any other series of our preferred stock that we
    may issue ranking junior to the Series&nbsp;A Preferred Stock as
    to liquidation rights. The rights of the holders of the
    Series&nbsp;A Preferred Stock to receive their liquidation
    distribution will be subject to the proportionate rights of each
    other series or class of our preferred stock ranking on a parity
    with the Series&nbsp;A Preferred Stock that we may issue.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="top">
    The Series&nbsp;A Preferred Stock ranks senior to our common
    stock with respect to the payment of distributions and amounts
    upon liquidation, dissolution or winding up. The Series&nbsp;A
    Preferred Stock offered hereby will rank equally and form a
    single series with our outstanding
    8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
    Series&nbsp;A Cumulative Redeemable Preferred Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Voting Rights</TD>
    <TD></TD>
    <TD valign="top">
    Holders of any series of our preferred stock, including the
    Series&nbsp;A Preferred Stock, generally have no voting rights.
    However, if we do not pay distributions on our Series&nbsp;A
    Preferred Stock for six or more consecutive quarterly periods,
    the holders of the Series A Preferred Stock, voting together
    with the holders of any other series of our preferred stock
    which has similar voting rights, will be entitled to vote for
    the election of two additional directors to serve on our board
    of directors until we pay all distributions which we owe on our
    preferred stock. In addition, the affirmative vote of the
    holders of at least two-thirds of the Series&nbsp;A Preferred
    Stock is required for us to authorize, create or increase
    capital shares ranking senior to the Series&nbsp;A Preferred
    Stock or to amend our Articles of Incorporation in a manner that
    materially and adversely affects the rights of the holders of
    the Series A Preferred Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Listing</TD>
    <TD></TD>
    <TD valign="top">
    Our Series&nbsp;A Preferred Stock is listed on the NYSE under
    the symbol &#147;CDR PrA.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Restrictions on Ownership and Transfer</TD>
    <TD></TD>
    <TD valign="top">
    Our Articles of Incorporation provide that no person or entity
    may beneficially own, or be deemed to own by virtue of the
    applicable constructive ownership provisions of the Internal
    Revenue Code of 1986, as amended, or the Code, more than 9.9% of
    the outstanding shares of our common stock. The Articles
    Supplementary will provide that the 9.9% ownership limitation
    applies to ownership of our Series&nbsp;A Preferred Stock as a
    separate class. Our board of directors, in its sole discretion,
    is able to waive the 9.9% ownership limit under certain
    circumstances.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">S-2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="top">
    We may prevent any proposed transfer of our capital shares,
    including the Series&nbsp;A Preferred Stock, which would
    jeopardize our status as a REIT and may repurchase any shares
    necessary to maintain our REIT status. We have the right to
    purchase any shares, including the Series&nbsp;A Preferred
    Stock, or refuse to transfer or issue shares to a person whose
    acquisition of shares would result in ownership in excess of the
    9.9% limit. Any transfer of shares that would result in our
    disqualification as a REIT or in a person&#146;s exceeding this
    ownership limit which is not waived by us, is deemed void.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Conversion</TD>
    <TD></TD>
    <TD valign="top">
    The Series&nbsp;A Preferred Stock is not convertible into or
    exchangeable for any other securities or property.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    Use of Proceeds</TD>
    <TD></TD>
    <TD valign="top">
    We estimate that our net proceeds from this offering, after
    expenses, will be about $30,105,000. We will contribute the net
    proceeds from this offering to our operating partnership in
    exchange for preferred units of limited partnership interest in
    our operating partnership that have substantially identical
    economic terms as the Series&nbsp;A Preferred Stock.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <BR></TD>
    <TD></TD>
    <TD valign="top">
    Our operating partnership presently intends to use substantially
    all of the net proceeds from this offering to repay amounts
    outstanding on our secured revolving credit facility.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">S-3

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='102'></A>
</DIV>

<!-- link1 "RISK FACTORS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RISK FACTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>An investment in our Series&nbsp;A Preferred Stock involves a
number of risks. Before making an investment decision to
purchase our Series&nbsp;A Preferred Stock, you should carefully
consider all the risks described in this prospectus supplement
and the risks described under &#147;Risk Factors&#148; beginning
on page 3 of the accompanying prospectus, as well as the other
information contained in, or incorporated by reference into,
this prospectus supplement or the accompanying prospectus. If
any of these risks actually occurs, our business, financial
condition and results of operations could be materially
adversely affected. If this were to occur, the value of our
Series&nbsp;A Preferred Stock could decline significantly and
you may lose all or part of your investment.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Numerous factors may affect the trading price of the
Series&nbsp;A Preferred Stock.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares of Series A Preferred Stock may trade at prices
higher or lower than their initial offering price. The trading
price of our Series&nbsp;A Preferred Stock may depend on many
factors, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    prevailing interest rates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the market for similar securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    additional issuances of other series or classes of preferred
    stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    general economic conditions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    our financial condition, performance and prospects.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Series&nbsp;A Preferred Stock is subordinated to existing
and future debt.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;28, 2005, our total indebtedness was
approximately $267.4&nbsp;million, and we may incur additional
debt to acquire additional properties, redevelop or develop
existing or new properties, or for other corporate purposes.
Payment of amounts due on our Series&nbsp;A Preferred Stock will
be subordinated to all of our existing and future debt and will
be structurally subordinated to the payment of dividends on
preferred stock, if any, issued by subsidiaries of our operating
partnership. In addition, we may issue additional Series&nbsp;A
Preferred Stock and/or shares of another class or series of
preferred stock ranking on a parity with the Series&nbsp;A
Preferred Stock with respect to the payment of dividends and the
distribution of assets upon liquidation, dissolution or winding
up. These factors may affect the trading price of the
Series&nbsp;A Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>The Series&nbsp;A Preferred Stock has not been rated.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not sought to obtain a rating for the Series&nbsp;A
Preferred Stock. No assurance can be given, however, that one or
more rating agencies might not independently determine to issue
such a rating or that such a rating, if issued, would not
adversely affect the market price of our Series&nbsp;A Preferred
Stock. In addition, we may elect in the future to obtain a
rating of our Series A Preferred Stock, which could adversely
impact the market price of our Series A Preferred Stock. Ratings
only reflect the views of the rating agency or agencies issuing
the ratings and such ratings could be revised downward or
withdrawn entirely at the discretion of the issuing rating
agency if in its judgment circumstances so warrant. Any such
downward revision or withdrawal of a rating could have an
adverse effect on the market price of our Series&nbsp;A
Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='103'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We estimate that the net proceeds of this offering, after
deducting the underwriting discount and other offering expenses,
will be approximately $30,105,000. We will contribute the net
proceeds from this offering to our operating partnership in
exchange for preferred units of limited partnership interest in
our operating partnership that have substantially identical
economic terms as the Series&nbsp;A Preferred Stock. Our
operating partnership presently intends to use substantially all
of the net
</DIV>

<P align="center" style="font-size: 10pt;">S-4
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
proceeds from this offering to repay amounts outstanding on our
secured revolving credit facility. As of March&nbsp;28, 2005, we
had $87.5&nbsp;million outstanding on our secured revolving
credit facility, which matures in January 2007. Borrowings under
our secured revolving credit facility bear interest at a rate of
LIBOR plus 150 to 205 basis points depending on our overall
leverage ratio. We expect thereafter to then borrow from time to
time under our secured revolving credit facility to provide
funds for general working capital and other corporate purposes,
including the acquisition of additional properties and the
redevelopment or development of existing or new properties.
</DIV>

<P align="center" style="font-size: 10pt;">S-5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='104'></A>
</DIV>

<!-- link1 "THE COMPANY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THE COMPANY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We were organized in 1984 and elected to be taxed as a REIT in
1986. We are a fully integrated, self-administered and
self-managed real estate company. We acquire, own, manage, lease
and redevelop primarily community and neighborhood shopping
centers located primarily in Pennsylvania. As of March&nbsp;28,
2005, we owned 33&nbsp;properties totaling approximately
5.0&nbsp;million square feet of GLA, including 27 wholly-owned
properties comprising approximately 4.3&nbsp;million square feet
of GLA and six properties owned through joint ventures
comprising approximately 700,000 square feet of GLA. The
portfolio was approximately 97% leased as of that date,
excluding properties under development and/or redevelopment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conduct our business through Cedar Shopping Centers
Partnership, L.P., or the operating partnership, a Delaware
limited partnership. We own approximately a 97% interest in the
operating partnership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal executive offices are located at 44&nbsp;South
Bayles Avenue, Port Washington,&nbsp;NY 11050, our telephone
number is (516)&nbsp;767-6492 and our website address is
www.cedarshoppingcenters.com. Information contained on our
website is not a part of this prospectus supplement or the
accompanying prospectus and is not incorporated in this
prospectus supplement or the accompanying prospectus by
reference.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='105'></A>
</DIV>

<!-- link1 "RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>PREFERRED STOCK DIVIDENDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth our consolidated ratios of
earnings to combined fixed charges and preferred stock dividend
requirements for the periods shown.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Year Ended December&nbsp;31,</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ratio of earnings to combined fixed charges and preferred stock
    dividend requirements(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.36x</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.36x</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 15%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    For the purpose of calculating the ratio of earnings to fixed
    charges and preferred stock dividend requirements,
    &#147;earnings&#148; consist of income from continuing
    operations before income taxes plus &#147;fixed charges&#148;
    and certain other adjustments. &#147;Fixed charges&#148; consist
    of interest incurred on all indebtedness related to continuing
    operations. For the years ended December&nbsp;31, 2003, 2002 and
    2001, earnings were insufficient to cover fixed charges by
    $22,367,000, $1,412,000 and $541,000, respectively.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For years prior to 2004, we had no preferred stock outstanding
for any of the periods shown above. Accordingly, our
consolidated ratios of earnings to combined fixed charges and
preferred stock dividends for those years was identical to the
ratio of earnings to fixed charges.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></A>
</DIV>

<!-- link1 "DESCRIPTION OF THE SERIES A PREFERRED STOCK" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF THE SERIES A PREFERRED STOCK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This description of the Series&nbsp;A Preferred Stock
supplements the description of the general terms and provisions
of our preferred stock in the accompanying prospectus and to the
extent inconsistent herewith, the description of the
Series&nbsp;A Preferred Stock contained herein supersedes the
description therein. You should consult that general description
for further information.
</DIV>

<P align="center" style="font-size: 10pt;">S-6
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The summary is not complete and is qualified in its entirety by
reference to our Articles of Incorporation and the Articles
Supplementary, as amended or supplemented, relating to the
Series&nbsp;A Preferred Stock, which are available from us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are currently authorized to issue up to 5,000,000&nbsp;shares
of preferred stock in one or more series. Each series of our
preferred stock will have the designations, powers, preferences,
rights, qualifications, limitations or restrictions as Maryland
law and our Articles of Incorporation permit and our board of
directors determines by adoption of applicable Articles
Supplementary to our Articles of Incorporation. Prior to this
offering, 2,350,000 shares of our Series&nbsp;A Preferred Stock
are issued and outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to completing this offering, we will file Articles
Supplementary for the Series&nbsp;A Preferred Stock to increase
the number of authorized shares of Series&nbsp;A Preferred Stock
from 2,350,000&nbsp;shares to 3,550,000&nbsp;shares. You may
obtain a complete copy of the Articles Supplementary describing
the Series&nbsp;A Preferred Stock by contacting us or from the
SEC as described under &#147;Where You Can Find More
Information.&#148; Our board of directors may authorize
additional shares of Series&nbsp;A Preferred Stock from time to
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The transfer agent, registrar and distribution disbursing agent
for the Series&nbsp;A Preferred Stock is American Stock
Transfer&nbsp;&#38; Trust Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Series&nbsp;A Preferred Stock is listed on the NYSE under
the symbol &#147;CDR PrA.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Distributions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of the Series&nbsp;A Preferred Stock are entitled to
receive, when and if declared by our board of directors, out of
funds legally available for the payment of distributions,
cumulative cash distributions at the rate of
8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
of the liquidation preference per annum. Distributions on the
Series&nbsp;A Preferred Stock are cumulative and are payable
quarterly in arrears on the 20th day of each February, May,
August and November or, if not a business day, the next business
day. The first distribution on the Series&nbsp;A Preferred Stock
to be issued in this offering will be paid on May&nbsp;20, 2005
and will be $.554687 per share. Distributions payable on the
Series&nbsp;A Preferred Stock for any partial period will be
computed on the basis of a 360-day year consisting of twelve
30-day months. We will pay distributions to holders of record as
they appear in our stock transfer books at the close of business
on the applicable distribution record date designated by our
board of directors for the payment of distributions that is not
more than 60 nor less than 10&nbsp;days prior to the
distribution payment date. Our board of directors has not yet
determined a record date for holders of the Series&nbsp;A
Preferred Stock entitled to receive the quarterly distribution
payable on May&nbsp;20, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not authorize or pay any distributions on the
Series&nbsp;A Preferred Stock or set aside funds for the payment
of distributions if restricted or prohibited by law, or if the
terms of any of our agreements, including agreements relating to
our indebtedness or our other series of preferred shares,
prohibit that authorization, payment or setting aside of funds
or provide that the authorization, payment or setting aside of
funds is a breach of or a default under that agreement. We are,
and may in the future become, a party to agreements which
restrict or prevent the payment of distributions on, or the
purchase or redemption of, shares. These restrictions may
include indirect covenants which require us to maintain
specified levels of net worth or assets. We do not believe that
these restrictions currently have any adverse impact on our
ability to pay distributions on the Series&nbsp;A Preferred
Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding the foregoing, distributions on the
Series&nbsp;A Preferred Stock will accrue and cumulate whether
or not we have earnings, whether or not there are funds legally
available for the payment of distributions and whether or not
distributions are declared by the board of directors. Accrued
but unpaid distributions on the Series&nbsp;A Preferred Stock
will not bear interest, and holders of the Series&nbsp;A
Preferred Stock will not be entitled to any distributions in
excess of full cumulative distributions as described above. All
of our distributions on the Series&nbsp;A Preferred Stock,
including any capital gain distributions, will be credited first
to the earliest accrued and unpaid distribution due.
</DIV>

<P align="center" style="font-size: 10pt;">S-7
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not declare or pay any distributions (other than
distributions in kind on our common stock or other shares that
rank junior to the Series&nbsp;A Preferred Stock), or set aside
any funds for the payment of distributions, on common stock or
other shares that rank junior to or on parity with the
Series&nbsp;A Preferred Stock, or redeem or otherwise acquire
common stock or other shares that rank junior to or on parity
with the Series&nbsp;A Preferred Stock (except by conversion
into or exchange for common stock or other shares ranking junior
to the Series&nbsp;A Preferred Stock), unless we also have
declared and either paid or set aside for payment the full
cumulative distributions on the Series&nbsp;A Preferred Stock,
for the current and all past distribution periods (other than
pro rata distributions on preferred stock ranking on parity as
to distributions with the Series&nbsp;A Preferred Stock). This
restriction will not limit our redemption or other acquisition
of shares for the purposes of enforcing restrictions upon
ownership and transfer of our equity securities contained in our
Articles of Incorporation or for the purpose of preserving our
status as a REIT.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will not authorize the full cumulative distributions on any
shares of preferred stock unless we have authorized those
distributions as are accrued on all of our outstanding shares of
preferred stock which are of parity series. If we do not declare
and either pay or set aside for payment the full cumulative
distributions on the Series&nbsp;A Preferred Stock and all
shares that rank on parity with Series&nbsp;A Preferred Stock,
the amount which we have declared will be allocated pro rata to
the Series&nbsp;A Preferred Stock and to each parity series of
stock, so that the amount declared for each share of
Series&nbsp;A Preferred Stock and for each share of each parity
series is proportionate to the accrued and unpaid distributions
on those shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Redemption</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may not redeem the Series&nbsp;A Preferred Stock prior to
July&nbsp;28, 2009, except as described below under
&#147;&#151;&nbsp;Restrictions on Ownership and Transfer.&#148;
On and after July&nbsp;28, 2009, at our option upon not less
than 30 nor more than 60&nbsp;days written notice, we may redeem
the Series&nbsp;A Preferred Stock, in whole or in part, at any
time or from time to time, at a redemption price of
$25.00&nbsp;per share, plus all accrued and unpaid distributions
to the date fixed for redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may give notice of redemption by mail to each holder of
record of Series&nbsp;A Preferred Stock at the address shown on
our stock transfer books. A failure to give notice of redemption
or any defect in the notice or in its mailing will not affect
the validity of the redemption of any share of Series&nbsp;A
Preferred Stock except as to the holder to whom notice was
defective. Each notice will state the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the redemption date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the redemption price;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the number of shares of Series&nbsp;A Preferred Stock to be
    redeemed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the place where the certificates for the Series&nbsp;A Preferred
    Stock are to be surrendered for payment;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    that distributions on the shares to be redeemed will cease to
    accrue on the redemption date.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we redeem fewer than all of the shares of Series&nbsp;A
Preferred Stock, the notice of redemption mailed to each
stockholder will also specify the number of shares of
Series&nbsp;A Preferred Stock that we will redeem from each
stockholder. In this case, we will determine the number of
shares of Series&nbsp;A Preferred Stock to be redeemed on a pro
rata basis, by lot or by any other equitable method we may
choose. Unless the full cumulative distributions on all shares
of Series&nbsp;A Preferred Stock have been paid or set aside we
generally may not redeem any Series&nbsp;A Preferred Stock
unless we redeem all of the Series&nbsp;A Preferred Stock, or
purchase or otherwise acquire any shares of Series&nbsp;A
Preferred Stock or other equity securities ranking junior to or
on parity with the Series&nbsp;A Preferred Stock (except by
conversion into or exchange for common stock or other shares
ranking junior to the Series&nbsp;A Preferred Stock). This
restriction will not limit our redemption or purchase of
preferred stock for the purpose of enforcing restrictions upon
ownership and transfer of our equity securities contained in our
Articles of Incorporation, for the purpose
</DIV>

<P align="center" style="font-size: 10pt;">S-8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
of preserving our status as a REIT or pursuant to a purchase or
exchange offer made on the same terms to all holders of the
Series&nbsp;A Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we have given a notice of redemption and have set aside
sufficient funds for the redemption in trust for the benefit of
the holders of the shares of Series&nbsp;A Preferred Stock
called for redemption, then, from and after the redemption date,
those shares of Series&nbsp;A Preferred Stock will be treated as
no longer outstanding, no further distributions will accrue and
all other rights of the holders of those shares of Series&nbsp;A
Preferred Stock will terminate. The holders of those shares of
Series&nbsp;A Preferred Stock will retain their right to receive
the redemption price for their shares and any accrued and unpaid
distributions to the redemption date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The holders of shares of Series&nbsp;A Preferred Stock at the
close of business on a distribution record date will be entitled
to receive the distribution payable with respect to the
Series&nbsp;A Preferred Stock on the corresponding payment date
notwithstanding the redemption of the Series&nbsp;A Preferred
Stock between such record date and the corresponding payment
date. Except as provided above, we will make no payment or
allowance for unpaid distributions, whether or not in arrears,
on Series&nbsp;A Preferred Stock to be redeemed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Series&nbsp;A Preferred Stock has no stated maturity and
will not be subject to any sinking fund or mandatory redemption
provisions, except as provided under
&#147;&#151;&nbsp;Restrictions on Ownership and Transfer&#148;
below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to applicable law, we may purchase Series&nbsp;A
Preferred Stock in the open market, by tender or by private
agreement. Any Series&nbsp;A Preferred Stock that we reacquire
will be returned to the status of authorized but unissued
Series&nbsp;A Preferred Stock, unless determined otherwise by
our board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Liquidation Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon any voluntary or involuntary liquidation, dissolution or
winding up of our affairs, the holders of shares of
Series&nbsp;A Preferred Stock are entitled to be paid out of our
assets that are legally available for distribution to our
stockholders the sum of (a)&nbsp;the liquidation preference of
$25.00&nbsp;per share, (b)&nbsp;the applicable premium per share
(expressed as a percentage of the liquidation preference of
$25.00 per share) as set forth in the table below during the
twelve-month period beginning on July&nbsp;28 of each year and
(c)&nbsp;an amount equal to any accrued and unpaid distributions
(whether or not declared) to the date of payment, before any
distribution of assets is made to holders of our common stock or
any equity securities that we may issue that rank junior to the
Series&nbsp;A Preferred Stock as to liquidation rights.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Applicable Premium</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 28, 2004 to July 27, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 28, 2005 to July 27, 2006</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 28, 2006 to July 27, 2007</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 28, 2007 to July 27, 2008</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 28, 2008 to July 27, 2009</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    July 28, 2009 and thereafter</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event that, upon any such voluntary or involuntary
liquidation, dissolution or winding up, our available assets are
insufficient to pay the amount of the liquidating distributions
on all outstanding shares of Series&nbsp;A Preferred Stock and
the corresponding amounts payable on all shares of other classes
or series of our capital stock that we may issue ranking on
parity with the Series&nbsp;A Preferred Stock in the
distribution of assets, then the holders of the Series&nbsp;A
Preferred Stock and all other such classes or series of capital
stock shall share ratably in any such distribution of assets in
proportion to the full liquidating distributions to which they
would otherwise be respectively entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Series&nbsp;A Preferred Stock will be entitled to
written notice of any such liquidation. After payment of the
full amount of the liquidating distributions, including the
applicable premium, if any, to which they are entitled, the
holders of Series&nbsp;A Preferred Stock will have no right or
claim to any of our remaining assets. The consolidation or
merger of us with or into any other corporation, trust or entity
</DIV>

<P align="center" style="font-size: 10pt;">S-9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
or of any other entity with or into us, or the sale, lease or
conveyance of all or substantially all of our assets or
business, shall not be deemed to constitute a liquidation,
dissolution or winding up of us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Ranking</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Series&nbsp;A Preferred Stock will rank senior to our common
stock and to any other of our equity securities that by their
terms rank junior to the Series&nbsp;A Preferred Stock with
respect to payments of distributions or rights upon our
liquidation, dissolution or winding up. The Series&nbsp;A
Preferred Stock will rank on parity with any other equity
securities that we may later authorize or issue and that by
their terms are on parity with the Series&nbsp;A Preferred
Stock. The Series&nbsp;A Preferred Stock will rank junior to any
equity securities that we may later authorize or issue and that
by their terms rank senior to the Series&nbsp;A Preferred Stock.
Any convertible debt securities that we may issue are not
considered to be equity securities for these purposes. The
Series&nbsp;A Preferred Stock offered hereby will rank equally
and form a single series with our outstanding
8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
Series&nbsp;A Cumulative Redeemable Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Voting Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Series&nbsp;A Preferred Stock will have no voting
rights, except as follows:
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    If distributions on our preferred stock are due for six or more
    consecutive quarterly periods and remain unpaid, holders of the
    Series&nbsp;A Preferred Stock, voting together with all other
    equity securities which have similar voting rights, will be
    entitled to vote for the election of two additional directors to
    serve on our board of directors until all distribution
    arrearages have been paid.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The affirmative vote of the holders of at least two-thirds of
    the Series&nbsp;A Preferred Stock is required for us to
    authorize, create or increase our capital shares ranking senior
    to the outstanding Series&nbsp;A Preferred Stock or to amend our
    Articles of Incorporation, including the Articles Supplementary
    establishing the Series&nbsp;A Preferred Stock, in a manner that
    may materially and adversely affect the rights of the holders of
    the Series&nbsp;A Preferred Stock.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In any matter in which the holders of the Series&nbsp;A
Preferred Stock are entitled to vote, each share of
Series&nbsp;A Preferred Stock will be entitled to one vote. If
the holders of the Series&nbsp;A Preferred Stock and another
series of preferred stock are entitled to vote together as a
single class on any matter, the Series&nbsp;A Preferred Stock
and the shares of the other series will have one vote for each
$25.00 of liquidation preference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Restrictions on Ownership and Transfer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Articles Supplementary provide that no person or entity may
beneficially own, or be deemed to own by virtue of the
applicable constructive ownership provisions of the Code, more
than 9.9% of the outstanding shares of Series&nbsp;A Preferred
Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our board of directors may (i)&nbsp;elect to purchase any shares
owned by a person or group of affiliated persons in excess of
the ownership limitations, or (ii)&nbsp;refuse to transfer or
issue shares to a person if an acquisition of shares by such
person or group would result in such person or group exceeding
these ownership limits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may prevent any proposed transfer of our capital shares,
including the Series&nbsp;A Preferred Stock, which would
jeopardize our status as a REIT and may repurchase or redeem any
shares necessary to maintain our REIT status.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any transfer of shares that would result in a person or group
exceeding ownership limits or in our disqualification as a REIT
is deemed void as of the date of such transfer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our board of directors has the right to waive ownership
limitations and excess share provisions of our Articles of
Incorporation and the Articles Supplementary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Conversion Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Series&nbsp;A Preferred Stock is not convertible into, or
exchangeable for, any property or other securities.
</DIV>

<P align="center" style="font-size: 10pt;">S-10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='107'></A>
</DIV>

<!-- link1 "FEDERAL INCOME TAX CONSIDERATIONS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FEDERAL INCOME TAX CONSIDERATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following summary of certain federal income tax
considerations is based on current law, is for general
information only, and is not tax advice. This discussion does
not purport to address all aspects of taxation that may be
relevant to particular stockholders in light of their personal
investment or tax circumstances, or to certain types of
stockholders (including, without limitation, insurance
companies, tax-exempt organizations, financial institutions or
broker dealers, foreign corporations and persons who are not
citizens or residents of the United States) subject to special
treatment under the federal income tax laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EACH PROSPECTIVE PURCHASER SHOULD CONSULT WITH ITS TAX ADVISOR
REGARDING THE SPECIFIC TAX CONSEQUENCES OF THE PURCHASE,
OWNERSHIP AND SALE OF THE SERIES A PREFERRED STOCK AND OF THE
COMPANY&#146;S ELECTION TO BE TAXED AS A REIT, INCLUDING THE
FEDERAL, STATE, LOCAL, AND FOREIGN INCOME AND OTHER TAX
CONSEQUENCES OF SUCH PURCHASE, OWNERSHIP, SALE AND ELECTION, AND
OF POTENTIAL CHANGES IN APPLICABLE TAX LAWS, SOME OF WHICH MAY
APPLY RETROACTIVELY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Taxation of the Company</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have elected to be taxed as a REIT, commencing with the
taxable year ended December&nbsp;31, 1986. We believe that we
have operated in such a manner as to qualify for taxation as a
REIT, and intend to continue to operate in such a manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The law firm of Stroock&nbsp;&#38; Stroock&nbsp;&#38; Lavan LLP
has acted as our tax counsel since 1998. At the closing of the
offering we expect to receive an opinion of Stroock&nbsp;&#38;
Stroock&nbsp;&#38; Lavan LLP to the effect that we are organized
in conformity with the requirements for qualification as a REIT
under the Code, and that our method of operation will enable us
to meet the requirements for qualification and taxation as a
REIT. It must be emphasized that the opinion of
Stroock&nbsp;&#38; Stroock&nbsp;&#38; Lavan LLP is based on
various assumptions relating to our organization and operation,
and is conditioned upon representations and covenants made by
our management regarding our organization, assets and the past,
present and future conduct of our business operations. While we
intend to operate so that we will qualify as a REIT, given the
highly complex nature of the rules governing REITs, the ongoing
importance of factual determinations, and the possibility of
future changes in our circumstances, no assurance can be given
by Stroock&nbsp;&#38; Stroock&nbsp;&#38; Lavan LLP or us that we
will so qualify for any particular year. The opinion is
expressed as of the date issued, and does not cover subsequent
periods. Counsel will have no obligation to advise us or the
holders of the Series&nbsp;A Preferred Stock of any subsequent
change in the matters stated, represented or assumed, or of any
subsequent change in the applicable law. You should be aware
that opinions of counsel are not binding on the IRS or the
courts, and no assurance can be given that the IRS will not
challenge the conclusions set forth in such opinions or that a
court would not sustain such a challenge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Qualification and taxation as a REIT depends on our ability to
meet on a continuing basis, through actual operating results,
distribution levels, and diversity of stock ownership, various
qualification requirements imposed upon REITs by the Code, the
compliance with which will not be reviewed by Stroock&nbsp;&#38;
Stroock&nbsp;&#38; Lavan LLP. In addition, our ability to
qualify as a REIT depends in part upon the operating results,
organizational structure and entity classification for federal
income tax purposes of certain affiliated entities, the status
of which may not have been reviewed by Stroock&nbsp;&#38;
Stroock&nbsp;&#38; Lavan&nbsp;LLP. Our ability to qualify as a
REIT also requires that we satisfy certain asset tests, some of
which depend upon the fair market values of assets directly or
indirectly owned by us. Such values may not be susceptible to a
precise determination. Accordingly, no assurance can be given
that the actual results of our operations for any taxable year
satisfy such requirements for qualification and taxation as a
REIT.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Taxation of Holders of Series&nbsp;A Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a REIT, we generally will not be subject to federal income
tax on our net income distributed to our stockholders.
Distributions on the Series&nbsp;A Preferred Stock generally
will be includable in your income as dividends to the extent the
distributions do not exceed our allocable current or accumulated
earnings and profits, with a portion of these dividends possibly
treated as capital gain dividends as
</DIV>

<P align="center" style="font-size: 10pt;">S-11
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
explained below, but with no portion of these dividends eligible
for either the dividends received deduction for corporate
stockholders or, except in limited circumstances, the 15%
maximum tax rate applicable to dividends received by
non-corporate taxpayers. Distributions in excess of our
allocable current or accumulated earnings and profits generally
will be treated for federal income tax purposes as a return of
capital to the extent of your basis in the Series&nbsp;A
Preferred Stock, which will be reduced by this distribution, and
thereafter, as gain from the sale or exchange of the
Series&nbsp;A Preferred Stock. In determining the extent to
which a distribution on the Series&nbsp;A Preferred Stock
constitutes a dividend for federal income tax purposes, our
current or accumulated earnings and profits will generally be
allocated first to distributions with respect to the
Series&nbsp;A Preferred Stock along with any other class of
preferred stock we have outstanding, and thereafter to
distributions with respect to our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If for any taxable year we elect to designate as &#147;capital
gain dividends,&#148; as defined in Section&nbsp;857 of the
Code, any portion of the dividends paid for the year to holders
of all classes of our stock, then the portion of dividends
designated as capital gain dividends that will be allocable to
the Series&nbsp;A Preferred Stock will be equal to the total
capital gain dividends multiplied by a fraction, the numerator
of which will be the total dividends paid on the Series&nbsp;A
Preferred Stock for that taxable year, and the denominator of
which shall be the total dividends paid on all classes of our
stock (including the Series&nbsp;A Preferred Stock) for that
taxable year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A redemption of your Series&nbsp;A Preferred Stock will be
treated under Section&nbsp;302 of the Code as a distribution and
hence taxable as a dividend to the extent of our current or
accumulated earnings and profits, unless the redemption
satisfies one of the tests set forth in Section&nbsp;302(b) of
the Code and is therefore treated as a sale or exchange of the
redeemed shares. The redemption will be treated as a sale or
exchange if it (1)&nbsp;is &#147;substantially
disproportionate&#148; with respect to your ownership in us,
(2)&nbsp;results in a &#147;complete termination&#148; of your
common and preferred stock interest in us, or (3)&nbsp;is
&#147;not essentially equivalent to a dividend&#148; with
respect to you, all within the meaning of Section&nbsp;302(b) of
the Code. In determining whether any of these tests have been
met, you must generally take into account our common and
preferred stock considered to be owned by you by reason of
constructive ownership rules set forth in the Code, as well as
our common and preferred stock actually owned by you. If you
actually or constructively own none or a small percentage of our
common stock, a redemption of your Series&nbsp;A Preferred Stock
is likely to qualify for sale or exchange treatment because the
redemption would not be &#147;essentially equivalent to a
dividend&#148; as defined by the Code. However, because the
determination as to whether you will satisfy any of the tests of
Section&nbsp;302(b) of the Code depends upon the facts and
circumstances at the time that your Series&nbsp;A Preferred
Stock are redeemed, you are advised to consult your own tax
advisor to determine your particular tax treatment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Section&nbsp;305 of the Code, preferred stock that may be
redeemed at a price higher than its issue price may have this
&#147;redemption premium&#148; treated as a constructive
distribution. Under applicable Treasury Regulations,
constructive dividend treatment is required in the case of
callable preferred stock only if, based on all of the facts and
circumstances as of the issue date, redemption pursuant to this
call right is more likely than not to occur. Even if this
redemption is more likely than not to occur, constructive
dividend treatment is not required if the redemption premium is
solely in the nature of a penalty for premature redemption;
i.e., it is a premium paid as a result of changes in economic
conditions over which neither we nor you have control. The
Treasury Regulations also provide a safe harbor pursuant to
which an issuer&#146;s right to redeem will not be treated as
more likely than not to occur. While there can be no assurance
in this regard, we believe that constructive dividend treatment
of the redemption premium on the Series&nbsp;A Preferred Stock
which results from accrued but unpaid distributions, if any,
should not be required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If you sell your Series&nbsp;A Preferred Stock, you will
recognize gain or loss in an amount equal to the difference
between the amount you receive in exchange for the Series&nbsp;A
Preferred Stock and your basis in the Series&nbsp;A Preferred
Stock sold. Any such gain or loss generally will be long-term
capital gain or loss if you have held the Series&nbsp;A
Preferred Stock for more than one year.
</DIV>

<P align="center" style="font-size: 10pt;">S-12

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='108'></A>
</DIV>

<!-- link1 "UNDERWRITING" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNDERWRITING</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the terms and conditions contained in a purchase
agreement between us and the underwriters named below, we have
agreed to sell to each of the underwriters and each of the
underwriters has severally agreed to purchase from us, the
number of shares of Series&nbsp;A Preferred Stock listed
opposite its name.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="85%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Underwriter</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>of Shares</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Merrill Lynch, Pierce, Fenner&nbsp;&#38; Smith<BR>
    Incorporated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>480,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Raymond James &#38; Associates, Inc.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>480,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legg Mason Wood Walker, Incorporated</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>240,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,200,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters have agreed to purchase all of the shares of
Series&nbsp;A Preferred Stock sold under the purchase agreement
if any of the shares of Series&nbsp;A Preferred Stock are
purchased. If an underwriter defaults, the purchase agreement
provides that the purchase commitment of the nondefaulting
underwriter may be increased or the purchase agreement may be
terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have agreed to indemnify the underwriters against certain
liabilities, including liabilities under the Securities Act of
1933, as amended, or to contribute to payments the underwriters
may be required to make in respect of those liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters are offering the Series&nbsp;A Preferred Stock,
subject to prior sale, when, as and if issued to and accepted by
them, subject to approval of legal matters by their counsel,
including the validity of the Series&nbsp;A Preferred Stock, and
other conditions contained in the purchase agreement, such as
the receipt by the underwriters of officers&#146; certificates
and legal opinions. The underwriters reserve the right to
withdraw, cancel or modify offers to the public and to reject
orders in whole or in part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Commissions and Discounts</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The underwriters have advised us that they propose initially to
offer the Series&nbsp;A Preferred Stock to the public at the
initial public offering price on the cover page of this
prospectus supplement and to dealers at that price less a
concession not in excess of $.50&nbsp;per share. The
underwriters may allow, and the dealers may reallow, a discount
not in excess of $.45&nbsp;per share to other dealers. After the
initial public offering, the public offering price, concession
and discount may be changed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table shows the public offering price,
underwriting discount and proceeds before expenses to us.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="63%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Public offering price</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$26.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$31,200,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Underwriting discount</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$.7875</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$945,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds, before expenses, to us</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$25.2125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$30,255,000</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The expenses of the offering, not including the underwriting
discount, are estimated at $150,000 and are payable by us.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>No Sales of Similar Securities</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We, our executive officers and our directors who beneficially
own shares of our Series&nbsp;A Preferred Stock and/or common
stock as of the date of this prospectus have agreed, with some
exceptions, not to sell or transfer any preferred stock or
common stock for 60&nbsp;days after the date of this prospectus
</DIV>

<P align="center" style="font-size: 10pt;">S-13
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
supplement without first obtaining the written consent of
Merrill Lynch, Pierce, Fenner&nbsp;&#38; Smith Incorporated.
Specifically, we and these other individuals have agreed not to
directly or indirectly
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    offer, pledge, sell or contract to sell any preferred stock or
    common stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    sell any option or contract to purchase any preferred stock or
    common stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    purchase any option or contract to sell any preferred stock or
    common stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    grant any option, right or warrant for the sale of any preferred
    stock or common stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    lend or otherwise dispose of or transfer any preferred stock or
    common stock,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    request or demand that we file a registration statement related
    to the common stock,&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    enter into any swap or other agreement that transfers, in whole
    or in part, the economic consequence of ownership of any
    preferred stock or common stock whether any such swap or
    transaction is to be settled by delivery of preferred stock or
    common stock or other securities, in cash or otherwise.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This lockup provision applies to preferred stock and common
stock and to securities convertible into or exchangeable or
exercisable for or repayable with preferred stock or common
stock. It also applies to shares of our preferred stock and
common stock owned now or acquired later by the person executing
the agreement or for which the person executing the agreement
later acquires the power of disposition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>New York Stock Exchange Listing</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Series&nbsp;A Preferred Stock is listed on the NYSE under
the symbol &#147;CDR PrA.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Price Stabilization and Short Positions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Until the distribution of the Series&nbsp;A Preferred Stock is
completed, rules of the SEC may limit the ability of the
underwriters to bid for and purchase shares of Series&nbsp;A
Preferred Stock. However, the underwriters may engage in
transactions that stabilize the price of the Series&nbsp;A
Preferred Stock, such as bids or purchases to peg, fix or
maintain that price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the underwriters create a short position in the Series&nbsp;A
Preferred Stock in connection with this offering (i.e., if they
sell more shares of Series&nbsp;A Preferred Stock than are set
forth on the cover page of this prospectus supplement), the
underwriters may reduce that short position by purchasing shares
in the open market. Purchases of shares of Series&nbsp;A
Preferred Stock to stabilize its price or to reduce a short
position may cause the price of the Series&nbsp;A Preferred
Stock to be higher than it might be in the absence of such
purchases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither we nor any of the underwriters make any representation
or prediction as to the direction or magnitude of any effect
that the transactions described above might have on the price of
the Series&nbsp;A Preferred Stock. In addition, neither we nor
any of the underwriters make any representation that the
underwriters will engage in these transactions or that these
transactions, once commenced, will not be discontinued without
notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Other Relationships</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the ordinary course of their business, the underwriters and
their affiliates have engaged in, and may in the future engage
in, commercial banking and investment banking transactions with
us. They have received and will receive customary fees and
commissions on these transactions.
</DIV>

<P align="center" style="font-size: 10pt;">S-14

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='109'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain legal matters will be passed upon for us by
Stroock&nbsp;&#38; Stroock&nbsp;&#38; Lavan LLP of New York, New
York and for the underwriters by Sidley Austin Brown&nbsp;&#38;
Wood&nbsp;<FONT style="font-variant:SMALL-CAPS">llp</FONT>, New
York, New York.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='110'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXPERTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated financial statements of Cedar Shopping Centers,
Inc. appearing in Cedar Shopping Centers, Inc.&#146;s Annual
Report (Form&nbsp;10-K) for the year ended December&nbsp;31,
2004 (including schedule appearing therein), and Cedar Shopping
Centers, Inc. management&#146;s assessment of the effectiveness
of internal control over financial reporting as of
December&nbsp;31, 2004 included therein, and the statement of
revenues and certain expenses of Brickyard Shopping Plaza for
the year ended June&nbsp;30, 2004 appearing in our Current
Report on Form&nbsp;8-K/A dated February&nbsp;11, 2005 have been
audited by Ernst&nbsp;&#38; Young LLP, independent registered
public accounting firm, as set forth in its reports thereon,
included therein, and incorporated herein by reference. Such
financial statements and management&#146;s assessment have been
incorporated herein by reference in reliance upon such reports
given on the authority of such firm as experts in accounting and
auditing.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='111'></A>
</DIV>

<!-- link1 "INCORPORATION OF CERTAIN INFORMATION BY REFERENCE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC allows us to &#147;incorporate by reference&#148; the
information we file with them, which means that we can disclose
important information to you by referring you to those
documents. The information incorporated by reference is
considered to be part of this prospectus supplement, and
information that we subsequently file with the SEC will
automatically update and supersede this information. We
incorporate by reference our documents listed below which were
filed with the SEC under the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Annual Report on Form&nbsp;10-K for the year ended
    December&nbsp;31, 2004; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Current Reports on Form&nbsp;8-K/A filed February&nbsp;23, 2005
    and on Form&nbsp;8-K filed March&nbsp;4 and March&nbsp;16, 2005.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also incorporate by reference each of the following documents
that we file with the SEC after the date of this prospectus
supplement but before the end of the Series&nbsp;A Preferred
Stock offering:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Reports filed under Sections&nbsp;13(a) and (c)&nbsp;of the
    Exchange Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Definitive proxy or information statements filed under
    Section&nbsp;14 of the Exchange Act in connection with any
    subsequent stockholders&#146; meeting;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Any reports filed under Section&nbsp;15(d) of the Exchange Act.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may request copies of the filings, at no cost, by telephone
at (516)&nbsp;767-6492 or by mail at: Cedar Shopping Centers,
Inc., 44&nbsp;South Bayles Avenue, Port Washington, New York
11050, Attention: Investor Relations.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='112'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may read and copy any material that we file with the SEC at
the SEC&#146;s Public Reference Room at 450&nbsp;Fifth Street,
N.W., Washington,&nbsp;D.C. 20549. You may obtain information on
the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. You may also access our SEC filings over the
Internet at the SEC&#146;s website at http://www.sec.gov.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='113'></A>
</DIV>

<!-- link1 "FORWARD-LOOKING STATEMENTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>FORWARD-LOOKING STATEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus supplement and the accompanying prospectus
contain or incorporate by reference forward-looking statements
within the meaning of Section&nbsp;27A of the Securities Act of
1933 and
</DIV>

<P align="center" style="font-size: 10pt;">S-15
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
Section&nbsp;21E of the Securities Exchange Act of 1934. You can
identify the forward-looking statements by their use of
forward-looking words, such as &#147;believes,&#148;
&#147;expects,&#148; &#147;may,&#148; &#147;will,&#148;
&#147;should,&#148; &#147;seeks,&#148; &#147;intends,&#148;
&#147;plans,&#148; &#147;estimates&#148; or
&#147;anticipates,&#148; or the negative of those words or
similar words. Forward-looking statements reflect our views
about future events and are subject to risks, uncertainties,
assumptions and changes in circumstances that may cause our
actual results to differ significantly from those expressed in
any forward-looking statement. The factors that could cause
actual results to differ materially from expected results
include changes in economic, business, competitive market and
regulatory conditions. For more information regarding risks that
may cause our actual results to differ materially from any
forward-looking statements, please see the discussion under
&#147;Risk Factors&#148; contained in the accompanying
prospectus and the other information contained in our publicly
available filings with the Securities and Exchange Commission,
including our Annual Report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2004. We do not undertake any responsibility
to update any of these factors or to announce publicly any
revisions to forward-looking statements, whether as a result of
new information, future events or otherwise.
</DIV>

<P align="center" style="font-size: 10pt;">S-16

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
 <B><U>PROSPECTUS</U></B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>$200,000,000</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Cedar Shopping Centers, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Common Stock, Preferred Stock, Depositary Shares,
Warrants,</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>Stock Purchase Contracts and Units</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cedar may offer and issue from time to time up to $200,000,000
of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    shares of common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    shares of preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    shares of preferred stock represented by depositary shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    stock purchase contracts;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    units.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cedar&#146;s common stock is traded on the New York Stock
Exchange under the symbol CDR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The securities to be offered by us will be in amounts, at prices
and on terms to be determined at the time of offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
When we sell a particular series of securities, we will prepare
a prospectus supplement describing the offering and the terms of
that series of securities. Such terms may include limitations on
direct or beneficial ownership and restrictions on transfer of
the securities, in each case as may be appropriate to preserve
our status as a real estate investment trust for federal income
tax purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Where necessary, the applicable prospectus supplement will
contain information about certain United States Federal income
tax considerations relating to, and any listing on a securities
exchange of, the securities covered by such prospectus
supplement.
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>See &#147;Risk Factors&#148; beginning at page&nbsp;3 of this
Prospectus for a description of certain factors that you should
consider prior to purchasing the securities.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may offer the securities directly or through agents or to or
through underwriters or dealers. If any agents or underwriters
are involved in the sale of the securities their names, and any
applicable purchase price, fee, commission or discount
arrangement between or among them, will be set forth, or will be
calculable from the information set forth, in an accompanying
prospectus supplement. We can sell the securities through
agents, underwriters or dealers only with delivery of a
prospectus supplement describing the method and terms of the
offering of such securities. See &#147;Plan of
Distribution.&#148;
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal
offense.</I>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>The Attorney General of The State Of New York has not passed
on or endorsed the merits of this Offering. Any representation
to the contrary is unlawful.</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The date of this Prospectus is May&nbsp;4, 2004.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='114'></A>
</DIV>

<!-- link1 "ABOUT THIS PROSPECTUS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ABOUT THIS PROSPECTUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus is part of a registration statement that we
filed with the Securities and Exchange Commission using a
&#147;shelf&#148; registration or continuous offering process.
We may from time to time sell any combination of the securities
offered in this prospectus in one or more offerings up to a
total dollar amount of $200,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This prospectus provides you with a general description of the
securities we may offer. Each time we sell securities we will
provide you with a prospectus supplement containing specific
information about the terms of the securities being offered. The
prospectus supplement which contains specific information about
the terms of the securities being offered may also include a
discussion of certain U.S.&nbsp;Federal income tax consequences
and any risk factors or other special considerations applicable
to those securities. The prospectus supplement may also add,
update or change information in this prospectus. If there is any
inconsistency between the information in the prospectus and the
prospectus supplement, you should rely on the information in the
prospectus supplement. You should read both this prospectus and
any prospectus supplement together with additional information
described under the heading &#147;Where You Can Find More
Information.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='115'></A>
</DIV>

<!-- link1 "INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SEC allows us to &#147;incorporate by reference&#148; the
information that we file with them, which means that we can
disclose important information to you by referring you to those
documents. The information incorporated by reference is an
important part of this prospectus, and the information that we
file later with the SEC will automatically update and supersede
this information. We incorporate by reference the documents
listed below and any future filings we make with the SEC under
Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934 until we sell all of the securities:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>1.</TD>
    <TD align="left">
    Cedar&#146;s Annual Report on Form&nbsp;10-K for the year ended
    December&nbsp;31, 2003, SEC File Number: 0-14510.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.</TD>
    <TD align="left">
    The description of Cedar&#146;s common stock which is contained
    in Item&nbsp;1 of our registration statement on Form&nbsp;8-A,
    as amended, filed October&nbsp;1, 2003 pursuant to
    Section&nbsp;12 of the Exchange Act, SEC File Number: 0-14510.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.</TD>
    <TD align="left">
    The information contained in the section &#147;Investment
    Policies and Policies With Respect to Certain Activities&#148;
    contained in the Registration Statement on Form&nbsp;S-11 filed
    on August&nbsp;20, 2003, as amended, SEC File Number: 333-108091.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may request a copy of these filings, at no cost, by writing
or telephoning us at our principal executive offices at the
following address:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Investor Relations
</DIV>

<DIV align="center" style="font-size: 10pt;">
Cedar Shopping Centers, Inc.
</DIV>

<DIV align="center" style="font-size: 10pt;">
44 South Bayles Avenue
</DIV>

<DIV align="center" style="font-size: 10pt;">
Port Washington, NY 11050
</DIV>

<DIV align="center" style="font-size: 10pt;">
(516)&nbsp;767-6492
</DIV>

<DIV align="center" style="font-size: 10pt;">
http://www.cedarshoppingcenters.com
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should rely only on the information incorporated by
reference or provided in this prospectus or any prospectus
supplement. We have not authorized anyone else to provide you
with different information. We are not making an offer of these
securities in any state where the offer is not permitted. Do not
assume that the information in this prospectus or any prospectus
supplement is accurate as of any date other than the date on the
front of these documents.
</DIV>

<P align="center" style="font-size: 10pt;">1

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='116'></A>
</DIV>

<!-- link1 "THE COMPANY" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>THE COMPANY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We were organized in 1984 and elected to be taxed as a real
estate investment trust, or REIT, in 1986. We are a fully
integrated, self-administered and self-managed real estate
company. We acquire, own, manage, lease and redevelop primarily
community and neighborhood shopping centers located primarily in
Pennsylvania. As of April&nbsp;1, 2004, we owned 25 properties
totaling approximately 4.0&nbsp;million square feet of gross
leasable area, or GLA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conduct our business through Cedar Shopping Centers
Partnership, L.P., or the operating partnership, a Delaware
limited partnership. We own approximately a 97% interest in the
operating partnership.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our principal executive offices are located at 44&nbsp;South
Bayles Avenue, Port Washington, NY 11050, our telephone number
is (516)&nbsp;767-6492 and our website address is
www.cedarshoppingcenters.com.
</DIV>

<P align="center" style="font-size: 10pt;">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='117'></A>
</DIV>

<!-- link1 "RISK FACTORS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RISK FACTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Your investment in the securities involves risks. In
consultation with your own financial and legal advisors, you
should carefully consider, among other factors, the matters
described below before deciding whether an investment in the
securities is suitable for you.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Related to Our Properties and Our Business</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>All of our properties are located in the Northeast,
    primarily in eastern Pennsylvania, which exposes us to greater
    economic risks than if we owned properties in several geographic
    regions.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any adverse economic or real estate developments in the
Northeast resulting from the region&#146;s regulatory
environment, business climate, fiscal problems or weather, could
adversely impact our financial condition, results of operations,
cash flow, the per share trading price of our common stock, and
our ability to satisfy our debt service obligations and to make
distributions to our stockholders. We cannot assure you of the
continued growth of the Northeast economy, the national economy
or our further growth rate.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>At December&nbsp;31, 2003, we had approximately
    $162.0&nbsp;million of consolidated debt of which our share was
    approximately $125.3&nbsp;million, a portion of which was
    variable rate debt, which may impede our operating performance
    and put us at a competitive disadvantage.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Required repayments of debt and related interest can adversely
affect our operating performance. At December&nbsp;31, 2003, we
had approximately $162.0&nbsp;million of outstanding
consolidated indebtedness of which our share was approximately
$125.3&nbsp;million. Approximately $51.7&nbsp;million of this
consolidated debt bore interest at a variable rate of which our
share was approximately $49.5&nbsp;million. Failure to hedge
effectively against interest rate changes may adversely affect
results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also intend to incur additional debt in connection with
future acquisitions of real estate. We may borrow new funds to
acquire properties. In addition, we may incur or increase our
mortgage debt by obtaining loans secured by some or all of the
real estate properties we acquire. We also may borrow funds if
necessary to satisfy any requirement that we make distributions
to stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our substantial debt may harm our business and operating results
by:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    requiring us to use a substantial portion of our funds from
    operations to pay interest, which reduces the amount available
    for distributions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    placing us at a competitive disadvantage compared to our
    competitors that have less debt;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    making us more vulnerable to economic and industry downturns and
    reducing our flexibility in responding to changing business and
    economic conditions; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    limiting our ability to borrow more money for operations,
    capital or to finance acquisitions in the future.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the risks discussed above and those normally
associated with debt financing, including the risk that our cash
flow will be insufficient to meet required payments of principal
and interest, we also are subject to the risk that we will not
be able to refinance the existing indebtedness on our properties
(which, in most cases, will not have been fully amortized at
maturity), or that the terms of any refinancing we could obtain
would not be as favorable as the terms of our existing
indebtedness. If we are not successful in refinancing this debt
when it becomes due, we may be forced to dispose of properties
on disadvantageous terms, which might adversely affect our
ability to service other debt and to meet our other obligations.
In addition to the above risks associated with our debt
financing, the terms of certain of our joint venture partnership
agreements provide for minimum priority cumulative returns to
the joint venture partners. To the extent that these specified
minimum returns are not achieved, our equity interest in these
partnerships can be negatively affected.
</DIV>

<P align="center" style="font-size: 10pt;">3
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Any tenant bankruptcies or leasing delays we encounter,
    particularly with respect to our anchor tenants, could seriously
    harm our operating results and financial condition.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Substantially all our revenues are derived from rental income
from our properties. At any time, our tenants may experience a
downturn in their business that may weaken their financial
condition or become insolvent. As a result, our tenants may
delay lease commencement, fail to make rental payments when due
or declare bankruptcy. We are subject to the risk that these
tenants may be unable to make their lease payments or may
decline to extend a lease upon its expiration. Any tenant
bankruptcies, leasing delays or failure to make rental payments
when due could result in the termination of the tenant&#146;s
lease and material losses to us and may harm our operating
results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business may be seriously harmed if any anchor tenant
decides not to renew its lease or vacates a property and
prevents us from re-leasing that property by continuing to pay
base rent for the balance of the term. In addition to the loss
of rental payments from the anchor tenant, a lease termination
by an anchor tenant or a failure by that anchor tenant to occupy
the premises could result in lease terminations or reductions in
rent by other tenants in the same shopping center whose leases
permit cancellation or rent reduction under these circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any bankruptcy filings by or relating to one of our tenants or a
lease guarantor would bar all efforts by us to collect
pre-bankruptcy debts from that tenant, the lease guarantor or
their property, unless we receive an order permitting us to do
so from the bankruptcy court. A tenant or lease guarantor
bankruptcy could delay our efforts to collect past due balances
under the relevant leases, and could ultimately preclude full
collection of these sums. If a lease is assumed by the tenant in
bankruptcy, all pre-bankruptcy balances due under the lease must
be paid to us in full. However, if a lease is rejected by a
tenant in bankruptcy, we would have only a general unsecured
claim for damages. Any unsecured claim we hold may be paid only
to the extent that funds are available and only in the same
percentage as is paid to all other holders of unsecured claims.
It is possible that we may recover substantially less than the
full value of any unsecured claims we hold, which may harm our
financial condition.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Since 2000, we have incurred net operating losses and if
    we are not able to achieve and maintain profitability, the
    market price of our common stock could decrease.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since 2000 we have incurred net operating losses. We had net
losses from operations of $147,000, $468,000 and $21,351,000 for
the years ended December&nbsp;31, 2001, 2002 and 2003,
respectively. In 2003, approximately $20.8&nbsp;million of these
losses were one-time transaction costs associated with our
public offering completed in October 2003. If we are not able to
achieve and maintain profitability, which will depend largely on
our ability to substantially increase revenues, reduce fixed
operating costs and interest charges on outstanding
indebtedness, and limit the growth of overhead and direct
expenses, the market price of our common stock could decrease
and our business and operations could be negatively impacted.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may not be successful in identifying suitable
    acquisitions that meet our criteria, which may impede our
    growth; if we do identify suitable acquisition targets, we may
    not be able to consummate such transactions on favorable
    terms.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Integral to our business strategy is our ability to expand
through acquisitions, which requires us to identify suitable
acquisition candidates or investment opportunities that meet our
criteria and are compatible with our growth strategy. We analyze
potential acquisitions on a property-by-property and
market-by-market basis. We may not be successful in identifying
suitable real estate properties or other assets that meet our
acquisition criteria or in consummating acquisitions or
investments on satisfactory terms. Failure to identify or
consummate acquisitions could reduce the number of acquisitions
we complete and slow our growth, which could in turn harm our
stock price.
</DIV>

<P align="center" style="font-size: 10pt;">4

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We face competition for the acquisition of real estate
    properties, which may impede our ability to make future
    acquisitions or may increase the cost of these
    acquisitions.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We compete with many other entities engaged in real estate
investment activities for acquisitions of retail shopping
centers, including institutional investors, REITs and other
owner-operators of shopping centers. These competitors may drive
up the price we must pay for real estate properties, other
assets or other companies we seek to acquire or may succeed in
acquiring those companies or assets themselves. In addition, our
potential acquisition targets may find our competitors to be
more attractive suitors because they may have greater resources,
may be willing to pay more, or may have a more compatible
operating philosophy. In addition, the number of entities and
the amount of funds competing for suitable investment properties
may increase. This will result in increased demand for these
assets and therefore increased prices paid for them. If we pay
higher prices for properties, our profitability will be reduced.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We have recently experienced and expect to continue to
    experience rapid growth and may not be able to integrate
    additional properties into our operations or otherwise manage
    our growth, which may adversely affect our operating
    results.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are currently experiencing a period of rapid growth. Since
2000 and through December&nbsp;31, 2003, we had acquired
properties containing approximately 3.5&nbsp;million square feet
of GLA for an aggregate purchase price of approximately
$302.5&nbsp;million. As a result of the rapid growth of our
portfolio, we cannot assure you that we will be able to adapt
our management, administrative, accounting and operational
systems or hire and retain sufficient operational staff to
integrate these properties into our portfolio and manage any
future acquisitions of additional properties without operating
disruptions or unanticipated costs. Acquisition of any
additional properties would generate additional operating
expenses that we would be required to pay. As we acquire
additional properties, we will be subject to risks associated
with managing new properties, including tenant retention and
mortgage default. Our failure to successfully integrate any
future acquisitions into our portfolio could have a material
adverse effect on our results of operations and financial
condition and our ability to make distributions to our
stockholders.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our current and future joint venture investments could be
    adversely affected by our lack of sole decision-making
    authority, our reliance on joint venture partners&#146;
    financial condition and any disputes that may arise between us
    and our joint venture partners.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We own some of our properties through joint ventures and in the
future we may co-invest with third parties through joint
ventures. We may not be in a position to exercise sole
decision-making authority regarding the properties owned through
joint ventures. Investments in joint ventures may, under certain
circumstances, involve risks not present when a third party is
not involved, including the possibility that joint venture
partners might become bankrupt or fail to fund their share of
required capital contributions. Joint venture partners may have
business interests or goals that are inconsistent with our
business interests or goals and may be in a position to take
actions contrary to our policies or objectives. Such investments
also may have the potential risk of impasses on decisions, such
as a sale, because neither we nor the joint venture partner
would have full control over the joint venture. Any disputes
that may arise between us and joint venture partners may result
in litigation or arbitration that would increase our expenses
and prevent our officers and/or directors from focusing their
time and effort on our business. Consequently, actions by or
disputes with joint venture partners might result in subjecting
properties owned by the joint venture to additional risk. In
addition, we may in certain circumstances be liable for the
actions of our third-party joint venture partners.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Adverse market conditions and competition may impede our
    ability to renew leases or re-let space as leases expire, which
    could harm our business and operating results.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The economic performance and value of our real estate assets is
subject to all of the risks associated with owning and operating
real estate, including risks related to adverse changes in
national, regional and local economic and market conditions. Our
properties currently are located primarily in the Northeast. The
economic condition of each of our markets may be dependent on
one or more industries.
</DIV>

<P align="center" style="font-size: 10pt;">5

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
An economic downturn in one of these industry sectors may result
in an increase in tenant bankruptcies, which may harm our
performance in the affected market. Economic and market
conditions also may impact the ability of our tenants to make
these payments. If our properties do not generate sufficient
income to meet our operating expenses, including future debt
service, our income and results of operations would be
significantly harmed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Also, we face competition from similar retail centers within the
neighborhood trade areas of each of our centers to renew leases
or re-let space as leases expire. In addition, any new
competitive properties that are developed within the
neighborhood trade areas of our existing properties may result
in increased competition for customer traffic and creditworthy
tenants. Increased competition for tenants may require us to
make capital improvements to properties that we would not have
otherwise planned to make. Any unbudgeted capital improvements
we undertake may divert away cash that would otherwise be
available for distributions to stockholders. Ultimately, to the
extent we are unable to renew leases or re-let space as leases
expire, it would result in decreased cash flow from tenants and
harm our operating results.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our properties consist of neighborhood and community
    shopping centers. Our performance therefore is linked to
    economic conditions in the market for retail space
    generally.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market for retail space has been and could be adversely
affected by weakness in the national, regional and local
economies, the adverse financial condition of some large
retailing companies, the ongoing consolidation in the retail
sector, the excess amount of retail space in a number of
markets, and increasing consumer purchases through catalogues or
the Internet. To the extent that any of these conditions occur,
they are likely to impact market rents for retail space.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>The financial covenants in our loan agreements may
    restrict our operating or acquisition activities, which may harm
    our financial condition and operating results.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The mortgages on our properties contain customary negative
covenants such as those that limit our ability, without the
prior consent of the lender, to further mortgage the applicable
property, to enter into leases or to discontinue insurance
coverage. Our ability to borrow under our line of credit is
subject to compliance with these financial and other covenants,
including restrictions on property eligible for collateral and
overall restrictions on the amount of indebtedness we can incur.
If we breach covenants in our debt agreements, the lender can
declare a default and require us to repay the debt immediately
and, if the debt is secured, can immediately take possession of
the property securing the loan.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our performance and value are subject to risks associated
    with real estate assets and with the real estate
    industry.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our ability to make expected distributions to our stockholders
depends on our ability to generate revenues in excess of
expenses, scheduled principal payments on debt and capital
expenditure requirements. Events and conditions generally
applicable to owners and operators of real property that are
beyond our control may decrease cash available for distribution
and the value of our properties. These events include:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    local oversupply, increased competition or reduction in demand
    for space;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    inability to collect rent from tenants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    vacancies or our inability to rent space on favorable terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    inability to finance property development, tenant improvements
    and acquisitions on favorable terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    increased operating costs, including insurance premiums,
    utilities and real estate taxes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    costs of complying with changes in governmental regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the relative illiquidity of real estate investments;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">6

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    changing submarket demographics;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    changing traffic patterns.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, periods of economic slowdown or recession, rising
interest rates or declining demand for real estate, or the
public perception that any of these events may occur, could
result in a general decline in rents or an increased incidence
of defaults under existing leases, which would adversely affect
our financial condition, results of operations, cash flow, per
share trading price of our common stock and ability to satisfy
our debt service obligations and to make distributions to our
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redevelopment activities may
be delayed or otherwise may not perform as expected.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are in the process of redeveloping certain of our properties
and expect to redevelop other properties in the future. In
connection with any redevelopment of our properties, we will
bear certain risks, including the risks of construction delays
or cost overruns that may increase project costs and make such
project uneconomical, the risk that occupancy or rental rates at
a completed project will not be sufficient to enable us to pay
operating expenses or earn the targeted rate of return on
investment, and the risk of incurrence of predevelopment costs
in connection with projects that are not pursued to completion.
In addition, consents may be required from various tenants in
order to redevelop a center. In case of an unsuccessful
redevelopment project, our loss could exceed our investment in
the project.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may be restricted from re-leasing space based on
    existing exclusivity lease provisions with some of our
    tenants.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In many cases, our tenant leases contain provisions giving the
tenant the exclusive right to sell particular types of
merchandise or provide specific types of services within the
particular retail center, or limit the ability of other tenants
within that center to sell that merchandise or provide those
services. When re-leasing space after a vacancy by one of these
other tenants, these provisions may limit the number and types
of prospective tenants for the vacant space. The failure to
re-lease space or to re-lease space on satisfactory terms could
harm our operating results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Potential losses may not be
covered by insurance.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We carry comprehensive liability, fire, flood, extended coverage
and rental loss insurance covering all of the properties in our
portfolio under a blanket policy. We believe the policy
specifications and insured limits are appropriate and adequate
given the relative risk of loss, the cost of the coverage and
industry practice. We do not carry insurance for generally
uninsured losses such as loss from riots, war or acts of God.
Some of our policies, such as those covering losses due to
terrorism and floods, are insured subject to limitations
involving large deductibles or co-payments and policy limits
that may not be sufficient to cover losses. If we experience a
loss that is uninsured or that exceeds policy limits, we could
lose the capital invested in the damaged properties as well as
the anticipated future cash flows from those properties. In
addition, if the damaged properties are subject to recourse
indebtedness, we would continue to be liable for the
indebtedness, even if these properties were irreparably damaged.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Future terrorist attacks in the United States could harm
    the demand for, and the value of, our properties.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Future terrorist attacks in the U.S., such as the attacks that
occurred in New York, Pennsylvania and Washington,&nbsp;D.C. on
September&nbsp;11, 2001, and other acts of terrorism or war
could harm the demand for and the value of our properties.
Terrorist attacks could directly impact the value of our
properties through damage, destruction, loss or increased
security costs, and the availability of insurance for such acts
may be limited or may cost more.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To the extent that our tenants are impacted by future attacks,
their ability to continue to honor obligations under their
existing leases with us could be adversely affected.
Additionally, certain tenants have termination rights in respect
of certain casualties. If we receive casualty proceeds, we may
not be
</DIV>

<P align="center" style="font-size: 10pt;">7

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
able to reinvest such proceeds profitably or at all, and we may
be forced to recognize taxable gain on the affected property.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Rising operating expenses could reduce our cash flow and
    funds available for future distributions.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our properties and any properties we buy in the future are and
will be subject to operating risks common to real estate in
general, any or all of which may negatively affect us. If any
property is not fully occupied or if rents are being paid in an
amount that is insufficient to cover operating expenses, then we
could be required to expend funds for that property&#146;s
operating expenses. The properties will be subject to increases
in real estate and other tax rates, utility costs, operating
expenses, insurance costs, repairs and maintenance and
administrative expenses.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>For the year ended December&nbsp;31, 2003 Giant Food
    represented 12% of our total revenues.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At December&nbsp;31, 2003, seven of our properties had a Giant
Food supermarket as an anchor tenant. Ahold N.V., a Netherlands
corporation and Giant Food&#146;s ultimate parent company,
generally guarantees the Giant Food leases. During 2003,
published reports indicated there have been accounting
irregularities at certain of Ahold&#146;s U.S. and foreign
operations, which do not necessarily include the supermarket
stores or the Giant Food supermarket affiliates. Ahold&#146;s
debt rating was downgraded in 2003, which may adversely affect
the resulting value of our properties having such tenancies.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We could incur significant costs related to government
    regulation and private litigation over environmental
    matters.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under various federal, state and local laws, ordinances and
regulations, an owner or operator of real estate may be required
to investigate and clean up hazardous or toxic substances or
petroleum product releases at such property and may be held
liable to a governmental entity or to third parties for property
damage and for investigation and clean up costs incurred by such
parties in connection with contamination. The cost of
investigation, remediation or removal of such substances may be
substantial, and the presence of such substances, or the failure
to properly remediate such substances, may adversely affect the
owner&#146;s ability to sell or rent such property or to borrow
using such property collateral. In connection with the
ownership, operation and management of real properties, we are
potentially liable for removal or remediation costs, as well as
certain other related costs, including governmental fines and
injuries to persons and property.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>We may incur significant costs complying with the
    Americans with Disabilities Act and similar laws.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the Americans with Disabilities Act of 1990, or the ADA,
all public accommodations must meet federal requirements related
to access and use by disabled persons. Although we believe that
our properties substantially comply with present requirements of
the ADA, we have not conducted an audit or investigation of all
of our properties to determine our compliance. If one or more of
our properties is not in compliance with the ADA, then we would
be required to incur additional costs to bring the property into
compliance. Additional federal, state and local laws also may
require modifications to our properties or restrict our ability
to renovate our properties. We cannot predict the ultimate
amount of the cost of compliance with the ADA or other
legislation. If we incur substantial costs to comply with the
ADA and any other legislation, our financial condition, results
of operations, cash flow, per share trading price of our common
stock, and our ability to satisfy our debt service obligations
and make distributions to our stockholders could be adversely
affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may incur significant
costs complying with other regulations.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our properties are subject to various federal, state and local
regulatory requirements, such as state and local fire and life
safety requirements. If we fail to comply with these various
requirements, we might incur governmental fines or private
damage awards. We believe that our properties are currently in
material compliance with all applicable regulatory requirements.
However, we do not know whether
</DIV>

<P align="center" style="font-size: 10pt;">8

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
existing requirements will change or whether future requirements
will require us to make significant unanticipated expenditures
that will adversely impact our financial condition, results of
operations, cash flow, the per share trading price of our common
stock, and our ability to satisfy our debt service obligations
and make distributions to our stockholders.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our charter and Maryland law contain provisions that may
    delay, defer or prevent a change of control transaction and
    depress our stock price.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Our charter contains a 9.9% ownership limit.</I> Our charter,
subject to certain exceptions, authorizes our directors to take
such actions as are necessary and desirable relating to
qualification as a REIT and to limit any person to beneficial
ownership of no more than 9.9% of the outstanding shares of our
common stock. Our board of directors, in its sole discretion,
may exempt a proposed transferee from the ownership limit.
However, our board of directors may not grant an exemption from
the ownership limit to any proposed transferee whose direct or
indirect ownership in excess of 9.9% of the value of our
outstanding shares of our common stock could jeopardize our
status as a REIT. These restrictions on transferability and
ownership will not apply if our board of directors determines
that it is no longer in our best interests to attempt to qualify
as, or to be, a REIT. The ownership limit may delay or impede a
transaction or a change of control that might involve a premium
price for our common stock or otherwise be in the best interest
of our stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>We could authorize and issue stock and units without
stockholder approval.</I> Our charter authorizes our board of
directors to authorize additional shares of our common stock or
preferred stock, issue authorized but unissued shares of our
common stock or preferred stock, issue units and to classify or
reclassify any unissued shares of our common stock or preferred
stock and to set the preferences, rights and other terms of such
classified or unclassified shares. Although our board of
directors has no such intention at the present time, it could
establish a series of preferred stock that could, depending on
the terms of such series, delay, defer or prevent a transaction
or a change of control that might involve a premium price for
our common stock or otherwise be in the best interest of our
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Certain provisions of Maryland law could inhibit changes in
control.</I> Certain provisions of the Maryland General
Corporation Law, or MGCL, may have the effect of inhibiting a
third party from making a proposal to acquire us or of impeding
a change of control under circumstances that otherwise could
provide the holders of shares of our common stock with the
opportunity to realize a premium over the then-prevailing market
price of such shares, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    &#147;business combination&#148; provisions that, subject to
    limitations, prohibit certain business combinations between us
    and an &#147;interested stockholder&#148; (defined generally as
    any person who beneficially owns 10% or more of the voting power
    of our shares or an affiliate thereof) for five years after the
    most recent date on which the stockholder becomes an interested
    stockholder, and thereafter imposes special appraisal rights and
    special stockholder voting requirements on these combinations;
    and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    &#147;control share&#148; provisions that provide that our
    &#147;control shares&#148; (defined as shares that, when
    aggregated with other shares controlled by the stockholder,
    entitle the stockholder to exercise one of three increasing
    ranges of voting power in electing directors) acquired in a
    &#147;control share acquisition&#148; (defined as the direct or
    indirect acquisition of ownership or control of control shares)
    have no voting rights except to the extent approved by our
    stockholders by the affirmative vote of at least two-thirds of
    all the votes entitled to be cast on the matter, excluding all
    interested shares.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have opted out of these provisions of the MGCL. However, our
board of directors may, by resolution, elect to opt in to the
business combination provisions of the MGCL and we may, by
amendment to our bylaws, opt in to the control share provisions
of the MGCL in the future.
</DIV>

<P align="center" style="font-size: 10pt;">9

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>If we are not qualified as a REIT, our distributions will
    not be deductible by us, and our income will be subject to
    taxation, reducing our earnings available for
    distribution.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have elected since 1986 to be taxed as a REIT under the
Internal Revenue Code of 1986, as amended, or Code. A REIT will
generally not be subject to federal income taxation on that
portion of its income that qualifies as REIT taxable income, to
the extent that it distributes at least 90% of its taxable
income to its shareholders and complies with certain other
requirements. Under applicable provisions of the Code governing
REITs, a REIT, among other things, may not own more than ten
percent in value or voting power of a corporation other than a
qualifying &#147;taxable REIT subsidiary&#148;. During the
course of our preparation of our financial statements for the
year ended December&nbsp;31, 2003, it was determined that we
indirectly owned more than 10% of one company with an equity
value of approximately $8,000, for which we had inadvertently
failed to file a timely election to be treated as a taxable REIT
subsidiary. We have filed with the Internal Revenue Service an
election to treat such entity as a taxable REIT subsidiary
retroactive to June 2002 when it was formed, and have filed a
request for a ruling to permit late filing of such election.
Based on an opinion of counsel, we believe that we will receive
a favorable ruling and that the likelihood of an unfavorable
ruling is remote.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Distribution requirements could adversely affect our
    liquidity.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We generally must distribute annually at least 90% of our net
taxable income, excluding any net capital gain, in order to be
qualified as a REIT. We intend to make distributions to our
stockholders to comply with the requirements of the Code.
However, differences in timing between the recognition of
taxable income and the actual receipt of cash could require us
to sell assets or borrow funds on a short-term or long-term
basis to meet the 90% distribution requirement of the Code.
Certain of our assets generate substantial mismatches between
taxable income and available cash. Such assets include operating
real estate that has been financed through financing structures
that require some or all of available cash flows to be used to
service borrowings. As a result, the requirement to distribute a
substantial portion of our net taxable income could cause us to:
(a)&nbsp;sell assets in adverse market conditions,
(b)&nbsp;borrow on unfavorable terms or (c)&nbsp;distribute
amounts that would otherwise be invested in future acquisitions,
capital expenditures or repayment of debt in order to comply
with REIT requirements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Further, amounts distributed will not be available to fund
investment activities. If we fail to obtain debt or equity
capital in the future, it could limit our ability to grow, which
could have a material adverse effect on the value of our common
stock.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Dividends payable by REITs do not qualify for the reduced
    tax rates under recently enacted tax legislation.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recently enacted tax legislation reduces the maximum tax rate
for dividends payable to individuals from 38.6% to 15% (through
2008). Dividends payable by REITs, however, are generally not
eligible for the reduced rates. Although this legislation does
not adversely affect the taxation of REITs or dividends paid by
REITs, the more favorable rates applicable to regular corporate
dividends could cause investors who are individuals to perceive
investments in REITs to be relatively less attractive
investments in the stock of non-REIT corporations that pay
dividends, which could adversely affect the value of the stock
of REITs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the relative attractiveness of investments in real
estate companies or real estate in general may be adversely
affected by the newly favorable tax treatment given to corporate
dividends, which could affect the value of our real estate
assets negatively.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our success depends on key personnel whose continued
    service is not guaranteed.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We depend on the efforts of key personnel, particularly
Mr.&nbsp;Ullman, our chairman, chief executive officer and
president. The loss of services of key personnel could
materially and adversely affect our operations because of
diminished relationships with lenders, existing and prospective
tenants and industry personnel.
</DIV>

<P align="center" style="font-size: 10pt;">10

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Risks Related to this Offering</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Shares of our common stock have been thinly traded in the
    past.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although a trading market for our common stock exists, the
trading volume has not been significant and there can be no
assurance that an active trading market for our common stock
will be sustained in the future. As a result of the thin trading
market or &#147;float&#148; for our stock, the market price for
our common stock may fluctuate significantly more than the stock
market as a whole. Without a large float, our common stock is
less liquid than the stock of companies with broader public
ownership and, as a result, the trading prices of our common
stock may be more volatile. In addition, in the absence of an
active public trading market, an investor may be unable to
liquidate his investment in us. Trading of a relatively small
volume of our common stock may have a greater impact on the
trading price for our stock than would be the case if our public
float were larger. We cannot predict the prices at which our
common stock will trade in the future.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Market interest rates may have an effect on the value of
    our common stock.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
One of the factors that will influence the price of our common
stock will be the dividend yield on the common stock (as a
percentage of the price of our common stock) relative to market
interest rates. An increase in market interest rates, which are
currently at low levels relative to historical rates, may lead
prospective purchasers of our common stock to expect a higher
dividend yield and higher interest rates would likely increase
our borrowing costs and potentially decrease funds available for
distribution. Thus, higher market interest rates could cause the
market price of our common stock to go down.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Future sales of shares of our common stock could lower the
    price of our shares.</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may, in the future, sell additional shares of our common
stock in subsequent public offerings. Additionally, shares of
our common stock underlying options will be available for future
sale upon exercise of those options. Any sales of a substantial
number of our shares in the public market, or the perception
that such sales might occur, may cause the market price of our
shares to decline.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='118'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>USE OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The net proceeds from the sale of the securities will be used
for general corporate purposes, which may include the repayment
of existing indebtedness, the development or acquisition of
additional properties as suitable opportunities arise and the
renovation, expansion and improvement of our existing
properties. The applicable prospectus supplement will contain
further details on the use of net proceeds.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='119'></A>
</DIV>

<!-- link1 "DESCRIPTION OF PREFERRED STOCK" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF PREFERRED STOCK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cedar is authorized to issue 5,000,000&nbsp;shares of preferred
stock, $.01&nbsp;par value per share. No shares of preferred
stock are issued and outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The statements below describing the preferred stock are in all
respects subject to and qualified by reference to the applicable
provisions of our Articles of Incorporation and Bylaws and any
applicable articles supplementary to the Articles of
Incorporation designating terms of a series of preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The issuance of preferred stock could adversely affect the
voting power, dividend rights and other rights of holders of
common stock. Issuance of preferred stock could impede, delay,
prevent or facilitate a merger, tender offer or change in our
control. Although the Board of Directors is required to make a
determination as to the best interests of our stockholders when
issuing preferred stock, the Board could act in a manner that
would discourage an acquisition attempt or other transaction
that some, or a majority, of the stockholders might believe to
be in our best interests or in which stockholders might receive
a premium for their shares over the then prevailing market
price. Management believes that the availability
</DIV>

<P align="center" style="font-size: 10pt;">11
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
of preferred stock will provide us with increased flexibility in
structuring possible future financing and acquisitions and in
meeting other needs that might arise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Terms</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the limitations prescribed by the Articles of
Incorporation, the Board of Directors can fix the number of
shares constituting each series of preferred stock and the
designations and powers, preferences and relative,
participating, optional or other special rights and
qualifications, limitations or restrictions thereof, including
such provisions as may be desired concerning voting, redemption,
dividends, dissolution or the distribution of assets, conversion
or exchange, and such other subjects or matters as may be fixed
by resolution of the Board of Directors. When issued, the
preferred stock will be fully paid and nonassessable by us. The
preferred stock will have no preemptive rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reference is made to the prospectus supplement relating to the
preferred stock offered thereby for specific terms, including:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (1)&nbsp;</TD>
    <TD align="left">
    the title and stated value of the preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (2)&nbsp;</TD>
    <TD align="left">
    the number of shares of the preferred stock offered, the
    liquidation preference per share and the offering price of the
    preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (3)&nbsp;</TD>
    <TD align="left">
    the dividend rate(s), period(s) and/or payment date(s) or
    method(s) of calculation thereof applicable to the preferred
    stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (4)&nbsp;</TD>
    <TD align="left">
    the date from which dividends on the preferred stock shall
    accumulate, if applicable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (5)&nbsp;</TD>
    <TD align="left">
    the procedures for any auction and remarketing, if any, for the
    preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (6)&nbsp;</TD>
    <TD align="left">
    the provision for a sinking fund, if any, for the preferred
    stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (7)&nbsp;</TD>
    <TD align="left">
    the provision for redemption, if applicable, of the preferred
    stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (8)&nbsp;</TD>
    <TD align="left">
    any listing of the preferred stock on any securities exchange;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (9)&nbsp;</TD>
    <TD align="left">
    the terms and conditions, if applicable, upon which the
    preferred stock will be convertible into our common stock,
    including the conversion price, or the manner of calculation
    thereof;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="5%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(10)&nbsp;</TD>
    <TD align="left">
    whether interests in the preferred stock will be represented by
    depositary shares;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(11)&nbsp;</TD>
    <TD align="left">
    any other specific terms, preferences, rights, limitations or
    restrictions of the preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(12)&nbsp;</TD>
    <TD align="left">
    a discussion of federal income tax considerations applicable to
    the preferred stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(13)&nbsp;</TD>
    <TD align="left">
    the relative ranking and preferences of the preferred stock as
    to dividend rights and rights upon liquidation, dissolution or
    winding up of our affairs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(14)&nbsp;</TD>
    <TD align="left">
    any limitations on issuance of any series of preferred stock
    ranking senior to or on a parity with the series of preferred
    stock as to dividend rights and rights upon liquidation,
    dissolution or winding up of our affairs; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(15)&nbsp;</TD>
    <TD align="left">
    any limitations on direct or beneficial ownership and
    restrictions on transfer, in each case as may be appropriate to
    be qualified as a REIT.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Rank</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless otherwise specified in the prospectus supplement, the
preferred stock will, with respect to dividend rights and rights
upon liquidation, dissolution or our winding up, rank:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    senior to all classes or series of our common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(b)&nbsp;</TD>
    <TD align="left">
    senior to all equity securities ranking junior to the preferred
    stock;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">12

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(c)&nbsp;</TD>
    <TD align="left">
    equal with all equity securities issued by us, if the terms of
    such securities specifically provide for equal treatment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(d)&nbsp;</TD>
    <TD align="left">
    junior to all equity securities the terms of which specifically
    provide that the equity securities rank senior to the preferred
    stock.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The term &#147;equity securities&#148; excludes convertible debt
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dividends</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of the preferred stock of each series will be entitled
to receive, when and if declared by our Board of Directors, out
of assets legally available for payment, cash dividends at rates
and on dates set forth in the applicable prospectus supplement.
Each such dividend will be payable to holders of record as they
appear on our share transfer books on the applicable record
dates. Our Board of Directors will fix the record dates for
dividend payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As provided in the applicable prospectus supplement, dividends
on any series of the preferred stock may be cumulative or
non-cumulative. Cumulative dividends will be cumulative from and
after the date set forth in the applicable prospectus
supplement. If our Board of Directors fails to declare a
dividend payable on a dividend payment date on any series of the
preferred stock for which dividends are non-cumulative, then the
holders of such series of the preferred stock will have no right
to receive a dividend for the dividend period ending on such
dividend payment date. We will have no obligation to pay the
dividend accrued for such dividend period, whether or not
dividends on such series are declared payable on any future
dividend payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If preferred stock of any series is outstanding, our Board of
Directors will not declare, pay or set apart for payment
dividends on any of our capital stock of any other series
ranking, as to dividends, equally with or junior to the
preferred stock outstanding for any period unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    for preferred stock with cumulative dividends, we have declared
    and paid, or declared and set apart a sum sufficient to pay,
    full cumulative dividends on the preferred stock through the
    then current dividend period; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(b)&nbsp;</TD>
    <TD align="left">
    for preferred stock lacking a cumulative dividend, we have
    declared and paid or declared and set aside a sum sufficient to
    pay full dividends for the then current dividend period;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
When dividends are not paid in full, or when a sum sufficient
for such full payment is not set apart, upon preferred stock of
any series and the shares of any other series of preferred stock
ranking equally as to dividends with the preferred stock of such
series, all dividends declared upon preferred stock of such
series and any other series of preferred stock ranking equally
as to dividends with such preferred stock shall be declared pro
rata so that the amount of dividends declared per share of
preferred stock of such series and such other series of
preferred stock shall in all cases bear to each other the same
ratio that accrued dividends per share on the preferred stock of
such series, which shall not include any accumulation of unpaid
dividends for prior dividend periods if such preferred stock
lacks a cumulative dividend, and such other series of preferred
stock bear to each other. No interest, or sum of money instead
of interest, shall be payable for any dividend payment or
payments on preferred stock of such series which may be in
arrears.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as provided in the immediately preceding paragraph,
unless we have paid dividends through the then current dividend
period, including dividend payments in arrears if dividends are
cumulative, for such series of preferred stock or unless our
Board of Directors has declared such dividends and has set aside
a sum sufficient for such payment, our Board of Directors shall
not declare dividends, other than in shares of common stock or
other capital shares ranking junior to the preferred stock of
such series as to dividends and upon liquidation, or pay or set
aside for payment or declare or make any other distribution upon
the common stock, or any other of our capital shares ranking
junior to or equally with the preferred stock of such series as
to dividends or upon liquidation. Additionally, we shall not
redeem, purchase or otherwise acquire for any consideration, or
any moneys to be paid or made available for a
</DIV>

<P align="center" style="font-size: 10pt;">13

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
sinking fund for the redemption of any such shares, any shares
of common stock, or any other of our capital shares ranking
junior to or equally with the preferred stock of such series as
to dividends or upon liquidation. Notwithstanding the foregoing,
we may convert such shares into or exchange such shares for
other of our capital shares ranking junior to the preferred
stock of such series as to dividends and upon liquidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Redemption</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the applicable prospectus supplement so provides, the
preferred stock will be subject to mandatory redemption or
redemption at our option, as a whole or in part, in each case
upon the terms, at the times and at the redemption prices set
forth in such prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The prospectus supplement applicable to a series of preferred
stock that is subject to mandatory redemption will specify:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    the number of shares of such preferred stock that shall be
    redeemed by us in each year,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(b)&nbsp;</TD>
    <TD align="left">
    the year such redemption will commence,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(c)&nbsp;</TD>
    <TD align="left">
    the redemption price per share, together with an amount equal to
    all accrued and unpaid dividends thereon to the date of
    redemption,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(d)&nbsp;</TD>
    <TD align="left">
    whether the redemption price is payable in cash or property.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the redemption price for preferred stock of any series is
payable only from the net proceeds of the issuance of our
capital shares, the terms of such preferred stock may provide
that, if we have not issued capital shares or to the extent the
net proceeds from any issuance are insufficient to pay in full
the aggregate redemption price then due, such preferred stock
shall automatically be converted into our capital shares
pursuant to conversion provisions specified in the applicable
prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We cannot redeem, purchase or otherwise acquire shares of a
series of preferred stock unless:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    for preferred stock with cumulative dividends, we have declared
    and paid, or declared and set apart a sum sufficient to pay,
    full cumulative dividends on the preferred stock through the
    then current dividend period;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(b)&nbsp;</TD>
    <TD align="left">
    for preferred stock lacking a cumulative dividend, we have
    declared and paid or declared and set aside a sum sufficient to
    pay full dividends for the then current dividend period;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing shall not prevent the purchase or acquisition of
preferred stock of such series to preserve our REIT status or
pursuant to a purchase or exchange offer made on the same terms
to holders of all outstanding preferred stock of such series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If fewer than all of the outstanding shares of preferred stock
of any series are to be redeemed, we will determine the number
of shares to be redeemed. We may redeem the shares on a pro rata
basis from the holders of record of such shares in proportion to
the number of such shares held or for which redemption is
requested by such holder with adjustments to avoid redemption of
fractional shares, or by lot.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will mail notice of redemption 30 to 60&nbsp;days prior to
the redemption date to each holder of record of preferred stock
of any series to be redeemed at the address shown on our share
transfer books. Each notice shall state:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    the redemption date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(b)&nbsp;</TD>
    <TD align="left">
    the number of shares and series of the preferred stock to be
    redeemed;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(c)&nbsp;</TD>
    <TD align="left">
    the redemption price;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(d)&nbsp;</TD>
    <TD align="left">
    the place or places where certificates for such preferred stock
    are to be surrendered for payment of the redemption price;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">14

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(e)&nbsp;</TD>
    <TD align="left">
    that dividends on the shares to be redeemed will cease to accrue
    on such redemption date;&nbsp;and</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(f)&nbsp;</TD>
    <TD align="left">
    the date upon which the holder&#146;s conversion rights, if any,
    as to such shares shall terminate.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If we are to redeem fewer than all the shares of preferred stock
of any series, the notice we mail to each holder of preferred
stock shall specify the number of shares of preferred stock to
be redeemed from each holder. If we have given notice of
redemption of any preferred stock and if we have set aside, in
trust for the benefit of the holders of any preferred stock
called for redemption, the funds necessary for such redemption,
then from and after the redemption date dividends will cease to
accrue on the preferred stock to be redeemed. Additionally all
rights of the holders of the redeemable shares will terminate,
except the right to receive the redemption price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Liquidation Preference</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon any voluntary or involuntary liquidation, dissolution or
winding up of our affairs, then the holders of each series of
preferred stock shall be entitled to receive out of our assets
legally available for distribution to shareholders liquidating
distributions in the amount of the liquidation preference per
share, plus an amount equal to all dividends accrued and unpaid
on such series of preferred stock. Such preferred shareholders
will receive these distributions before any distribution or
payment shall be made to the holders of any common stock or any
other class or series of our capital shares ranking junior to
the preferred stock in the distribution of assets upon our
liquidation, dissolution or winding up. After payment of the
full amount of the liquidating distributions to which they are
entitled, the holders of preferred stock will have no right or
claim to any of our remaining assets. If our available assets
are insufficient to pay the amount of the liquidating
distributions on all outstanding preferred stock and the
corresponding amounts payable on all shares of other classes or
series of our capital shares ranking equally with the preferred
stock in the distribution of assets, then the holders of the
preferred stock and all other such classes or series of capital
shares shall share on a pro rata basis in any such distribution
of assets in proportion to the full liquidating distributions to
which they would otherwise be entitled.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If liquidating distributions have been made in full to all
holders of preferred stock, our remaining assets will be
distributed among the holders of any other classes or series of
capital shares ranking junior to the preferred stock upon
liquidation, dissolution or winding up, according to their
rights and preferences and in each case according to their
number of shares. For such purposes, our consolidation or merger
with or into any other corporation, trust or entity, or the
sale, lease or conveyance of all or substantially all of our
property or business, shall not be deemed to constitute our
liquidation, dissolution or winding up.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Voting Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of the preferred stock will not have any voting rights,
except as set forth below or as otherwise from time to time
required by law or as indicated in the applicable prospectus
supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whenever dividends on any shares of preferred stock are in
arrears for six or more consecutive quarterly periods, the
holders of such shares of preferred stock, voting separately as
a class with all other series of preferred stock upon which like
voting rights have been conferred and are exercisable, will be
entitled to vote for the election of two additional directors at
a special meeting called by the holders of record of
ten&nbsp;percent (10%) of any series of preferred stock so in
arrears or at the next annual meeting of stockholders, and at
each subsequent annual meeting until (a)&nbsp;if such series of
preferred stock has a cumulative dividend, we have paid or our
Board of Directors has declared and set aside a sum sufficient
for payment of all dividends accumulated on such shares of
preferred stock for the past dividend periods and the then
current dividend period or (b)&nbsp;if such series of preferred
stock lacks a cumulative dividend, we have fully paid or our
Board of Directors has declared and set aside a sum sufficient
for payment of four consecutive quarterly dividends. In such
case, two directors will be added to our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless provided otherwise for any series of preferred stock, so
long as any shares of preferred stock remain outstanding, we
will not, without the affirmative vote or consent of the holders
of at least
</DIV>

<P align="center" style="font-size: 10pt;">15

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
two-thirds of the shares of each series of preferred stock
outstanding at the time, given in person or by proxy, either in
writing or at a meeting with such series voting separately as a
class, (a)&nbsp;authorize or create, or increase the authorized
or issued amount of, any class or series of capital stock
ranking prior to such preferred stock with respect to payment of
dividends or the distribution of assets upon liquidation,
dissolution or winding up or reclassify any of our authorized
capital stock into such shares, or create, authorize or issue
any obligation or security convertible into or evidencing the
right to purchase any such shares; or (b)&nbsp;amend, alter or
repeal the provisions of our Articles of Incorporation or the
designating amendment for such series of preferred stock,
whether by merger, consolidation or otherwise, so as to
materially and adversely affect any right, preference, privilege
or voting power of such series of preferred stock or the holders
thereof. With respect to the occurrence of any of the events set
forth in (b)&nbsp;above so long as the preferred stock remains
outstanding with the terms thereof materially unchanged, the
occurrence of any such event shall not be deemed to materially
and adversely affect such rights, preferences, privileges or
voting power of holders of preferred stock. Additionally, any
increase in the amount of the authorized preferred stock or the
creation or issuance of any other series of preferred stock, or
any increase in the amount of authorized shares of such series
or any other series of preferred stock, in each case ranking on
a parity with or junior to the preferred stock of such series
with respect to payment of dividends or the distribution of
assets upon liquidation, dissolution or winding up, shall not be
deemed to materially and adversely affect such rights,
preferences, privileges or voting powers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing voting provisions will not apply if, at or prior
to the time when the act with respect to which such vote would
otherwise be required shall be effected, all outstanding shares
of such series of preferred stock shall have been redeemed or
called for redemption and sufficient funds shall have been
deposited in trust to effect such redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Conversion Rights</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The applicable prospectus supplement will set forth the terms
and conditions, if any, upon which any series of preferred stock
is convertible into shares of common stock. Such terms will
include the number of shares of common stock into which the
shares of preferred stock are convertible, the conversion price,
or manner of calculation thereof, the conversion period,
provisions as to whether conversion will be at the option of the
holders of the preferred stock or us, the events requiring an
adjustment of the conversion price and provisions affecting
conversion in the event of the redemption of such series of
preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Shareholder Liability</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Maryland law provides that no shareholder, including holders of
preferred stock, shall be personally liable for our acts and
obligations and that our funds and property shall be the only
recourse for such acts or obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Restrictions on Ownership</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To qualify as a REIT under the Code, not more than 50% in value
of our outstanding capital shares may be owned, directly or
indirectly, by five or fewer individuals as defined in the Code
to include certain entities, during the last half of a taxable
year. Therefore, the designating amendment for each series of
preferred stock may contain provisions restricting the ownership
and transfer of the preferred stock. The applicable prospectus
supplement will specify any additional ownership limitation
relating to a series of preferred stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Registrar and Transfer Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The applicable prospectus supplement will set forth the
Registrar and Transfer Agent for the preferred stock.
</DIV>

<P align="center" style="font-size: 10pt;">16

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='120'></A>
</DIV>

<!-- link1 "DESCRIPTION OF DEPOSITARY SHARES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF DEPOSITARY SHARES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may issue receipts for depositary shares, each of which will
represent a fractional interest of a share of a particular
series of preferred stock, as specified in the applicable
prospectus supplement. Shares of preferred stock of each series
represented by the depositary shares will be deposited under a
separate deposit agreement between us, the depositary named
therein and the holders of the depositary receipts. Subject to
the terms of the deposit agreement, each depositary receipt
owner will be entitled, in proportion to the fractional interest
of a share of a particular series of preferred stock represented
by the depositary shares evidenced by such depositary receipt,
to all the rights and preferences of the preferred stock
represented thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Depositary receipts issued pursuant to the applicable deposit
agreement will evidence the depositary shares. Immediately
following our issuance and delivery of the preferred stock to
the depositary, we will cause the depositary to issue, on our
behalf, the depositary receipts. Upon request, we will provide
you with copies of the applicable form of deposit agreement and
depositary receipt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Dividends and Other Distributions</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The depositary will distribute all cash dividends or other cash
distributions received in respect of the preferred stock to the
record holders of depositary receipts evidencing the related
depositary shares in proportion to the number of depositary
receipts owned by the holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If there is a distribution other than in cash, the depositary
will distribute property received by it to the record holders of
depositary receipts entitled thereto. If the depositary
determines that it is not feasible to make such distribution,
the depositary may, with our approval, sell the property and
distribute the net proceeds from such sale to the holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Withdrawal of Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon surrender of the depositary receipts at the corporate trust
office of the depositary, unless the related depositary shares
have previously been called for redemption, the holders thereof
will be entitled to delivery, to or upon such holders&#146;
order, of the number of whole or fractional shares of the
preferred stock and any money or other property represented by
the depositary shares evidenced by the depositary receipts.
Holders of depositary receipts will be entitled to receive whole
or fractional shares of the related preferred stock on the basis
of the proportion of preferred stock represented by each
depositary share as specified in the applicable prospectus
supplement. Thereafter, holders of such shares of preferred
stock will not be entitled to receive depositary shares for the
preferred stock. If the depositary receipts delivered by the
holder evidence a number of depositary shares in excess of the
number of depositary shares representing the number of shares of
preferred stock to be withdrawn, the depositary will deliver to
the holder a new depositary receipt evidencing the excess number
of depositary shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Redemption of Depositary Shares</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provided we shall have paid in full to the depositary the
redemption price of the preferred stock to be redeemed plus an
amount equal to any accrued and unpaid dividends thereon to the
redemption date, whenever we redeem shares of preferred stock
held by the depositary, the depositary will redeem as of the
same redemption date the number of depositary shares
representing shares of the preferred stock so redeemed. The
redemption price per depositary share will be equal to the
redemption price and any other amounts per share payable with
respect to the preferred stock. If fewer than all the depositary
shares are to be redeemed, the depositary shares to be redeemed
will be selected as nearly as may be practicable without
creating fractional depositary shares, pro rata, or by any other
equitable method we determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
From and after the date fixed for redemption, all dividends in
respect of the shares of preferred stock so called for
redemption will cease to accrue, the depositary shares called
for redemption will no
</DIV>

<P align="center" style="font-size: 10pt;">17
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
longer be deemed to be outstanding and all rights of the holders
of the depositary receipts evidencing the depositary shares so
called for redemption will cease, except the right to receive
any moneys payable upon such redemption and any money or other
property to which the holders of such depositary receipts were
entitled to receive upon such redemption upon surrender to the
depositary of the depositary receipts representing the
depositary shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Voting of the Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon receipt of notice of any meeting at which the holders of
the preferred stock are entitled to vote, the depositary will
mail the information contained in such notice of meeting to the
record holders of the depositary receipts evidencing the
depositary shares that represent such preferred stock. Each
record holder of depositary receipts evidencing depositary
shares on the record date, which will be the same date as the
record date for the preferred stock, will be entitled to
instruct the depositary as to the exercise of the voting rights
pertaining to the amount of preferred stock represented by such
holder&#146;s depositary shares. The depositary will vote the
amount of preferred stock represented by such depositary shares
in accordance with such instructions, and we will agree to take
all reasonable action that may be deemed necessary by the
depositary in order to enable the depositary to do so. If the
depositary does not receive specific instructions from the
holders of depositary receipts evidencing such depositary
shares, it will abstain from voting the amount of preferred
stock represented by such depositary shares. The depositary
shall not be responsible for any failure to carry out any
instruction to vote, or for the manner or effect of any such
vote made, as long as any such action or non-action is in good
faith and does not result from the depositary&#146;s negligence
or willful misconduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Liquidation Preference</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon our liquidation, dissolution or winding up, whether
voluntary or involuntary, the holders of each depositary receipt
will be entitled to the fraction of the liquidation preference
accorded each share of preferred stock represented by the
depositary share evidenced by such depositary receipt, as set
forth in the applicable prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Conversion of Preferred Stock</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except with respect to certain conversions in order to be
qualified as a REIT, the depositary shares are not convertible
into our common stock or any other of our securities or
property. Nevertheless, if the applicable prospectus supplement
so specifies, the holders of the depositary receipts may
surrender their depositary receipts to the depositary with
written instructions to the depositary to instruct us to cause
conversion of the preferred stock represented by the depositary
shares evidenced by such depositary receipts into whole shares
of common stock, other shares of our preferred stock or other
shares of our capital stock, and we have agreed that upon
receipt of such instructions and any amounts payable in respect
thereof, we will cause the conversion of the depositary shares
utilizing the same procedures as those provided for delivery of
preferred stock to effect such conversion. If the depositary
shares evidenced by a depositary receipt are to be converted in
part only, the depositary will issue a new depositary receipt
for any depositary shares not to be converted. No fractional
shares of common stock will be issued upon conversion, and if
such conversion will result in a fractional share being issued,
we will pay an amount in cash equal to the value of the
fractional interest based upon the closing price of the common
stock on the last business day prior to the conversion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Amendment and Termination of the Deposit Agreement</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By agreement, we and the depositary at any time can amend the
form of depositary receipt and any provision of the deposit
agreement. However, any amendment that materially and adversely
alters the rights of the holders of depositary receipts or that
would be materially and adversely inconsistent with the rights
granted to holders of the related preferred stock will be
effective only if the existing holders of at least two-thirds of
the depositary shares have approved the amendment. No amendment
shall impair the right, subject to certain exceptions in the
deposit agreement, of any holder of depositary receipts to
</DIV>

<P align="center" style="font-size: 10pt;">18

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
surrender any depositary receipt with instructions to deliver to
the holder the related preferred stock and all money and other
property, if any, represented thereby, except in order to comply
with law. Every holder of an outstanding depositary receipt at
the time an amendment becomes effective shall be deemed, by
continuing to hold the depositary receipt, to consent and agree
to the amendment and to be bound by the deposit agreement as
amended thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon 30&nbsp;days&#146; prior written notice to the depositary,
we may terminate the deposit agreement if (a)&nbsp;such
termination is necessary to be qualified as a REIT or (b)&nbsp;a
majority of each series of preferred stock affected by such
termination consents to such termination. Upon the termination
of the deposit agreement, the depositary shall deliver or make
available to each holder of depositary receipts, upon surrender
of the depositary receipts held by such holder, such number of
whole or fractional shares of preferred stock as are represented
by the depositary shares evidenced by the depositary receipts
together with any other property held by the depositary with
respect to the depositary receipt. If the deposit agreement is
terminated to preserve our status as a REIT, then we will use
our best efforts to list the preferred stock issued upon
surrender of the related depositary shares on a national
securities exchange.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The deposit agreement will automatically terminate if
(a)&nbsp;all outstanding depositary shares shall have been
redeemed, (b)&nbsp;there shall have been a final distribution in
respect of the related preferred stock in connection with our
liquidation, dissolution or winding up and such distribution
shall have been distributed to the holders of depositary
receipts evidencing the depositary shares representing such
preferred stock or (c)&nbsp;each share of the related preferred
stock shall have been converted into our capital stock not so
represented by depositary shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Charges of Depositary</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will pay all transfer and other taxes and governmental
charges arising solely from the existence of the deposit
agreement. In addition, we will pay the fees and expenses of the
depositary in connection with the performance of its duties
under the deposit agreement. However, holders of depositary
receipts will pay certain other transfer and other taxes and
governmental charges. The holders will also pay the fees and
expenses of the depositary for any duties, outside of those
expressly provided for in the deposit agreement, the holders
request to be performed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Resignation and Removal of Depositary</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The depositary may resign at any time by delivering to us notice
of its election to do so. We may at any time remove the
depositary, any such resignation or removal will take effect
upon the appointment of a successor depositary. A successor
depositary must be appointed within 60&nbsp;days after delivery
of the notice of resignation or removal and must be a bank or
trust company having its principal office in the United States
and having a combined capital and surplus of $50,000,000 or more.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Miscellaneous</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The depositary will forward to holders of depositary receipts
any reports and communications from us which are received by the
depositary with respect to the related Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We and the depositary will not be liable if either of us is
prevented from or delayed in, by law or any circumstances beyond
its control, performing its obligations under the deposit
agreement. Our obligations and the depositary&#146;s obligations
under the deposit agreement will be limited to performing the
duties thereunder in good faith and without negligence, in the
case of any action or inaction in the voting of preferred stock
represented by the depositary shares, gross negligence or
willful misconduct. If satisfactory indemnity is furnished, we
and the depositary will be obligated to prosecute or defend any
legal proceeding in respect of any depositary receipts,
depositary shares or shares of preferred stock represented
thereby. We and the depositary may rely on written advice of
counsel or accountants, or information provided by persons
presenting shares of preferred stock represented by depository
receipts for deposit, holders of depositary receipts or other
persons believed in good faith to be competent to give such
information, and on documents believed in good faith to be
genuine and signed by a proper party.
</DIV>

<P align="center" style="font-size: 10pt;">19

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event the depositary shall receive conflicting claims,
requests or instructions from any holders of depositary
receipts, on the one hand, and us, on the other hand, the
depositary shall be entitled to act on our claims, requests or
instructions.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='121'></A>
</DIV>

<!-- link1 "DESCRIPTION OF COMMON STOCK" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF COMMON STOCK</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cedar&#146;s authorized capital stock includes 50&nbsp;million
shares of common stock, $.06&nbsp;par value per share. For each
outstanding share of common stock held, the holder is entitled
to one vote on all matters presented to stockholders for a vote.
Cumulative voting is not permitted. Holders of the common stock
do not have preemptive rights. At April&nbsp;15, 2004, there
were 16,456,011&nbsp;shares of common stock outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All shares of common stock issued and sold will be duly
authorized, fully paid, and non-assessable. Distributions may be
paid to the holders of common stock if and when declared by our
Board of Directors. Dividends will be paid out of funds legally
available for dividend payment. We have paid quarterly dividends
beginning with a dividend for the portion of the quarter from
the closing of our public offering in October 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under Maryland law, stockholders are generally not liable for
our debts or obligations. If we are liquidated, subject to the
right of any holders of preferred stock to receive preferential
distributions, each outstanding share of common stock will be
entitled to participate pro rata in the assets remaining after
payment of, or adequate provision for, all of our known debts
and liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Restrictions on Ownership</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to qualify as a REIT under the Code, not more than 50%
in value of our outstanding common stock may be owned, directly
or indirectly, by five or fewer individuals, as defined in the
Code, during the last half of a taxable year and the common
stock must be beneficially owned by 100 or more persons during
335&nbsp;days of a taxable year of 12&nbsp;months, or during a
proportionate part of a shorter taxable year. To satisfy the
above ownership requirements and certain other requirements for
qualification as a REIT, our Articles of Incorporation contain a
provision restricting the ownership or acquisition of shares of
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Registrar and Transfer Agent</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
American Stock Transfer&nbsp;&#38; Trust Company is the
Registrar and Transfer Agent for the common stock.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='122'></A>
</DIV>

<!-- link1 "DESCRIPTION OF WARRANTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF WARRANTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>General</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may issue, together with other securities or separately,
warrants to purchase our common stock or preferred stock. We
will issue the warrants under warrant agreements to be entered
into between us and a warrant agent, or as shall be set forth in
the applicable prospectus supplement. The warrant agent will act
solely as our agent in connection with the warrants of the
series being offered and will not assume any obligation or
relationship of agency or trust for or with any holders or
beneficial owners of warrants. The applicable prospectus
supplement will describe the following terms, where applicable,
of warrants in respect of which this prospectus is being
delivered:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the title of warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the designation, amount and terms of the securities for which
    the warrants are exercisable and the procedures and conditions
    relating to the exercise of the warrants;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">20

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the designation and terms of the other securities, if any, with
    which the warrants are to be issued and the number of warrants
    issued with such security;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the price or prices at which the warrants will be issued;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the aggregate number of warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    any provisions for adjustment of the number or amount of
    securities receivable upon exercise of the warrants or the
    exercise price of the warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the price or prices at which the securities purchasable upon
    exercise of the warrants may be purchased;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    if applicable, the date on and after which the warrants and the
    securities purchasable upon exercise of the warrants will be
    separately transferable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    if applicable, a discussion of the material United States
    federal income tax considerations applicable to the exercise of
    the warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    any other terms of the warrants, including terms, procedures and
    limitations relating to the exchange and exercise of the
    warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the date on which the right to exercise the warrants will
    commence, and the date on which the right will expire;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the maximum or minimum number of warrants which may be exercised
    at any time;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    information with respect to book-entry procedures, if any.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to this prospectus we also may issue warrants to
underwriters or agents as additional compensation in connection
with a distribution of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Exercise of Warrants</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each warrant will entitle the holder thereof to purchase for
cash the number of shares of preferred stock or common stock at
the exercise price as will in each case be set forth in, or be
determinable as set forth in, the applicable prospectus
supplement. Warrants may be exercised at any time up to the
close of business on the expiration date set forth in the
applicable prospectus supplement. After the close of business on
the expiration date, unexercised warrants will become void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Warrants may be exercised as set forth in the applicable
prospectus supplement relating to those warrants. Upon receipt
of payment and the warrant certificate properly completed and
duly executed at the corporate trust office of the warrant agent
or any other office indicated in the applicable prospectus
supplement, we will, as soon as practicable, forward the
purchased securities. If less than all of the warrants
represented by the warrant certificate are exercised, a new
warrant certificate will be issued for the remaining warrants.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='123'></A>
</DIV>

<!-- link1 "DESCRIPTION OF STOCK PURCHASE CONTRACTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF STOCK PURCHASE CONTRACTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may issue stock purchase contracts, which are contracts
obligating holders to purchase from or sell to us, and
obligating us to purchase from or sell to the holders, a
specified number of shares of our common stock at a future date
or dates. The price per share of common stock may be fixed at
the time the stock purchase contracts are issued or may be
determined by reference to a specific formula contained in the
stock purchase contracts. We may issue stock purchase contracts
in such amounts and in as many distinct series as we wish.
</DIV>

<P align="center" style="font-size: 10pt;">21

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The prospectus supplement may contain, where applicable, the
following information about the stock purchase contracts issued
under it:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    whether the stock purchase contracts obligate the holder to
    purchase or sell, or both purchase and sell, our common stock
    and the nature and amount of common stock, or the method of
    determining that amount;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    whether the stock purchase contracts are to be prepaid or not;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    whether the stock purchase contracts are to be settled by
    delivery, or by reference or linkage to the value, performance
    or level of our common stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    any acceleration, cancellation, termination or other provisions
    relating to the settlement of the stock purchase
    contracts;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    whether the stock purchase contracts will be issued in fully
    registered or global form.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The applicable prospectus supplement will describe the terms of
any stock purchase contracts. The preceding description and any
description of stock purchase contracts in the applicable
prospectus supplement does not purport to be complete and is
subject to and is qualified in its entirety by reference to the
stock purchase contract agreement and, if applicable, collateral
arrangements and depository arrangements relating to such stock
purchase contracts.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='124'></A>
</DIV>

<!-- link1 "DESCRIPTION OF UNITS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DESCRIPTION OF UNITS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may issue units comprised of one or more of the other
securities described in this prospectus in any combination. Each
unit will be issued so that the holder of the unit is also the
holder of each security included in the unit. Thus, the holder
of a unit will have the rights and obligations of a holder of
each included security. The unit agreement under which a unit is
issued may provide that the securities included in the unit may
not be held or transferred separately, at any time or at any
time before a specified date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The applicable prospectus supplement may describe:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    the designation and terms of the units and of the securities
    comprising the units, including whether and under what
    circumstances those securities may be held or transferred
    separately;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    any provisions for the issuance, payment, settlement, transfer
    or exchange of the units or of the securities comprising the
    units;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    whether the units will be issued in fully registered or global
    form.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The applicable prospectus supplement will describe the terms of
any units. The preceding description and any description of
units in the applicable prospectus supplement does not purport
to be complete and is subject to and is qualified in its
entirety by reference to the unit agreement and, if applicable,
collateral arrangements and depositary arrangements relating to
such units.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='125'></A>
</DIV>

<!-- link1 "PLAN OF DISTRIBUTION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PLAN OF DISTRIBUTION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We may sell the securities to one or more underwriters for
public offering and sale by them or may sell the securities to
investors directly or through agents. We will name, in the
applicable prospectus supplement, any such underwriter or agent
involved in the offer and sale of the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Underwriters may offer and sell the securities at a fixed price
or prices, which may be changed, at prices related to the
prevailing market prices at the time of sale or at negotiated
prices. We may, from time to time, authorize underwriters acting
as our agents to offer and sell the securities upon the terms
and conditions as are set forth in the applicable prospectus
supplement. In connection with the sale of securities,
underwriters may be deemed to have received compensation from us
in the form of underwriting
</DIV>

<P align="center" style="font-size: 10pt;">22

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
discounts or commissions and may also receive commissions from
purchasers of securities for whom they may act as agent.
Underwriters may sell securities to or through dealers, and such
dealers may receive compensation in the form of discounts,
concessions or commissions from the underwriters and/or
commissions from the purchasers for whom they may act as agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will set forth in the applicable prospectus supplement any
underwriting compensation we pay to underwriters or agents in
connection with the offering of securities, and any discounts,
concessions or commissions allowed by underwriters to
participating dealers. Underwriters, dealers and agents
participating in the distribution of the securities may be
deemed to be underwriters, and any discounts and commissions
received by them and any profit realized by them on resale of
the securities may be deemed to be underwriting discounts and
commissions, under the Securities Act. Underwriters, dealers and
agents may be entitled, under agreements entered into with us,
to indemnification against and contribution toward certain civil
liabilities, including liabilities under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the applicable prospectus supplement so indicates, we will
authorize dealers acting as our agents to solicit offers by
certain institutions to purchase securities from them at the
public offering price set forth in such prospectus supplement
pursuant to Delayed Delivery Contracts (&#147;Contracts&#148;)
providing for payment and delivery on the date or dates stated
in such prospectus supplement. Each Contract will be for an
amount not less than, and the aggregate principal amount of
securities sold pursuant to Contracts shall be equal to, the
respective amounts stated in the applicable prospectus
supplement. Institutions with whom Contracts, when authorized,
may be made include commercial and savings banks, insurance
companies, pension funds, investment companies, educational and
charitable institutions, and other institutions but will in all
cases be subject to our approval. Contracts will not be subject
to any conditions except (a)&nbsp;the purchase by an institution
of the securities covered by its Contracts shall not at the time
of delivery be prohibited under the laws of any jurisdiction in
the United States to which such institution is subject, and
(b)&nbsp;if the securities are being sold to underwriters, we
shall have sold to such underwriters the total principal amount
of the securities less the principal amount thereof covered by
Contracts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the ordinary course of business, certain of the underwriters
and their affiliates may be customers of, engage in transactions
with and perform services for us.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='126'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LEGAL MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stroock&nbsp;&#38; Stroock&nbsp;&#38; Lavan LLP of New York, New
York will pass upon the validity of the issuance of the
securities offered hereby for us.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='127'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXPERTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ernst&nbsp;&#38; Young LLP, independent auditors, have audited
our consolidated financial statements and schedule included in
our Annual Report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2003, as set forth in their report, which is
incorporated by reference in this prospectus and elsewhere in
the registration statement. Our financial statements and
schedule are incorporated by reference in reliance on
Ernst&nbsp;&#38; Young LLP&#146;s report, given on their
authority as experts in accounting and auditing.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='128'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We file reports, proxy statements and other information with the
SEC. You may inspect and copy any document that we file at the
public reference rooms maintained by the SEC in
Washington,&nbsp;D.C., New York, New York and Chicago, Illinois.
Any documents we file may also be available at the SEC&#146;s
site on the World Wide Web located at http://www.sec.gov. For a
fee you can obtain the documents by mail from the Public
Reference Section of the SEC at 450&nbsp;Fifth Street, N.W.,
Washington,&nbsp;D.C. 20549.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have filed with the SEC a Registration Statement on
Form&nbsp;S-3 under the Securities Act of 1933. This prospectus
does not contain all of the information set forth in the
registration statement.
</DIV>

<P align="center" style="font-size: 10pt;">23
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 16pt; margin-top: 84pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>1,200,000 Shares</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 36pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Cedar Shopping Centers, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 36pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%
Series&nbsp;A Cumulative Redeemable Preferred Stock</B>
</DIV>

<DIV align="center" style="font-size: 14pt;">
<B>(Liquidation Preference $25 Per Share)</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 86pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 56%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 56%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 16pt; margin-top: 11pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Merrill Lynch&nbsp;&#38; Co.</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>Raymond J ames</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>Legg Mason Wood Walker</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<B>Incorporated&nbsp;</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 11pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>March&nbsp;30, 2005</B>
</DIV>

<DIV align="left" style="font-size: 3pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
